SENATE LABOR AND COMMERCE COMMITTEE May 11, 1999 1:45 P.M. MEMBERS PRESENT Senator Jerry Mackie, Chairman Senator Dave Donley Senator Loren Leman Senator Lyman Hoffman MEMBERS ABSENT Senator Tim Kelly, Vice Chairman COMMITTEE CALENDAR CS FOR HOUSE BILL NO. 201(FIN) am "An Act relating to the computation of overtime; and providing for an effective date." -MOVED CSHB 201(FIN) am OUT OF COMMITTEE CS FOR HOUSE BILL NO. 110(L&C) "An Act relating to the labeling of milk, cream, or any product or byproduct of milk or cream." -MOVED SCS 110(L&C) OUT OF COMMITTEE CS FOR HOUSE BILL NO. 13(FIN) am "An Act relating to the characterization of, use of, segregation of, deposit of, interest on, and disbursement of escrow money; relating to the recording, filing, and delivery of escrow documents; and providing for an effective date." -MOVED CSHB 13(FIN)am OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION HB 201 - See Labor and Commerce Committee minutes dated 5/6/99. HB 110 - No previous action to consider. HB 13 - No previous action to consider. WITNESS REGISTER Mr. Dwight Perkins, Deputy Commissioner Department of Labor P.O. Box 21149 Juneau, AK 99802-1149 POSITION STATEMENT: Supported HB 201. Representative John Harris State Capitol Bldg. Juneau, AK 99811-1182 POSITION STATEMENT: Sponsor of HB 110. Mr. Peter Fellman, Aide Representative John Harris State Capitol Bldg. Juneau, AK 99811-1182 POSITION STATEMENT: Commented on HB 110. Ms. Ann Ringstad 757 Illinois St. Fairbanks, AK 99701 POSITION STATEMENT: Supported HB 13. ACTION NARRATIVE TAPE 99-21, SIDE A Number 001 HB 201-OVERTIME COMPENSATION COMPUTATION CHAIRMAN MACKIE called the Senate Labor and Commerce Committee meeting to order at 1:45 p.m. and announced HB 201 to be up for consideration. SENATOR DONLEY said he had requested a statement from an attorney saying that this wouldn't affect the existing understanding of overtime, but he didn't get that. MR. DWIGHT PERKINS, Department of Labor, said the particular attorney that would have answered Senator Donley's question was tied up in a nursing strike and he apologized to Senator Donley. SENATOR DONLEY said he wouldn't object to moving it, but he thought there should be some independent review because it's a complicated area. MR. PERKINS said he would follow up on that. SENATOR LEMAN moved to pass HB 201 from committee with individual recommendations. There were no objections and it was so ordered. HB 110-SALE/LABELING OF MILK PRODUCTS CHAIRMAN MACKIE announced HB 110 to be up for consideration. REPRESENTATIVE JOHN HARRIS, sponsor, said this is a consumer choice bill giving dairy farmers in Alaska the opportunity to label their milk and milk products as BST free. It doesn't require them to do that, but gives them the option. SENATOR LEMAN moved to adopt the Bannister 5/11/99 committee substitute to HB 110. There were no objections and it was so ordered. Said that the legislature repealed the milk marketing laws in 1995 and asked if this bill was consistent with that. MR. PETER FELLMAN, Aide to Representative Harris, said this is a completely new issue involving milk that comes from cows that has been treated with a hormone to help increase their milk production. Consumers have voiced their concerns about milk that comes from cows treated with hormones. The repealed legislation was concerning milk pull dates which DEC handles. REPRESENTATIVE ROKEBERG, Chairman, House Labor and Commerce Committee, said they held four hearings on this bill and there was support for this legislation. SENATOR LEMAN asked if there were zero fiscal notes. Number 160 REPRESENTATIVE HARRIS noted that this is an option, not a requirement. He didn't know how many would actually use it. SENATOR DONLEY asked if they couldn't label the milk now, since it's the truth. MR. FELLMAN answered that this provides for some recourse and provides a standard. It also provides for a means to release the milk processor from some liability, if the milk producer himself actually used the hormone. The format in the bill has been put together by the FDA's guidelines. SENATOR LEMAN moved to report SCS HB 110(L&C) from committee with individual recommendations. There were no objections and it was so ordered. HB 13-REGULATION OF ESCROW ACCOUNTS CHAIRMAN MACKIE announced HB 13 to be up for consideration. REPRESENTATIVE ROKEBERG, sponsor of HB 13, said this bill is simple, but it is needed to protect consumers. It requires that good funds be in the hands of the title company prior to recording of the title in a residential real estate transaction. Typically, title companies record first and then get the money. This bill is driven by the lending institutions which force the title companies to record first, because they don't want to release funds on certifiably recorded title. He noted that Ms. Ann Ringstad was a victim of this circumstance and that the incidence is raising. REPRESENTATIVE ROKEBERG said HB 13 was supported by the Alaska Escrow Association which has already changed their policy in April to do this. MS. ANN RINGSTAD related how this applied to the sale of their home in Anchorage four years ago when a couple bought their house, but stopped the funds from transferring when they thought the house was flooding. This happened after the title company had been assured by the bank that the funds were coming. So the Ringstads had no house, but were still liable for the mortgage; the deed was recorded into the buyer's name. If the title company would have waited until they received the funds, there would have been no problem. It took them about four months to get the house back and were told it would take them about two years if they wanted to go to court (and they would probably win, but it would cost $30,000). Number 284 SENATOR LEMAN moved to report HB 13 from committee with individual recommendations. There were no objections and it was so ordered. CHAIRMAN MACKIE adjourned the meeting at 2:00 p.m.