HOUSE LABOR AND COMMERCE STANDING COMMITTEE April 1, 1993 3:00 p.m. MEMBERS PRESENT Rep. Bill Hudson, Chairman Rep. Joe Green, Vice Chairman Rep. Brian Porter Rep. Eldon Mulder Rep. Bill Williams Rep. Jerry Mackie Rep. Joe Sitton MEMBERS ABSENT None COMMITTEE CALENDAR HB 221: "An Act relating to workers' compensation for volunteer ambulance attendants, police officers, and fire fighters; and providing for an effective date." PASSED OUT OF COMMITTEE HB 180: "An Act relating to the residential housing inspection requirements of the Alaska Housing Finance Corporation." PASSED OUT OF COMMITTEE *HB 222: "An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises." PASSED OUT OF COMMITTEE SB 83: "An Act relating to an alcohol server education course." PASSED OUT OF COMMITTEE *HB 187: "An Act authorizing the interception of private communications related to the commission of certain criminal offenses; making related amendments to statutes relating to eavesdropping and wiretapping; relating to the penalty for violation of statutes relating to eavesdropping and unauthorized interception, publication, or use of private communications; and providing for an effective date." PASSED OUT OF COMMITTEE *HB 14: "An Act making an appropriation for capitalization of the BIDCO fund; and providing for an effective date." PASSED OUT OF COMMITTEE HB 237: "An Act relating to marine pilot licensing and tariffs." HEARD AND HELD IN COMMITTEE SB 64: "An Act relating to civil liability for workplace safety inspections; and providing for an effective date." POSTPONED HB 241: "An Act relating to workers' compensation; and providing for an effective date." POSTPONED (* First public hearing.) WITNESS REGISTER REP. BILL HUDSON Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-3744 Position Statement: Prime Sponsor of HB 221 JOHN GEORGE 9515 Moraine Way Juneau, Alaska 99801 789-0172 Position Statement: Supported HB 221 PATRICK T. EGGERS First Vice President Alaska State Fire Fighters Association P.O. Box 240282 Douglas, Alaska 99824 364-3366 Position Statement: Supported HB 221 DAVID HARDING, Staff Rep. Eileen MacLean Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-4833 Position Statement: Spoke on behalf of prime sponsor of HB 180 FIRLE REDBURN National Bank of Alaska P.O. Box 1469 Nome, Alaska 99762 443-2223 Position Statement: Supported HB 180 ROBIN HARRISON National Bank of Alaska P.O. Box 53 Barrow, Alaska 99723 852-6200 Position Statement: Supported HB 180 MYRON MCCUMBER P.O. Box 1388 Barrow, Alaska 99723 852-6588 Position Statement: Supported HB 180 JIM MCCORMACK Alaska Banking Association P.O. Box 100600 Anchorage, Alaska 99510 265-2878 Position Statement: Supported HB 180 ROBIN WARD Building Association of Anchorage P.O. Box 91443 Anchorage, Alaska 99509 345-6955 Position Statement: Supported HB 180 JOHN URE P.O. Box 288 Naknek, Alaska 99633 246-8298 Position Statement: Supported HB 180 TONY DOYLE Alaska State Home Builder's Association 7984 Spur Highway Kenai, Alaska 99611 283-3886 Position Statement: Supported HB 180 JIM STEVENS P.O. Box 69 Barrow, Alaska 99723 852-2185 Position Statement: Supported HB 180 JOE GRAHAM P.O. Box 101157 Anchorage, Alaska 99516 562-4915 Position Statement: Supported HB 180 STEVE WISDOM Kenai Peninsula Builder's Association P.O. Box 4184 Homer, Alaska 99603 235-5607 Position Statement: Supported HB 180 REP. JEANNETTE JAMES Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-3743 Position Statement: Prime Sponsor of HB 222 ANNETTE KOCH P.O. Box 30 Ester, Alaska 99725 479-0030 Position Statement: Supported HB 222 MYRNA SHEETS 1028 Evergreen St. Fairbanks, Alaska 99709 456-8760 Position Statement: Supported HB 222 HAROLD HUME 4016 Birch Lane Fairbanks, Alaska 99709 479-6724 Position Statement: Supported HB 222 BETTY JOHNSON 1508 Haselton Rd. Fairbanks, Alaska 99709 479-6860 Position Statement: Supported HB 222 SAM HELMS 1524 Stacia Fairbanks, Alaska 99701 452-3849 Position Statement: Supported HB 222 JEROME BYRD 2224 Eastland Fairbanks, Alaska 99701 451-7375 Position Statement: Supported HB 222 JOHN TODD 13320 Crestview Dr. Anchorage, Alaska 99516 345-2257 Position Statement: Supported HB 222 DOUGLAS ISAACSON State Director Credit Services 2254 Crane Ct. Fairbanks, Alaska 99709 455-6608 Position Statement: Supported HB 222 ALICE BREWER 1201 W. 45th Anchorage, Alaska 99503 563-6734 Position Statement: Supported HB 222 JOE GRAHAM P.O. Box 101157 Anchorage, Alaska 562-4915 Position Statement: Supported HB 222 CHARLES LIPPITT 2203 McKinley Ave. Anchorage, Alaska 99517 248-4770 Position Statement: Supported HB 222 HANS METZ 5305 E. 42nd Anchorage, Alaska 99508 333-6670 Position Statement: Supported HB 222 EUGENE DEVINE 2115 Turnagain Parkway Anchorage, Alaska 99517 248-0258 Position Statement: Supported HB 222 DIXIE DIXON 2600 Cordova St., #100 Anchorage, Alaska 99503 257-0127 Position Statement: Supported HB 222 RUTH PEGER 3873 Peger Rd. Fairbanks, Alaska 99709 452-1334 Position Statement: Supported HB 222 JAMES E. FISHER Alaska Legal Services Corp. 419 - 6th St. Juneau, Alaska 99801 586-6425 Position Statement: Opposed HB 222 RICHARD ILLGEN 7061 Lowell Circle Anchorage, Alaska 99502 243-6962 Position Statement: Opposed HB 222 MARK BUTTERFIELD, Attorney Alaska Legal Services 1016 W. 6th Ave., #200 Anchorage, Alaska 99501 272-9431 Position Statement: Opposed HB 222 JOSH FINK, Staff Senator Tim Kelly Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-3822 Position Statement: Sen. Kelly Prime Sponsor of SB 83 MARGOT KNUTH Assistant Attorney General Department of Law P.O. Box 110300 Juneau, Alaska 99801 465-3428 Position Statement: Supported HB 187 CAPTAIN GLENN FLOTHE Alaska State Troopers 5700 E. Tudor Road Anchorage, Alaska 99507-1225 269-5655 Position Statement: Supported HB 187 REP. BETTYE DAVIS Alaska State Legislature State Capitol Juneau, Alaska 99801-1182 465-3875 Position Statement: Prime sponsor of HB 14 JOHN SIBERT, Executive Director Alaska Science and Technology Foundation 550 - 7th St. Anchorage, Alaska 99501 272-4337 Position Statement: Supported HB 14 JOE KYLE Alaska Steamship Association 116 Gold St. Juneau, Alaska 99801 586-3107 Position Statement: Opposed HB 237 DAVID MILLEN Alaska Marine Pilots Dutch Harbor, Alaska 99692 258-5800 Position Statement: Supported HB 237 WILL ANDERSON Alaska Marine Pilots 57920 Glacier View Dr. Homer, Alaska 99603 235-5278 Position Statement: Supported HB 237 TERRY BENNETT Alaska Coastwise Pilots Association P.O. Box 3046 Ketchikan, Alaska 99901 225-7245 Position Statement: Supported HB 237 KARL LUCK, Director Division of Occupational Licensing Department of Commerce and Economic Development P.O. Box 110806 Juneau, Alaska 99811-0806 465-2538 Position Statement: Supported HB 237 PREVIOUS ACTION BILL: HB 221 SHORT TITLE: WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Grussendorf,Mulder TITLE: "An Act relating to workers' compensation for volunteer ambulance attendants, police officers, and fire fighters; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/12/93 619 (H) READ THE FIRST TIME/REFERRAL(S) 03/12/93 619 (H) CRA, LABOR & COMMERCE, FINANCE 03/25/93 (H) CRA AT 01:00 PM CAPITOL 124 03/30/93 (H) CRA AT 01:00 PM CAPITOL 124 03/30/93 (H) MINUTE(CRA) 03/30/93 (H) L&C AT 03:00 PM CAPITOL 17 03/30/93 (H) MINUTE(CRA) 03/31/93 872 (H) CRA RPT 6DP 03/31/93 872 (H) DP: TOOHEY, WILLIS, SANDERS, DAVIES 03/31/93 872 (H) DP: BUNDE, OLBERG 03/31/93 872 (H) -2 ZERO FISCAL NOTES(ADM,LABOR) 3/31/93 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: HB 180 SHORT TITLE: AHFC HOUSING INSPECTION REQUIREMENTS BILL VERSION: HB 180 AM SPONSOR(S): REPRESENTATIVE(S) MACLEAN TITLE: "An Act relating to the residential housing inspection requirements of the Alaska Housing Finance Corporation." JRN-DATE JRN-PG ACTION 02/25/93 455 (H) READ THE FIRST TIME/REFERRAL(S) 02/25/93 455 (H) CRA, LABOR & COMMERCE 03/11/93 (H) CRA AT 01:00 PM CAPITOL 124 03/11/93 (H) MINUTE(CRA) 03/17/93 (H) CRA AT 01:00 PM CAPITOL 124 03/19/93 (H) MINUTE(CRA) 03/22/93 730 (H) CRA RPT 3DP 4NR 03/22/93 730 (H) DP: TOOHEY, OLBERG, WILLIAMS 03/22/93 730 (H) NR: SANDERS,BUNDE,DAVIES,WILLIS 03/22/93 730 (H) -ZERO FISCAL NOTE (REV) 3/22/93 03/31/93 (H) MINUTE(ECO) 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: HB 222 SHORT TITLE: USE OF RENTED PROPERTY/LAW VIOLATIONS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) JAMES,Porter TITLE: "An Act relating to landlords and tenants, to termination of tenancies and recovery of rental premises, to tenant responsibilities, to the civil remedies of forcible entry and detainer and nuisance abatement, and to the duties of peace officers to notify landlords of arrests involving certain illegal activity on rental premises." JRN-DATE JRN-PG ACTION 03/12/93 619 (H) READ THE FIRST TIME/REFERRAL(S) 03/12/93 619 (H) LABOR & COMMERCE, JUDICIARY 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: SB 83 SHORT TITLE: ALCOHOL SERVER EDUCATION COURSE BILL VERSION: SPONSOR(S): SENATOR(S) KELLY TITLE: "An Act relating to an alcohol server education course." JRN-DATE JRN-PG ACTION 02/01/93 204 (S) READ THE FIRST TIME/REFERRAL(S) 02/01/93 204 (S) HES, L&C 02/19/93 (S) HES AT 01:30 PM BUTROVICH 205 02/19/93 (S) MINUTE(HES) 02/22/93 437 (S) HES RPT 3DP 2NR 02/22/93 437 (S) ZERO FISCAL NOTE (REV) 02/22/93 437 (S) L&C REFERRAL WAIVED 02/23/93 (S) RLS AT 01:45 AM FAHRENKAMP 203 02/23/93 (S) MINUTE(RLS) 03/15/93 801 (S) RULES RPT 2 CAL 1NR 3/15/93 03/15/93 809 (S) READ THE SECOND TIME 03/15/93 809 (S) ADVANCED TO THIRD READING UNAN CONSENT 03/15/93 809 (S) READ THE THIRD TIME SB 83 03/15/93 809 (S) PASSED Y18 N1 E1 03/15/93 809 (S) ADAMS NOTICE OF RECONSIDERATN 03/16/93 831 (S) RECONSIDERATION NOT TAKEN UP 03/16/93 831 (S) TRANSMITTED TO (H) 03/17/93 674 (H) READ THE FIRST TIME/REFERRAL(S) 03/17/93 674 (H) LABOR & COMMERCE 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: HB 187 SHORT TITLE: INTERCEPTION OF PRIVATE COMMUNICATIONS BILL VERSION: SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR TITLE: "An Act authorizing the interception of private communications related to the commission of certain criminal offenses; making related amendments to statutes relating to eavesdropping and wiretapping; relating to the penalty for violation of statutes relating to eavesdropping and unauthorized interception, publication, or use of private communications; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/01/93 488 (H) READ THE FIRST TIME/REFERRAL(S) 03/01/93 488 (H) LABOR & COMMERCE, JUDICIARY, FINANCE 03/01/93 488 (H) -3 ZERO FNS(ADM,DPS,LAW) 3/1/93 03/01/93 488 (H) -INDETERMINATE FISCAL NOTE (ADM) 3/1/93 03/01/93 488 (H) GOVERNOR'S TRANSMITTAL LETTER 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: HB 14 SHORT TITLE: APPROP: BIDCO FUND BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) B.DAVIS,Brown,Nordlund TITLE: "An Act making an appropriation for capitalization of the BIDCO fund; and providing for an effective date." JRN-DATE JRN-PG ACTION 01/04/93 28 (H) PREFILE RELEASED 01/11/93 28 (H) READ THE FIRST TIME/REFERRAL(S) 01/11/93 28 (H) LABOR & COMMERCE, STATE AFFAIRS, FINANCE 01/27/93 168 (H) COSPONSOR(S): NORDLUND 03/31/93 (H) MINUTE(ECO) 03/31/93 (H) MINUTE(ECO) BILL: HB 237 SHORT TITLE: MARINE PILOT LICENSING AND TARIFFS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) HUDSON,Phillips,Brice,Sitton, Sanders TITLE: "An Act relating to marine pilot licensing and tariffs." JRN-DATE JRN-PG ACTION 03/19/93 707 (H) READ THE FIRST TIME/REFERRAL(S) 03/19/93 707 (H) L&C, TRANSPORTATION, STA AFF, FINANCE 03/30/93 (H) L&C AT 03:00 PM CAPITOL 17 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 04/01/93 (H) TRA AT 05:00 PM CAPITOL 17 BILL: SB 64 SHORT TITLE: IMMUNITY FOR SAFETY INSPECTIONS BILL VERSION: CSSB 64(JUD)(EFD FLD) SPONSOR(S): LABOR & COMMERCE TITLE: "An Act relating to civil liability for workplace safety inspections." JRN-DATE JRN-PG ACTION 01/22/93 137 (S) READ THE FIRST TIME/REFERRAL(S) 01/22/93 137 (S) LABOR & COMMERCE, JUDICIARY 02/04/93 (S) L&C AT 01:30 PM BELTZ ROOM 211 02/04/93 (S) MINUTE(L&C) 02/10/93 313 (S) L&C RPT 3DP 2NR 02/10/93 313 (S) ZERO FISCAL NOTE (DCED) 02/19/93 (S) JUD AT 01:30 PM BELTZ ROOM 211 02/19/93 (S) MINUTE(JUD) 02/22/93 (S) JUD AT 01:30 PM BELTZ ROOM 211 02/22/93 (S) MINUTE(JUD) 02/24/93 461 (S) JUD RPT CS 2DP 1NR 1DNP 1AM SAME TITLE 02/24/93 461 (S) PREVIOUS ZERO FN APPLIES (DCED) 03/03/93 (S) RLS AT 10:45 AM FAHRENKAMP 203 03/03/93 (S) MINUTE(RLS) 03/05/93 614 (S) RULES RPT 3CAL 1DNP W/O AM 3/5/93 03/05/93 623 (S) READ THE SECOND TIME 03/05/93 623 (S) JUD CS ADOPTED UNAN CONSENT 03/05/93 625 (S) AM NO 1 FAILED Y7 N11 E2 03/05/93 626 (S) AM NO 2 FAILED Y8 N10 E2 03/05/93 627 (S) AM NO 3 FAILED Y7 N11 E2 03/05/93 629 (S) AM NO 4 FAILED Y8 N10 E2 03/05/93 630 (S) AM NO 5 FAILED Y8 N10 E2 03/05/93 630 (S) AM NO 6 FAILED Y7 N11 E2 03/05/93 631 (S) ADVANCED TO THIRD READING UNAN CONSENT 03/05/93 631 (S) PASSED Y11 N7 E2 03/05/93 632 (S) EFFECTIVE DATE FAILED Y11 N7 E2 03/05/93 632 (S) Duncan NOTICE OF RECONSIDERATN 03/08/93 659 (S) RECON TAKEN UP-IN THIRD READING 03/08/93 659 (S) PLACE AT BOTTOM OF CAL PASSED Y11 N8 E1 03/08/93 673 (S) RETURN TO SECOND FOR AM 1 UNAN CONSENT 03/08/93 674 (S) AM NO 7 FAILED Y8 N11 E1 03/08/93 674 (S) AUTOMATICALLY IN THIRD READING 03/08/93 674 (S) PASSED ON RECONSIDERATION Y11 N8 E1 03/08/93 675 (S) EFFECTIVE DATE FAILED Y12 N7 E1 03/08/93 677 (S) TRANSMITTED TO (H) 03/10/93 582 (H) READ THE FIRST TIME/REFERRAL(S) 03/10/93 582 (H) LABOR & COMMERCE, JUDICIARY 03/30/93 (H) L&C AT 03:00 PM CAPITOL 17 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 BILL: HB 241 SHORT TITLE: WORKERS COMP:REQD HEALTH BEN;INSPECTIONS BILL VERSION: SPONSOR(S): REPRESENTATIVE(S) MULDER TITLE: "An Act relating to workers' compensation; and providing for an effective date." JRN-DATE JRN-PG ACTION 03/19/93 708 (H) READ THE FIRST TIME/REFERRAL(S) 03/19/93 709 (H) LABOR & COMMERCE, JUDICIARY 03/30/93 (H) L&C AT 03:00 PM CAPITOL 17 04/01/93 (H) L&C AT 03:00 PM CAPITOL 17 ACTION NARRATIVE TAPE 93-31, SIDE A Number 001 CHAIRMAN HUDSON called the meeting to order, noted members present, and announced the day's agenda, explaining that the meeting was being teleconferenced. HB 221 WORKERS COMP:VOLUNTEER FIRE FIGHTERS, ETC Number 005 CHAIRMAN BILL HUDSON, PRIME SPONSOR of HB 221, gave the following sponsor statement: "House Bill 221 was introduced to clarify Workers' Compensation statutes that have been the cause of much confusion or misinterpretation, particularly with regard to benefits for volunteers. "Workers compensation benefits are intended, subject to minimum and maximum limits, to replace the lost wages of injured workers. Section 1 of HB 221 recognizes that volunteers should receive wage replacement based on the actual wages lost or the comparable wage they would receive were they paid employees rather than volunteers. Current law limits wage loss benefits for volunteer fire fighters, for example, who may have high earning capacity in their regular employment, to the benefits based on the wage paid a carrier fire fighter. House Bill 221 corrects the inequities in benefit calculations for volunteer ambulance attendants, police officers and fire fighters by calculating compensation based on the higher wage earned. "Section 2 of HB 221 is to clarify the original intent of AS 23.30.243, which is to extend coverage for volunteer fire fighters. In the past year, compensation benefits for volunteer fire fighters, while engaged in fire department activities other than responding to emergencies, has been questioned. Since `employees' are covered for injuries arising out of and in the course of employment, volunteer fire fighters are similarly covered. Unfortunately, AS 23.30.243 has been misinterpreted to limit coverage only to those instances where the volunteer was responding to an emergency. This section was originally intended to extend coverage, not limit it. "Therefore, in order to restore the original intent of AS 23.30.243, and to clarify once and for all that volunteers are employees and are covered as any other employee for the purposes of workers' compensation, Section 2 of HB 221 amends AS 23.30 by adding a new section that defines volunteer ambulance attendants, police officers and fire fighters as `employees.' "Section 3 repeals AS 23.30.092. This statute has been interpreted to mean that a municipality `may' provide workers' compensation coverage for volunteers. Conversely, it may be incorrectly interpreted to mean that a municipality may elect not to provide coverage. In reality, this section provides that an alternative policy may substitute for a workers' compensation policy so long as the benefits are equal or better than a statutory workers' compensation policy. However, this section has done nothing but cause confusion, and I believe repealing it will clarify that all volunteers who meet the definition in AS 23.30 must be covered by workers' compensation." Number 190 JOHN GEORGE, representing the ALASKA STATE FIRE FIGHTERS ASSOCIATION, testified in support of HB 221. Mr. George stated that volunteer firefighters and the station they work at have to be registered with the Department of Public Safety. Secondly, the municipality where the station is located picks up the workers' compensation. He stated that HB 221 just clarifies the law regarding benefits for volunteer fire fighters. Number 238 PATRICK EGGERS, FIRST VICE PRESIDENT, ALASKA STATE FIRE FIGHTERS ASSOCIATION, spoke in favor of HB 221 and echoed Mr. George's statements. Number 250 REP. MACKIE moved for passage of HB 221 with individual recommendations. REP. PORTER objected for clarification on the maximum amount of money a volunteer would be entitled to under the bill. Number 329 REP. SITTON pointed out that the schedule was already established in law. REP. PORTER removed his objection. CHAIRMAN HUDSON announced that HB 221 passed out of committee with individual recommendations and a zero fiscal note. HB 180 Alaska Housing Finance Corporation. Number 357 DAVID HARDING, STAFF, REP. EILEEN MACLEAN, PRIME SPONSOR OF HB 180, read a sponsor statement on Rep. MacLean's behalf. Mr. Harding stated that HB 180 responds to an unintended consequence of last year's merger of Department of Community and Regional Affairs housing loans into Alaska Housing Finance Corporation (AHFC). He noted that AHFC's building inspection requirements were designed for residential construction within municipalities or along the road system. Their application to remote settings was not anticipated and could result in thousands of additional dollars added to the cost of a new home. This works against the development of new housing in remote areas where it is most needed. MR. HARDING added that HB 180 does not eliminate the requirement for multiple building inspections during construction. Instead, it allows AHFC to use some flexibility in applying the existing criteria in remote settings. Number 405 FIRLE REDBURN, NATIONAL BANK OF ALASKA, testified from Nome in support of HB 180, except for the sunset clause. Number 418 ROBIN HARRISON, NATIONAL BANK OF ALASKA, testified from Barrow in support of HB 180, except for the sunset clause. Ms. Harrison stated she believes that the sunset clause serves no purpose at this time, and if a future legislature wanted to revisit the law, they could do so through another bill. Number 441 MYRON MCCUMBER testified from Barrow in support of HB 180 and echoed the above testimony. Number 445 JIM MCCORMACK, ALASKA BANKING ASSOCIATION, testified from Anchorage in support of HB 180, except for the sunset clause. Number 450 ROBIN WARD, BUILDING ASSOCIATION OF ANCHORAGE, testified from Anchorage in support of HB 180 without the sunset clause. Number 455 JOHN URE testified from Anchorage in support of HB 180 without the sunset clause. Number 536 TONY DOYLE, ALASKA STATE HOME BUILDERS ASSOCIATION, testified from Anchorage in support of HB 180 and stated that he suggested the sunset clause. Number 540 JIM STEVENS testified from Barrow in support of HB 180. Number 572 STEVE WISDOM, KENAI PENINSULA BUILDERS ASSOCIATION, testified from Homer in support of HB 180. REP. SITTON moved for passage of HB 180 with individual recommendations and fiscal note. No objections were heard; it was so ordered. HB 222 USE OF RENTED PROPERTY/LAW VIOLATIONS TAPE 93-31, SIDE B Number 001 REP. JEANNETTE JAMES, PRIME SPONSOR of HB 222, stated that HB 222 was introduced in response to a concern that current landlord-tenant laws were weighted in favor of protecting abusive tenants. REP. JAMES added that HB 222 had three principal purposes: 1) amends the forcible entry and detainer statutes; 2) makes the tenant's responsibility to maintain the dwelling unit more stringent; and 3) amends the nuisance abatement statutes. REP. JAMES concluded that HB 222 would provide much needed protection for landlords as well as for responsible tenants from the damage caused by abusive tenants. Number 137 JAMES FISHER, ALASKA LEGAL SERVICES CORP., testified against HB 222. Mr. Fisher's comments follow: "This plea is made as, and from, the viewpoint of an attorney with 20 years experience in private practice of law, and who has sympathy for the conflicting pressure(s) upon legislators. In those 20 years I represented only landlords, and from that perspective comes this amicus comment on HB 222. "HB 222's legislative history appears based on: a) anecdotal experience, which may overlook areas of unintended impact which leads to the next assumption; b) that the proposed HB 222 will protect an unsuspecting landlord against those to be called "outlaw" tenants. "First, the outlaw tenant probably causes most, if not all, of the anecdotes related as a reason for HB 222. Such a person, or persons, will evade a rental contract regardless of legislation existing or proposed. To suggest a statute can stop such behavior is like having confidence murder will be deterred by laws prohibiting killing people. "The best way to avoid the outlaw tenant is scrupulous attention to existing law; i.e., get deposits, check references closely, if rent is late immediately advise that such performance will not be tolerated, etc. "What should really worry legislators is the problem of raising constituent expectations that HB 222, or other changes to existing law, will solve the `outlaw' tenant problem. When the proposed law doesn't work, what next?" ANNETTE COOK testified from Fairbanks in support of HB 222. Ms. Cook stated that this bill would balance the rights between landlords and tenants. MYRNA SHEETS testified from Fairbanks in support of HB 222. Ms. Sheets said the current law is unfair to landlord's. Ms. Sheets stated that HB 222 would not hurt good tenants at all, but would protect landlord's from the "outlaw" tenants. Number 202 HAROLD HUME, a LICENSED REAL ESTATE BROKER, stated that HB 222 would help legal costs and help get "outlaw" tenants out before they caused damage. Number 223 BETTY JOHNSON testified in support of HB 222 and echoed the above comments. Number 234 SAM HELMS testified from Anchorage in support of HB 222 and pointed out that he has had over $10,000.00 worth of damage done by the so called "outlaw" tenants. Number 254 JEROME BYRD testified from Anchorage in support of HB 222. Mr. Byrd stated that he has personal experience with the outlaw tenant. Number 262 DOUGLAS ISAACSON, STATE DIRECTOR for CREDIT SERVICES. Mr. Isaacson stated that his service exists to help landlords avoid the outlaw tenant. Mr. Isaacson supports HB 222. Number 299 ALICE BREWER testified from Anchorage in support of HB 222. Ms. Brewer reiterated the above testimony. JOE GRAHAM testified from Anchorage in support of HB 222. Mr. Graham dittoed the above supportive testimony. CHARLES LIPPITT testified from Anchorage in support of HB 222. Mr. Lippitt stated that screening of tenants does not always work. He said HB 222 is needed to get the bad apples out sooner. Number 350 JOHN TODD testified from Anchorage in support of HB 222. Mr. Todd stated that he is a landlord who checks references, credit reports, gets a deposit and has a complete application process for potential tenants and still has some slip through the cracks. He said HB 222 would be one way for landlords to protect themselves from a bad tenant. HANS METZ testified from Anchorage in support of HB 222. Mr. Metz noted that HB 222 would screen out the professional tenants who have no intention of paying the rent and know how to play the game of protecting themselves under the current law. EUGENE DEVINE testified from Anchorage in support of HB 222. Mr. Divine dittoed the testimony above. Number 396 DIXIE DIXON testified from Anchorage in support of HB 222. Ms. Dixon pointed out that police cannot help with landlord tenant problems because they are understaffed. Ms. Dixon also pointed out that adult guardians of teenagers have to be responsible for them and their actions. Number 440 RUTH PEGER testified from Anchorage in support of HB 222. Ms. Peger stated that the law is too protective of the tenant and provides very little relief for the landlord. Number 457 RICHARD ILLGEN, an ATTORNEY representing both landlords and tenants, stated he made the following observations on the bill: there will always be bad tenants; HB 222 would hurt small commercial business, as the outside large entities would want to rent to the more established business's instead of newer small Alaskan enterprises; there would be more lawsuits against landlords to tie up the court system; HB 222 does more harm than good; and renters that work on the slope and are honestly unaware of a conflict could be thrown out before they have a chance to solve the problem. Mr. Illgen suggested that the committee take another look at the bill. Number 509 MARK BUTTERFIELD, ATTORNEY, LEGAL SERVICES CORPORATIONS, spoke against HB 222 for two reasons: 1) HB 222 is unfair; it takes what was a good balance between landlords and tenants under current law and gives the landlord all the power, and 2) there is such a thing as a bad landlord and this bill gives no balance for the tenant in that situation. Number 578 REP. SITTON moved HB 222 with individual recommendations and two fiscal notes. No objections were noted; it was so ordered. SB 83 ALCOHOL SERVER EDUCATION COURSE Number 586 JOSH FINK, STAFF, SENATOR TIM KELLY, PRIME SPONSOR OF SB 83, read the sponsor statement. Mr. Fink stated that this bill would require alcohol servers to take an alcohol server education course approved by the Alcohol Beverage Control Board. Mr. Fink said this bill was widely supported. Number 596 REP. MACKIE commented that he supported SB 83 and he thought members of the alcohol industry would also. Rep. Mackie further stated that it was his hope that the program be provided in the Bush communities and not require those areas to have to travel to get the training required. Number 613 REP. MULDER moved for passage of SB 83 with individual recommendations. No objections were noted; it was so ordered. HB 187 INTERCEPTION OF PRIVATE COMMUNICATIONS TAPE 93-32, SIDE A Number 050 MARGOT KNUTH, ASSISTANT DISTRICT ATTORNEY, DEPARTMENT OF LAW, spoke in support of the bill. She said HB 187 would authorize the interception of private communications by state law enforcement officers to investigate the serious crimes of murder, kidnapping, and specified drug offenses. According to Ms. Knuth, federal law allows states to enact wiretapping laws only if, like this bill, they are at least as restrictive and protective of private communications as federal law. (further analysis by the Department of Law is on file in the committee office) Number 175 CAPTAIN GLENN FLOTHE, ALASKA STATE TROOPERS, testified in support of HB 187. Captain Flothe stated that this bill would be another tool to be used in the most serious of crimes. Captain Flothe added that he supported the comments of Ms. Knuth. Number 218 REP. MULDER moved for passage of HB 187 with individual recommendations and three fiscal notes. No objections were heard; it was so ordered. HB 14 APPROP: BIDCO FUND Number 236 REP. BETTYE DAVIS, PRIME SPONSOR of HB 14, stated that last year she sponsored legislation creating Business Development Industrial Corporations (BIDCOs) in Alaska. She said BIDCOs provide financing, management, and technical assistance to small to medium sized business, with an emphasis on minority and rural businesses. They address a gap for companies with financing needs that are deemed too risky for traditional bank lending, but do not provide the potential for high rates of return sought by traditional venture funds. REP. DAVIS stated that HB 14 appropriates $10 million from the earnings reserve of the Alaska Science and Technology endowment to initially fund the BIDCO fund. REP. DAVIS noted that in an effort to encourage capital sources to invest and lend money to BIDCOs, the program will be licensed and regulated by the Department of Commerce. This system is designed to prevent fraud, conflict of interest and mismanagement, and to promote competent management, accurate record keeping and appropriate communication with shareholders. In addition, the Alaska Science and Technology program will help assist BIDCOs in raising substantial private investment. REP. DAVIS said BIDCOs are one of the best opportunities for growth and expansions for small, rural, and minority businesses in Alaska. Number 330 REP. MACKIE moved to bring the CS of HB 14 before the committee. There being no objections, it was so ordered. Number 340 REP. MACKIE asked if the legislature had the authority to appropriate money in future years. REP. DAVIS answered that she would rather see the program be funded by the end of this legislature, but it was the Science and Technology Foundation's suggestion to spread it out over three years. Rep. Davis stated she did not know if the legislature had the authority to spread the funding out over a three year period. Number 368 JOHN SIBERT, EXECUTIVE DIRECTOR, ALASKA SCIENCE AND TECHNOLOGY FOUNDATION, testified in support of HB 14 and said he would like to see the funding of HB 14 carried out without crippling the grant program. Number 419 CHAIRMAN HUDSON noted that the committee substitute allows for a different allocation schedule than the original bill and wondered if Mr. Sibert could comment. Number 423 MR. SIBERT suggested that $3 million in FY 94, $3 million in FY 95, and $4 million in FY 96, per the fiscal note sent down on April 6, 1993, would be the best scenario for the foundation. Number 485 REP. MACKIE suggested that the Finance Committee should look at the funding in accordance with the budgeting plan they have for the next two years. Number 490 CHAIRMAN HUDSON stated that HB 14 should be passed out of the Labor and Commerce Committee to Finance with the comment that the intent that a total appropriation of $10 million be appropriated over a three year period of time according to the revised fiscal note provided by the Alaska Science and Technology Foundation. Number 502 REP. PORTER moved for passage of HB 14 with the recommendation of the committee that it be redrafted to comply with the revised fiscal note and with the revised fiscal note. No objections were heard; it was so ordered. HB 237 MARINE PILOT LICENSING AND TARIFFS Number 534 JOE KYLE, ALASKA STEAMSHIP ASSOCIATION, made the following points: - The industry supported the 1991 35% increase in tariffs. - The industry supports the concept of two or more healthy pilot organizations. - The industry opposes efforts to place limits on the number of licensed pilots. - The Alaska Steamship Association believes that the present rigid entry level requirements is in itself enough to limit the number of licenses issued. - Once the license is issued, there are strict follow- up requirements, which has a downward effect on the number of licensed pilots. - Regardless of the intent of limiting pilots, its effect is to increase the income of those licensed. - The industry is proud of what they pay pilots. - The Alaska Steamship Association supports removing the tariff setting process from the Board of Marine Pilots, but they are not prepared at this time to support the move to have the APUC (Alaska Public Utilities Commission) take over these functions until more information is known. - The Alaska Steamship Association has a philosophical problem with aspects of a fixed tariff versus a maximum tariff. The current tariff process where industry and pilots negotiate is fine. - Alaska Steamship is concerned about the language in the bill which purports to make equipment a part of the tariff. Equipment is not currently in the tariff, and industry is concerned that this would open the door for pilots to get into other businesses in the marine environment. - Alaska Steamship also objects to the language in the bill that calls for inflation proofing. A pilots income is already high and at those levels there is no need for inflation proofing. - Alaska Steamship intends to submit an amendment to the bill in the near future. (Please note that there is no TAPE 93-32, SIDE B) TAPE 93-33, SIDE A Number 005 CHAIRMAN HUDSON commented that inflation proofing is common when establishing tariffs. Chairman Hudson requested that Mr. Kyle provide more information regarding equipment in the bill to his staff for further work. Number 015 CHAIRMAN HUDSON emphasized that what is considered a region in the Lower 48 usually refers to a major port. But in Alaska it can be several small ports over a vast segment of coastline. Chairman Hudson pointed out that it is his belief that regional knowledge is very important in Alaska. Number 030 CHAIRMAN HUDSON stated it was not his intention to halt a pilot moving between regions, but he wanted safety to be the first priority. Number 050 MR. KYLE added that his group purposely did not address the cross-regionalization in HB 237. Number 065 DAVID MILLEN, ALASKA MARINE PILOTS, testified in support of HB 237 and outlined his groups position: - The only purpose of piloting act is public safety. - The Act ensures safety of shipping. - The 1991 amendments to the pilotage act were good but failed to create an unrestricted free market enterprize system on marine pilotage. - Competition does not exist in pilotage because there is not a large pool of buyers and sellers. - Unrestricted free market pilotage puts pressure on pilots economically to cut corners on safety because they are competing for a limited amount of income. - Fixed tariffs have broad public policy benefits. When statutes impose compulsory pilotage, this bill would require that all pilots would be treated equally. In addition, fixed tariffs would allow the state to continue the policy developed historically of permitting the high revenue ports to subsidize and keep the costs down for the less busy ports. If there are not fixed tariffs and the tariffs are set on a purely competitive basis, the costs would be prohibited and not in the best interest of commerce. - The perception that pilots make high salaries is somewhat misleading. The average income is $100,000 minus taxes, insurance, licensing fees, etc. - Alaska Public Utilities Commission has resources to set fixed tariffs in a fair manner. - The only way to make a fixed tariff work is to set the number of pilots licensed. Number 312 WILL ANDERSON, ALASKA MARINE PILOTS, testified in support of HB 237. He said HB 237 would create and maintain a system that puts safety first. Mr. Anderson echoed Mr. Millin's statements. Number 368 TERRY BENNETT, CO-FOUNDER OF ALASKA COASTWISE PILOTS, testified in opposition to HB 237. Mr. Bennett stated that his group did not ask that this bill be introduced, and as far as he knew, neither did the industry. MR. BENNETT stated that HB 237 says that setting fixed tariff's will allow industry a longer view of the tariff situation, but also allows for the tariff's to be amended at any time. Mr. Bennett stated this is already the case because his group's contracts contain a clause referring to annual adjustment, patterned after those seen in union collective bargaining agreements. With respect to "uniformity of tariffs," MR. BENNETT directed the committee's attention to the state's requirement that pilot groups publish their tariffs and maintain them for at least a year. MR. BENNETT stated he believes that his group has done nothing unfair in its bargaining with industry and that SEAPA (Southeast Alaska Pilots Association) made bad business decisions last year and they want the legislature to make it up for them. MR. BENNETT suggested that if the legislature puts in play a mechanism for a fixed tariff, it will destabalize a bargaining procedure that all participants have haggled over for almost two years. MR. BENNETT said there was no need for a limitation on the number of licensed pilots. State licensure is already self- limiting due to the great difficulty in gaining entry into the profession brought about by the 1991 legislation. There is an element of unpredictability in the attrition rate of pilots due to age, illness or death. He reminded the committee that, as they know, fog in Sitka or Juneau can result in air traffic delays in the summer when as many as half of Southeast's marine pilots may be in transit. MR. BENNETT added that limited entry is discriminatory, unfair, and un-American. MR. BENNETT suggested that limited cross-regional licensing would greatly benefit safety of pilotage in Alaska, particularly in Prince William Sound from the sea to Valdez. (Mr. Bennett's complete statement is on file in the committee office.) Number 500 KARL LUCK, DIRECTOR, DIVISION OF OCCUPATIONAL LICENSING, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, testified in support of HB 237. Mr. Luck stated that his division is in the process of auditing all pilotage reports in Southeast to attempt to clarify the picture for the committee. Mr. Luck stated that the report will attempt to be as accurate as possible, but the reporting procedures are not consistent and the job is not an easy one. The report should be available to the committee by Tuesday, April 6, 1993. MR. LUCK stated that the trend is that there was plenty of work for SEAPA during that period. Mr. Luck added that the numbers that Mr. Bennett provided are in the ball park. No action was taken on HB 237. It was held over for a future date. Bills not heard today: SB 64 and HB 241. CHAIRMAN HUDSON adjourned the meeting at 6:15 p.m.