Legislature(2011 - 2012)BARNES 124

02/14/2011 03:15 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 114 OPT-OUT CHARITABLE GIVING PROGRAM TELECONFERENCED
Moved CSHB 114(L&C) Out of Committee
+ HB 130 RESIDENTIAL SPRINKLER SYSTEMS TELECONFERENCED
Moved CSHB 130(L&C) Out of Committee
            HB 114-OPT-OUT CHARITABLE GIVING PROGRAM                                                                        
                                                                                                                              
3:18:14 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced that the first order of business would be                                                                 
HOUSE BILL NO. 114, "An Act relating to an opt-out charitable                                                                   
giving program offered by an electric or telephone cooperative."                                                                
                                                                                                                                
3:18:36 PM                                                                                                                    
                                                                                                                                
JANE PIERSON, Staff, Representative  Steve Thompson, Alaska State                                                               
Legislature, on  behalf of  the prime  sponsor, recapped  HB 114,                                                               
which was previously heard by  the committee.  She explained that                                                               
HB 114  would create  an opt-out  charitable giving  program. The                                                               
program  would  "roundup"  to  the next  dollar  on  an  electric                                                               
cooperative billing.  The fractional  amount would be distributed                                                               
to   organizations  and   individuals  in   need  of   charitable                                                               
donations.     Individuals  or   organizations  would   apply  by                                                               
application.   Most  cooperatives establish  a separate  "501 (c)                                                               
(3)" organization to oversee these  monies.  One issue that arose                                                               
at an  earlier hearing  on HB  114 was  the necessity  of placing                                                               
some restrictions on the opt-out charitable giving program.                                                                     
                                                                                                                                
3:19:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  THOMPSON  made a  motion  to  adopt Amendment  2,                                                               
labeled, 27-LS0424\A.4, Kane, 2/11/11, as follows:                                                                              
                                                                                                                                
     Page 3, lines 13 - 14:                                                                                                     
          Delete "charitable donations and for no other                                                                         
     purpose"                                                                                                                   
          Insert "the relief of poverty, distress, or other                                                                     
     conditions  of  general  public  concern  but  not  for                                                                    
     religious   organizations,   political   organizations,                                                                    
     organized  labor unions,  or unorganized  labor unions,                                                                    
     or for any political purpose"                                                                                              
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
3:19:56 PM                                                                                                                    
                                                                                                                                
MS.  PIERSON explained  that proposed  Amendment  2 would  "place                                                               
some sideboards"  on what  the charitable funds  uses.   She said                                                               
the funds could  be used for the relief of  poverty, distress, or                                                               
other conditions of general public  concern but not for religious                                                               
organizations, political  organizations, organized  labor unions,                                                               
or unorganized  labor unions, or  for any political purpose.   In                                                               
response  to Representative  Johnson, she  answered that  she did                                                               
not  have a  definitive answer  since the  term "charitable"  has                                                               
many  definitions.   She  offered  to work  on  a definition  for                                                               
consideration at the next committee of referral.                                                                                
                                                                                                                                
REPRESENTATIVE JOHNSON  said he  would also like  "general public                                                               
concern" defined  but his concern  was not significant  enough to                                                               
impede the progress of HB 114.   However, he thought the term was                                                               
too general.                                                                                                                    
                                                                                                                                
3:21:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   SEATON   asked   for  the   definition   of   an                                                               
"unorganized labor union."                                                                                                      
                                                                                                                                
MS. PIERSON  said she  was uncertain but  she thought  some labor                                                               
organizations  have programs  and this  language would  extend to                                                               
these programs.                                                                                                                 
                                                                                                                                
3:22:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  described  a   scenario  in  which  house                                                               
repairs  were  being donated.    He  asked whether  employees  of                                                               
companies would be  prevented from using the funds  or working on                                                               
a house if the employees were part of organized labor.                                                                          
                                                                                                                                
MS. PIERSON offered her belief that  the intent of the bill would                                                               
be  for  the,  the  person   who  needs  the  repairs  done,  the                                                               
recipient, to  hire anyone he/she chose  to do the repairs.   She                                                               
indicated  this   could  include  any  member   of  organized  or                                                               
unorganized  labor  since the  labor  organization  would not  be                                                               
receiving  the  funds.   Instead,  the  individual  or  nonprofit                                                               
organization would be receiving the charity, she stated.                                                                        
                                                                                                                                
3:23:23 PM                                                                                                                    
                                                                                                                                
CLYDE  (ED)  SNIFFEN,  JR., Senior  Assistant  Attorney  General,                                                               
Commercial/Fair  Business  Section, Civil  Division  (Anchorage),                                                               
Department of  Law (DOL),  revisited the  question as  whether an                                                               
individual  recipient  could  contract with  an  organized  labor                                                               
union  or an  unorganized labor  union to  repair the  roof.   He                                                               
agreed  with  Ms. Pierson,  that  the  intent  would be  for  the                                                               
recipient of  the donation  is the  focus of  this language.   He                                                               
offered  his belief  that some  restrictions would  be placed  on                                                               
paying labor directly but a carpenter  who happened to be part of                                                               
a labor union would not likely have any restriction.                                                                            
                                                                                                                                
3:24:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON referred to page  3, lines 13-14 of HB 114,                                                               
and said he  thought the language referred to the  purpose of the                                                               
charitable  funds and  not  who  receives the  funds.   He  read:                                                               
"...the  relief  of poverty,  distress,  or  other conditions  of                                                               
general  public  concern  but not  for  religious  organizations,                                                               
political   organizations,   organization    labor   unions,   or                                                               
unorganized  labor unions,  or for  any political  purpose."   He                                                               
asked for further clarification.                                                                                                
                                                                                                                                
MR. SNIFFEN referred  to an earlier question on  whether the term                                                               
"general public  concern" could be  defined.  He offered  to work                                                               
on  this definition.   The  language was  derived from  AS 45.68,                                                               
which relates to charitable solicitation  in Alaska.  The statute                                                               
defines a  charitable organization  to mean an  organization that                                                               
is  formed  for  the  relief   of  poverty,  distress,  or  other                                                               
conditions  of  general  public   concern.    He  recalled  other                                                               
statutes  use that  phrase.   Unfortunately,  the  phrase is  not                                                               
defined in  any of those other  statutes either.  He  said, "It's                                                               
kind of a moving target and we'll see if we can do better."                                                                     
                                                                                                                                
MR.  SNIFFIN  turned  to  the specific  question  as  to  whether                                                               
Amendment 2  would refer to  the purpose  of the donation  or the                                                               
individual.   He  said he  was uncertain  whether it  matters too                                                               
much, but  he understood the concern.   He related a  scenario in                                                               
which  GVEA   wanted  make  a   donation  to   the  International                                                               
Brotherhood  of  Electrical Workers  (IBEW)  for  the purpose  of                                                               
opposing an attempt  to de-unionize a particular shop.   The GVEA                                                               
would be restricted  from doing so as long as  the purpose of the                                                               
grant  is  not  to  benefit the  labor,  political  or  religious                                                               
organization.   This language would  allow that to happen  but he                                                               
suggested that there may be a  way to focus on the purpose rather                                                               
than on the individual.                                                                                                         
                                                                                                                                
REPRESENTATIVE SEATON offered that  he was having difficulty with                                                               
the "purpose"  and the "recipient"  on the  "same line".   He was                                                               
uncertain how that would work.                                                                                                  
                                                                                                                                
3:27:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  recalled  Mr.   Sniffen  used  the  term                                                               
"unorganized labor organizations" several  times but the specific                                                               
language  in  Amendment  2  uses   the  term  "unorganized  labor                                                               
unions."    He  asked  whether   the  committee  should  consider                                                               
altering the language.                                                                                                          
                                                                                                                                
MR.  SNIFFEN related  his understanding  that  union suggests  an                                                               
organized  entity.   He offered  his  belief it  might make  more                                                               
sense  to  say "organized  labor  unions"  or "other  unorganized                                                               
labor  organization"  would  perhaps  resolve  that  issue.    He                                                               
suggested  that clarification  could be  worked on  in the  House                                                               
Judiciary Standing Committee, as well.                                                                                          
                                                                                                                                
3:28:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  referred to  an organization such  as the                                                               
Associated General  Contractors (AGC), which  is not a  union but                                                               
is  an  organized  labor  association.   He  reiterated  such  an                                                               
organization is  not really  a union but  it is  an organization.                                                               
He commented that he struggles with the meaning of that phrase.                                                                 
                                                                                                                                
REPRESENTATIVE SEATON related  a scenario in which  AGC needed to                                                               
replace  20 roofs  that  blew off  in  a wind  storm.   He  asked                                                               
whether AGC could  replace the roofs under  the charitable giving                                                               
program in HB 114.                                                                                                              
                                                                                                                                
MR. SNIFFEN responded  that AGC is a  contractor's association so                                                               
it would not  likely fit the definition of  a labor organization.                                                               
He identified  the AGC  as an affiliation  of entities  that have                                                               
labor organization interests.   The purpose and intent  of HB 114                                                               
is  to  allow  donations  for   charitable  giving  projects  for                                                               
projects such  as replacing a  roof on a disabled  person's home.                                                               
He remarked that would not be  prohibited to have the donation go                                                               
through a  labor organization of some  kind so long as  the grant                                                               
was not  to the labor organization.   He offered his  belief that                                                               
the funds would have to be  earmarked for a specific purpose.  He                                                               
related that  it may  make more  sense to  put parameters  on the                                                               
definition in order  to better focus on the purpose  of the fund.                                                               
Then if  the funds are channeled  to entities it would  likely be                                                               
fine so long as the purpose of  the donation was met.  He offered                                                               
to continue to work to improve the language.                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  said  he  thought the  funds  should  be                                                               
remitted  directly to  the recipient  rather than  to the  person                                                               
receiving the  repair.   He reiterated that  he would  prefer the                                                               
process to  be structured so  any charitable funds would  be paid                                                               
to  the recipient  and  the  person would  then  hire the  repair                                                               
person to do the work.                                                                                                          
                                                                                                                                
MR. SNIFFEN  said he  did not  disagree.   He offered  his belief                                                               
that they both have same idea.                                                                                                  
                                                                                                                                
3:32:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLER  remarked that  he  reviewed  the list  of                                                               
examples  of recipients  and  thought one  solution  might be  to                                                               
insert language, such  as nonprofit businesses.   He recalled the                                                               
sponsor's   staff   mentioning   the  difficulty   in   inserting                                                               
"charitable organization"  since it may have  "tentacles" but all                                                               
of the examples on the list  seemed to be individual or nonprofit                                                               
organizations.                                                                                                                  
                                                                                                                                
MS. PIERSON said she thought that  was a good idea and offered to                                                               
work  with  Mr.  Sniffen  on specific  language  to  address  his                                                               
concern.                                                                                                                        
                                                                                                                                
REPRESENTATIVE MILLER  referred to  line 4 of  proposed Amendment                                                               
2, and  suggested the committee  may wish to  delete "unorganized                                                               
labor unions" and replace it with "other labor organizations."                                                                  
                                                                                                                                
MR. SNIFFEN  said he thought  that change  makes sense.   He also                                                               
thought  a similar  restriction to  non-profit organizations  was                                                               
previously  considered.   He  said  he  thought the  language  in                                                               
Amendment  to that  imposes restrictions  to  "not for  religious                                                               
organizations and  political organizations" helps to  clarify who                                                               
is   eligible  since   religious   organizations  and   political                                                               
organizations are  also nonprofit organizations.   He offered his                                                               
belief that  the committee has  given the sponsor  good direction                                                               
to move forward to address the concerns.                                                                                        
                                                                                                                                
3:35:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES  asked whether proposed Amendment  2 should                                                               
be adopted or if  it still needs tinkering.    She said it seemed                                                               
like committee is interested in moving the bill along.                                                                          
                                                                                                                                
REPRESENTATIVE  JOHNSON said  he was  not opposed  to moving  the                                                               
bill  with  this  amendment  included   since  the  committee  is                                                               
building  a  public  record.   He  said  would  be  uncomfortable                                                               
sending this bill  out without adopting Amendment  1, even though                                                               
the language was imperfect.                                                                                                     
                                                                                                                                
REPRESENTATIVE  SEATON  said he  was  unsure  which entities  are                                                               
being discussed  under "other labor  organizations" that  are not                                                               
"labor unions,"  especially as it  pertains to rural Alaska.   He                                                               
was  uncertain  whether the  language  may  capture entities  the                                                               
committee  may  not  want  included   in  the  charitable  giving                                                               
provisions.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOHNSON  asked  the sponsor  to  clarify  whether                                                               
deleting  the  language  after   "labor  unions"  and  using  "or                                                               
unorganized labor  unions" would serve the  sponsor's purpose and                                                               
may also address Representative Seaton's concern.                                                                               
                                                                                                                                
MS. PIERSON answered yes.                                                                                                       
                                                                                                                                
3:38:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  made  a  motion  to  conceptually  amend                                                               
Amendment  2,  on line  4,  of  HB  114, after  "organized  labor                                                               
unions" to delete "or unorganized labor unions."                                                                                
                                                                                                                                
REPRESENTATIVE HOLMES objected for purpose of discussion.                                                                       
                                                                                                                                
REPRESENTATIVE THOMPSON considered  the suggested language change                                                               
in  the  conceptual  amendment  to Amendment  2  as  "a  friendly                                                               
amendment."                                                                                                                     
                                                                                                                                
MR. SNIFFEN agreed  that he could not come up  with a solid clear                                                               
example of  an unorganized labor  union either.   He said  he did                                                               
not think the  conceptual amendment to Amendment  2 would detract                                                               
from the  intent of the sponsors,  although he left it  up to the                                                               
sponsors to decide.                                                                                                             
                                                                                                                                
3:39:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HOLMES removed  her objection  to the  conceptual                                                               
amendment to Amendment 2.   There being no further objection, the                                                               
conceptual amendment to Amendment 2 was adopted.                                                                                
                                                                                                                                
CHAIR  OLSON lifted  his objection.   There  being no  objection,                                                               
Conceptual Amendment 2, as amended was adopted.                                                                                 
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 114.                                                                                     
                                                                                                                                
3:41:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER   made  a  motion  to   adopt  Conceptual                                                               
Amendment 3,  on page  3, line  2, to delete  "but does  not" and                                                               
insert "by an  amount not to".  He explained  the bill would then                                                               
read:  "program  that rounds the monthly bill of  a member to the                                                               
next whole  dollar amount by an  amount not to exceed  99 cents a                                                               
month."                                                                                                                         
                                                                                                                                
REPRESENTATIVE HOLMES objected for the purpose of discussion.                                                                   
                                                                                                                                
REPRESENTATIVE SADDLER  clarified that  it was "a  grammar thing"                                                               
since the subject  is "a program that" "rounds  the monthly bill"                                                               
"but does not exceed."  He  suspected a monthly bill would exceed                                                               
99 cents a month.                                                                                                               
                                                                                                                                
3:42:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  explained  that Conceptual  Amendment  3                                                               
would  also have  to add  "up" to  read, "rounds  up" instead  of                                                               
"rounds".  He  restated the bill would then read:   "program that                                                               
"rounds  up" the  monthly  bill of  a member  to  the next  whole                                                               
dollar amount by an  amount not to exceed 99 cents  a month."  He                                                               
then restated Conceptual Amendment  3, after "member" insert "up"                                                               
then delete "but does not" and insert "by an amount not to".                                                                    
                                                                                                                                
REPRESENTATIVE HOLMES removed her objection.                                                                                    
                                                                                                                                
There  being   no  further  objection,  Conceptual   Amendment  3                                                               
adopted.                                                                                                                        
                                                                                                                                
REPRESENTATIVE THOMPSON acknowledged Conceptual  Amendment 3 as a                                                               
"friendly amendment."                                                                                                           
                                                                                                                                
3:44:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to report  HB 114, as  amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  zero fiscal  note. There  being no  objection, CSHB
114(L&C) was reported from the  House Labor and Commerce Standing                                                               
Committee.                                                                                                                      

Document Name Date/Time Subjects
HB130 Fiscal Note-DPS-FLS-02-05-11.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Letter Alaska HBA 2-1-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Letter AK Assoc of Realtors 2-4-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents - Summary of HB 130 Effects.pdf HL&C 2/14/2011 3:15:00 PM
HB 130
HB130 Supporting Documents Letter AFCA 2-14-2011.pdf HL&C 2/14/2011 3:15:00 PM
HB 130