Legislature(2003 - 2004)

01/22/2003 03:04 PM House L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        January 22, 2003                                                                                        
                           3:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Tom Anderson, Chair                                                                                              
Representative Bob Lynn, Vice Chair                                                                                             
Representative Nancy Dahlstrom                                                                                                  
Representative Carl Gatto                                                                                                       
Representative Norman Rokeberg                                                                                                  
Representative Harry Crawford                                                                                                   
Representative David Guttenberg                                                                                                 
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
OVERVIEW: DEPARTMENT OF LABOR                                                                                                   
                                                                                                                                
TAPES                                                                                                                         
                                                                                                                                
03-1, SIDE(S) A & B                                                                                                             
                                                                                                                                
CHAIR  TOM ANDERSON  called the  meeting of  the House  Labor and                                                             
Commerce   Standing    Committee   to   order   at    3:04   p.m.                                                               
Representatives   Anderson,   Lynn,   Rokeberg,   Crawford,   and                                                               
Guttenberg were  present at the  call to order.   Representatives                                                               
Gatto and Dahlstrom arrived as the meeting was in progress.                                                                     
                                                                                                                                
SUMMARY OF INFORMATION                                                                                                        
                                                                                                                                
CHAIR TOM  ANDERSON introduced his  chief of staff  and committee                                                               
aide Josh Applebee.                                                                                                             
                                                                                                                                
GREG  O'CLARAY, Commissioner,  Department  of  Labor &  Workforce                                                               
Development,  said  that  Governor  Frank  Murkowski  and  agency                                                               
personnel  believe   this  department  should  be   a  labor  and                                                               
management partnership that includes  all workers and businesses.                                                               
He read the department's mission statement:                                                                                     
                                                                                                                                
     The Department of Labor is responsible to "foster and                                                                      
     promote the welfare of the wage earners of the state,                                                                      
       improve their working conditions and advance their                                                                       
     opportunities for profitable employment."                                                                                  
                                                                                                                                
COMMISSIONER  O'CLARAY  said the  mission  of  the department  is                                                               
changing  because   in  1998,  Congress  adopted   the  Workforce                                                               
Investment Act.   In turn,  the Alaska State Legislature  in 1999                                                               
passed HB  40; this law  moved several functions from  the former                                                               
Department of  Community and Regional  Affairs to  the Department                                                               
of   Labor,  adding   the  title   and  programs   of  "Workforce                                                               
Development" to the agency's name.   The private sector will play                                                               
a  key role  in advising  state officials  about the  spending of                                                               
federal  dollars  for  training   and  retraining  workers.    He                                                               
answered  questions  from  Representative  Guttenberg  about  the                                                               
reorganization  required by  HB 40  and offered  to follow  up on                                                               
various issues raised by other committee members.                                                                               
                                                                                                                                
COMMISSIONER O'CLARAY introduced officials  of his department who                                                               
in turn described  their divisions' missions.   He explained that                                                               
Katherine Farnham, the  director of the new  Division of Business                                                               
Partnerships, is absent because she  is finishing up her private-                                                               
sector job.                                                                                                                     
                                                                                                                                
ED  FISHER,  Deputy  Commissioner, Office  of  the  Commissioner,                                                               
Department of  Labor & Workforce  Development, observed  that the                                                               
department's Division  of Business Partnerships  will incorporate                                                               
business  people   in  the  policy-making  aspect   of  workforce                                                               
development, identifying what skills  the business community will                                                               
need two or three years from now.                                                                                               
                                                                                                                                
JOELLEN  HANRAHAN, Acting  Director,  Division of  Administrative                                                               
Services,  Department of  Labor &  Workforce Development,  listed                                                               
the three functions of her  division:  management services, labor                                                               
market  information,  and  data   processing.    The  latter  two                                                               
functions  pose  special  challenges to  the  department  because                                                               
technology  is  changing  so  rapidly  and  because  the  federal                                                               
government requires faster turnaround on required reports.                                                                      
                                                                                                                                
PAUL  GROSSI,   Director,  Division  of   Workers'  Compensation,                                                               
Department  of  Labor  &  Workforce  Development,  described  the                                                               
agency's  three components:   workers'  compensation, the  Second                                                               
Injury Fund, and the Fishermen's  Fund.  Workers' Compensation in                                                               
Alaska is a  privatized system.  The  division resolves disputes,                                                               
operates a retraining program, and administers the self-                                                                        
insurance  program for  larger agencies.   He  answered questions                                                               
from   Representatives  Gatto,   Anderson,  and   Rokeberg  about                                                               
declining accident  rates, the number of  controverted cases, the                                                               
number and qualifications of hearing  officers, and the impact of                                                               
increased  benefits   for  injured   workers  on   the  insurance                                                               
underwriting market.   Representative Dahlstrom  inquired whether                                                               
reemployment determinations  and the  appeal process  for injured                                                               
workers adequately consider medical advice.                                                                                     
                                                                                                                                
TED  BURKE, Acting  Director,  Division  of Employment  Security,                                                               
Department of  Labor & Workforce  Development, recounted  how his                                                               
agency operates 22  Job Centers in 18 communities.   The division                                                               
administers  the following  programs:   employment services,  job                                                               
training,  unemployment  services,  and  adult  basic  education.                                                               
Commissioner  O'Claray mentioned  that some  employees from  this                                                               
division  will be  transferred to  the new  Division of  Business                                                               
Partnerships.                                                                                                                   
                                                                                                                                
HALI  DENTON,  Acting Director,  Division  of  Labor Standards  &                                                               
Safety, Department  of Labor  & Workforce  Development, described                                                               
the  division's  largest  program   of  Occupational  Safety  and                                                               
Health.  Alaska has local  oversight over federal regulations and                                                               
works  directly  with  Alaskan  employers.    The  division  also                                                               
administers  the Wage  and Hour  program that  helps workers  get                                                               
unpaid or underpaid  wages and that enforces  the prevailing wage                                                               
rates  and  employment  preferences  on  public  works  projects.                                                               
Division personnel  conduct mechanical inspections and  staff the                                                               
Alaska Safety Advisory Council.   She answered members' questions                                                               
about child  labor issues, including progress  on implementing HB
128 [Approval  for Employment  of Minors],  which passed  in 2002                                                               
and reduced paperwork for hiring young farm workers.                                                                            
                                                                                                                                
DAVE   QUISENBERRY,   Acting    Director,   Division   Vocational                                                               
Rehabilitation,  stated that  the  mission of  the  agency is  to                                                               
assist people  with disabilities  to return to  work and  to live                                                               
independently.  Of  the eight components in  the division, client                                                               
services  is  the  largest.    Other  division  programs  include                                                               
vocational  rehabilitation,  independent  living  rehabilitation,                                                               
disability     determination,    assistive     technology,    and                                                               
administration of the federal Americans with Disabilities Act.                                                                  
                                                                                                                                
MR. QUISENBERRY and COMMISSIONER  O'CLARAY fielded questions from                                                               
Representatives  Lynn, Guttenberg,  and  Dahlstrom about  whether                                                               
Access Alaska  and other independent  living facilities  might be                                                               
closed by budget cuts.                                                                                                          
                                                                                                                                
REPRESENTATIVE CRAWFORD voiced his  concern that implementing the                                                               
new workforce development program  would move personnel away from                                                               
the  division's traditional  services,  such  as courtesy  safety                                                               
inspections.    From  his  personal  experience,  he  said  state                                                               
workers are  not in  the field  to the extent  they were  and the                                                               
Alaska workplace is not  as safe as a result.   He also urged the                                                               
administration to  support increased  unemployment benefits.   He                                                               
said  Alaska's  replacement  benefits  are  currently  among  the                                                               
lowest in the  country.  The state is  losing trained out-of-work                                                               
employees  who leave  the state  because they  cannot financially                                                               
survive the winter months.                                                                                                      
                                                                                                                                
REPRESENTATIVE  ROKEBERG identified  key issues  that he  will be                                                               
addressing to  the commissioner and  the committee at  the future                                                               
meetings.   His  concerns  are:   whether  increased funding  for                                                               
boiler and pressure  vessel inspectors has cut  into the backlog;                                                               
how  to   resolve  the  "building-code   war"  caused   by  three                                                               
departments involved in licensing  the construction industry; the                                                               
problems  created  by  new   department  regulations  that  force                                                               
private   rural   utilities   to  pay   prevailing   wages;   the                                                               
department's proposed  adjustment in unemployment  insurance; and                                                               
how  the department  is using  the  employer tax  under the  STEP                                                               
[State Training and Employment Program].                                                                                        
                                                                                                                                
ANNOUNCEMENTS                                                                                                                 
                                                                                                                                
CHAIR ANDERSON announced that future  meetings of the House Labor                                                               
and Commerce Standing Committee will begin at 3:15 p.m.                                                                         
                                                                                                                                
COMMITTEE ACTION                                                                                                              
                                                                                                                                
The committee took no action.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:33 p.m.                                                                                                                       
                                                                                                                                
NOTE:   The meeting was  recorded and handwritten log  notes were                                                               
taken.  A  copy of the tape(s)  and log notes may  be obtained by                                                               
contacting the  House Records  Office at  State Capitol,  Room 3,                                                               
Juneau,  Alaska  99801  (mailing address),  (907)  465-2214,  and                                                               
after  adjournment  of the  second  session  of the  Twenty-Third                                                               
Alaska  State Legislature,  this information  may be  obtained by                                                               
contacting the Legislative Reference Library at (907) 465-3808.                                                                 

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