ALASKA STATE LEGISLATURE  HOUSE LABOR AND COMMERCE STANDING COMMITTEE  March 16, 2009 3:19 p.m. MEMBERS PRESENT Representative Kurt Olson, Chair Representative Mark Neuman, Vice Chair Representative Mike Chenault Representative John Coghill Representative Bob Lynn Representative Robert L. "Bob" Buch Representative Lindsey Holmes MEMBERS ABSENT  All members present COMMITTEE CALENDAR    HOUSE BILL NO. 108 "An Act relating to real property foreclosures, to the sale of property on execution, and to deeds of trust."   - MOVED CSHB 108(L&C) OUT OF COMMITTEE SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 105 "An Act relating to the state training and employment program; and providing for an effective date." - HEARD AND HELD HOUSE JOINT RESOLUTION NO. 20 Urging the United States Congress to end daylight saving time. - MOVED HJR 20 OUT OF COMMITTEE HOUSE BILL NO. 19 "An Act exempting the state and its political subdivisions from daylight saving time." - MOVED CSHB 19(L&C) OUT OF COMMITTEE HOUSE BILL NO. 175 "An Act relating to insurance, including treating as confidential certain information submitted to the director of insurance by the National Association of Insurance Commissioners; clarifying conditions for the release of insurer deposits; defining travel insurance that may be sold under a travel insurance limited producer license; establishing criteria for licensing of nonresident independent adjusters as resident adjusters; exempting rewards under a wellness program from treatment as insurance discrimination or rebating; making certain insurance required of the Comprehensive Health Insurance Association permissive rather than mandatory; providing for the administration of loss reimbursement policies and payments to guaranty associations during insolvency proceedings; making certain provisions relating to statements on applications and guaranteed renewability for individual health insurance applicable to hospital and medical service corporations; making public certain forms and related documents filed for approval by a hospital or medical service corporation after the filing becomes effective; relating to deposits of self-funded multiple employer welfare arrangements; repealing reasons that the director of insurance may use to deny or revoke a license; and providing for an effective date." - SCHEDULED BUT NOT HEARD PREVIOUS COMMITTEE ACTION  BILL: HB 108 SHORT TITLE: PROPERTY FORECLOSURES AND EXECUTIONS SPONSOR(s): REPRESENTATIVE(s) RAMRAS 02/02/09 (H) READ THE FIRST TIME - REFERRALS 02/02/09 (H) L&C, JUD 02/23/09 (H) L&C AT 3:15 PM BARNES 124 02/23/09 (H) Heard & Held 02/23/09 (H) MINUTE(L&C) 03/13/09 (H) L&C AT 3:15 PM BARNES 124 03/13/09 (H) Bills Previously Heard/Scheduled 03/16/09 (H) L&C AT 3:15 PM BARNES 124 BILL: HB 105 SHORT TITLE: STEP PROGRAM SPONSOR(s): REPRESENTATIVE(s) COGHILL 01/30/09 (H) READ THE FIRST TIME - REFERRALS 01/30/09 (H) L&C, FIN 03/02/09 (H) SPONSOR SUBSTITUTE INTRODUCED 03/02/09 (H) READ THE FIRST TIME - REFERRALS 03/02/09 (H) L&C, FIN 03/16/09 (H) L&C AT 3:15 PM BARNES 124 BILL: HJR 20 SHORT TITLE: REPEAL FEDERAL DAYLIGHT SAVING TIME SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH 02/23/09 (H) READ THE FIRST TIME - REFERRALS 02/23/09 (H) CRA, L&C 03/03/09 (H) CRA AT 8:00 AM BARNES 124 03/03/09 (H) Moved Out of Committee 03/03/09 (H) MINUTE(CRA) 03/05/09 (H) CRA RPT 2DP 3NR 03/05/09 (H) DP: KELLER, MUNOZ 03/05/09 (H) NR: HARRIS, CISSNA, HERRON 03/16/09 (H) L&C AT 3:15 PM BARNES 124 BILL: HB 19 SHORT TITLE: ELIMINATE DAYLIGHT SAVING TIME SPONSOR(s): REPRESENTATIVE(s) FAIRCLOUGH 01/20/09 (H) PREFILE RELEASED 1/9/09 01/20/09 (H) READ THE FIRST TIME - REFERRALS 01/20/09 (H) CRA, L&C 03/03/09 (H) CRA AT 8:00 AM BARNES 124 03/03/09 (H) Heard & Held 03/03/09 (H) MINUTE(CRA) 03/12/09 (H) CRA AT 8:00 AM BARNES 124 03/12/09 (H) Moved Out of Committee 03/12/09 (H) MINUTE(CRA) 03/13/09 (H) CRA RPT 1DP 3NR 03/13/09 (H) DP: HERRON 03/13/09 (H) NR: GARDNER, KELLER, MUNOZ 03/16/09 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER JANE PIERSON, Staff Representative Jay Ramras Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Testified and answered questions on HB 108, on behalf of the prime sponsor, Representative Jay Ramras. ROBERT SCHMIDT, Attorney Groh Eggers LLC Anchorage, Alaska POSITION STATEMENT: Testified during the discussion of HB 108. STEPHEN ROUTH, Attorney Routh & Crabtree, APC Anchorage, Alaska POSITION STATEMENT: Briefly testified during the discussion of HB 108. REPRESENTATIVE ANNA FAIRCLOUGH Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Testified as prime sponsor of HJR 20 and HB 19. CRYSTAL KOENEMAN, Staff Representative Anna Fairclough Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Testified on HJR 20, on behalf of Representative Anna Fairclough, prime sponsor of the resolution. ALBERT JUDSON Haines, Alaska. POSITION STATEMENT: Testified during the discussion of HJR 20. JEFFREY PASCO Kenai, Alaska POSITION STATEMENT: Testified during the discussion of HJR 20. HENRY NOVAK Kenai, Alaska POSITION STATEMENT: Testified during the discussion of HJR 20. RICHARD BRAUN, Professional Land Surveyor Petersburg, Alaska POSITION STATEMENT: Testified during the discussion of HB 19. LYNN WILLIS Eagle River, Alaska POSITION STATEMENT: Testified during the discussion of HB 19. ACTION NARRATIVE 3:19:57 PM CHAIR KURT OLSON called the House Labor and Commerce Standing Committee meeting to order at 3:19 p.m. Representatives Buch, Chenault, Coghill, Holmes, Neuman, and Olson were present at the call to order. Representative Lynn arrived as the meeting was in progress. HB 108-PROPERTY FORECLOSURES AND EXECUTIONS 3:20:01 PM CHAIR OLSON announced that the first order of business would be HOUSE BILL NO. 108, "An Act relating to real property foreclosures, to the sale of property on execution, and to deeds of trust." JANE PIERSON, Staff, Representative Jay Ramras, Alaska State Legislature, stated she is staff to Representative Jay Ramras and is available for questions. 3:21:13 PM The committee took an at-ease from 3:21 p.m. to 3:22 p.m. 3:22:35 PM ROBERT SCHMIDT, Attorney, Groh Eggers LLC, stated that he previously testified on HB 108. He related his understanding that two proposed amendments will be introduced, one that would eliminate bonding requirements and the other to address Internet websites. He offered that the proposed amendments completely address his earlier concerns and he now has only minor concerns with HB 108. CHAIR OLSON agreed that two proposed amendments were received by the committee. STEPHEN ROUTH, Attorney, Routh & Crabtree, APC, stated that he is also fine with the proposed amendments and is available to answer questions. 3:24:01 PM CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 108. In response to Representative Chenault, Chair Olson stated that the proposed amendments to HB 108 are being submitted by the prime sponsor of the bill. 3:24:33 PM REPRESENTATIVE NEUMAN made a motion to adopt Amendment 1, labeled 26-LS0318\A.1, Bannister, 2/26/09, which read: Page 10, line 13: Delete "or" Page 10, line 15, following "AS 21.66.270": Insert "; or (3) a state agency, including the Alaska Housing Finance Corporation and the Alaska Industrial Development and Export Authority" CHAIR OLSON objected for purpose of discussion. 3:24:55 PM MS. PIERSON explained that Amendment 1 states that a state agency, including the Alaska Housing Finance Corporation (AHFC) and Alaska Industrial Development Export Authority (AIDEA), does not have to post bond. Thus, state agencies would not need to post a bond. In response to Representative Neuman, Ms. Pierson explained that a bonding requirement exists for trustees. However, it was determined that state agencies have enough assets that they do not need to bond. She offered that it would be similar to how a title insurance company is given an exclusion. CHAIR OLSON removed his objection. There being no further objection, Amendment 1 was adopted. 3:26:10 PM REPRESENTATIVE NEUMAN made a motion to adopt Amendment 2, labeled, 26-LS0318\A.2, Bannister, 3/12/09, which read: Page 2, line 19, through page 3, line 13: Delete all material. Renumber the following bill sections accordingly. CHAIR OLSON objected for purpose of discussion. 3:26:46 PM MS. PIERSON explained that Amendment 2 deletes all the Internet publication requirements. She related her understanding that possibly only one website would qualify. She offered that she held discussions with realtors and mortgage companies who are willing to work on the issue to allow others to qualify such as newspapers, to address cost such as providing free access, and other options. She opined that the Internet provision will be reintroduced, but it will represent consensus. CHAIR OLSON removed his objection. There being no further objection, Amendment 2 was adopted. REPRESENTATIVE HOLMES expressed her concern that an owner in foreclosure must appear two days prior to the sale and could not appear on the day of the sale to remit funds and stop the foreclosure. 3:28:21 PM REPRESENTATIVE NEUMAN moved to report the HB 108, as amended, out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSHB 108(L&C) was reported from the House Labor and Commerce Standing Committee. 3:29:01 PM The committee took an at-ease from 3:29 p.m. to 3:31 p.m. HB 105-STEP PROGRAM 3:31:40 PM CHAIR OLSON announced that the next order of business would be SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 105 "An Act relating to the state training and employment program; and providing for an effective date." CHAIR OLSON then announced that the bill would be held over pending distribution of an amendment to the committee. HJR 20-REPEAL FEDERAL DAYLIGHT SAVING TIME 3:32:31 PM CHAIR OLSON announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 20, Urging the United States Congress to end daylight saving time. 3:32:53 PM REPRESENTATIVE ANNA FAIRCLOUGH, Alaska State Legislature, speaking as a joint sponsor of HJR 20, stated that her staff, Crystal Koeneman would provide a history of daylight saving time. CRYSTAL KOENEMAN, Staff, Representative Anna Fairclough, Alaska State Legislature, speaking on behalf of the prime sponsor of HJR 20, Representative Anna Fairclough, provided a chronological history of daylight saving time. She explained that the Standard Time Act was established in 1918, which established the observance of daylight saving time. The act was repealed the next year and daylight saving time was left to local jurisdictions. The Congress, in an effort to conserve fuel resources by reducing the need to produce electrical power for artificial lighting, placed the country on daylight saving time during World War I. The Congress reinstated daylight saving time from 1942 - 1945 during World War II. From 1945 to 1966, no federal law applied and states could decide whether to observe daylight saving time. The Congress passed the Uniform Time Act of 1966, which set daylight saving time to begin the last Sunday of April and end on last Sunday of October. She mentioned that any state or locality could exempt itself from daylight saving time. In 1986 the Act was amended to begin on the first Sunday in April. Following the 1973 oil embargo, the Congress placed most of the nation on extended daylight saving time in an effort to conserve energy, such that daylight saving time was in place for 10 months in 1974 and for 8 months in 1975. Due to public opposition to the late sunrise times in winter month, daylight saving time was discontinued. In 1976 the nation reverted back to the Uniform Time Act of 1966. In March 2007, daylight saving time was extended an additional four to five weeks, beginning on the second Sunday of March until the first Sunday of November. 3:36:23 PM REPRESENTATIVE FAIRCLOUGH offered that the issue of daylight saving time can be addressed in multiple ways. She related that since 2007, she has received multiple requests to repeal daylight saving time in Alaska. She explained that one big issue is consistency with time in Lower-48. Thus, those in opposition to the repeal believe that it is important to maintain communications with rest of the nation. This resolution would allow Alaska to take steps in that direction to discuss the issue with the Congress and organizations nationwide. 3:37:25 PM CHAIR OLSON asked if daylight saving time is repealed, that Alaska would be the second state to do so. REPRESENTATIVE FAIRCLOUGH disagreed. She referred to a map in members' packets of the northern hemisphere, which she opined is lagging behind the rest of the globe. Some countries are migrating off DST to Greenwich Mean Time, which is also the same time as the Coordinated Universal Time (UTC). She offered that Canada is currently discussing repealing DST, with one province, Saskatchewan that has repealed DST. She mentioned other countries such as Mexico and most of the Asian markets that are still discussing repeal. She mentioned that Hawaii is not on DST, and Indiana is attempting to leave DST, since someone discovered that it actually cost money to comply with DST. REPRESENTATIVE LYNN inquired as to whether Indiana has repealed DST. REPRESENTATIVE FAIRCLOUGH related that Indiana is currently on DST, but a recent study indicated that costs were associated with DST. 3:39:07 PM REPRESENTATIVE HOLMES inquired as to whether Alaska is currently on DST. REPRESENTATIVE FAIRCLOUGH answered that Alaska is currently on DST as of March 8, 2009. She explained that HJR 20 presents an opportunity for Alaska to engage in discussions nationally about the health consequences and the business climates that are affected by DST. She further explained that it takes 10 days in Nome to recoup an hour, in Anchorage it takes 12 days, and in Juneau it takes 13 days. Thus, the value of DST evaporates in a little over a week. 3:40:41 PM REPRESENTATIVE HOLMES inquired as to whether any cost to companies is associated with eliminating DST, specifically for changing time clocks on computers. REPRESENTATIVE FAIRCLOUGH responded that a universal patch could be developed on a one-time basis for items such as video surveillance, cell phones, and other technology. She mentioned it would be a cost savings for statewide computers since only one adjustment is necessary. Currently, systems are reprogrammed twice a year. She stated that the state's technology group believes that it would save money to repeal the DST. 3:42:34 PM ALBERT JUDSON stated that he grew up as a commercial fisherman. He offered his belief that DST enhances fishing since fishermen use daylight hours to run to the fishing grounds, and the regulatory agencies such as Alaska Department of Fish & Game (ADF&G) use specific hours to determine the openings and closings. He offered his opposition to HJR 20 and HB 19. REPRESENTATIVE CHENAULT related that since ADF&G is using a clock, that it should not make any difference whether the time is Alaska Standard Time or DST. He asked for clarification. MR. JUDSON offered his belief that DST affects people involved in subsistence fishing since the daylight parallels the clock. 3:46:49 PM REPRESENTATIVE LYNN also stated that he did not understand. He inquired as to how fishing an hour earlier or later would affect fish runs. MR. JUDSON related that during DST, the time on the clock parallels dusk and dawn. He offered his belief that fishermen, especially subsistence fishermen should be questioned before abolishing DST. 3:48:12 PM JEFFREY PASCO commented that he has not fished for some time, but recalled that he used tides and daylight when he was fishing. He expressed concern for health and safety issues. He related that the change to DST affects drivers, and in a recent drive from Soldotna to Anchorage that he drove in the dark. However, if the DST did not go into effect, that he would have had daylight for his morning drive. Additionally, commuters in Alaska must traverse regions populated with moose. Thus, the change to DST creates hazards. He opined that repealing DST would allow Alaskan to drive to/from work in the daylight. He mentioned that students and drivers are sleep deprived for the several weeks that it takes to adjust to the time change. He opined that DST does not make sense in Alaska. 3:50:29 PM HENRY NOVAK stated that he was born and raised in Alaska. He recalled when Alaska had five time zones. He related that the DST "screws him up for about three weeks every time we go back and forth." He suggested that the time should be left alone year round, although he did not care if it was Alaska Standard Time or DST, just that it should remain the same year round. CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HJR 20. 3:52:51 PM REPRESENTATIVE NEUMAN moved to report HJR 20, labeled 26- LS0501\R out of committee with individual recommendations and the accompanying fiscal note. There being no objection, HJR 20 was reported from the House Labor and Commerce Standing Committee. 3:53:19 PM The committee took an at-ease from 3:53 p.m. to 3:55 p.m. HB 19-ELIMINATE DAYLIGHT SAVING TIME 3:55:45 PM CHAIR OLSON announced that the final order of business would be HOUSE BILL NO. 19, "An Act exempting the state and its political subdivisions from daylight saving time." 3:56:03 PM REPRESENTATIVE ANNA FAIRCLOUGH, Alaska State Legislature, recalled that the Anchorage Fire Department would remind people to change batteries in their smoke detectors twice annually during the time change. She related that she received overwhelming response to a survey question related to DST from her constituents at end of the last legislature. She related during the summer, many Alaskans asked her to exempt Alaska from DST. Thus, HB 19 was introduced. Additionally, surveys were conducted in 2004 and 2005 by Hellenthal & Associates and Dittman Research & Communications Corporation, which resulted in favorable results to repeal DST. She mentioned that a KTUU poll ran last week that showed 70 percent of Alaskans who responded to the poll favored repealing DST. However, she recalled the State Chamber of Commerce did a poll and 70 percent of businesses were opposed to the repeal since communication with the rest of the nation and world would be adversely affected. REPRESENTATIVE FAIRCLOUGH related that her survey resulted in 442 responses, of which 329 supported the repeal of DST, or approximately 71.4 percent of those surveyed. She added that 75 responded in opposition to the repeal of DST, 15 supported a year round DST, and the remainder provided other comments such as indicating a preference to be 3 hours behind the East Coast. She mentioned that her outreach was to municipalities and various chamber of commerce organizations. 3:59:22 PM MS. KOENEMAN elaborated that an e-mail was sent to municipalities, school districts various chamber of commerce organizations. The e-mails were subsequently forwarded to others, she stated. REPRESENTATIVE FAIRCLOUGH also offered that she was contacted by many others including the Fairbanks Daily New-Miner, a Soldotna radio station, and Anchorage Daily News with respect to the issue. She said that she asked those who spoke in opposition to the repeal due to time change between Alaska and the East Coast. She related that the analysts who work with the New York financial market begin work at 5 a.m. since it is 9 a.m. on the East Coast when the financial markets open. She related that HB 19 would impact the analysts such that they would begin work at 4 a.m. or lose an hour of interaction with the financial market. However, she noted that Dan Cuddy, who is the president of First National Bank Alaska, spoke in support of the repeal of DST. She related that he provided a letter of support in favor of the repeal. 4:01:23 PM REPRESENTATIVE FAIRCLOUGH expressed that another concern raised was safety. She explained that she researched safety. She explained that First Student, Inc. sends new alerts to notify school bus drivers. She noted that the Department of Transportation & Public Facilities provided accident rates. She stated that accident rates were initially down in the first week of DST in the spring, variable to the weather and climate with an increase in accidents in the fall. She indicated that on March 15, 2009, the DOT&PF noted, 839 crashes prior to DST, and 516 accidents after the spring change, dependent on weather. However, in the fall when an hour of daylight is lost, accident rates increase from 988 prior to the fall time change and 1,020 after the fall time change. Additionally, she stated the Anchorage municipal chief of police advises that accidents decrease with an added hour of daylight. She recalled testimony that related to the effects of being thrown into an additional hour of darkness during driving hours, which she related represents a valid observation. However, she reminded members that her research did show fewer accidents. 4:03:25 PM REPRESENTATIVE FAIRCLOUGH recalled discussions with Representative Holmes about technology questions. She reiterated that the state's central main frame sets an internal "heartbeat" in its system so that all computers in the system have the same time stamp. She related that the Department of Administration anecdotally believed that eliminating DST would save labor and money. She opined that one reason for DST is to achieve increased recreational time for daylight in the evening. However, in Alaska, the Land of the Midnight Sun, "that just doesn't play out." She maintained that in about ten days, most of the state makes up the entire hour. She opined that largest disadvantage is in western and northern Alaska. She opined that during DST, a person's internal time clock in western Alaska is three hours off. She related that teachers see increased disruption, even in Anchorage, inside the classroom, as well as tardiness by staff and students, increased absences, and lower productivity which is generally disruptive. 4:06:15 PM REPRESENTATIVE FAIRCLOUGH pointed out that the average person adjusts to the time change in about 12 days. She reiterated that the largest reason to oppose the repeal of DST is for those who wish to minimize the time difference between Alaska and the East Coast. She also reiterated that the biggest reason to repeal DST is for health reasons. REPRESENTATIVE FAIRCLOUGH related that the northern hemisphere receives little advantage to DST, but experiences not only a loss of productivity, but a two to four percent increased risk for heart attacks, according to a study done in Stockholm, Sweden. She reiterated that Indiana has the energy study that indicates that indicates that it costs more, that it is not doing what it was supposed to do in saving energy. Additionally, the Stockholm study shows a health risk. She stated that she received several comments from people: one discussing the biological clock, while several doctors related that due to the circadian rhythm sleep disruption causes problems for Alaska. She also mentioned that Anchorage School District administrators and principals and teachers support the repeal, including school board president Jeff Friedman and superintendant Carol Comeau. She related that one dissenting comment was that the time/date stamp is off on surveillance security systems. However, she noted that results in a one-time fix, rather than the necessity to go back and forth in spring and fall. 4:10:57 PM CHAIR OLSON inquired as to whether the sponsor spoke to Alaska Airlines. REPRESENTATIVE FAIRCLOUGH surmised that passengers would need to show up an hour earlier. CHAIR OLSON inquired as to whether HB 19 would have an impact on transfers within Alaska. MS. KOENEMAN related that the airlines operate in Hawaii and in Arizona and make the schedules work. REPRESENTATIVE COGHILL commented that he currently is impacted in Fairbanks and frequently has a lengthy layover in Anchorage. He surmised that Alaska Airlines would not be concerned about any impacts time changes would have on its passengers. REPRESENTATIVE HOLMES offered that the state is challenged since it is so large. She inquired as to whether the sponsor has received general comments from Southeast Alaska. 4:13:49 PM REPRESENTATIVE FAIRCLOUGH pointed out that support and opposition to repealing the DST is specific to geographical differences. She opined that people in Southeast Alaska are overwhelmingly opposed to the repeal in part due to Seattle time and the west coast, which participate in DST. She further opined that Alaskans who reside in Northern and Western Alaska overwhelmingly favor the repeal of DST. She pointed out that the resolution provides the means for a national discussion on health issues. A second reason to repeal the DST in Alaska to better align our internal clocks, and a third reason is to look at Alaska perhaps having different time zones. She asserted that her intent is not to disenfranchise Southeast Alaska. However, she pointed out that the remainder of the state is disenfranchised by DST for over a decade. 4:15:42 PM RICHARD BRAUN, Professional Land Surveyor, stated that HB 19 is a really bad idea for Southeast Alaska. He opined it would be nice not to change time twice a year, and he supports one time, but not Alaska Standard Time. He opined that he would prefer to leave the time year round on DST. He opined Alaska is a big state that stretches across three time zones. Thus, someone will be inconvenienced. He pointed out that the geographic location of two states that repealed DST, Hawaii, and Arizona, but both are states with lots of sunshine. MR. BRAUN professed that Alaska Standard Time is not ideal for Southeast Alaska. He opined that the natural time zone for Southeast Alaska is the Pacific Time Zone. In the summer, we arise too late to take advantage of sunlight. However, the recreational time ends too early due to early darkness. He further opined that DST corrects that problem a little. He related that HB 19 would keep Alaska on Alaska Standard Time year round. Thus, when the rest of the country is on DST, Alaska will be two hours later than Seattle and five hours later than the East Coast. He noted that Whitehorse in the Yukon Territory, Canada, is further west than Juneau, but under the bill would be two hours ahead of Juneau. He said, "HB 19 is politics ignoring geography." He maintained that HB 19 might be a good idea for Southcentral and Western Alaska but it is a bad idea for Southeast Alaska. He said, "Southeast also has a lot fewer sunny days. Every minute of sunlight is precious to us." He surmised that in 1983, a compromise was achieved for state unity. This bill completely ignores that compromise, he said. He suggested that Alaska should not change without the rest of the nation and Canada also changing their time since it will make it awkward to conduct business. He highlighted that when he is conducting business with the East Coast and a five hour time gap exists, only three hours overlap and one of those falls over the lunch hour. Thus, he related that he only has two hours to conduct his business with people and businesses on the East Coast. He suggested the legislature should examine how much this will affect Southeast Alaska. He said, "It's not a good idea for Southeast Alaska." 4:20:20 PM LYNN WILLIS related that he has no financial interest in the legislation and has submitted written testimony, as well. He stated that twice annually, the law to change clocks impacts every Alaska resident, regardless of age, gender, or location. He said, "I personally believe that absent a compelling reason for its continued use in Alaska this practice should now end. I further believe that personal convenience and benefit are not compelling reasons to keep using daylight saving time in Alaska." He pointed out that energy savings is the primary reason that states are allowed to use DST. However, its impact on commerce can not be ignored, he stated. He offered that since 1967 that Alaska has been using DST. He asked what the compelling reason is to continue its use to enhance state commerce. He surmised one reason might be to enhance business communications. However, in 1967, business communications relied on hardwired office telephones and telegrams. He related that Alaskans now have cell phones, the Internet, and other advances that allow commercial transactions to be made 24 hours a day. Another reason to consider DST might be to compensate for the time zone differences in other areas. MR. WILLIS provided a brief history of time differences such that in 1967, businesses in Anchorage and Fairbanks were two hours behind Seattle and Juneau. Without observing DST, the time difference between the Railbelt and Seattle was three hours, and for Nome and Bethel the difference was four hours. However, in 1983 Alaska's current time zone was created by merging the Yukon, Alaska, and Bering time zones. Except for the Aleutian Islands, Alaska has been one hour behind Seattle, he noted. If DST is repealed, Seattle would be ahead of Alaska by two hours for only a portion of the year. The 1983 time zone change overcame a compelling reason to keep using DST in Alaska. Finally, another reason to consider DST might be that in 1967, minimizing the time differences was essential for Alaskan businesses primarily oriented towards the Lower 48 states. However, in 2009, Alaskans participate in international commerce with nations of the Pacific Rim including Japan and China, where DST is not used. MR. WILLIS said, "When we spring forward towards Seattle and New York, we leap away from China and Japan." He related that for purpose of finance, Alaska sits at the crossroads of the world. He offered that during normal business hours, a person can contact others ranging from New York City to Beijing, China. However, only without DST does Beijing become accessible at 4 p.m. Alaska time, thus, allowing time for communication. He maintained that time to conduct business with this range of nations can only be accomplished without DST. He concluded by stating that the compelling reasons to minimize the time difference between Alaska and the Lower 48 have been muted by the changing world economy. 4:23:52 PM JEFF PASCO stated that he is not surprised at the opposition by the chambers of commerce. He recalled earlier opposition by the organizations on prior similar legislation. He related that he agrees with Mr. Willis's testimony. CHAIR OLSON, after first determining no one else wished to testify, closed public testimony on HB 19. 4:25:18 PM REPRESENTATIVE NEUMAN made a motion to adopt Amendment 1, labeled 26-LS0188\A.1, Bannister, 3/13/09, as follows: Page 1, line 1, following "time": Insert "; and providing for an effective date" Page 1, following line 10: Insert a new bill section to read:  "* Sec. 2. This Act takes effect January 1, 2011." CHAIR OLSON objected for the purpose of discussion. REPRESENTATIVE FAIRCLOUGH explained the purpose of Amendment 1 is to allow an opportunity for organizations such as the chambers of commerce and businesses to be prepared for the time change. REPRESENTATIVE COGHILL inquired as to whether the Amendment 1, would place Alaska in the Alaska Standard time zone. REPRESENTATIVE FAIRCLOUGH agreed. REPRESENTATIVE LYNN suggested that it is might be better to do this in October. REPRESENTATIVE FAIRCLOUGH agreed that would be the time that most would change from DST to Alaska Standard Time. She offered that there may be some anomalies and Amendment 1 would allow people three months to make changes. CHAIR OLSON removed his objection. There being no further objection, Amendment 1 was adopted. 4:27:25 PM REPRESENTATIVE NEUMAN moved to report HB 19, labeled 26- LS0118\A, as amended, out of committee with individual recommendations and the accompanying fiscal note. There being no objection, CSHB 19(L&C) was reported from the House Labor and Commerce Standing Committee. 4:27:41 PM ADJOURNMENT  There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:27 p.m.