Legislature(2011 - 2012)BELTZ 105 (TSBldg)

02/23/2012 01:30 PM Senate LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Bills Previously Heard/Scheduled
+= SB 25 AIDEA SUSTAINABLE ENERGY PROGRAM TELECONFERENCED
Moved CSSB 25(L&C) Out of Committee
+= SB 175 PRACTICE OF NATUROPATHY TELECONFERENCED
Moved CSSB 175(L&C) Out of Committee
+= SB 122 REAL ESTATE TRANSFER FEES/TITLE PLANTS TELECONFERENCED
Moved CSSB 122(L&C) Out of Committee
+= SB 174 OIL AND GAS INDUSTRY JOB NOTIFICATIONS TELECONFERENCED
Heard & Held
+= SB 116 WORKERS' COMP.: COLL BARGAINING/MEDIATION TELECONFERENCED
Scheduled But Not Heard
*+ SB 190 BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
<Bill Hearing Postponed>
+ HB 168 INJUNCTION SECURITY: INDUSTRIAL OPERATION TELECONFERENCED
<Bill Hearing Postponed>
+= SB 138 THIRD-PARTY CHARGES ON TELEPHONE BILLS TELECONFERENCED
<Bill Hearing Postponed>
+= SB 157 CANCEL INSUR. ON CERTAIN VACANT PROPERTY TELECONFERENCED
<Bill Hearing Postponed>
         SB 174-OIL AND GAS INDUSTRY JOB NOTIFICATIONS                                                                      
                                                                                                                                
2:32:29 PM                                                                                                                    
CHAIR EGAN announced SB 174 to be up for consideration.                                                                         
                                                                                                                                
SENATOR HOLLIS FRENCH, sponsor of SB  174, said this bill had its                                                               
genesis  from the  work this  committee did  with respect  to oil                                                               
industry hiring practices. Early  results from the McDowell Group                                                               
report indicated  large numbers  of out-of-state  residents being                                                               
hired on  the North  Slope, and  he puzzled  about what  could be                                                               
done to  tip the balance  in favor of Alaska  residents. In-state                                                               
hire  cannot be  mandated, but  maybe Alaskans  can be  made more                                                               
aware  of  these  fantastic  job opportunities,  and  SB  174  is                                                               
designed to  do just  that. Senator French  said he  worked eight                                                               
years on the North Slope and they are great jobs.                                                                               
                                                                                                                                
SENATOR FRENCH  said when  big companies on  the North  Slope are                                                               
hiring,  they   tell  the  Department  of   Labor  and  Workforce                                                               
Development (DOLWD) and the department  puts it on their website.                                                               
He was  open to any  reasonable suggestion,  but the idea  was to                                                               
just get the notification out there.                                                                                            
                                                                                                                                
CHAIR EGAN remarked that the  department was working hard to make                                                               
ALEXsys more user friendly.                                                                                                     
                                                                                                                                
2:35:04 PM                                                                                                                    
SENATOR  GIESSEL said  she appreciated  the  intent and  possible                                                               
outcome  of  this  bill  and remarked  that  information  in  the                                                               
supporting  documents  also  indicated  that 75  percent  of  the                                                               
workforce in the seafood industry  is non-resident. She said more                                                               
than one-third  of Alaska's  employers are  in the  food services                                                               
industry  and employs  lots  of non-residents  as  well. So,  she                                                               
wanted to offer an amendment that  would broaden the scope of the                                                               
bill to  include any non-profit  that is licensed to  do business                                                               
in the state with more than 100 employees.                                                                                      
                                                                                                                                
2:36:35 PM                                                                                                                    
SENATOR GIESSEL moved conceptual Amendment  1 and asked her staff                                                               
to explain it.                                                                                                                  
                                                 27-LS0967\M.1                                                                  
                                                 Bailey/Wayne                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
     TO: SB 174                              BY SENATOR GIESSEL                                                                 
                                                                                                                                
     Page 1, line 1:                                                                                                            
          Delete "in the oil and gas production industries"                                                                   
                                                                                                                                
     Page 1, line 3:                                                                                                            
          Delete "that"                                                                                                       
          Insert "job opportunity"                                                                                            
                                                                                                                                
     Page 1, line 8:                                                                                                            
          Delete "by oil and gas producer"                                                                                    
                                                                                                                                
     Page 1, line 9:                                                                                                            
          Delete "an oil or gas producer"                                                                                       
          Insert "a for-profit business licensed to do                                                                          
     business in the state"                                                                                                     
                                                                                                                                
     Page 1, line 10:                                                                                                           
          Delete "producer"                                                                                                     
          Insert "for-profit business"                                                                                          
     Page 2, lines 12 - 13:                                                                                                     
          Delete "and notifies job service organizations as                                                                     
     required under AS 43.82.230(b); or"                                                                                        
          Insert "in newspapers in the location where the                                                                       
       work is to be performed and in other publications                                                                        
      distributed throughout the state, including in rural                                                                      
     areas;                                                                                                                     
               (2)  the employer uses Alaska job service                                                                        
     organizations  located  throughout  the state  and  not                                                                    
     just in the location where  the work is to be performed                                                                    
     in  order to  notify  Alaskans  of work  opportunities;                                                                    
     and"                                                                                                                       
                                                                                                                                
     Renumber the following paragraph accordingly.                                                                              
                                                                                                                                
     Page 2, line 17:                                                                                                           
          Delete all material.                                                                                                  
                                                                                                                                
     Page 2, line 18:                                                                                                           
          Delete "(2)"                                                                                                          
                                                                                                                                
     Page 2, line 20:                                                                                                           
          Delete ";"                                                                                                            
          Insert "."                                                                                                            
                                                                                                                                
     Page 2, lines 21 - 24:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Page 3, line 6:                                                                                                            
          Delete "with oil or gas producers"                                                                                
                                                                                                                                
     Page 4, line 4:                                                                                                            
          Delete "and"                                                                                                      
                                                                                                                                
     Page 4, line 6, following "AS 23.05.095":                                                                              
          Insert "; and                                                                                                     
          (13)  a statement of state and municipal job                                                                      
     opportunities"                                                                                                         
                                                                                                                                
2:37:19 PM                                                                                                                    
SHARON  LONG,  staff  to Senator  Giessel,  explained  that  this                                                               
amendment  broadens the  bill to  cover  any for-profit  business                                                               
doing business in  Alaska. It would make any  available jobs open                                                               
to Alaskans. Language on page 1,  line 1, deletes "in the oil and                                                               
gas production industries",  on line 3 it  adds "job opportunity"                                                               
after "requiring", on  line 8 it deletes "oil or gas producer".                                                                 
                                                                                                                                
The fourth  change was on  page 1, line  9, that deletes  "an oil                                                               
and gas  producer" and inserts  "for-profit business  licensed to                                                               
do business  in the state".  Page 1, line 10,  deletes "producer"                                                               
and  inserts "for-profit  business".  Page 2,  lines  12 and  13,                                                               
deletes "and notifies job service  organization as required under                                                               
AS 43.82.230(b) and inserts:                                                                                                    
                                                                                                                                
     1. In newspapers in the location where the work is to                                                                      
       be performed and in other publications distributed                                                                       
     throughout the state including rural areas.                                                                                
     2. The  employer uses Alaska job  service organizations                                                                    
     located  throughout  the  state  and not  just  in  the                                                                    
     location where the work is  to be performed in order to                                                                    
     notify Alaskans of work opportunities.                                                                                     
                                                                                                                                
Change 7  deletes language  on page  2, line  17, deletes  "2" on                                                               
page 2,  line 18, and  on line 20  inserts a period.  Language is                                                               
deleted on page 2, lines 21-24.                                                                                                 
                                                                                                                                
On page 3,  line 6, "with oil or gas  producers" is deleted which                                                               
again broadens the application outside  the oil and gas industry.                                                               
On  page  4, line  4,  "and"  is deleted;  on  line  6 "and  (13)                                                               
statement of  state and municipal job  opportunities" is inserted                                                               
after "AS 23.05.095."                                                                                                           
                                                                                                                                
SENATOR DAVIS asked what the sponsor thought of the amendment.                                                                  
                                                                                                                                
SENATOR FRENCH said  he appreciated the sentiment  behind it, but                                                               
was  concerned  about  the  reporting burden  it  puts  on  other                                                               
companies. The reason he focused on  the oil and gas industry was                                                               
because  of  the information  in  "The  Non-Residents Working  in                                                               
Alaska Handbook" for  2010. This book indicates that  the oil and                                                               
gas industry employs less than  5 percent of all Alaskan workers.                                                               
But it has a substantial impact  on Alaska's economy; oil and gas                                                               
industry  earnings  are  2.7 times  higher  than  average  annual                                                               
earnings  for  all  other  industries  combined!  The  same  book                                                               
indicates that the percentage of  non-resident workers in the oil                                                               
and gas industry has historically  been higher than the statewide                                                               
average for  all industries. So,  he is  aiming at the  center of                                                               
the target  - at  the problem with  the biggest  economic impact,                                                               
out-of-state workers taking high paying oil jobs.                                                                               
                                                                                                                                
SENATOR FRENCH said he thought  Senator Giessel's idea to broaden                                                               
it was a good  one, but that maybe it should  be in a stand-alone                                                               
bill and  he wanted to  hear from  the Department of  Labor about                                                               
what sorts  of work would  go into  putting this into  effect. If                                                               
they say it's no problem whatsoever  and has no fiscal impact, he                                                               
would be fine with it.                                                                                                          
                                                                                                                                
He also  pointed out  that it's  easier to get  a tour  guide job                                                               
with  Gastineau   Channel  Guiding,  because  they   are  already                                                               
advertising on the  radio and if you want to  work in the seafood                                                               
industry, just  show up.  But if  you want to  work on  the North                                                               
Slope  "that's tougher,"  because of  the high  pay and  the high                                                               
number  of  people coming  up  from  out-of-state claiming  those                                                               
jobs.                                                                                                                           
                                                                                                                                
2:44:41 PM                                                                                                                    
SENATOR  GIESSEL agreed  with  him but  said  that still  doesn't                                                               
address the  fact that 75  percent of  the employees in  the fish                                                               
processing  industry are  non-residents. In  fact a  high percent                                                               
are  not  even  Americans.  The  same  is  true  in  the  tourism                                                               
industry.                                                                                                                       
                                                                                                                                
SENATOR  PASKVAN  said  he  understood  precisely  what  she  was                                                               
saying, but this  bill has a zero fiscal note  and he didn't know                                                               
what  the  notification  requirements  in  newspapers  and  other                                                               
publications  distributed throughout  the  state  would mean.  It                                                               
could cause significant problems.                                                                                               
                                                                                                                                
CHAIR EGAN said  the amendment was offered and it  was his intent                                                               
to take it up again at the next meeting.                                                                                        
                                                                                                                                
SENATOR MENARD asked  if it applied only  to for-profits licensed                                                               
to  do  business  in  Alaska  as  long  as  they  have  over  100                                                               
employees.                                                                                                                      
                                                                                                                                
SENATOR GIESSEL  said that was  correct and it would  not include                                                               
the film  industry which is  not required  to be licensed  in the                                                               
state.                                                                                                                          
                                                                                                                                
2:47:58 PM                                                                                                                    
DENNIS BAILEY, Attorney,  Legislative Legal Services, Legislative                                                               
Affairs  Agency, Alaska  State Legislature,  said he  didn't have                                                               
any comments but would answer questions.                                                                                        
                                                                                                                                
SENATOR PASKVAN  asked if he  thought the zero fiscal  note would                                                               
be changed with adoption of the amendment.                                                                                      
                                                                                                                                
MR. BAILEY replied  that his department doesn't  deal with fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
SENATOR DAVIS  said she wanted  to know how this  amendment would                                                               
affect the bill when it comes up for a hearing again.                                                                           
                                                                                                                                
2:49:52 PM                                                                                                                    
PAULA  SCAVERA,  Legislative  Liaison, Department  of  Labor  and                                                               
Workforce Development (DOLWD), pointed  out that the notification                                                               
in  the current  version  of SB  174 goes  to  the online  public                                                               
notice  system,  which  is an  inter-departmental  public  system                                                               
where regulations  and meetings  are posted;  it is  not ALEXsys,                                                               
the jobs network system for  which she prepared an explanation on                                                               
some  handouts.  She  emphasized  again that  the  online  public                                                               
notice system was what was in the bill.                                                                                         
                                                                                                                                
CHAIR EGAN  said that  could be  easily amended  to make  it also                                                               
accessible to ALEXsys.                                                                                                          
                                                                                                                                
MS.  SCAVERA  said  the  system is  currently  available  to  all                                                               
businesses in  Alaska. Just  this morning she  looked at  all oil                                                               
and  gas jobs  on the  ALEXsys system  and found  12 oil  and gas                                                               
producing companies that had 112 jobs posted.                                                                                   
                                                                                                                                
SENATOR GIESSEL  asked about  companies in  the medical  field or                                                               
construction jobs.                                                                                                              
                                                                                                                                
MS.  SCAVERA  answered  that they  have  construction,  drafting,                                                               
waitressing  and administrative  assistant  jobs  posted and  she                                                               
would be happy to show committee members the online system.                                                                     
                                                                                                                                
2:52:45 PM                                                                                                                    
SENATOR GIESSEL  asked if the  oil and gas companies  are already                                                               
doing this as are multiple other industries in the state.                                                                       
                                                                                                                                
MS. SCAVERA replied yes.                                                                                                        
                                                                                                                                
SENATOR PASKVAN said  they know what they post, but  how does one                                                               
know what they haven't posted.                                                                                                  
                                                                                                                                
MS. SCAVERA acknowledged that.                                                                                                  
                                                                                                                                
SENATOR PASKVAN  said it's  more accurate to  say they  know what                                                               
their practice is, but they don't know if it is all-inclusive.                                                                  
                                                                                                                                
MS. SCAVARA said  that was correct. They don't know  if there are                                                               
10,000 jobs  out there and only  112 of them were  getting posted                                                               
as of  this morning.  She personally didn't  know if  three weeks                                                               
ago 400 jobs  were posted and then filled. They  do know how many                                                               
jobs have posted through the  ALEXsys system to gain employees in                                                               
Alaska.                                                                                                                         
                                                                                                                                
SENATOR GIESSEL  asked when someone applies  for unemployment and                                                               
is required to continue seeking work  if this would be one of the                                                               
places they would be expected to search.                                                                                        
                                                                                                                                
MS. SCAVARA answered yes.                                                                                                       
                                                                                                                                
SENATOR  MENARD  said she  was  interested  in getting  a  better                                                               
understanding of  how many hits  the job  site gets and  asked if                                                               
they have that data.                                                                                                            
                                                                                                                                
2:55:16 PM                                                                                                                    
PAUL DICK, Director, Employment  Security Division, Department of                                                               
Labor and  Workforce Development (DOLWD), replied  yes; last year                                                               
ALEXsys posted 35,000 jobs and had 300,000 visits.                                                                              
                                                                                                                                
SENATOR MENARD asked what industry the 35,000 jobs went to.                                                                     
                                                                                                                                
MR. DICK  replied that they  can look at  the types of  jobs that                                                               
are  posted,  but  they  don't  have the  results  of  whether  a                                                               
particular person got employed or not.                                                                                          
                                                                                                                                
SENATOR MENARD said  they should be able to  get that information                                                               
as they advance to find out if a job was actually secured.                                                                      
                                                                                                                                
MR. DICK answered that their records track re-employment rates.                                                                 
                                                                                                                                
2:57:32 PM                                                                                                                    
SENATOR  PASKVAN said  requiring notification  through newspapers                                                               
in  the  location  where  the  work is  performed  and  in  other                                                               
publications  distributed throughout  the  state including  rural                                                               
areas  would  seem to  impose  a  criterion  for entry  into  the                                                               
system.                                                                                                                         
                                                                                                                                
MS. SCAVERA  responded that right  now the department is  kind of                                                               
involved in  the bill, but  their system is  not in the  bill and                                                               
didn't know what the fiscal implications would be.                                                                              
                                                                                                                                
SENATOR  PASKVAN  said currently  an  employer  can access  their                                                               
system at no charge.                                                                                                            
                                                                                                                                
MS. SCAVERA answered yes.                                                                                                       
                                                                                                                                
CHAIR EGAN  added that  since it's  maintained by  the department                                                               
there wouldn't be any increased costs for posting on ALEXsys.                                                                   
                                                                                                                                
MS.  SCAVERA  replied   the  fiscal  note  would   be  about  the                                                               
departmental  notification to  the other  entities that  the bill                                                               
requires. Right  now there is  no cost for  a business to  post a                                                               
job because the HR person for  any business in the state can post                                                               
one.                                                                                                                            
                                                                                                                                
CHAIR EGAN  said it seems  like a  clever IT person  could figure                                                               
out how it could be done.                                                                                                       
                                                                                                                                
MS. SCAVERA said the problem also  is that not every community in                                                               
Alaska  has   broadband  Internet.  For  instance,   during  this                                                               
winter's  storms, St.  George, St.  Michael and  St. Paul  didn't                                                               
have Internet  service for over a  month. You have to  be careful                                                               
what you mandate when it's for municipalities and communities.                                                                  
                                                                                                                                
CHAIR EGAN  remarked that problem  exists now, but  be understood                                                               
what  she  was saying.  He  held  the  amendment  and SB  174  in                                                               
committee.                                                                                                                      

Document Name Date/Time Subjects
SB 125 lttr supporting, AADA.pdf SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Purpose of bill.PDF SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Sectional Analysis - 2-3-12.pdf SL&C 2/23/2012 1:30:00 PM
SB 125
SB 125 Sponsor Statement.PDF SL&C 2/23/2012 1:30:00 PM
SB 125
SB 25 lttr supporting, AGC.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, ARCTEC 021512.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, MEA 021512.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, RDC corrected 021712.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB025-DCCED-AIDEA-02-10-12 (A).pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB025-DCCED-AIDEA-02-10-12 (B).pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 ASSETS version E.PDF SL&C 2/23/2012 1:30:00 PM
SB 25
SB 25 lttr supporting, AIPPA 021612.pdf SL&C 2/23/2012 1:30:00 PM
SB 25
SB 175 CS L&C v B DRAFT.PDF SL&C 2/23/2012 1:30:00 PM
SB 175
SB 116 lttr opposing, ANC Muni Risk Mgt..pdf SL&C 2/23/2012 1:30:00 PM
SB 116
SB 116 lttr opposing, ABC 022212.PDF SL&C 2/23/2012 1:30:00 PM
SB 116