ALASKA STATE LEGISLATURE  HOUSE RULES STANDING COMMITTEE  April 17, 2002 5:30 p.m. MEMBERS PRESENT Representative Pete Kott, Chair Representative Brian Porter Representative Vic Kohring Representative Lesil McGuire Representative Ethan Berkowitz MEMBERS ABSENT  Representative Carl Morgan Representative Reggie Joule OTHER LEGISLATORS PRESENT  Senator Randy Phillips COMMITTEE CALENDAR HOUSE BILL NO. 304 "An Act relating to disposition of income of the permanent fund; and providing for an effective date." - MOVED CSHB 304(RLS) OUT OF COMMITTEE HOUSE JOINT RESOLUTION NO. 47 Urging the United States Environmental Protection Agency and the Alaska Department of Environmental Conservation to provide maximum possible flexibility in application of low sulfur diesel fuel requirements to Alaska. - MOVED CSHJR 47(RLS) OUT OF COMMITTEE CS FOR SENATE BILL NO. 176(L&C) am "An Act prohibiting certain coercive activity by distributors; relating to certain required distributor payments and purchases; prohibiting distributors from requiring certain contract terms as a condition for certain acts related to distributorship and ancillary agreements; allowing dealers to bring certain court actions against distributors for certain relief; and exempting from the provisions of the Act franchises regulated by the federal Petroleum Marketing Practices Act, situations regulated by the Alaska gasoline products leasing act, and distributorship agreements relating to motor vehicles required to be registered under AS 28.10." - MOVED HCS CSSB 276(RLS) OUT OF COMMITTEE PREVIOUS ACTION BILL: HB 304 SHORT TITLE:PERMANENT FUND INCOME SPONSOR(S): REPRESENTATIVE(S)WHITAKER Jrn-Date Jrn-Page Action 01/14/02 1954 (H) PREFILE RELEASED 1/4/02 01/14/02 1954 (H) READ THE FIRST TIME - REFERRALS 01/14/02 1954 (H) STA, FIN 01/16/02 1992 (H) COSPONSOR(S): FATE 02/16/02 (H) STA AT 10:00 AM BUTROVICH 205 02/16/02 (H) -- Meeting Postponed to 2/23/02 -- 02/23/02 (H) STA AT 10:00 AM HOUSE FINANCE 519 02/23/02 (H) Heard & Held 02/23/02 (H) MINUTE(STA) 03/19/02 (H) STA AT 8:00 AM CAPITOL 102 03/19/02 (H) Moved Out of Committee 03/19/02 (H) MINUTE(STA) 03/19/02 2600 (H) STA RPT 3DP 1DNP 2NR 1AM 03/19/02 2600 (H) DP: FATE, WILSON, STEVENS; DNP: JAMES; 03/19/02 2600 (H) NR: HAYES, COGHILL; AM: CRAWFORD 03/19/02 2600 (H) FN1: ZERO(REV) 03/21/02 (H) FIN AT 9:00 AM HOUSE FINANCE 519 03/22/02 (H) FIN AT 9:00 AM HOUSE FINANCE 519 03/22/02 2654 (H) COSPONSOR(S): MULDER 03/25/02 (H) FIN AT 9:00 AM HOUSE FINANCE 519 03/25/02 (H) Moved CSHB 304(FIN) Out of Committee MINUTE(FIN) 03/26/02 2679 (H) FIN RPT CS(FIN) NT 5DP 1DNP 2NR 3AM 03/26/02 2679 (H) DP: BUNDE, WHITAKER, LANCASTER, HUDSON, 03/26/02 2679 (H) MULDER; DNP: FOSTER; NR: HARRIS, 03/26/02 2679 (H) MOSES; AM: CROFT, DAVIES, WILLIAMS 03/26/02 2680 (H) FN(S): FORTHCOMING 03/27/02 2719 (H) FN2: (REV) 03/27/02 2719 (H) RULES TO CALENDAR 3/27/02 03/27/02 2719 (H) RETURNED TO RLS COMMITTEE 04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205 04/15/02 (H) Failed To Move Out Of Committee -- Recessed to a call of the Chair -- 04/15/02 (H) MINUTE(RLS) 04/17/02 (H) RLS AT 5:30 PM BUTROVICH 205 BILL: HJR 47 SHORT TITLE:LOW SULFUR DIESEL FUEL REQUIREMENTS SPONSOR(S): COMMUNITY & REGIONAL AFFAIRS Jrn-Date Jrn-Page Action 03/22/02 2643 (H) READ THE FIRST TIME - REFERRALS 03/22/02 2643 (H) RES 04/03/02 (H) RES AT 1:00 PM CAPITOL 124 04/03/02 (H) Moved CSHJR 47(RES) Out of Committee 04/03/02 (H) MINUTE(RES) 04/04/02 2794 (H) RES RPT CS(RES) NT 5DP 04/04/02 2794 (H) DP: KERTTULA, CHENAULT, FATE, GREEN, 04/04/02 2794 (H) MASEK 04/04/02 2794 (H) FN1: ZERO(H.RES) 04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205 04/15/02 (H) Scheduled But Not Heard -- Recessed to a call of the Chair -- 04/17/02 (H) RLS AT 5:30 PM BUTROVICH 205 BILL: SB 176 SHORT TITLE:DISTRIBUTORSHIPS SPONSOR(S): LABOR & COMMERCE BY REQUEST Jrn-Date Jrn-Page Action 04/05/01 0956 (S) READ THE FIRST TIME - REFERRALS 04/05/01 0957 (S) L&C, JUD, FIN 04/19/01 (S) L&C AT 1:30 PM BELTZ 211 04/19/01 (S) Heard & Held 04/19/01 (S) MINUTE(L&C) 04/24/01 (S) L&C AT 1:30 PM BELTZ 211 04/24/01 (S) Moved CSSB 176(L&C) Out of Committee 04/24/01 (S) MINUTE(L&C) 04/25/01 (S) JUD AT 1:30 PM BELTZ 211 04/25/01 (S) Moved CS(L&C) Out of Committee 04/25/01 (S) MINUTE(JUD) 04/25/01 (S) MINUTE(JUD) 04/25/01 1259 (S) L&C RPT CS 5DP SAME TITLE 04/25/01 1259 (S) DP: PHILLIPS, DAVIS, AUSTERMAN, LEMAN, 04/25/01 1259 (S) TORGERSON 04/25/01 1259 (S) FN1: ZERO(CED) 04/26/01 1277 (S) JUD RPT CS(L&C) 4DP 04/26/01 1277 (S) DP: TAYLOR, THERRIAULT, COWDERY, ELLIS 04/26/01 1277 (S) FN1: ZERO(CED) 04/28/01 1338 (S) FIN REFERRAL WAIVED REFERRED TO RULES 05/01/01 (S) RLS AT 12:15 PM FAHRENKAMP 203 05/01/01 (S) -- Time Change -- 05/01/01 (S) MINUTE(RLS) 05/01/01 1405 (S) READ THE SECOND TIME 05/01/01 1405 (S) L&C CS ADOPTED UNAN CONSENT 05/01/01 1405 (S) AM NO 1(TITLE AM) ADOPTED UNAN CONSENT 05/01/01 1406 (S) ADVANCED TO THIRD READING UNAN CONSENT 05/01/01 1406 (S) READ THIRD TIME CSSB 176(L&C)(TITLE AM) 05/01/01 1407 (S) PASSED Y19 N1 05/01/01 1407 (S) TAYLOR NOTICE OF RECONSIDERATION 05/01/01 1400 (S) RULES TO CALENDAR 5/1/01 05/02/01 1447 (S) RECON TAKEN UP - IN THIRD READING 05/02/01 1447 (S) RETURN TO SECOND FOR AM 2 UNAN CONSENT 05/02/01 1448 (S) AM NO 2 ADOPTED UNAN CONSENT 05/02/01 1448 (S) AUTOMATICALLY IN THIRD READING 05/02/01 1448 (S) PASSED ON RECONSIDERATION Y18 N1 A1 05/02/01 1450 (S) TRANSMITTED TO (H) 05/02/01 1450 (S) VERSION: CSSB 176(L&C) AM 05/03/01 1501 (H) READ THE FIRST TIME - REFERRALS 05/03/01 1501 (H) L&C, JUD 05/05/01 (H) L&C AT 12:00 PM CAPITOL 17 05/05/01 (H) Moved HCS CSSB 176(L&C) Out of Committee 05/05/01 (H) JUD AT 1:00 PM CAPITOL 120 05/05/01 (H) 05/05/01 (H) MINUTE(L&C) 05/06/01 1616 (H) TITLE CHANGE: HCR 19 05/06/01 (H) JUD AT 3:00 PM CAPITOL 120 05/06/01 (H) Moved HCS CSSB 176(JUD) Out of Committee 05/06/01 (H) MINUTE(JUD) 05/06/01 1586 (H) L&C RPT FORTHCOMING HCS(L&C) 2DP 5NR 05/06/01 1586 (H) DP: CRAWFORD, HAYES; NR: HALCRO, KOTT, 05/06/01 1586 (H) MEYER, ROKEBERG, MURKOWSKI 05/06/01 1586 (H) FN1: ZERO(CED) 05/06/01 1616 (H) RECEIVED HCS(L&C) NT 05/07/01 1636 (H) RULES TO CALENDAR 5/7/01 05/07/01 1636 (H) MOVED TO FOLLOW CSSB 198(HES) 05/07/01 1638 (H) MOVED TO BOTTOM OF CALENDAR 05/07/01 1649 (H) READ THE SECOND TIME 05/07/01 1649 (H) JUD HCS ADOPTED UNAN CONSENT 05/07/01 1650 (H) AM NO 1 ADOPTED UNAN CONSENT 05/07/01 1650 (H) AM NO 2 ADOPTED Y20 N17 A3 05/07/01 1650 (H) ...CHANGES TITLE OF LEGISLATION 05/07/01 1652 (H) HELD IN SECOND READING TO 5/8 05/07/01 1626 (H) TITLE CHANGE: HCR 19 05/07/01 1625 (H) JUD RPT HCS(JUD) NT 4DP 2NR 05/07/01 1626 (H) DP: MEYER, COGHILL, JAMES, ROKEBERG; 05/07/01 1626 (H) NR: BERKOWITZ, KOOKESH 05/07/01 1626 (H) FN1: ZERO(CED) 05/08/01 1713 (H) RETURNED TO RLS COMMITTEE 04/15/02 (H) RLS AT 9:00 AM BUTROVICH 205 04/15/02 (H) Scheduled But Not Heard -- Recessed to a call of the Chair -- 04/17/02 (H) RLS AT 5:30 PM BUTROVICH 205 WITNESS REGISTER BILL LAWRENCE, Staff to Representative Carl Morgan House Community and Regional Affairs Standing Committee Alaska State Legislature Capitol Building, Room Juneau, Alaska 99801 POSITION STATEMENT: Testified on behalf of the sponsor, the House Community and Regional Affairs Standing Committee. JOHN HAXBY PO Box 111098 Anchorage, Alaska 99511 POSITION STATEMENT: Testified on SB 176. TERRY BANNISTER, Attorney Legislative Counsel Legal and Research Services Division Legislative Affairs Agency Terry Miller Building, Room 329 Juneau, Alaska 99801 POSITION STATEMENT: Spoke as the drafter of SB 176 and responded to questions. ACTION NARRATIVE TAPE 02-6, SIDE A Number 0001 CHAIR PETE KOTT called the House Rules Standing Committee meeting to order at 5:30 p.m. Representatives Kott, Porter, Kohring, and McGuire were present at the call to order. Representative Berkowitz arrived as the meeting was in progress. HB 304-PERMANENT FUND INCOME CHAIR KOTT announced that the first order of business would be HOUSE BILL NO. 304, "An Act relating to disposition of income of the permanent fund; and providing for an effective date." Number 0031 REPRESENTATIVE PORTER moved that the committee rescind its action in failing to report CSHB 304(RLS) from committee. There being no objection, [Version 22-LS1207\T, Cook, 4/5/02] was before the committee. REPRESENTATIVE PORTER moved to report CSHB 304 [Version T] out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 304(RLS) was reported from the House Rules Standing Committee. HJR 47-LOW SULFUR DIESEL FUEL REQUIREMENTS CHAIR KOTT announced that the next order of business would be HOUSE JOINT RESOLUTION NO. 47, Urging the United States Environmental Protection Agency and the Alaska Department of Environmental Conservation to provide maximum possible flexibility in application of low sulfur diesel fuel requirements to Alaska. Number 0095 REPRESENTATIVE McGUIRE moved to adopt CSHJR 47, Version 22- LS1644\L, Craver, 4/5/02, as the working document. There being no objection, Version L was before the committee. Number 0136 BILL LAWRENCE, Staff to Representative Carl Morgan, House Community and Regional Affairs Standing Committee, Alaska State Legislature, testified on behalf of the sponsor, the House Community and Regional Affairs Standing Committee. He explained that Version L simply addresses the Department of Environmental Conservation's (DEC) position by adding a "WHEREAS" provision on page 2, line 18, and a "FURTHER RESOLVED" provision on page 2, line 27. In response to Chair Kott, Mr. Lawrence stated that DEC is aware of the changes. Number 0277 REPRESENTATIVE McGUIRE moved to report CSHJR 47, Version 22- LS1644\L, Craver, 4/5/02, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHJR 47(RLS) was reported from the House Rules Standing Committee. SB 176-DISTRIBUTORSHIPS CHAIR KOTT announced that the last order of business before the committee would be CS FOR SENATE BILL NO. 176(L&C) am, "An Act prohibiting certain coercive activity by distributors; relating to certain required distributor payments and purchases; prohibiting distributors from requiring certain contract terms as a condition for certain acts related to distributorship and ancillary agreements; allowing dealers to bring certain court actions against distributors for certain relief; and exempting from the provisions of the Act franchises regulated by the federal Petroleum Marketing Practices Act, situations regulated by the Alaska gasoline products leasing act, and distributorship agreements relating to motor vehicles required to be registered under AS 28.10." Number 0328 REPRESENTATIVE McGUIRE moved to adopt HCS CSSB 176 Version [22- LS0818\B, Bannister, 4/17/02] as the working document. There being no objection, it was so ordered. CHAIR KOTT noted the presence of Senator Randy Phillips, Chair of the Senate Labor and Commerce Standing Committee, the sponsor of SB 176. Chair Kott welcomed Senator Phillips and invited him to the table, but Senator Phillips yielded to Representative Rokeberg. REPRESENTATIVE NORMAN ROKEBERG, Alaska State Legislature, explained that the changes in Version B are related to the exemptions in the title on [page 1,] lines 5 and 8. He further explained the title change. Representative Rokeberg directed attention to page 5 paragraph (4), which he characterized as a redraft of moving the scope of license activities of those individuals licensed under Title 4. Page 6 adds [new language] in paragraphs (5)-(7) and (8)(b). Number 0501 REPRESENTATIVE BERKOWITZ asked if there is a pending resolution due to the title change. REPRESENTATIVE ROKEBERG noted his anticipation of a few motions on this bill on the House floor. REPRESENTATIVE BERKOWITZ expressed his doubt that the House could do a title change to a Senate Bill. REPRESENTATIVE ROKEBERG pointed out that the sponsor is in concurrence. REPRESENTATIVE BERKOWITZ related his belief that [the resolution] could be objectionable. CHAIR KOTT announced that there is a resolution in the House Rules Standing Committee because there was a title change to SB 176 prior to this committee change. Therefore, that resolution will have to go to the House floor as well. Chair Kott further pointed out that a number of technical motions will be required for this bill. Number 0610 JOHN HAXBY characterized SB 176 as a small business protection act that is necessary to level the playing field between large well financed manufacturers and distributors and small businesses in Alaska. The passage of this legislation will protect small businesses in Alaska from unreasonable manipulation by manufacturers and distributors. Furthermore, the legislation should foster economic growth and development, keeping capital in Alaska. He pointed out that Alaska is one of the few states without a law addressing distributor agreements. Mr. Haxby noted that he has reviewed the proposed changes in the CS, which he viewed as reasonable. Number 0771 TERRY BANNISTER, Attorney, Legislative Counsel, Legal and Research Services Division, Legislative Affairs Agency, answered, in response to Chair Kott, that she didn't know the impact of this legislation on existing franchises. The legislation attempts to avoid conflict with [existing] franchises. She offered to look into that matter. CHAIR KOTT closed public testimony. Number 0836 REPRESENTATIVE BERKOWITZ moved the following amendment, Amendment 1, which addresses page 3, Sec. 45.45.730, regarding death of the dealer or holder of majority interest in dealer. CHAIR KOTT objected. REPRESENTATIVE BERKOWITZ pointed out that death isn't the only thing that can incapacitate an individual in a contractual relationship. Therefore, the language "death or disability and other successors and interests" was inserted in the appropriate spots in this paragraph. He noted that he had consulted with Ms. Bannister on this amendment. REPRESENTATIVE McGUIRE surmised that [Amendment 1] refers to the (indisc.) that tends to incapacitate. REPRESENTATIVE BERKOWITZ replied yes. CHAIR KOTT withdrew his objection. There being no objection, Amendment 1 was adopted. Number 0929 REPRESENTATIVE McGUIRE moved to report HCS CSSB 176 as amended out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HCS CSSB 176(RLS) was reported from the House Rules Standing Committee. ADJOURNMENT  There being no further business before the committee, the House Rules Standing Committee meeting was adjourned at 5:45 p.m.