03/01/2018 09:00 AM House FINANCE

HOUSE BILL NO. 301                                                                                                            
     "An Act relating to the renewal and transfer of                                                                            
     ownership of a beverage dispensary license or                                                                              
     restaurant or eating place license."                                                                                       
                                                                                                                                
9:22:23 AM                                                                                                                    
                                                                                                                                
Co-Chair  Foster relayed  that the  bill was  last heard  in                                                                    
committee on February 20, 2018.                                                                                                 
                                                                                                                                
Representative Wilson  had asked Legislative  Legal Services                                                                    
whether  the grandfathering  provision only  applied to  the                                                                    
businesses  included  in  the bill.  She  related  that  the                                                                    
attorneys stated that the bill  would allow other businesses                                                                    
to be grandfathered in the future.                                                                                              
                                                                                                                                
REPRESENTATIVE  ADAM WOOL,  SPONSOR,  was not  aware of  the                                                                    
interpretation. He understood that  the bill only applied to                                                                    
the 34  businesses that operated  before the 1985  change in                                                                    
the law.                                                                                                                        
                                                                                                                                
Representative Wilson  favored the bill. She  indicated that                                                                    
she  wanted  to  bring  the broader  interpretation  to  his                                                                    
attention.  She  clarified  that   the  bill  did  not  only                                                                    
grandfather  in  the  specified   businesses;  if  the  laws                                                                    
changed  in the  future, grandfathering  could apply.  Under                                                                    
current  law the  bill  only applied  to  the 34  businesses                                                                    
addressed, but if  the alcohol laws were  rewritten the bill                                                                    
would  pertain to  any businesses  in  a similar  situation.                                                                    
Representative Wool could  not speak to a  future rewrite of                                                                    
the  law  and  how   it  would  impact  currently  operating                                                                    
businesses.  He hoped  that a  future rewrite  would include                                                                    
grandfathering  clauses for  businesses that  abided by  the                                                                    
law. He  thought HB 301  was specific  to the time  when the                                                                    
room requirement  changed. He  thought Ms.  McConnell [Erika                                                                    
McConnell,  Director, ABC  Board]  could provide  additional                                                                    
information.  Representative Wilson  wanted the  legislature                                                                    
to be cognizant of the  effects on businesses when laws were                                                                    
changed.  Representative  Wool thought  that  Representative                                                                    
Wilson spoke in the  "hypothetical". He remembered that when                                                                    
the   drinking  age   was   changed   businesses  were   not                                                                    
grandfathered  in  and  thought  the  matter  was  relative.                                                                    
Representative  Wilson  asked  if the  laws  were  rewritten                                                                    
whether the grandfathering clause  would apply to businesses                                                                    
in a similar situation in the future.                                                                                           
                                                                                                                                
ERIKA MCCONNELL, DIRECTOR, ABC BOARD (via teleconference),                                                                      
replied  that  she  agreed   with  the  interpretation.  She                                                                    
believed it was  a positive outcome. She pointed  to page 4,                                                                    
lines 14 through  23 of the draft  Committee Substitute (CS)                                                                    
and read from the following:                                                                                                    
                                                                                                                                
     (2) the renewal or transfer of ownership of a beverage                                                                     
     dispensary or restaurant or eating place license                                                                           
     issued under (1) of this subsection if the                                                                                 
     (A) holder of the license operates a hotel, motel,                                                                         
     resort, or similar business relating to the tourist                                                                        
     trade that                                                                                                                 
     (i) has a dining facility on the licensed premises or                                                                      
     kitchen facilities  in a majority of  its rental rooms;                                                                    
     and  (ii)  maintains at  least  the  minimum number  of                                                                    
     rental rooms that the hotel,  motel, resort, or similar                                                                    
     business had at  the time of initial  licensure or that                                                                    
    were required at the time of initial licensure; or                                                                          
                                                                                                                                
Ms. McConnell explained that the  language was important and                                                                    
protected businesses  in communities that grew  overtime and                                                                    
was now required  to have more rooms to  obtain the license.                                                                    
The language in  the bill stated that the  business only had                                                                    
to maintain  the number of  rooms that were required  at the                                                                    
time of  initial licensure. Representative Wilson  wanted to                                                                    
protect people's  investments and  was merely  informing the                                                                    
committee of the broader interpretation of the bill.                                                                            
                                                                                                                                
Co-Chair  Foster  recognized  Representative  Knopp  in  the                                                                    
audience.                                                                                                                       
                                                                                                                                
9:29:33 AM                                                                                                                    
                                                                                                                                
Vice-Chair Gara  read the  previously published  zero fiscal                                                                    
note, FN1  (CED) from the Department  of Commerce, Community                                                                    
and Economic  Development (DCCED)  allocated to  the Alcohol                                                                    
and Marijuana Control Office that  did not anticipate fiscal                                                                    
impact from this legislation.                                                                                                   
                                                                                                                                
Representative  Kawasaki commented  that  the committee  had                                                                    
been  working with  Title  4  and how  AMCO  worked. He  was                                                                    
contacted  by   the  Riverfront  Theatre,   Fairbanks  Drama                                                                    
Association and  relayed that  the theatre  was open  for 54                                                                    
hours  and  paid  $2,475.  for   the  license,  secured  the                                                                    
signature of the licensees 66  times, and filed 435 pages of                                                                    
paper  work for  the 54  hours. He  deduced that  on a  good                                                                    
night they  made $200 and  the ABC  fees alone were  $70. He                                                                    
acknowledged that  the bill was  not the vehicle  to address                                                                    
the issue and  just wanted to make the  statement on record.                                                                    
He believed the costs and  paperwork were a big bureaucratic                                                                    
burden for a small non-profit organization.                                                                                     
                                                                                                                                
9:31:48 AM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton  MOVED  to  report  CSHB  301(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSHB  301(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation and with  one previously published zero                                                                    
fiscal note: FN1(CED).                                                                                                          
                                                                                                                                
9:32:34 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:33:33 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
hb38                                                                                                                            
HOUSE BILL NO. 38                                                                                                             
                                                                                                                                
     "An  Act relating  to the  calculation  and payment  of                                                                    
     workers'   compensation  benefits   in   the  case   of                                                                    
     permanent   partial   impairment;   relating   to   the                                                                    
     calculation and payment  of workers' compensation death                                                                    
     benefits payable to a child  of an employee where there                                                                    
     is  no surviving  spouse; relating  to the  calculation                                                                    
     and  payment of  workers'  compensation death  benefits                                                                    
     for an  employee without a  surviving spouse  or child;                                                                    
     relating  to  notice  of  workers'  compensation  death                                                                    
     benefits; and providing for an effective date."                                                                            
                                                                                                                                
9:33:37 AM                                                                                                                    
                                                                                                                                
Co-Chair Foster relayed  that HB 38 was  previously heard in                                                                    
committee on February 15, 2018.                                                                                                 
                                                                                                                                
MEGAN HOLLAND, STAFF, REPRESENTATIVE ANDY JOSEPHSON,                                                                            
                                                                                                                                
9:34:49 AM                                                                                                                    
                                                                                                                                
MARIE  MARX,   DIRECTOR,  WORKER'S   COMPENSATION  DIVISION,                                                                    
DEPARTMENT  OF  LABOR  AND WORKFORCE  DEVELOPMENT,  reviewed                                                                    
the  new zero  fiscal note  by the  Department of  Labor and                                                                    
Workforce Development  (DLWD). She  indicated that  the bill                                                                    
would not  change the way  the division  administers workers                                                                    
compensation; therefore,  there is  no direct  fiscal impact                                                                    
to the department.                                                                                                              
                                                                                                                                
Representative Wilson  was assuming  the other  fiscal notes                                                                    
were no longer applicable. Ms.  Marx relayed that there were                                                                    
two other  fiscal notes: One  from the Office  of Management                                                                    
and   Budget  (OMB)   and  one   from   the  Department   of                                                                    
Administration (DOA).  She elaborated that the  benefits and                                                                    
costs  associated  with the  legislation  were  paid for  by                                                                    
insurance  companies and  self-insured employers;  the state                                                                    
was self-insured. Through DOA's  Division of Risk Management                                                                    
the  costs would  be  passed on  to  state agencies  through                                                                    
increased personal services  benefits costs including future                                                                    
year budget salary and benefit adjustments.                                                                                     
                                                                                                                                
Representative  Wilson was  concerned, and  she was  working                                                                    
diligently  on the  issue. She  believed  that a  "different                                                                    
type  of punishment"  other than  financial should  apply if                                                                    
the state had  an employer that ignored safety  to the point                                                                    
that someone  was permanently injured or  killed. She wanted                                                                    
to find a solution that did not "break the system."                                                                             
                                                                                                                                
Vice-Chair    Gara   shared    a   similar    concerned   as                                                                    
Representative Wilson.                                                                                                          
                                                                                                                                
Co-Chair  Seaton  MOVED  to  report   CSHB  38(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes.                                                                                                      
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Representative Pruitt  spoke to  his objection.  He believed                                                                    
that  the bill  compensated "beyond  the dependents"  of the                                                                    
injured  worker. He  suggested  that the  state already  had                                                                    
such high  costs and altered  the longstanding  "concept" of                                                                    
workers  compensation  and  how it  worked;  compensate  the                                                                    
injured worker  and their dependents  and was  now including                                                                    
the estate.                                                                                                                     
                                                                                                                                
Vice-Chair  Gara   relayed  a   story  from   personal  work                                                                    
experience. He thought the level  of compensation was so low                                                                    
it was almost  insulting. He believed that  the guilty party                                                                    
should pay for injury or death. He supported the bill.                                                                          
                                                                                                                                
9:41:09 AM                                                                                                                    
                                                                                                                                
Representative  Pruitt  was  concerned  that  the  negligent                                                                    
party was not  paying into the system. He  agreed that there                                                                    
was no way  to put a price  on a life. He  thought the fault                                                                    
of the  bill was that  it did not  hold the person  that was                                                                    
negligent  responsible; the  system paid  for the  injury or                                                                    
loss.  He asserted  that  that  was Representative  Wilson's                                                                    
point. He  emphasized that the  legislation did  not address                                                                    
the concern properly.                                                                                                           
Representative  Wilson  wondered  whether changing  the  law                                                                    
would inhibit a parent or  someone "outside the system" from                                                                    
suing the responsible party.                                                                                                    
                                                                                                                                
9:44:00 AM                                                                                                                    
                                                                                                                                
Vice-Chair   Gara   responded  to   Representative   Wilson'                                                                    
question.  He explained  that the  worker's comp  system was                                                                    
exclusive, and  the benefit was  solely tied to  the worker.                                                                    
The  parent  currently  lacked any  recourse  in  court.  He                                                                    
responded to  Representative Pruitt's remarks  and indicated                                                                    
that  if  an employer  negligently  killed  a worker  in  an                                                                    
accident  the parent  was not  entitled to  anything if  the                                                                    
employee  had  no spouse  or  children.  The bill  made  the                                                                    
employer responsible under  the workers' compensation system                                                                    
and corrected the issue.                                                                                                        
                                                                                                                                
Co-Chair  Seaton voiced  that the  issues were  conflated in                                                                    
the committee process.  He understood that one  issue was to                                                                    
hold the grossly negligent party  responsible, which was not                                                                    
the subject of the bill.  The current legislation dealt with                                                                    
the  workers'  comp  insurance   and  who  was  covered.  He                                                                    
summarized that if  an 18-year-old lost his life  on the job                                                                    
and  had  no dependents  or  spouse  the parents  would  not                                                                    
receive  compensation and  that scenario  was the  issue. He                                                                    
offered  that Worker's  Compensation covered  funeral costs.                                                                    
He hoped the  two issues could be separated.  He thought the                                                                    
other problems could be solved in future legislation.                                                                           
                                                                                                                                
Representative Pruitt MAINTAINED OBJECTION.                                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR:   Gara, Grenn, Kawasaki, Ortiz, Foster, Seaton                                                                        
OPPOSED:    Wilson, Pruitt, Thomson, Tilton                                                                                     
                                                                                                                                
Representative Guttenberg was absent from the vote.                                                                             
                                                                                                                                
The MOTION PASSED (6/4).                                                                                                        
                                                                                                                                
CSHB 38(FIN) was  REPORTED out of committee  with an "amend"                                                                    
recommendation  and  with a  new  zero  fiscal note  by  the                                                                    
Department of Labor and Workforce  Development, a new fiscal                                                                    
impact note by the Office of the Governor, and a new fiscal                                                                     
impact note by Department of Administration.                                                                                    
                                                                                                                                
9:47:14 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:49:08 AM                                                                                                                    
                                                                                                                                
RECONVENED