Legislature(1993 - 1994)

04/07/1994 03:00 PM L&C

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                    HOUSE LABOR AND COMMERCE                                   
                       STANDING COMMITTEE                                      
                          APRIL 7, 1994                                        
                            3:00 P.M.                                          
                                                                               
                                                                               
  MEMBERS PRESENT                                                              
                                                                               
  Representative Bill Hudson, Chairman                                         
  Representative Joe Green, Vice Chairman                                      
  Representative Brian Porter                                                  
  Representative Eldon Mulder                                                  
  Representative Bill Williams                                                 
  Representative Joe Sitton                                                    
  Representative Jerry Mackie                                                  
                                                                               
  MEMBERS ABSENT                                                               
                                                                               
  None                                                                         
                                                                               
  COMMITTEE CALENDAR                                                           
                                                                               
  HB 539:   "An Act extending the Alaska Public                                
            Utilities Commission; and relating to                              
            regulation of public utilities and to                              
            regulatory cost charges."                                          
                                                                               
  HEARD AND PASSED OUT OF COMMITTEE                                            
                                                                               
  HB 534:   "An Act relating to insurance, to the                              
            licensing, accreditation, examination,                             
            regulation, and solvency of persons                                
            engaged in the insurance business,                                 
            including insurers, nonadmitted                                    
            insurers, purchasing groups, risk                                  
            retention groups, and United States                                
            branches of alien insurers; relating to                            
            the management of and the filing of                                
            reports by persons licensed or otherwise                           
            doing business under the insurance code;                           
            amending Alaska Rule of Civil Procedure                            
            45; and providing for an effective                                 
            date."                                                             
                                                                               
  HEARD AND PASSED OUT OF COMMITTEE                                            
                                                                               
  HB 458:   "An Act relating to certain licenses and                           
            applications for licenses for persons                              
            who are not in compliance with orders,                             
            judgments, or payment schedules for                                
            child support."                                                    
                                                                               
  HEARD AND HELD IN COMMITTEE                                                  
                                                                               
  SB 64:    "An Act relating to civil liability for                            
            workplace safety inspections."                                     
                                                                               
  HEARD AND HELD IN COMMITTEE                                                  
                                                                               
  HB 241:   "An Act relating to workers'                                       
            compensation; and providing for an                                 
            effective date."                                                   
  HEARD AND HELD IN COMMITTEE                                                  
                                                                               
  WITNESS REGISTER                                                             
                                                                               
  BOB LOHR, Executive Director                                                 
  Alaska Public Utilities Commission                                           
  1016 West 6th Avenue, No. 400                                                
  Anchorage, Alaska  99501                                                     
  276-6222                                                                     
  POSITION STATEMENT:  Testified in support of HB 539 with an                  
                       amendment                                               
                                                                               
  DAVE HUTCHENS,                                                               
  Alaska Rural Electric Cooperative Association                                
  703 W. Tudor, #200                                                           
  Anchorage, Alaska  99503                                                     
  561-6103                                                                     
  POSITION STATEMENT:  Testified in support of HB 539 with an                  
                       amendment.  Supported moving both SB 64                 
                      and HB 241                                               
                                                                               
  DON SCHROER, Executive Director                                              
  Alaska Public Utilities Association                                          
  1011 W. 6th, #400                                                            
  Anchorage, Alaska  99501                                                     
  276-6222                                                                     
  POSITION STATEMENT:  Testified in support of HB 539                          
                                                                               
  REED STOOPS, Lobbyist                                                        
  GCI                                                                          
  240 Main Street, #600                                                        
  Juneau, Alaska  99801                                                        
  463-3223                                                                     
  POSITION STATEMENT:  Testified in support of HB 539                          
                                                                               
  STEVE CONN                                                                   
  Alaska Public Interest Research Group                                        
  P.O. Box 101093                                                              
  Anchorage, Alaska  99501                                                     
  276-8366                                                                     
  POSITION STATEMENT:  Testified in opposition to HB 539                       
                                                                               
  JIM ROWE                                                                     
  Alaska Telephone Association                                                 
  POSITION STATEMENT:  Testified in support of HB 539                          
                                                                               
  DAVE WALSH, Director                                                         
  Division of Insurance                                                        
  P.O. Box 110805                                                              
  Juneau, Alaska  99811-0805                                                   
  POSITION STATEMENT:  Testified in support of HB 534                          
                                                                               
  REPRESENTATIVE JOHN DAVIES                                                   
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  465-4457                                                                     
  POSITION STATEMENT:  Sponsor of HB 458                                       
                                                                               
  KENNETH KIRK                                                                 
  900 West 5th, #730                                                           
  Anchorage, Alaska  99501                                                     
  279-1659                                                                     
  POSITION STATEMENT:  Testified in opposition to HB 458                       
                                                                               
  JUANITA HENSLEY, Chief,                                                      
  Drivers Services                                                             
  Division of Motor Vehicles                                                   
  Department of Public Safety                                                  
  P.O. Box 20020                                                               
  Juneau, Alaska  99802-0020                                                   
  465-4335                                                                     
  POSITION STATEMENT:  Testified in opposition to HB 458                       
                                                                               
  KIT BALLENTINE, Acting Director                                              
  Environmental Sanitation Section                                             
  Division of Environmental Health                                             
  Department of Environmental Conservation                                     
  410 Willoughby Avenue, Suite 105                                             
  Juneau, Alaska  99801-1795                                                   
  465-5280                                                                     
  POSITION STATEMENT:  Discussed concerns of HB 458                            
                                                                               
  SHERRIE GOLL, Lobbyist                                                       
  Alaska Women's Lobby & Kidpac                                                
  P.O. Box 22156                                                               
  Juneau, Alaska  99802                                                        
  463-6744                                                                     
  POSITION STATEMENT:  Testified in support of HB 458                          
                                                                               
  KARL LUCK, Director                                                          
  Division of Occupational Licensing                                           
  Department of Commerce and Economic Development                              
  P.O. Box 110806                                                              
  Juneau, Alaska  99811-0806                                                   
  POSITION STATEMENT:  Discussed concerns of HB 458                            
                                                                               
  LARAINE DERR, Deputy Commissioner                                            
  Treasury                                                                     
  Department of Revenue                                                        
  P.O. Box 110400                                                              
  Juneau, Alaska  99811-0400                                                   
  465-4880                                                                     
  POSITION STATEMENT:  Testified in support HB 458                             
                                                                               
  JIM ARNESON                                                                  
  Alaska Family Support Group                                                  
  1800 Shore Drive                                                             
  Anchorage, Alaska  99515                                                     
  344-7707                                                                     
  POSITION STATEMENT:  Testified in opposition to HB 458                       
                                                                               
  JOSH FINK, Legislative Staff                                                 
  to Senator Tim Kelly                                                         
  Alaska State Legislature                                                     
  State Capitol                                                                
  Juneau, Alaska  99801-1182                                                   
  465-3819                                                                     
  POSITION STATEMENT:  Gave sponsor statement for SB 64                        
                                                                               
  KEVIN SMITH                                                                  
  Alaska Municipal League                                                      
  Joint Insurance Association                                                  
  217 2nd Street, Suite 200                                                    
  Juneau, Alaska  99801                                                        
  586-3222                                                                     
  POSITION STATEMENT:  Testified in opposition to SB 64                        
                                                                               
  PHIL FINKSTAD, Business Manager                                              
  Carpenters Union                                                             
  306 Willoughby Ave.                                                          
  Juneau, Alaska  99801                                                        
  586-3675                                                                     
  POSITION STATEMENT:  Testified on SB 64                                      
                                                                               
  PREVIOUS ACTION                                                              
                                                                               
  BILL:  HB 539                                                                
  SHORT TITLE: APUC EXTENSION AND RAGULATORY COST CHARGE                       
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  03/23/94      2935    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/23/94      2935    (H)   L&C, FINANCE                                     
  03/29/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/29/94              (H)   MINUTE(L&C)                                      
  04/07/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  BILL:  HB 534                                                                
  SHORT TITLE: OMNIBUS INSURANCE REFORM                                        
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  03/18/94      2868    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/18/94      2868    (H)   L&C, JUDICIARY, FINANCE                          
  03/29/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/29/94              (H)   MINUTE(L&C)                                      
  04/06/94              (H)   JUD AT 01:00 PM CAPITOL 120                      
  04/07/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  BILL:  HB 458                                                                
  SHORT TITLE: CHILD SUPPORT NONPAYMENT/LICENSING BAN                          
  SPONSOR(S): REPRESENTATIVE(S) DAVIES                                         
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  02/09/94      2320    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  02/09/94      2321    (H)   L&C, JUDICIARY, FINANCE                          
  04/05/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/05/94              (H)   MINUTE(L&C)                                      
  04/07/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
                                                                               
  BILL:  SB  64                                                                
  SHORT TITLE: IMMUNITY FOR SAFETY INSPECTIONS                                 
  SPONSOR(S): LABOR & COMMERCE                                                 
                                                                               
  JRN-DATE      JRN-PG                ACTION                                   
  01/22/93       137    (S)   READ THE FIRST TIME/REFERRAL(S)                  
  01/22/93       137    (S)   LABOR & COMMERCE, JUDICIARY                      
  02/04/93              (S)   L&C AT 01:30 PM BELTZ ROOM 211                   
  02/04/93              (S)   MINUTE(L&C)                                      
  02/10/93       313    (S)   L&C RPT   3DP 2NR                                
  02/10/93       313    (S)   ZERO FISCAL NOTE (DCED)                          
  02/19/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  02/19/93              (S)   MINUTE(JUD)                                      
  02/22/93              (S)   JUD AT 01:30 PM BELTZ ROOM 211                   
  02/22/93              (S)   MINUTE(JUD)                                      
  02/24/93       461    (S)   JUD RPT CS 2DP 1NR 1DNP 1AM                      
                              SAME TITLE                                       
  02/24/93       461    (S)   PREVIOUS ZERO FN APPLIES (DCED)                  
  03/03/93              (S)   RLS AT 10:45 AM FAHRENKAMP ROOM                  
                             203                                               
  03/03/93              (S)   MINUTE(RLS)                                      
  03/05/93       614    (S)   RULES RPT  3CAL 1DNP W/O AM                      
  3/5/93                                                                       
  03/05/93       623    (S)   READ THE SECOND TIME                             
  03/05/93       623    (S)   JUD  CS ADOPTED UNAN CONSENT                     
  03/05/93       625    (S)   AM NO  1     FAILED  Y7 N11 E2                   
  03/05/93       626    (S)   AM NO  2     FAILED  Y8 N10 E2                   
  03/05/93       627    (S)   AM NO  3     FAILED  Y7 N11 E2                   
  03/05/93       629    (S)   AM NO  4     FAILED  Y8 N10 E2                   
  03/05/93       630    (S)   AM NO  5     FAILED  Y8 N10 E2                   
  03/05/93       630    (S)   AM NO  6     FAILED  Y7 N11 E2                   
  03/05/93       631    (S)   ADVANCED TO THIRD READING UNAN                   
                              CONSENT                                          
  03/05/93       631    (S)   PASSED Y11 N7 E2                                 
  03/05/93       632    (S)   EFFECTIVE DATE FAILED Y11 N7 E2                  
  03/05/93       632    (S)   DUNCAN  NOTICE OF                                
                              RECONSIDERATION                                  
  03/08/93       659    (S)   RECON TAKEN UP - IN THIRD                        
                              READING                                          
  03/08/93       659    (S)   PLACE AT BOTTOM OF CAL PASSED                    
                              Y11 N8 E1                                        
  03/08/93       673    (S)   RETURN TO SECOND FOR AM 7  UNAN                  
                             CONSENT                                           
  03/08/93       674    (S)   AM NO  7     FAILED  Y8 N11 E1                   
  03/08/93       674    (S)   AUTOMATICALLY IN THIRD READING                   
  03/08/93       674    (S)   PASSED ON RECONSIDERATION Y11                    
                              N8 E1                                            
  03/08/93       675    (S)   EFFECTIVE DATE FAILED Y12 N7 E1                  
  03/08/93       677    (S)   TRANSMITTED TO (H)CSSB 64(JUD)                   
                              (EFD FLD)                                        
  03/10/93       582    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/10/93       582    (H)   LABOR & COMMERCE, JUDICIARY                      
  03/30/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/30/93              (H)   MINUTE(L&C)                                      
  04/01/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/01/93              (H)   MINUTE(L&C)                                      
  04/07/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  BILL:  HB 241                                                                
  SHORT TITLE: WORKERS COMP:REQD HEALTH SPONSOR(S):                            
  REPRESENTATIVE(S) MULDER                                                     
                                                                               
  JRN-DATE     JRN-PG                 ACTION                                   
  03/19/93       708    (H)   READ THE FIRST TIME/REFERRAL(S)                  
  03/19/93       709    (H)   LABOR & COMMERCE, JUDICIARY                      
  03/30/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  03/30/93              (H)   MINUTE(L&C)                                      
  04/01/93              (H)   L&C AT 03:00 PM CAPITOL 17                       
  04/01/93              (H)   MINUTE(L&C)                                      
  04/07/94              (H)   L&C AT 03:00 PM CAPITOL 17                       
                                                                               
  ACTION NARRATIVE                                                             
                                                                               
  TAPE 94-34, SIDE A                                                           
  Number 001                                                                   
                                                                               
  CHAIRMAN HUDSON convened the meeting at 3:07 p.m.                            
  The first order of business was HB 539 - APUC EXTENSION AND                  
  REGULATORY COST CHARGE.                                                      
                                                                               
  Number 040                                                                   
  BOB LOHR, Executive Director, Alaska Public Utilities                        
  Commission (APUC), testified on HB 539 and proposed a                        
  conceptual amendment.  The amendment would provide an                        
  exemption to the procurement act to allow the commission to                  
  procure expert witnesses directly.  He said the amendment                    
  would alleviate the time crunch the commission often                         
  experiences when attempting to hire expert witnesses for a                   
  hearing.                                                                     
                                                                               
  Number 122                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if the amendment were adopted,                    
  would a title change be necessary since it affects another                   
  statute not listed in the title.                                             
                                                                               
  Number 142                                                                   
                                                                               
  REPRESENTATIVE MULDER stated that he believes the committee                  
  could adopt the conceptual amendment with the intent that                    
  the bill drafters include a title change if necessary.                       
                                                                               
  Number 165                                                                   
                                                                               
  REPRESENTATIVE MACKIE moved the conceptual amendment.  There                 
  being no objection, it was so ordered.                                       
                                                                               
  Number 180                                                                   
                                                                               
  REPRESENTATIVE MACKIE noted that the Alaska Rural Electric                   
  Cooperative Association (ARECA) has provided the committee                   
  with an amendment regarding the language in the bill being                   
  "liberally construed".                                                       
                                                                               
  Number 195                                                                   
                                                                               
  CHAIRMAN HUDSON informed the committee that if the amendment                 
  from ARECA is adopted, the Department of Commerce will                       
  provide a new fiscal note which will reflect an increase of                  
  $121.4 thousand.  If the amendment isn't adopted the fiscal                  
  note would be zero.                                                          
                                                                               
  Number 205                                                                   
                                                                               
  REPRESENTATIVE MACKIE moved the ARECA amendment.                             
                                                                               
  CHAIRMAN HUDSON objected.                                                    
                                                                               
  Number 213                                                                   
                                                                               
  DAVE HUTCHENS, Executive Director, Alaska Rural Cooperative                  
  Association testified in favor of the amendment.  He stated                  
  the reason  the amendment was proposed was to, "Require the                  
  APUC to follow the law instead of making the law".                           
                                                                               
  MR. HUTCHENS noted that there was an example of the use of                   
  the language "liberally construed" by APUC in the letter he                  
  provided the committee.  He stated he felt the present                       
  commission not likely to do anything wild and crazy but                      
  considers this amendment preventive maintenance.                             
                                                                               
  Number 241                                                                   
                                                                               
  DON SCHROER, Executive Director, APUC, testified in                          
  opposition to the ARECA amendment.  He said he believes the                  
  deletion of the language "liberally construed" would                         
  restrict the commission's ability to make "decent level                      
  headed decisions" without having to go to the courts or the                  
  legislature.                                                                 
                                                                               
  MR. SCHROER explained that the reason the legislature set up                 
  the APUC in the first place was so that the legislature                      
  wouldn't have to deal with the regulation of utilities.                      
                                                                               
  Number 276                                                                   
                                                                               
  REPRESENTATIVE MULDER asked if there was any way to fashion                  
  language to address the concerns and to tighten up the                       
  language "liberally construed".                                              
                                                                               
  Number 286                                                                   
                                                                               
  MR. SCHROER stated that it wasn't necessarily that the                       
  commission needed flexibility but that the term "liberally                   
  construed" allows the commission to better administer the                    
  statute they work under.                                                     
                                                                               
  Number 305                                                                   
                                                                               
  CHAIRMAN HUDSON stated that the committee had a heavy agenda                 
  today and because he felt everyone knew both sides of the                    
  issue he suggested a roll call vote be taken.                                
                                                                               
  Number 310                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if this was a problem in other                    
  states and how they handled it.                                              
                                                                               
  Number 320                                                                   
                                                                               
  MR. LOHR responded that it was his understanding that this                   
  language was common.                                                         
                                                                               
  Number 330                                                                   
                                                                               
  MR. HUTCHENS stated that he had provided a letter to the                     
  committee, from their attorney, that addressed what other                    
  regulatory agencies within Alaska do.  The letter states in                  
  part that they could not find any other regulatory agencies                  
  within Alaska that use the liberally construed language.                     
                                                                               
  MR. HUTCHENS added that the amendment included an effective                  
  date more than a year away to allow the commission a                         
  transmission period to wrap up its current work under the                    
  present rules.                                                               
                                                                               
  Number 348                                                                   
                                                                               
  MR. SCHROER stated that the courts have used the language                    
  "liberally construed" in a number of cases.                                  
                                                                               
  REPRESENTATIVE MACKIE offered a amendment to the ARECA                       
  amendment to add the effective date of July 1, 1995, as the                  
  date and to delete the term "liberally construed" from the                   
  statute.  Hearing no objection, it was so ordered.                           
                                                                               
  REPRESENTATIVE MACKIE stated that the fiscal note seemed                     
  high and that it was probably so to discourage the adoption                  
  of the amendment.  He further stated that he felt there                      
  would probably be a savings if the amendment passed as there                 
  would most likely be less litigation not more.                               
                                                                               
  Number 390                                                                   
                                                                               
  REPRESENTATIVE PORTER stated he would be supporting the                      
  amendment. He said he believes the current commission would                  
  have no problem implementing this phrase but future                          
  commissions may not.                                                         
                                                                               
  Number 400                                                                   
                                                                               
  REED STOOPS, Lobbyist, GCI, testified against the amendment                  
  and supports the commission's view on it.  He stated that                    
  there would be an increase in litigation if the amendment                    
  passed as the area of telecommunications is changing rapidly                 
  and the commission needs some flexibility to carry out its                   
  mission.                                                                     
                                                                               
  Number 417                                                                   
                                                                               
  CHAIRMAN HUDSON declared a conflict of interest because his                  
  son is involved in a cellular telephone company and recently                 
  benefitted from the liberally construed language.                            
                                                                               
  Number 425                                                                   
                                                                               
  The committee members objected.                                              
                                                                               
  Number 448                                                                   
                                                                               
  Roll call vote was taken on ARECA amendment as amended.                      
  Representatives Mulder, Green, Mackie, Sitton and Porter                     
  voted in favor of the amendment.  Representatives Williams                   
  and Hudson voted against the amendment.  So the amendment to                 
  HB 539 passed.                                                               
                                                                               
  Number 463                                                                   
                                                                               
  STEVE CONN, Executive Director, Alaska Public Interest                       
  Research Group, testified in opposition to HB 539.  He                       
  pointed out that the committee has received a transcript of                  
  a hearing before the APUC which points out that the APUC has                 
  lost contact with their duties.  The transcript summarizes                   
  how few consumers make complaints, how limited the resources                 
  are for them to make complaints, and how limited the staff                   
  is to take formal complaints.                                                
                                                                               
  MR. CONN concluded by saying there is a problem with the                     
  fundamental principal that rate payers should underwrite                     
  APUC which, in turn, is indifferent to the needs to the                      
  consumer.                                                                    
                                                                               
  Number 500                                                                   
                                                                               
  JIM ROWE, Alaska Telephone Association, testified in support                 
  of the amendment and HB 539.  He stated he considers the                     
  amendment preventive and not something aimed at the present                  
  commission.                                                                  
                                                                               
  Number 516                                                                   
                                                                               
  REPRESENTATIVE MULDER moved CSHB 539 (L&C), with the                         
  accompanying fiscal note, be passed out of committee with                    
  individual recommendations.  There being no objection, the                   
  motion carried.                                                              
  Number 520                                                                   
  The next order of business was HB 534 - OMNIBUS INSURANCE                    
  REFORM.  Chairman Hudson invited Dave Walsh, Director of the                 
  Division of Insurance, Department of Commerce and Economic                   
  Development (DCED), to testify.                                              
                                                                               
  Number 525                                                                   
                                                                               
  DAVE WALSH, Director, Division of Insurance, DCED, testified                 
  in support of Version E of HB 534.  Mr. Walsh explained that                 
  the current committee substitute now includes all the                        
  amendments adopted at the last committee hearing.                            
                                                                               
  Number 540                                                                   
                                                                               
  REPRESENTATIVE MULDER asked Mr. Walsh if he has received any                 
  negative feedback from the insurance community.                              
                                                                               
  Number 547                                                                   
                                                                               
  MR. WALSH responded that the division's criteria for                         
  something to be included in the bill was that it be non                      
  controversial.                                                               
                                                                               
  Number 550                                                                   
                                                                               
  REPRESENTATIVE GREEN stated he appreciated the extra time                    
  Mr. Walsh spent with him in his office regarding HB 534.                     
                                                                               
  Number 565                                                                   
                                                                               
  CHAIRMAN HUDSON asked that the record reflect that the vice                  
  chair carry it on the House floor.                                           
                                                                               
  Number 573                                                                   
                                                                               
  REPRESENTATIVE PORTER moved that CSHB 534 (L&C), with the                    
  accompanying zero fiscal note, be passed out of committee                    
  with individual recommendations.  Hearing no objection, it                   
  was so ordered.                                                              
  Number 578                                                                   
  CHAIRMAN HUDSON invited Representative Davies to the table                   
  to present HB 458 - CHILD SUPPORT NONPAYMENT/LICENSING BAN                   
  "An Act relating to certain licenses and applications for                    
  licenses for persons who are not in compliance with orders,                  
  judgments, or payment schedules for child support."                          
                                                                               
  Number 580                                                                   
                                                                               
  REPRESENTATIVE DAVIES presented CSHB 458 (L&C).  He reminded                 
  the committee that his staff had presented the bill at the                   
  last committee meeting so he would not go through it again                   
  except to discuss the issue raised by Representative Porter                  
  regarding substantial compliance.  He stated there was a                     
  proposed amendment to address this concern.                                  
                                                                               
  Number 592                                                                   
  REPRESENTATIVE PORTER stated the following amendment,                        
  Amendment #1, did take care of the concern that he had.                      
                                                                               
       On page 7, lines 19 - 20, delete "made at least                         
       one payment or partial payment in" and insert                           
       "cumulatively paid an amount equal to or greater                        
       than the amount due for one month during".                              
                                                                               
  REPRESENTATIVE PORTER moved that Amendment #1 be adopted.                    
  There being no objection, it was so ordered.                                 
                                                                               
  Number 598                                                                   
                                                                               
  REPRESENTATIVE WILLIAMS stated that it was his memory that                   
  the department was to work on strengthening the bill.                        
                                                                               
  Number 600                                                                   
                                                                               
  REPRESENTATIVE PORTER stated that he thought the amendment                   
  would satisfy the concerns of the committee.                                 
                                                                               
  There was general discussion about amendment.                                
                                                                               
  Number 636                                                                   
                                                                               
  CHAIRMAN HUDSON summed up what the amendment would effect:                   
  "The trigger was when a self employed individual goes in to                  
  renew his license, the search would be made and if it was                    
  found that they were substantially out of compliance they                    
  would be held off for 150 days until they made the situation                 
  right".                                                                      
                                                                               
  Number 650                                                                   
                                                                               
  KENNETH KIRK, testifying via teleconference from Anchorage,                  
  spoke against the bill.  He stated that not all persons in                   
  arrearage are deserving of punishment.  He asserted that                     
  there were a variety of reasons a person could get behind in                 
  payments without having done anything wrong.                                 
                                                                               
  TAPE 94-34                                                                   
  SIDE B                                                                       
                                                                               
  Number 001                                                                   
                                                                               
  MR. KIRK added that the second point was that the child                      
  support laws are extremely rigid.  He noted that the bill                    
  brings the district attorneys into the scenario and                          
  shouldn't as they have virtually no jurisdiction over these                  
  types of case.                                                               
                                                                               
  MR. KIRK told the committee the bill did not seem to provide                 
  for any administrative appeal.                                               
                                                                               
  Number 090                                                                   
                                                                               
  CHAIRMAN HUDSON interrupted Mr. Kirk to say that staff had                   
  informed him that he was testifying to the previous version                  
  of the bill and that the problems noted were taken care of                   
  in the version before the committee.                                         
                                                                               
  MR. KIRK noted that he was indeed working off of the old                     
  version as that was the only one available and he assumed it                 
  was the one the committee was considering.                                   
                                                                               
  Number 100                                                                   
                                                                               
  JUANITA HENSLEY, Chief, Driver Services, Division of Motor                   
  Vehicles, Department of Public Safety, testified against the                 
  bill.  She contended that the bill would be difficult for                    
  the division to implement and it would have significant                      
  fiscal impact.                                                               
                                                                               
  MS. HENSLEY asked for additional time to review the                          
  committee substitute for comment.                                            
                                                                               
  Number 140                                                                   
                                                                               
  CHAIRMAN HUDSON asked if she could more fully respond to the                 
  bill if the committee were to carry it over to another                       
  meeting.                                                                     
                                                                               
  Number 150                                                                   
                                                                               
  MS. HENSLEY responded that she would be out of town but the                  
  director could respond.                                                      
                                                                               
  Number 189                                                                   
                                                                               
  REPRESENTATIVE SITTON suggested the committee move the bill                  
  and let the next two committee's address some of the                         
  concerns.                                                                    
                                                                               
  Number 206                                                                   
                                                                               
  KIT BALLENTINE, Acting Director, Environmental Sanitation                    
  Section, Division of Environmental Health, Department of                     
  Environmental Conservation, testified to concerns the                        
  division has regarding the reporting requirements needed to                  
  implement this legislation.  Ms. Ballentine said she                         
  believes the bill would have a significant fiscal impact on                  
  the division.                                                                
                                                                               
  Number 218                                                                   
                                                                               
  SHERRIE GOLL, Alaska Women's Lobby and Kidpac, testified in                  
  support of HB 458.  She stated her groups believe that                       
  anything the state can do to help collect the over $300                      
  million that is owed to Alaska's children, they should do                    
  so.                                                                          
                                                                               
  Number 242                                                                   
                                                                               
  KARL LUCK, Director, Division of Occupational Licensing,                     
  Department of Commerce and Economic Development (DCED),                      
  testified that there would be an impact on the division if                   
  this legislation were to pass, but believes it could be                      
  reversed if the Department of Revenue did a internal process                 
  to match deadbeats with applicants for licensure within his                  
  division.  The division's impact would be significantly                      
  lessened.                                                                    
                                                                               
  Number 262                                                                   
                                                                               
  CHAIRMAN HUDSON asked if Occupational Licensing would be                     
  able to delegate the authority to issue the licenses to the                  
  Department of Revenue.                                                       
  Number 270                                                                   
                                                                               
  MR. LUCK replied "no," but that it was not the issuance of a                 
  license that creates the impact but the matching of lists to                 
  identify those who are out of compliance and applicants for                  
  licensure.                                                                   
                                                                               
  Number 308                                                                   
                                                                               
  LARAINE DERR, Deputy Commissioner, Treasury, Department of                   
  Revenue, testified that she supports HB 458, but that it                     
  would have some impact on at least ten different                             
  departments.                                                                 
                                                                               
  MS. DERR explained that the federal government will share 66                 
  percent of the costs of the fiscal impact on the state.  She                 
  suggested that the money be deposited into the child support                 
  division and then RSA'd out to the various departments                       
  affected by the legislation.                                                 
                                                                               
  Number 345                                                                   
                                                                               
  CHAIRMAN HUDSON asked if the agencies referenced in this                     
  hearing could take this concept and implement it without                     
  legislation.                                                                 
                                                                               
  Number 350                                                                   
                                                                               
  MS. DERR answered that they could do it administratively but                 
  felt that the impact of the legislation would be preferable.                 
                                                                               
  JIM ARNESON, Alaska Family Support Group, stated that his                    
  group is opposed to the bill and believes it would be a                      
  return to the "debtors prison" mentality.                                    
                                                                               
  MR. ARNESON noted that there is a good compliance rate when                  
  both parents have good visitation such as in the case of                     
  joint custody.                                                               
  MR. ARNESON stated that it would not be in any ones best                     
  interest to take away the license of an obligor and leave                    
  them with no way to make an income.                                          
                                                                               
  Number 428                                                                   
                                                                               
  CHAIRMAN HUDSON stated that he would hold the bill over and                  
  asked the prime sponsor to get together with the agencies                    
  that would be affected by the bill and address the concerns                  
  they have.                                                                   
  Number 460                                                                   
  CHAIRMAN HUDSON brought up CSSB 64(JUD)(efd fld) - IMMUNITY                  
  FOR SAFETY INSPECTIONS and invited the prime sponsor to                      
  present the bill.                                                            
                                                                               
  Number 480                                                                   
                                                                               
  JOSH FINK, Staff, Senator Kelly, read the following sponsor                  
  statement:                                                                   
                                                                               
  "In 1988, the legislature passed a comprehensive revision of                 
  Alaska's workers' compensation laws.  At that time it was                    
  considered model legislation and was built around a no fault                 
  system.  Since taking effect, the new workers' compensation                  
  provisions have proven successful.                                           
                                                                               
  "The safety inspection issue was brought to the forefront as                 
  a result of the 1989 Van Biene v. ERA Helicopters, Inc.                      
  decision our Supreme Court, which held that "workers'                        
  compensation carrier could be held liable to estates of                      
  deceased pilots for negligent performance of safety                          
  inspection if insurer actually inspected the working                         
  conditions of the employer prior to the incident.  This                      
  ruling effectively ended the no fault system.                                
                                                                               
  "The unintended result is that carriers are unwilling to                     
  perform safety inspections and Alaskan workers are at                        
  greater risk of injury.  SB 64 removes insurers, insurance                   
  service agents, self-insured employers, and trade                            
  associations from civil liability for damages resulting from                 
  the performance or failure to perform a workplace safety                     
  inspection or a safety advisory service unless the act is                    
  intentional or negligent.                                                    
                                                                               
  "SB 64 ensures workplace safety inspections will continue,                   
  that workers' compensation insurance will be available and                   
  affordable because of safety inspection, and that employees                  
  benefit from safety inspections."                                            
                                                                               
  Number 525                                                                   
                                                                               
  DAVE HUTCHENS, Executive Director, Alaska Rural Cooperative                  
  Electric Association, testified in favor of SB 64. He                        
  explained to the committee that his organization created an                  
  insurance program which, in 1983, evolved into a reciprocal                  
  insurer which is a regulated insurance company chartered                     
  through the laws of the state.  Mr.Hutchens said the Van                     
  Biene issue impacted his organization greatly in that prior                  
  to the decision, they operated an intensive safety program                   
  for their members, but cannot afford the liability now.                      
                                                                               
  MR. HUTCHENS noted that SB 64 would correct this problem as                  
  well as Section 2 in HB 241.                                                 
                                                                               
  Number 567                                                                   
                                                                               
  REPRESENTATIVE GREEN asked if the Van Biene decision applied                 
  only to the inspector or did it also apply to his employer                   
  as well.                                                                     
                                                                               
  Number 574                                                                   
                                                                               
  MR. HUTCHENS replied that the decision affected the                          
  insurance company that had underwritten the employer.                        
                                                                               
  Number 580                                                                   
                                                                               
  REPRESENTATIVE MULDER asked if safety inspectors needed a                    
  minimum amount of accreditation.                                             
                                                                               
  MR. HUTCHENS replied that he didn't think there were any                     
  requirements for safety inspectors.                                          
                                                                               
  Number 588                                                                   
                                                                               
  REPRESENTATIVE MULDER stated that it seemed logical that if                  
  the state were to require safety inspections, then there                     
  should be some sort of minimum requirements.                                 
                                                                               
  MR. HUTCHENS agreed.                                                         
                                                                               
  Number 600                                                                   
                                                                               
  REPRESENTATIVE MACKIE stated that he thought the last time                   
  the committee heard the two bills, the direction given was                   
  for the various interest groups to come to a compromise.  He                 
  asked for an update on those talks.                                          
                                                                               
  Number 605                                                                   
                                                                               
  REPRESENTATIVE MULDER stated that an ad hoc task force                       
  comprised of three groups, organized labor, insurance                        
  providers, and the employer groups, worked through the                       
  interim but did not come to a compromise.                                    
                                                                               
  Number 635                                                                   
                                                                               
  REPRESENTATIVE MACKIE stated that there was obviously a                      
  problem or there wouldn't be these two bills.  He questioned                 
  what would happen if the legislature did nothing.                            
                                                                               
  Number 640                                                                   
                                                                               
  REPRESENTATIVE MULDER replied that from a policy standpoint,                 
  he thinks it is important to have workplace safety programs                  
  but also fells the health benefit extension is good public                   
  policy.                                                                      
                                                                               
  REPRESENTATIVE MULDER added that if the legislature did                      
  nothing some groups would still have workplace safety                        
  inspections and would assume the risk as they do now and                     
  others won't.                                                                
                                                                               
  TAPE 94-35, SIDE B                                                           
                                                                               
  Number 001                                                                   
                                                                               
  KEVIN SMITH, representing the Alaska Municipal League and                    
  the Joint Insurance Association, testified in favor of SB
  64.  He said he believes a safe workplace is good for the                    
  workers regardless of the politics involved.                                 
                                                                               
  Number 040                                                                   
                                                                               
  REPRESENTATIVE PORTER asked if Mr. Smith was a certified                     
  safety professional and, if not, how long would it take to                   
  become one.                                                                  
                                                                               
  Number 050                                                                   
                                                                               
  MR. SMITH said that he was not a certified safety                            
  professional, but noted within a year he could be.                           
                                                                               
  Number 060                                                                   
                                                                               
  PHIL FINKSTAD, Business Manager, Carpenters Union, testified                 
  that in 1988, a workers' compensation bill was passed and it                 
  was basically a management bill.  He stated that labor                       
  supported it because it was a very lean time and they felt                   
  that by helping to lower the costs to the employers, there                   
  may be more work.  He said over the last few years labor has                 
  tried to regain some of the lost ground.                                     
                                                                               
  MR. FINKSTAD stated that almost every job site he has been                   
  on over the last twenty years has had a safety program.                      
                                                                               
  MR. FINKSTAD stated that the Van Biene, by itself, is only                   
  beneficial to the insurers and the other two groups want to                  
  see the bill passed.                                                         
                                                                               
  Number 125                                                                   
                                                                               
  CHAIRMAN HUDSON stated that he recognized that any solution                  
  would require the accommodation of all sides of the issue.                   
  He added that he hoped that by bringing the bills up side by                 
  side a solution could be found, but that did not appear to                   
  be happening.                                                                
                                                                               
  Number 141                                                                   
                                                                               
  REPRESENTATIVE PORTER referred to gross negligence occurring                 
  and asked if the no fault system under workers' compensation                 
  would apply.                                                                 
                                                                               
  Number 144                                                                   
                                                                               
  MR FINKSTAD replied yes.                                                     
                                                                               
  Number 154                                                                   
                                                                               
  REPRESENTATIVE MULDER stated that he would go back to the                    
  parties involved one last time and try to come to a                          
  compromise.                                                                  
                                                                               
  CHAIRMAN HUDSON asked Mr. Finkstad to tell Senator Kelly                     
  that this committee is committed to move the bill quickly                    
  when a solution is offered that accommodates everyone.                       
                                                                               
  CHAIRMAN HUDSON told the committee that he would hold both                   
  SB 64 and HB 241 over.                                                       
                                                                               
  Number 181                                                                   
                                                                               
  REPRESENTATIVE MULDER explained that HB 241 is a mirror of                   
  SB 64 except that it includes a section for health benefits                  
  for workers and their families who have been injured for an                  
  additional 12 months.  He explained that this legislation                    
  was passed by the legislature and made it to the governor in                 
  1989, but was vetoed over some technical glitches.                           
                                                                               
  CHAIRMAN HUDSON asked who pays for the additional insurance.                 
                                                                               
  REPRESENTATIVE MULDER replied that it would be the                           
  responsibility of the employer.  He added that the average                   
  number of months an employee is off the job is less than two                 
  months.                                                                      
                                                                               
  Number 210                                                                   
                                                                               
  CHAIRMAN HUDSON restated that he was going to hold the bills                 
  over and adjourned the meeting at 5:00 p.m.                                  

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