Legislature(1993 - 1994)

01/21/1993 01:30 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                        January 21, 1993                                       
                            1:30 p.m.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Rep. Bill Hudson, Chairman                                                   
  Rep. Joe Green, Vice Chairman                                                
  Rep. Eldon Mulder                                                            
  Rep. Brian Porter                                                            
  Rep. Bill Williams                                                           
  Rep. Joe Sitton                                                              
  Rep. Jerry Mackie                                                            
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  OTHER LEGISLATORS PRESENT                                                    
                                                                               
  Rep. Jerry Sanders                                                           
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  Overview of the Department of Labor                                          
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  Charles Mahlen                                                               
  Commissioner                                                                 
  Department of Labor                                                          
  P.O. Box 21149                                                               
  Juneau, Alaska  99802-1149                                                   
  Phone:  465-2700                                                             
                                                                               
  Jan Hart De Young                                                            
  Administrator/Hearing Examiner                                               
  Department of Labor                                                          
  Alaska Labor Relations Agency                                                
  P.O. Box 107026                                                              
  Anchorage, Alaska  99510-7026                                                
  Phone:  264-2587                                                             
                                                                               
  David Teal                                                                   
  Director                                                                     
  Department of Labor                                                          
  Division of Administrative Services                                          
  P.O. Box 21149                                                               
  Juneau, Alaska  99802-1149                                                   
  Phone:  465-2720                                                             
                                                                               
  Judy Knight                                                                  
  Director                                                                     
  Department of Labor                                                          
  Division of Employment Security                                              
  P.O. Box 25509                                                               
  Juneau, Alaska  99802-25509                                                  
  Phone:  465-2712                                                             
                                                                               
  Donald Study, CSP                                                            
  Director                                                                     
  Department of Labor                                                          
  Division of Labor Standards and Safety                                       
  P.O. Box 21149                                                               
  Juneau, Alaska  99802-1149                                                   
  Phone:  465-4855                                                             
                                                                               
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 93-2, SIDE A                                                            
  Number 001                                                                   
                                                                               
  CHAIRMAN BILL HUDSON convened the House Labor and Commerce                   
  Committee meeting at 1:34 p.m. on January 21, 1993.  Members                 
  present were Rep. Joe Green, Rep. Brian Porter, Rep. Eldon                   
  Mulder, Rep. Jerry Mackie and Rep. Joe Sitton.                               
                                                                               
  Chairman Hudson introduced CHARLES MAHLEN, COMMISSIONER OF                   
  THE DEPARTMENT OF LABOR.                                                     
                                                                               
  Number 034                                                                   
                                                                               
  COMMISSIONER MAHLEN introduced the division directors and                    
  gave the following outline of the Department of Labor,                       
  including some of its goals:                                                 
                                                                               
       1)   foster and promote the welfare of the wage earners                 
            of the state;                                                      
                                                                               
       2)   improve their working conditions and advance their                 
            opportunities through profitable employment;                       
                                                                               
       3)   provide a healthy and stable workforce upon which                  
            economic development can thrive;                                   
                                                                               
       4)   assist Alaskan employers to operate in a cost                      
            effective manner; and                                              
                                                                               
       5)   minimize the impact the unemployed worker has on                   
            the social services.                                               
                                                                               
  COMMISSIONER MAHLEN stated that the population was                           
  calculated at 586,900, with the workforce at 262,200.  Last                  
  year there was a 1.7 percent increase in the workforce.  The                 
  department's budget had been reduced an average of 4.8                       
  percent a year for the last three years.  The department's                   
  budget accounted for 1/2 of one percent of the state's                       
  general fund.                                                                
                                                                               
  COMMISSIONER MAHLEN stated that over 95 percent of the                       
  Division of Employment Security was funded by the federal                    
  government.  A large portion of the Division of                              
  Administrative Services' budget came from federal funds.                     
                                                                               
  COMMISSIONER MAHLEN reviewed the budget reductions the                       
  department had implemented.  In 1993 the department laid off                 
  four employees, deleted fifteen vacant positions, and                        
  eliminated the mid-management positions of assistant                         
  directors and some chiefs.  This was in reply to the                         
  efficiency task force's recommendation to increase spans of                  
  control for managers and supervisors.                                        
                                                                               
  COMMISSIONER MAHLEN said the department will have to reduce                  
  occupational safety inspections, wage and hour audits,                       
  investigations, and personnel, and absorb some clerical and                  
  accounting functions to operate under the prescribed budget.                 
                                                                               
  COMMISSIONER MAHLEN outlined the anticipated budget                          
  reductions for fiscal year 1994:  one clerical position from                 
  the commissioner's office; eliminate some printing costs                     
  from administrative services; and the Division of Labor                      
  Standards and Safety will have to reduce contractor                          
  licensing, investigations and enforcement.                                   
                                                                               
  According to COMMISSIONER MAHLEN, the department has a                       
  capital request for computer equipment that will help                        
  automate and make the programs more efficient.                               
                                                                               
  COMMISSIONER MAHLEN explained that further cuts will be                      
  deletion of the grant to the Alaska Health Project,                          
  combining some certification programs, and eliminating                       
  funding for the Alaska Safety Advisory Council.  The                         
  department will also eliminate the review of compromise and                  
  release decisions in the Workers Comp Division, which will                   
  take legislative action.                                                     
                                                                               
  COMMISSIONER MAHLEN explained the goal is to make the                        
  department as efficient as possible and still remain as                      
  effective as possible.                                                       
                                                                               
  COMMISSIONER MAHLEN said the department also recommends:                     
  transferring the fish bonding program to the department of                   
  Revenue; legislation to allow the licensing of the                           
  electrical and mechanical administrators; and implementation                 
  of some user fees to offset declining general fund money.                    
                                                                               
  Number 275                                                                   
                                                                               
  COMMISSIONER MAHLEN noted further legislation recommended by                 
  the Department of Labor:                                                     
                                                                               
       1)   extend the State Training and Employment Program                   
            (STEP) for another three years;                                    
                                                                               
       2)   increase the Labor Relations Board from three to                   
            six and provide for a $100.00 honorarium; and                      
                                                                               
       3)   allow the Federal Mediation Service to provide                     
            free mediation service in Alaska Railroad cases.                   
                                                                               
  Commissioner Mahlen's concluded his overview.                                
                                                                               
  Number 399                                                                   
                                                                               
  CHAIRMAN HUDSON opened the meeting for questions.                            
                                                                               
  REP. JOE GREEN asked for the overall responsibilities of the                 
  Department of Labor.                                                         
                                                                               
  Number 410                                                                   
                                                                               
  COMMISSIONER MAHLEN offered that some of the more detailed                   
  information would be outlined when the division directors                    
  gave their overviews.                                                        
                                                                               
  Number 426                                                                   
                                                                               
  REP. GREEN inquired how the budget cuts referenced would                     
  impact the broad scope of duties the Commissioner had                        
  outlined.                                                                    
                                                                               
  Number 440                                                                   
                                                                               
  COMMISSIONER MAHLEN explained that the department does not                   
  touch the divisions that recieve federal money.  The cuts                    
  only come in areas that are funded from the general fund.                    
                                                                               
  Number 450                                                                   
                                                                               
  REP. JOE SITTON commended the Department of Labor.  He                       
  explained that for the past six or seven years he had                        
  followed the department's budget and had found that they                     
  provided the most benefit for the dollar.  He further stated                 
  that they had the second lowest budget of any state                          
  department.  Rep. Sitton asked for more information from the                 
  Commissioner regarding how the budget reductions related to                  
  the handling of Title 36.                                                    
                                                                               
  Number 460                                                                   
                                                                               
  CHAIRMAN HUDSON suggested that the directors address that                    
  area of concern as they give their overviews.                                
                                                                               
  Number 463                                                                   
                                                                               
  CHAIRMAN HUDSON asked the Commissioner to give a listing of                  
  those areas where legislation might be introduced.  He also                  
  asked for more information about the transfer of the fish                    
  bonding the Commissioner referenced.                                         
                                                                               
  Number 480                                                                   
                                                                               
  COMMISSIONER MAHLEN explained the transfer was one way the                   
  department figured it could streamline state government.                     
                                                                               
  Number 485                                                                   
                                                                               
  CHAIRMAN HUDSON stated that the committee's focus would be                   
  to look into just that sort of thing.  He expressed his                      
  desire to work closely with the department to find ways to                   
  make government more of an asset than a liability to the                     
  business people of Alaska.  The chairman also expressed his                  
  hope that the department would recognize that the committee                  
  was really looking for how the actions of the department                     
  would impact a business person.  He said the committee                       
  needed to make certain that whatever government was paying                   
  the department to do was truly in the public's best                          
  interest, that it was absolutely necessary.  A periodic                      
  review of the laws is necessary, according to Chairman                       
  Hudson.                                                                      
                                                                               
  Number 497                                                                   
                                                                               
  COMMISSIONER MAHLEN agreed and stated that the department                    
  was moving closer and closer toward more vital necessary                     
  functions.  The department felt that a good, trained,                        
  qualified labor force, with good working conditions and good                 
  wages, was good for Alaska's economy and promoted economic                   
  development.                                                                 
                                                                               
  Number 502                                                                   
                                                                               
  CHAIRMAN HUDSON asked the Commissioner, if the committee                     
  were to ask some of the department's clients for a report                    
  card on the department, how would they fare?                                 
                                                                               
  Number 518                                                                   
                                                                               
  COMMISSIONER MAHLEN assured the committee that the                           
  department had and would continue to streamline, privitize,                  
  reduce and do whatever they could to provide the most                        
  services for the least amount of money.                                      
                                                                               
  Number 543                                                                   
                                                                               
  CHAIRMAN HUDSON asked that Commissioner Mahlen put a concept                 
  in writing regarding expanding the contributions of the                      
  state sector.                                                                
                                                                               
  Number 555                                                                   
                                                                               
  COMMISSIONER MAHLEN responded that he had a position/mission                 
  statement.                                                                   
                                                                               
  Number 570                                                                   
                                                                               
  JAN HART DE YOUNG, ADMINISTRATOR, ALASKA LABOR RELATIONS                     
  AGENCY, DEPARTMENT OF LABOR, explained that the agency is                    
  part of the Commissioner's office.  The agency operates with                 
  four staff, including the administrator and a three member                   
  volunteer board.                                                             
                                                                               
  TAPE 93-2, SIDE B                                                            
  Number 000                                                                   
                                                                               
  According to MS. DE YOUNG, the agency is responsible for                     
  administering the Public Employment Relations Act and the                    
  Railroad Labor Relations Act.  The agency covers all public                  
  employers in the state, with the exception of those                          
  municipalities which have exercised the option to reject the                 
  application of the act.                                                      
                                                                               
  MS. DE YOUNG said the agency's principal role is to referee                  
  disputes between organized labor and public employees.  The                  
  agency's methods can be informal (through conciliation) or                   
  formal (through quasi-judicial administrative hearing).  The                 
  basic mission is to promote labor harmony between government                 
  employers and government employees with the ultimate goal to                 
  allow energy and time to be focused on the public's business                 
  rather than labor disputes.                                                  
                                                                               
  MS. DE YOUNG explained that with the contraction of                          
  government budgets the agency has seen a huge increase in                    
  labor difficulties.  The agency had a 67 percent increase of                 
  claims between calendar year 1991 and 1992.  The agency has                  
  adopted a comprehensive policy and procedures manual and a                   
  comprehensive rewrite of the regulations, which has assisted                 
  in handling the increased case load.                                         
                                                                               
  MS. DE YOUNG noted that the Alaska Labor Relations Agency                    
  consolidated the railroad labor regulations with the state                   
  labor relations regulations so there would be a uniform set                  
  of regulations to apply to the public sector.  These are                     
  presently under review in the Attorney General's office.                     
                                                                               
  MS. DE YOUNG said the budget was currently at a maintenence                  
  level and would remain so.  The agency relies increasingly                   
  on the use of teleconferencing and reducing the travel                       
  expenses to make up for any shortfall.                                       
                                                                               
  MS. DE YOUNG stated that the agency will provide an annual                   
  report with statistics to the committee after the February                   
  board meeting.                                                               
                                                                               
  Number 061                                                                   
                                                                               
  REP. BRIAN PORTER asked, Of the 100 complaints, what was the                 
  percentage between management and labor?                                     
                                                                               
  MS. DE YOUNG responded that she had not tracked that                         
  particular statistic.                                                        
                                                                               
  Number 077                                                                   
                                                                               
  REP. SITTON asked if the agency ever explored the idea of                    
  charging the agency's costs back to those who filed                          
  frivolous complaints.                                                        
                                                                               
  Number 084                                                                   
                                                                               
  MS. DE YOUNG explained that the agency is governed by the                    
  Administrative Procedures Act, which does not provide the                    
  authority to assess costs and fees.                                          
                                                                               
  Number 115                                                                   
                                                                               
  DAVID TEAL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                   
  DEPARTMENT OF LABOR, explained the division is responsible                   
  for the internal working of the department.  The management                  
  services section of the division has 33 employees and does                   
  the payroll, personnel training, budget monitoring and                       
  preparation, grants monitoring, bill paying, mailroom,                       
  supplies, and procurement.                                                   
                                                                               
  According to MR. TEAL, another function of the division is                   
  the research and analysis section, which provides the                        
  following information and services:  economic rorecasts and                  
  analysis, wage rate survey, publications and typesetting                     
  support, news releases, policy analysis, planning                            
  assistance, clerical and administrative support, as well as                  
  special information requests and reports.                                    
                                                                               
  Number 215                                                                   
                                                                               
  CHAIRMAN HUDSON inquired where the information produced by                   
  research and analysis is deposited.                                          
                                                                               
  MR. TEAL explained that the information is transmitted to                    
  the state library in some form and much of the information                   
  is published and available from the research and analysis                    
  section of the division.                                                     
                                                                               
  Number  265                                                                  
                                                                               
  REP. PORTER asked what the length of residency was that the                  
  division used in their research.                                             
                                                                               
  MR. TEAL replied that the residency requirement was 30 days,                 
  but the division uses the permanent fund file to a great                     
  extent; so in actuality, the data was one year.                              
                                                                               
  Number 275                                                                   
                                                                               
  REP. ELDON MULDER inquired what the total budget was for the                 
  department, and what were some of the other sources of                       
  funding.                                                                     
                                                                               
  COMMISSIONER MAHLEN pointed out that the money from the                      
  general fund only constitutes 1/2 of one percent of the                      
  general fund.                                                                
                                                                               
  MR. TEAL interjected that some funds come from other state                   
  agencies.                                                                    
  Number 352                                                                   
                                                                               
  JUDY KNIGHT, DIRECTOR, DIVISION OF EMPLOYMENT SECURITY,                      
  DEPARTMENT OF LABOR, spoke to the committee regarding the                    
  mission and goals of her office.  She said the mission as                    
  they saw it was to "promote employment and economic                          
  stability by meeting the needs of employers and job seekers                  
  statewide."                                                                  
                                                                               
  MS. KNIGHT noted, to this end, the employment office had                     
  three main goals:                                                            
                                                                               
       1)   to provide an effective labor exchange;                            
                                                                               
       2)   to coordinate with employment and training                         
            entities; and                                                      
                                                                               
       3)   to support Alaska's economic growth and                            
            development.                                                       
                                                                               
  MS. KNIGHT went into detail regarding the size of her                        
  division and the number of unemployed persons coming to the                  
  employment service.  She noted that in Fiscal Year 1992,                     
  100,000 persons came through the employment offices looking                  
  for jobs.  She pointed out that there are only approximately                 
  500,000 people in the state.  Ms. Knight commented that the                  
  number was significantly up; three years ago the number of                   
  persons utilizing the employment office was 60,000.                          
                                                                               
  Number 443                                                                   
                                                                               
  REP. GREEN asked if those were all people residing in the                    
  state.                                                                       
                                                                               
  MS. KNIGHT responded, "Yes, they were all individuals and                    
  not repeat clients."  She added that the office maintains                    
  800 numbers for the benefit of rural areas that don't have                   
  an employment office.                                                        
                                                                               
  Number 554                                                                   
                                                                               
  MS. KNIGHT noted there had been a significant increase in                    
  unemployment.  The agency paid 61,550 people benefits last                   
  year, which added up to $152,000,000.  Ms. Knight further                    
  noted that the unemployment scene did not look like it would                 
  change in the near future.                                                   
                                                                               
  MS. KNIGHT said she was very concerned about the workforce                   
  in Alaska.  She noted that her office sees more and more                     
  people who simply don't have work skills or work ethics; in                  
  short, they don't have a clue about what work is.  Ms.                       
  Knight noted that the employment service is working towards                  
  educating young people in this area.  The agency has created                 
  a partnership between the Job Training Partnership Act, the                  
  employment agency, and some schools to test a pilot program                  
  to teach kids the skills they need out of high school.                       
                                                                               
  Number 624                                                                   
                                                                               
  DON STUDY, DIRECTOR, DIVISION OF LABOR STANDARDS AND SAFETY,                 
  DEPARTMENT OF LABOR, spoke to the committee regarding the                    
  division's primary mission, which is to oversee and provide                  
  for the health and safety of Alaskan workers and the                         
  citizens of this state.  He said the division is made up of                  
  three sections - occupational safety and health, mechanical                  
  inspection, and wage and hour.                                               
                                                                               
  TAPE 93-3, SIDE A                                                            
  Number 001                                                                   
                                                                               
  MR. STUDY explained that the occupational safety and health                  
  section enforces safety and health regulations and standards                 
  to protect employees from work related injuries and                          
  illnesses and assists employers in developing workplace                      
  safety programs by providing consultation and training                       
  services.                                                                    
                                                                               
  MR. STUDY noted that the mechanical inspection section                       
  oversees the safe installation of mechanical facilities for                  
  the safety of the workers and the public, and inspects                       
  existing facilities such as elevators, escalators, amusement                 
  rides, boilers, pressure vessels and plumbing.                               
                                                                               
  MR. STUDY said the wage and hour program was modeled after                   
  the federal Fair Labor Standards Act.  The program includes                  
  the enforcement of minimum wage and overtime, the collection                 
  of wage claims, the enforcement of child labor laws, and the                 
  enforcemnt of return transportation rights.  It also                         
  includes the licensing and monitoring of private employment                  
  agencies, and the enforcment of the Public Contracts Act and                 
  the conduct of the wage survey, the enforcement of                           
  construction contractor licensing, and enforcement of                        
  resident hire on a statewide basis.                                          
                                                                               
  Number 320                                                                   
                                                                               
  CHAIRMAN HUDSON asked that the rest of the overview be held                  
  at another time since the committee was pressed for time.                    
                                                                               
  ADJOUNMENT                                                                   
                                                                               
  The meeting was adjourned by Chairman Hudson at 3:20 pm.                     

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