Legislature(2007 - 2008)CAPITOL 17

02/21/2007 03:00 PM House LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 121 WORKERS' COMPENSATION RECORDS TELECONFERENCED
Moved CSHB 121(L&C) Out of Committee
+= HB 118 PROHIBIT ALLOWING MINORS TO HAVE ALCOHOL TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                       February 21, 2007                                                                                        
                           3:07 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Mark Neuman, Vice Chair                                                                                          
Representative Carl Gatto                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Jay Ramras                                                                                                       
Representative Robert L. "Bob" Buch                                                                                             
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 121                                                                                                              
"An Act relating to release of information in individual                                                                        
workers' compensation records; and providing for an effective                                                                   
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 121(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 118                                                                                                              
"An Act relating to underage possession of alcoholic beverages                                                                  
in a dwelling."                                                                                                                 
                                                                                                                                
     - MOVED HB 118 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 121                                                                                                                  
SHORT TITLE: WORKERS' COMPENSATION RECORDS                                                                                      
SPONSOR(s): REPRESENTATIVE(s) WILSON                                                                                            
                                                                                                                                
02/07/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/07       (H)       L&C                                                                                                    
02/21/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
                                                                                                                                
BILL: HB 118                                                                                                                  
SHORT TITLE: PROHIBIT ALLOWING MINORS TO HAVE ALCOHOL                                                                           
SPONSOR(s): REPRESENTATIVE(s) MEYER                                                                                             
                                                                                                                                
02/05/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/07       (H)       L&C, JUD                                                                                               
02/16/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
02/16/07       (H)       <Bill Hearing Canceled>                                                                                
02/21/07       (H)       L&C AT 3:00 PM CAPITOL 17                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE PEGGY WILSON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 121.                                                                                          
                                                                                                                                
PAUL LISANKIE, Director                                                                                                         
Division of Workers' Compensation, Department of Labor &                                                                        
Workforce Development (DLWD)                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during hearing on HB
121.                                                                                                                            
                                                                                                                                
LINDA HALL, Director                                                                                                            
Division of Insurance                                                                                                           
Department of Commerce, Community, & Economic Development                                                                       
(DCCED)                                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during hearing on HB
121.                                                                                                                            
                                                                                                                                
JOHN GARNER, President                                                                                                          
NorQuest Seafoods, Inc.                                                                                                         
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Testified during hearing on HB 121.                                                                        
                                                                                                                                
KRIS NOROSZ, Government Relations                                                                                               
Icicle Seafoods, Inc.                                                                                                           
Petersburg, Alaska                                                                                                              
POSITION STATEMENT:  Testified in favor of HB 121.                                                                              
                                                                                                                                
MIKE PAWLOWSKI, Staff                                                                                                           
to Representative Kevin Meyer                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 118 on behalf of                                                                              
Representative Meyer, sponsor.                                                                                                  
                                                                                                                                
RODNEY DIAL, Lieutenant                                                                                                         
Division of Alaska State Troopers                                                                                               
Department of Public Safety (DPS)                                                                                               
Ketchikan, Alaska                                                                                                               
POSITION  STATEMENT:   Answered  questions during  hearing on  HB
118.                                                                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee  meeting  to  order at  3:07:36  PM.    Representatives                                                             
Gardner,  Gatto, Buch,  and Olson  were  present at  the call  to                                                               
order.   Representatives  Ramras, Neuman,  and LeDoux  arrived as                                                               
the meeting was in progress.                                                                                                    
                                                                                                                                
HB 121-WORKERS' COMPENSATION RECORDS                                                                                          
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL  NO. 121, "An  Act relating to release  of information                                                               
in individual  workers' compensation  records; and  providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
3:08:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  made a  motion to  adopt CSHB  121, Version                                                               
25-LS0501\C,  Bailey, 2/15/07,  as the  working document.   There                                                               
being no objection, Version C was before the committee.                                                                         
                                                                                                                                
3:08:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PEGGY  WILSON, Alaska State  Legislature, Sponsor,                                                               
explained that the Workers' Compensation  Division has a database                                                               
containing personal  information that  is currently  available as                                                               
public information.   This includes the  employees name, address,                                                               
social  security number,  telephone number,  and electronic  mail                                                               
address.  She relayed a story  of an individual who was contacted                                                               
by a  law firm  attempting to solicit  business after  a workers'                                                               
compensation claim was filed.   She explained that Version C adds                                                               
"electronic  mail address"  to the  information that  may not  be                                                               
given out.   In addition, it  includes those records held  by the                                                               
Workers'   Compensation  Appeals   Commission.     The   Workers'                                                               
Compensation Division, Workers'  Compensation Appeals Commission,                                                               
and Workers'  Compensation Board would be  prohibited from giving                                                               
out the aforementioned information,  unless the employee signs an                                                               
affidavit allowing this.                                                                                                        
                                                                                                                                
3:11:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN, in  regard to  the employee's  ability to                                                               
authorize disclosure of  the aforementioned information, inquired                                                               
as  to  how  the  disclosure  form  would  be  presented  to  the                                                               
employee.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  WILSON  replied  that  this  information  may  be                                                               
provided on a  separate sheet of paper, to  ensure the employee's                                                               
understanding.  In response to  an additional comment, she stated                                                               
that  the disclosure  authorization should  be "very  obvious" to                                                               
the employee.  Ways to ensure  this may include the size of print                                                               
or creating an additional form  with this information in order to                                                               
keep it separate from other information.                                                                                        
                                                                                                                                
3:13:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   GATTO   opined   that  this   is   "opposed   to                                                               
transparency [in  government]."   He asked  Representative Wilson                                                               
to address this.                                                                                                                
                                                                                                                                
REPRESENTATIVE WILSON  reiterated that  the intent is  to protect                                                               
the  employee.   She surmised  that this  would also  protect the                                                               
state, as the aforementioned law  firms are likely to contact the                                                               
employee  and  offer  to  help  them receive  more  money.    Any                                                               
information  regarding workers'  compensation cases  would remain                                                               
public information.                                                                                                             
                                                                                                                                
3:15:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX questioned  whether injured  employees are                                                               
entitled  to information  regarding options  other than  workers'                                                               
compensation, which  provides a  "relatively small amount  in the                                                               
way of settlement."                                                                                                             
                                                                                                                                
REPRESENTATIVE WILSON opined that  employees are entitled to this                                                               
information.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX questioned  whether the  information given                                                               
to   injured  employees   includes   information  regarding   the                                                               
aforementioned  options.   She  stated that  she  "would be  very                                                               
surprised" if this information was offered.                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON replied  that she  does not  have specific                                                               
information  regarding the  information  that is  provided.   She                                                               
opined that  currently, society  is "sue  happy," and  people are                                                               
aware of their options.                                                                                                         
                                                                                                                                
3:16:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked whether  there is opposition  to HB
121.                                                                                                                            
                                                                                                                                
REPRESENTATIVE  WILSON offered  her understanding  that there  is                                                               
not any opposition.                                                                                                             
                                                                                                                                
REPRESENTATIVE  LEDOUX  asked  if  the law  firm  referenced  was                                                               
notified of these concerns.                                                                                                     
                                                                                                                                
REPRESENTATIVE  WILSON replied  that  the Department  of Labor  &                                                               
Workforce Development (DLWD) may have this information.                                                                         
                                                                                                                                
3:18:27 PM                                                                                                                    
                                                                                                                                
PAUL  LISANKIE,  Director,  Division  of  Workers'  Compensation,                                                               
Department of  Labor & Workforce Development  (DLWD), opined that                                                               
the aforementioned  law firm would  be unhappy with  the proposed                                                               
legislation,  as  it  went  to   great  lengths  to  acquire  the                                                               
information in question.   He explained that the  DLWD feels that                                                               
once  acquired, this  information was  used in  a manner  that is                                                               
considered to  be outside of  the scope of the  department, which                                                               
is prohibited.                                                                                                                  
                                                                                                                                
REPRESENTATIVE GATTO opined  that there is a  general dislike for                                                               
"ambulance chasers," until there is a need for one.                                                                             
                                                                                                                                
3:20:34 PM                                                                                                                    
                                                                                                                                
MR. LISANKIE  explained that  the Workers'  Compensation Division                                                               
rules  on  benefit  disputes.    The  benefits  are  paid  by  an                                                               
insurance  company or  an employer  that is  authorized to  self-                                                               
insure.  Certain statutory benefit requirements are set.                                                                        
                                                                                                                                
REPRESENTATIVE GATTO commented that  it costs the government time                                                               
and money  when monitoring  is required.   He  questioned whether                                                               
the  public  should  be  able   to  have  access  to  information                                                               
regarding individuals  receiving an  income without  working, due                                                               
to an injury, if transparency is expected.                                                                                      
                                                                                                                                
MR. LISANKIE agreed that time and money is required.  He said:                                                                  
                                                                                                                                
     Certainly there's  a policy that you're  being asked to                                                                    
     weigh.    On the  one  hand,  we  try and  balance  the                                                                    
     legitimate needs  of the parties to  these disputes, to                                                                    
     get all  the information  that they  need to  make sure                                                                    
     that  their rights  and  liabilities  are properly  ...                                                                    
     lived up to.                                                                                                               
                                                                                                                                
     On the other  hand, I have heard from  others - outside                                                                    
     the specific focus  of your question.   We get requests                                                                    
     from  many  companies  outside.   And  they  just  ask:                                                                    
     Please   run  this   person's   name  and   identifying                                                                    
     information,  and  tell  us  if  they've  got  workers'                                                                    
     compensation  claims.   Now, I  suppose there  might be                                                                    
     some innocent  use for that  information, or  I suppose                                                                    
     it might be a black  list, that makes it more difficult                                                                    
     to  get  a  job  once  you  declare  that  you've  been                                                                    
     injured.  We really have no way of knowing.                                                                                
                                                                                                                                
MR. LISANKIE opined that this  was the genesis behind the current                                                               
statute.   He explained that  this question was not  raised again                                                               
until  the  "non-commercial use"  section  was  interpreted in  a                                                               
different manner.                                                                                                               
                                                                                                                                
3:23:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX questioned whether claimant information is                                                                
shared between insurance companies.                                                                                             
                                                                                                                                
MR. LISANKIE stated his belief that this information is shared.                                                                 
                                                                                                                                
REPRESENTATIVE LEDOUX inquired as to why this is allowed, if                                                                    
there is concern regarding employee privacy.                                                                                    
                                                                                                                                
MR. LISANKIE said:                                                                                                              
                                                                                                                                
     I would get back to  my original statement that ... the                                                                    
     insurance  company  is  not  making  a  decision  about                                                                    
     whether to employ that person.   I mean, that is one of                                                                    
     the concerns  I have.  You  would have to speak  to the                                                                    
     sponsor about exactly what the  concerns of the sponsor                                                                    
     are.   [However],  I  am as  worried  about people  not                                                                    
     being  able to  get  jobs, as  I am  -  perhaps not  as                                                                    
     worried, because  my first responsibility in  the state                                                                    
     organization  is to  make sure  that we  administer the                                                                    
     workers'  compensation program  properly.    But, I  do                                                                    
     know that  in the three  years that I've been  with the                                                                    
     Division at  this level, I've  been surprised  how many                                                                    
     inquiries  there  are -  day  after  day -  asking  for                                                                    
     nothing  more  than  the  names   of  people  who  have                                                                    
     reported injuries.                                                                                                         
                                                                                                                                
3:25:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  relayed  her  experience  as  a  maritime                                                               
lawyer.    Oftentimes,  she said,  insurance  companies  are  not                                                               
forthcoming regarding the number  of similar injuries that occur.                                                               
Currently,  this information  can be  obtained by  contacting the                                                               
Alaska  Workers'  Compensation  Board.    She  expressed  concern                                                               
regarding  how this  information would  be obtained  if it  is no                                                               
longer public information.                                                                                                      
                                                                                                                                
MR. LISANKIE  offered his understanding that  if court litigation                                                               
is  involved, this  information would  still be  available, under                                                               
court order.  However, he does not know for sure.                                                                               
                                                                                                                                
3:28:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX    repeated   her    question   regarding                                                               
litigation.                                                                                                                     
                                                                                                                                
LINDA  HALL,  Director,  Division  of  Insurance,  Department  of                                                               
Commerce,  Community,  &  Economic Development  (DCCED),  replied                                                               
that she  does not  have the  answer, and opined  that this  is a                                                               
legal question.   In regard to whether  insurance companies share                                                               
information,  she stated  that she  is  not aware  of a  "sharing                                                               
database."  She offered to look into this.                                                                                      
                                                                                                                                
CHAIR OLSON offered  his understanding that there  is a database;                                                               
however,  it only  tracks  jury  cases that  have  resulted in  a                                                               
verdict.                                                                                                                        
                                                                                                                                
3:30:25 PM                                                                                                                    
                                                                                                                                
MR.  LISANKIE,  in  response to  a  comment  from  Representative                                                               
Gatto,  clarified that  in his  experience, he  has seen  reports                                                               
that appear  to be  a result  of a  "[data-sharing] arrangement."                                                               
However, he reiterated that he  has not been formally informed of                                                               
this.                                                                                                                           
                                                                                                                                
3:32:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX opined  that whether  formal or  informal,                                                               
the  data  sharing  arrangement  allows  insurance  companies  to                                                               
determine whether  an individual  is being  forthcoming regarding                                                               
the amount  of claims filed.   Pointing out that the  claimant or                                                               
the defendant  may have  "faulty memories,"  she opined  that the                                                               
ability to  obtain this information  may "keep  people's memories                                                               
[fresh]."                                                                                                                       
                                                                                                                                
REPRESENTATIVE  GATTO inquired  as to  whether this  will prevent                                                               
some or all access to this information.                                                                                         
                                                                                                                                
MR. LISANKIE  offered his understanding that  the exceptions that                                                               
apply  to medical  and rehabilitation  records would  apply.   He                                                               
explained that currently, there is  an exception which allows the                                                               
information to  be provided to a  party to a claim  that is filed                                                               
by the employee.   In response to a  question from Representative                                                               
Gatto, he reiterated  that an employer that was party  to a claim                                                               
filed by the employee would have access to this information.                                                                    
                                                                                                                                
3:36:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  offered his understanding that  during the                                                               
application  process,  individuals  are asked  to  share  medical                                                               
history.   If  false  information  is given,  the  company is  no                                                               
longer liable.                                                                                                                  
                                                                                                                                
MR.  LISANKIE,  in response  to  a  question from  Representative                                                               
Neuman,   explained  that   currently,  there   is  no   specific                                                               
prohibition on  giving out information  that is on file  with the                                                               
Workers' Compensation  Division.   In response  to a  request for                                                               
clarification,  he offered  his understanding  that the  Workers'                                                               
Compensation  Division  is currently  required  to  give out  any                                                               
information that is on file.                                                                                                    
                                                                                                                                
3:38:44 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON inquired  as to whether the Division  of Insurance is                                                               
in support of the bill.                                                                                                         
                                                                                                                                
MS. HALL replied  that the Division of Insurance  is not effected                                                               
by this legislation; therefore it does not have a position.                                                                     
                                                                                                                                
CHAIR  OLSON inquired  as to  whether  the Workers'  Compensation                                                               
Division is in support of the bill.                                                                                             
                                                                                                                                
MR. LISANKIE expressed concern regarding  the ability to maintain                                                               
the balance  between the individual's  privacy and  ensuring that                                                               
the information  is made  available when  needed, so  that rights                                                               
and responsibilities are being met.   In addition, he stated that                                                               
the wording is important.                                                                                                       
                                                                                                                                
REPRESENTATIVE  GATTO, referring  to Page  1, line  7, questioned                                                               
the use of "or any record."                                                                                                     
                                                                                                                                
MR.  LISANKIE offered  his understanding  that  this wording  was                                                               
intentional, as  it covers the  types of information and  data in                                                               
question.  He  explained that all forms required  by the Division                                                               
of Workers'  Compensation include the employee's  social security                                                               
number.   He  opined that  including the  phrase "or  any record"                                                               
prevents the need to include a "laundry list" of forms.                                                                         
                                                                                                                                
3:41:18 PM                                                                                                                    
                                                                                                                                
JOHN GARNER,  President, NorQuest Seafoods, Inc.,  stated that he                                                               
is  in support  of  HB 121.   In  regard  to insurance  companies                                                               
sharing information, he  stated that this does  not "filter down"                                                               
to the businesses.  Insurance companies  do not rate based on the                                                               
employees hired.   He explained that rating is done  based on the                                                               
injury  rate.    Therefore,  trading this  information  does  not                                                               
effect the hiring practice.                                                                                                     
                                                                                                                                
3:42:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER inquired as  to whether NorQuest Seafoods,                                                               
Inc. has  ever been sued from  an outside law firm,  on behalf of                                                               
an employee.                                                                                                                    
                                                                                                                                
MR. GARNER replied yes.                                                                                                         
                                                                                                                                
3:43:17 PM                                                                                                                    
                                                                                                                                
KRIS   NOROSZ,  Government   Relations,  Icicle   Seafoods,  Inc.                                                               
(Icicle),  stated  that  she  is  in support  of  HB  121.    She                                                               
explained  that  this  concern  was  raised as  a  result  of  an                                                               
employee  whose   private  information   was  given  out.     The                                                               
aforementioned employee was "very  alarmed" to discover that this                                                               
information  was given  out, and  mistakenly believed  Icicle was                                                               
responsible for  this.   She stated  that HB  121 is  intended to                                                               
protect the employee.                                                                                                           
                                                                                                                                
REPRESENTATIVE  NEUMAN  inquired as  to  what  mechanisms are  in                                                               
place  to  protect  businesses   from  individuals  filing  false                                                               
claims.                                                                                                                         
                                                                                                                                
MS. NOROSZ replied  that she does not have  this information, and                                                               
reiterated that the intent is to protect the employee.                                                                          
                                                                                                                                
REPRESENTATIVE  LEDOUX questioned  whether the  injured employees                                                               
are informed that  they may be able to use  the civil law system,                                                               
rather than accepting workers' compensation.                                                                                    
                                                                                                                                
MS. NOROSZ  replied that Icicle  attempts to provide a  safe work                                                               
environment,  and  assists  its   employees  through  the  claims                                                               
process.   It  does not  hinder  the employee's  ability to  seek                                                               
outside council.                                                                                                                
                                                                                                                                
REPRESENTATIVE LEDOUX  asked for clarification  regarding whether                                                               
the employees are  informed that they may have the  recourse to a                                                               
civil law claim.                                                                                                                
                                                                                                                                
MS.  NOROSZ  replied  that  she   is  unable  to  say  this  with                                                               
certainty.                                                                                                                      
                                                                                                                                
3:48:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO questioned  what  the  employees are  being                                                               
protected from.                                                                                                                 
                                                                                                                                
MS. NOROSZ replied  that the intent is to  protect the employee's                                                               
personal information  from being  released without  the employees                                                               
consent.  In response to  further questioning, she explained that                                                               
this would also prevent written  solicitations, which have been a                                                               
concern in the past.                                                                                                            
                                                                                                                                
REPRESENTATIVE LEDOUX  questioned the amount of  intrusion caused                                                               
by  receiving  a   letter.    She  pointed  out   that  during  a                                                               
governmental campaign,  thousands of letters  are sent out.   She                                                               
stated that  while an individual's social  security number should                                                               
not be given  out, she does not see a  problem with releasing the                                                               
person's name and  address.  She opined that this  would not be a                                                               
major intrusion to "any reasonable person."                                                                                     
                                                                                                                                
MS.  NOROSZ pointed  out that  members'  packets contain  letters                                                               
from individuals  who see this as  an intrusion of privacy.   She                                                               
opined that the  concern is in regard to the  manner by which the                                                               
information was obtained.  She said  "I'd hate to think that they                                                               
wouldn't file [a workers' compensation  claim] because of fear of                                                               
their  information being  released."   She  reiterated that  this                                                               
would prohibit the  information from being given  out without the                                                               
employees   consent;   however,   permission  to   divulge   this                                                               
information may be given if the employee so wishes.                                                                             
                                                                                                                                
REPRESENTATIVE LEDOUX questioned the  likelihood of an individual                                                               
failing to file a workers' compensation  claim for fear of his or                                                               
her personal information being given out.                                                                                       
                                                                                                                                
MS.  NOROSZ  referred  to  a letter  in  members'  packets  which                                                               
supports this concern.                                                                                                          
                                                                                                                                
REPRESENTATIVE GATTO inquired as to  the position Icicle holds in                                                               
regard to the passage of this legislation.                                                                                      
                                                                                                                                
MS.  NOROSZ  reiterated  that  this  issue  was  brought  to  the                                                               
company's  attention  by  an employee  who  believed  Icicle  had                                                               
released personal  information.  It  was later learned  that this                                                               
information was released by the DLWD.                                                                                           
                                                                                                                                
REPRESENTATIVE LEDOUX  offered her understanding that  there have                                                               
been lawsuits  against Icicle, which  were believed to  have been                                                               
settled under workers' compensation.                                                                                            
                                                                                                                                
MS.  NOROSZ replied  that this  is a  part of  the concern.   She                                                               
pointed  out that  80  percent of  the company  is  owned by  the                                                               
employees; therefore,  employees are  concerned with  how certain                                                               
issues affect the company.                                                                                                      
                                                                                                                                
3:53:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  commented that  while there has  been much                                                               
discussion regarding  "transparency" in government,  the citizens                                                               
have expressed the wish the  have personal information protected.                                                               
He is in  support of protecting personal privacy.   He shared his                                                               
belief  that  employees will  be  less  likely to  file  workers'                                                               
compensation  claims   if  personal   information  can   then  be                                                               
released.  He stated that he is in support of the bill.                                                                         
                                                                                                                                
REPRESENTATIVE LEDOUX  shared her  concerns regarding  whether or                                                               
not  records  would  still  be available  during  the  course  of                                                               
litigation.   Additionally,  she offered  her understanding  that                                                               
this would  simply prohibit the  employees name,  address, phone,                                                               
and  other identifying  information from  being released.   While                                                               
there is "no excuse" for  releasing the employees social security                                                               
number,  she questioned  whether  the benefit  of "protecting  an                                                               
employee from a letter is worth it."                                                                                            
                                                                                                                                
3:57:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON commented that  there has been much concern                                                               
regarding identity theft  and personal privacy.   She stated that                                                               
if  an  individual  was  in  an accident  and  filed  a  workers'                                                               
compensation claim, he or she would  then have the option to have                                                               
personal  information released  to companies  that inquire.   She                                                               
stressed that this is a matter of personal privacy.                                                                             
                                                                                                                                
CHAIR OLSON offered  his belief that everyone  has an expectation                                                               
of privacy.                                                                                                                     
                                                                                                                                
3:59:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GATTO  stated that there are  many social programs                                                               
which enable  individuals to access  government funds.   He asked                                                               
"Should that person, who is  taking government money, be entitled                                                               
to privacy?"                                                                                                                    
                                                                                                                                
3:59:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WILSON replied that she is not sure.                                                                             
                                                                                                                                
REPRESENTATIVE  GATTO opined  that  it is  important to  maintain                                                               
transparency.   While  it is  important  to protect  confidential                                                               
records,  he is  concerned that  if all  information is  private,                                                               
individuals will be more likely to abuse the system.                                                                            
                                                                                                                                
4:01:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WILSON  surmised  that  the  Division  of  Public                                                               
Assistance would not  give out a list of  individuals who receive                                                               
food stamps.  She stated  that when information is requested, the                                                               
individual's personal  information is marked over  with black, to                                                               
ensure his or her privacy.                                                                                                      
                                                                                                                                
4:01:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RAMRAS  stated that he  is a "great  proponent" of                                                               
the workers'  compensation system.   He  opined that  it protects                                                               
both the  employee and the  employer.  He  said "I am  pleased to                                                               
see a  bill like this, with  a bright line drawn  around it, that                                                               
draws a net  of privacy around that  relationship, and recognizes                                                               
the sanctity of it."  He stated his intent to support the bill.                                                                 
                                                                                                                                
REPRESENTATIVE GARDNER  pointed out that  it is possible  to find                                                               
out who receives senior property  tax relief and a permanent fund                                                               
dividend.   One reason for  this is to  inform the public  of any                                                               
abuse of the system.  She  shared her belief that social security                                                               
numbers should always be protected.                                                                                             
                                                                                                                                
4:04:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  moved to  report  CSHB  121, Version  25-                                                               
LS0501\C,  Bailey,  2/15/07,  out of  committee  with  individual                                                               
recommendations and the accompanying fiscal notes.                                                                              
                                                                                                                                
REPRESENTATIVE LEDOUX objected.                                                                                                 
                                                                                                                                
4:04:29 PM                                                                                                                    
                                                                                                                                
A  roll  call vote  was  taken.   Representatives  Ramras,  Buch,                                                               
Neuman, and Olson  voted in favor of reporting  CSHB 121, Version                                                               
C  from Committee.   Representatives  LeDoux, Gardner,  and Gatto                                                               
voted against it.   Therefore, CSHB 121(L&C) was  reported out of                                                               
the House Labor  and Commerce Standing Committee by a  vote of 4-                                                               
3.                                                                                                                              
                                                                                                                                
HB 118-PROHIBIT ALLOWING MINORS TO HAVE ALCOHOL                                                                               
                                                                                                                                
4:05:19 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE BILL  NO. 118, "An  Act relating to underage  possession of                                                               
alcoholic beverages in a dwelling."                                                                                             
                                                                                                                                
4:05:46 PM                                                                                                                    
                                                                                                                                
MIKE  PAWLOWSKI,  Staff  to Representative  Kevin  Meyer,  Alaska                                                               
State Legislature, sponsor,  explained that HB 118  is the result                                                               
of concerns that have been  raised regarding underage drinking in                                                               
Alaska.    Studies  have  shown that  the  majority  of  underage                                                               
drinking in  Alaska occurs at  home or at  a friend's house.   He                                                               
explained that currently, it is illegal  to rent a hotel room for                                                               
the purposes of  providing alcohol to minors; however,  it is not                                                               
illegal to  have minors in  your house consuming alcohol.   While                                                               
researching this  issue, the sponsor  looked at how  other states                                                               
deal with  this.  He  stated that this  would give the  police an                                                               
additional enforcement tool.   He explained that  the police must                                                               
prove  that underage  individuals were  consuming alcohol  on the                                                               
premises, which the persons in  charge of the premises allowed to                                                               
happen.  The latter would receive a $500 fine.                                                                                  
                                                                                                                                
REPRESENTATIVE RAMRAS  inquired as to whether  this would require                                                               
parents to clear  all alcohol out of the house  prior to going on                                                               
vacation.                                                                                                                       
                                                                                                                                
MR.  PAWLOWSKI  replied that  there  is  a blanket  exception  in                                                               
statute which  allows a  parent, guardian,  or spouse  to provide                                                               
alcohol to a person who is under  21 years of age, as long as the                                                               
person providing the  alcohol is of legal age.   Additionally, he                                                               
explained  that if  the parents  were away,  responsibility would                                                               
fall on the person who is in control  of the house at the time of                                                               
consumption.   In response to additional  questions, he clarified                                                               
that the $500 fine is a  non-criminal penalty and would accrue to                                                               
the  responsible  party  regardless  of  age.    He  offered  his                                                               
understanding that  if there  is no other  source of  income, the                                                               
offenders permanent fund dividend may be revoked as payment.                                                                    
                                                                                                                                
4:11:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN inquired  as  to what  would  happen if  a                                                               
youth has been drinking, denies it  when confronted by his or her                                                               
parents,  and  is later  involved  in  a  traffic accident.    He                                                               
expressed concern regarding liabilities that may result                                                                         
                                                                                                                                
MR.  PAWLOWSKI   replied  that   there  are   separate  liability                                                               
protections for social hosts.   He offered his understanding that                                                               
if this were to  occur, the parent would not be  liable.  He read                                                               
the definition of "recklessly" as follows:                                                                                      
                                                                                                                                
     A person  acts recklessly with  respect to a  result or                                                                    
     to  a  circumstance described  by  a  provision of  law                                                                    
     defining an  offence, when the  person is aware  of and                                                                    
     consciously disregards a  substantial and unjustifiable                                                                    
     risk,  that   the  result  will  occur,   or  that  the                                                                    
     circumstance  exists.   The  risk  must  be of  such  a                                                                    
     nature and  degree, that disregard of  it constitutes a                                                                    
     gross  deviation from  the standard  of conduct  that a                                                                    
     reasonable person would observe in this situation.                                                                         
                                                                                                                                
MR.  PAWLOWSKI  offered  his  belief  that  the  parents  in  the                                                               
previous  example would  have satisfied  these requirements,  and                                                               
therefore would not have acted "recklessly."                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked for  clarification that the intent is                                                               
not for the parent to be found liable.                                                                                          
                                                                                                                                
MR.  PAWLOWSKI explained  that  the parent  would  only be  found                                                               
liable  if he  or  she was  in  control of  the  house while  the                                                               
consumption  was occurring.   If  a parent  provides a  venue for                                                               
children  to consume  alcohol, then  this is  reckless disregard,                                                               
and  the parent  would  be  liable.   In  response to  additional                                                               
questions, he explained that the  current law requires proof that                                                               
alcohol  was furnished  to a  minor, which  is more  difficult to                                                               
prove.   If  a  hotel room  is rented  for  purposes of  underage                                                               
drinking, this  would violate  current law.   He  reiterated that                                                               
the  proposed penalty  is  a  $500 fine,  and  is a  non-criminal                                                               
violation.                                                                                                                      
                                                                                                                                
4:18:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX expressed  concern with  whether "control"                                                               
could be misinterpreted.                                                                                                        
                                                                                                                                
MR.  PAWLOWSKI replied  that this  has been  discussed at  length                                                               
with Legislative Legal and Research  Services.  He explained that                                                               
"exercising  dominion  or  control"  refers  to  the  moment  the                                                               
offense is  occurring.  It  is not  the sponsor's intent  to make                                                               
the owner or  authoritative figure liable, but  rather the person                                                               
in control of  the dwelling at the moment the  offence was taking                                                               
place.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER gave  an example in which a  child is left                                                               
home,  has  a  party,  and  is  punished  by  the  parent.    She                                                               
questioned whether the  parent would be considered  to have acted                                                               
"recklessly"  if the  child  was left  home  alone the  following                                                               
weekend, due to the knowledge of a previous offense.  She said:                                                                 
                                                                                                                                
     This is  my concern:   If that kind of  thing happened,                                                                    
     and a  kid left my  house, and  was killed -  or killed                                                                    
     somebody  in   a  drunk   driving  accident,   I  would                                                                    
     definitely feel  [that] I shouldn't  have gone out.   I                                                                    
     was responsible,  I could have  prevented it.   Whether                                                                    
     that's  what the  law says  or not,  I would  feel that                                                                    
     way.                                                                                                                       
                                                                                                                                
MR. PAWLOWSKI said  "I think you ... bring up  a good point about                                                               
how  you  personally  would  feel."     He  reiterated  that  the                                                               
sponsor's intent is  not to hold the parent liable,  and that the                                                               
child  throwing  the  party  would   be  held  responsible.    He                                                               
explained that  this would allow the  police to show up,  at that                                                               
time,  and give  a citation  to the  person "in  control" of  the                                                               
house.                                                                                                                          
                                                                                                                                
4:21:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX said:                                                                                                     
                                                                                                                                
     Regardless of  the sponsor's intent, anybody  who has a                                                                    
     teenage  kid,  who  leaves for  the  weekend,  probably                                                                    
     should be aware  that it's likely that  the kid's going                                                                    
     to have  a party  at the  house.   And, if  they're not                                                                    
     aware,  then   they're  either  hopelessly   naïve,  or                                                                    
     reckless.                                                                                                                  
                                                                                                                                
MR.  PAWLOWSKI   agreed.    In   response  to  a   question  from                                                               
Representative Gatto, he  explained that a person  who leaves his                                                               
or her home  empty while on vacation would not  be held liable or                                                               
be considered to have acted  "recklessly," if the home was broken                                                               
into  and  underage  drinking  occurred  on  the  premises.    In                                                               
response  to additional  comments,  he questioned  whether it  is                                                               
reasonable  to  believe that  the  house  would be  broken  into.                                                               
However,  the police  would be  able to  site the  individuals in                                                               
charge of  the house  at that  moment, for the  $500 fine.   This                                                               
fine  would be  in addition  to breaking  and entering  and minor                                                               
consuming charges.                                                                                                              
                                                                                                                                
4:23:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NEUMAN  asked  why   the  term  "recklessly"  was                                                               
chosen.                                                                                                                         
                                                                                                                                
MR. PAWLOWSKI replied that "recklessly"  describes a mental state                                                               
that best  fits the  offense.  He  explained that  "knowingly" is                                                               
more  difficult to  prove, as  a   person may  not inquire  as to                                                               
whether  those in  attendance were  over 21  years of  age.   The                                                               
sponsor  wanted  to  set  the   bar  "a  little  bit  lower  than                                                               
'knowingly.'"                                                                                                                   
                                                                                                                                
4:25:11 PM                                                                                                                    
                                                                                                                                
MR.  PAWLOWSKI, in  response to  a  question from  Representative                                                               
Buch, explained that if the owner  of the house was cited and was                                                               
not responsible, this  could be disputed in the same  manner as a                                                               
traffic violation.                                                                                                              
                                                                                                                                
REPRESENTATIVE LEDOUX stated her belief  that it can be difficult                                                               
to prove  innocence if  unfairly cited  for a  traffic violation.                                                               
She expressed  concern that this  would apply to  this violation,                                                               
as well.   She  said "as  any of  us who  have thought  we [were]                                                               
unfairly cited  [for a traffic  violation are aware,]  that's not                                                               
always the easiest thing to rectify."                                                                                           
                                                                                                                                
MR. PAWLOWSKI  replied that people may  end up on the  wrong side                                                               
of any  law that has  a penalty.   However, the  sponsor believes                                                               
this will have a good balance.                                                                                                  
                                                                                                                                
4:29:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GATTO  asked  for   more  detail  regarding  what                                                               
"possession" requires.                                                                                                          
                                                                                                                                
MR.  PAWLOWSKI  offered  his understanding  that  this  can  mean                                                               
alcohol  within a  person's  blood system  or  outside the  blood                                                               
system, adding that  whether a person is over 21  years of age is                                                               
also  a factor.    He  stated that  he  would provide  additional                                                               
information  regarding  the  definition   of  "possession."    In                                                               
response  to  a question  regarding  the  maximum penalty  for  a                                                               
violation, he reiterated that the maximum penalty would be $500.                                                                
                                                                                                                                
REPRESENTATIVE RAMRAS  stated that his  is in support of  HB 118.                                                               
He  inquired as  to  whether the  $500 fine  would  apply to  all                                                               
individuals in  attendance, or  if this is  limited to  the host.                                                               
Additionally, he questioned whether the  person in control of the                                                               
dwelling is more  culpable than others who are present.   He said                                                               
"It's often not the alpha juvenile  that says 'let's have a party                                                               
at my  house tonight.'   It's  often the best  friend who  is the                                                               
alpha  [juvenile]  who  says  'hey your  parents  are  gone  this                                                               
weekend, let's have a party at  [your] house."  He suggested that                                                               
the sponsor consider this.                                                                                                      
                                                                                                                                
MR. PAWLOWSKI  agreed that this is  a concern, and will  be given                                                               
further consideration.  He offered  his understanding that as the                                                               
bill is currently written, the  person in control of the dwelling                                                               
would be held responsible, regardless of who suggests the party.                                                                
                                                                                                                                
REPRESENTATIVE LEDOUX relayed her  concern regarding whether this                                                               
will encourage driving  while under the influence  of alcohol, by                                                               
creating an  obligation to ensure  that these individuals  are no                                                               
longer on the premises.                                                                                                         
                                                                                                                                
MR.  PAWLOWSKI stated  that  he does  not agree  with  this.   He                                                               
opined that  the obligation is  to ensure  that the youth  are no                                                               
longer in possession of alcohol.  He said:                                                                                      
                                                                                                                                
     If you  come home  to find a  bunch of  20-year-olds in                                                                    
     your house  drinking, and you understand  this law, the                                                                    
     first  thing you  should probably  do  is -  exercising                                                                    
     dominion or  control over  your house,  now -  take the                                                                    
     alcohol away from them, and ask them to perhaps stay.                                                                      
                                                                                                                                
4:38:11 PM                                                                                                                    
                                                                                                                                
RODNEY  DIAL,  Lieutenant,  Division of  Alaska  State  Troopers,                                                               
Department  of Public  Safety (DPS),  in response  to a  question                                                               
from  Representative Gatto,  explained that  the $500  fine would                                                               
only be given  to the individual in control of  the dwelling, and                                                               
minor  consuming laws  would remain  in effect.   He  opined that                                                               
individuals "running  a party house"  would quickly  realize that                                                               
this is not worth it, therefore  resulting in a better quality of                                                               
life  for  others.   He  also  explained the  difficulties  which                                                               
currently arise in regard to minor consuming.                                                                                   
                                                                                                                                
4:40:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked what would  happen if the  fine was                                                               
not paid.                                                                                                                       
                                                                                                                                
LIEUTENANT  DIAL  replied  that  non-payment would  result  in  a                                                               
warrant being issued for the individual's arrest.                                                                               
                                                                                                                                
REPRESENTATIVE NEUMAN  moved to  report HB  118 out  of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
4:42:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BUCH objected.                                                                                                   
                                                                                                                                
4:42:32 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representatives LeDoux,  Ramras,                                                               
Gatto, Gardner, Neuman, and Olson  voted in favor of reporting HB
118  from  committee.   Representative  Buch  voted  against  it.                                                               
Therefore,  HB  118 was  reported  out  of  the House  Labor  and                                                               
Commerce Standing Committee by a vote of 6-1.                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:43 PM.                                                                                                                        
                                                                                                                                

Document Name Date/Time Subjects