Legislature(1995 - 1996)
04/22/1996 03:08 PM House L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 22, 1996
3:08 p.m.
MEMBERS PRESENT
Representative Pete Kott, Chairman
Representative Norman Rokeberg, Vice Chairman
Representative Jerry Sanders
Representative Kim Elton
Representative Gene Kubina
MEMBERS ABSENT
Representative Beverly Masek
Representative Brian Porter
COMMITTEE CALENDAR
HOUSE BILL NO. 416
"An Act relating to fees or assessment of costs for certain
services provided by state government, including hearing costs
related to the real estate surety fund; fees for authorization to
operate a postsecondary educational institution or for an agent's
permit to perform services for a postsecondary educational
institution; administrative fees for self-insurers in workers'
compensation; business license fees; fees for activities related to
coastal zone management, training relating to emergency management
response, regulation of pesticides and broadcast chemicals, and
subdivision plans for sewage waste disposal or treatment; and
providing for an effective date."
- MOVED CSHB 416(L&C) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 186(L&C)
"An Act relating to partnerships; and providing for an effective
date."
- MOVED CSSB 186(L&C) OUT OF COMMITTEE
SENATE BILL NO. 316(title am)
"An Act changing the term `disability' to `health' in the context
of insurance coverage."
- MOVED CSHB 186(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 345
"An Act relating to the procurement of investment and brokerage
services by the Alaska State Pension Investment Board."
- FAILED TO MOVE HB 345
HOUSE BILL NO. 549
"An Act relating to partnerships; and providing for an effective
date."
- SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 363
"An Act requiring banks to pay interest on money in reserve
accounts held in connection with mortgage loans."
- SCHEDULED BUT NOT HEARD
PREVIOUS ACTION
BILL: HB 416
SHORT TITLE: OMNIBUS STATE FEES & COST ASSESSMENTS
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
01/12/96 2432 (H) READ THE FIRST TIME - REFERRAL(S)
01/12/96 2432 (H) STATE AFFAIRS, L&C, RESOURCES, FINANCE
01/12/96 2432 (H) 7 FNS (DCED, 2-DEC, 2-GOV, LABOR, DMVA)
01/12/96 2432 (H) FISCAL NOTE (REV)
01/12/96 2433 (H) GOVERNOR'S TRANSMITTAL LETTER
04/09/96 (H) STA AT 8:00 AM CAPITOL 102
04/09/96 (H) MINUTE(STA)
04/11/96 (H) STA AT 8:00 AM CAPITOL 102
04/11/96 (H) MINUTE(STA)
04/15/96 3738 (H) STA RPT CS(STA) NT 1DP 1DNP 4NR
04/15/96 3739 (H) DP: ROBINSON
04/15/96 3739 (H) DNP: OGAN
04/15/96 3739 (H) NR: JAMES, PORTER, GREEN, IVAN
04/15/96 3740 (H) 5 FNS (2-GOV, 2-DEC, DCED) 1/12/96
04/15/96 3740 (H) 3 FNS (LABOR, DMVA, REV) 1/12/96
04/17/96 (H) L&C AT 3:00 PM CAPITOL 17
04/18/96 (H) L&C AT 2:00 PM CAPITOL 17
04/19/96 (H) L&C AT 3:00 PM CAPITOL 17
04/22/96 (H) L&C AT 3:00 PM CAPITOL 17
BILL: SB 186
SHORT TITLE: LIMITED LIABILITY PARTNERSHIPS
SPONSOR(S): LABOR & COMMERCE BY REQUEST
JRN-DATE JRN-PG ACTION
05/16/95 1899 (S) READ THE FIRST TIME - REFERRAL(S)
05/16/95 1899 (S) L&C, JUD
02/01/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
02/08/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
02/08/96 (S) MINUTE(L&C)
02/13/96 2409 (S) FIN REFERRAL ADDED
02/29/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
02/29/96 (S) MINUTE(L&C)
03/07/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
03/07/96 (S) MINUTE(L&C)
03/12/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
03/12/96 (S) MINUTE(L&C)
03/18/96 2772 (S) L&C RPT CS 2DP 2NR NEW TITLE
03/18/96 2773 (S) FISCAL NOTE TO SB & CS (DCED)
03/29/96 (S) JUD AT 1:30 PM BELTZ ROOM 211
03/29/96 (S) MINUTE(JUD)
04/01/96 2991 (S) JUD RPT 3DP (L&C)CS
04/01/96 2991 (S) PREVIOUS FN (DCED)
04/10/96 3136 (S) FIN REFERRAL WAIVED
04/12/96 3193 (S) RULES TO CALENDAR 4/12/96
04/12/96 3195 (S) READ THE SECOND TIME
04/12/96 3195 (S) L&C CS ADOPTED UNAN CONSENT
04/12/96 3195 (S) ADVANCED TO THIRD READING UNAN CONSENT
04/12/96 3195 (S) READ THE THIRD TIME CSSB 186(L&C)
04/12/96 3195 (S) PASSED Y18 N2
04/12/96 3196 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
04/12/96 3196 (S) KELLY NOTICE OF RECONSIDERATION
04/15/96 3250 (S) RECONSIDERATION NOT TAKEN UP
04/15/96 3250 (S) TRANSMITTED TO (H)
04/16/96 3793 (H) READ THE FIRST TIME - REFERRAL(S)
04/16/96 3793 (H) L&C, FINANCE
04/22/96 (H) L&C AT 3:00 PM CAPITOL 17
BILL: SB 316
SHORT TITLE: HEALTH INSURANCE NOMENCLATURE
SPONSOR(S): LABOR & COMMERCE BY REQUEST
JRN-DATE JRN-PG ACTION
03/22/96 2837 (S) READ THE FIRST TIME - REFERRAL(S)
03/22/96 2837 (S) LABOR & COMMERCE
04/09/96 (S) L&C AT 1:30 PM FAHRENKAMP RM 203
04/09/96 (S) MINUTE(L&C)
04/10/96 3110 (S) L&C RPT 3DP
04/10/96 3110 (S) ZERO FISCAL NOTE (DCED)
04/11/96 (S) RLS AT 2:35 PM FAHRENKAMP RM 203
04/12/96 3193 (S) RULES TO CALENDAR 4/12/96
04/12/96 3197 (S) READ THE SECOND TIME
04/12/96 3197 (S) ADVANCED TO THIRD READING UNAN CONSENT
04/12/96 3197 (S) READ THE THIRD TIME SB 316
04/12/96 3197 (S) AM NO 1 ADOPTED UNAN CONSENT TITLE AM
04/12/96 3198 (S) PASSED Y17 N- E1 A2
04/12/96 3220 (S) TRANSMITTED TO (H)
04/15/96 3734 (H) READ THE FIRST TIME - REFERRAL(S)
04/15/96 3734 (H) LABOR & COMMERCE
04/19/96 (H) JUD AT 1:00 PM CAPITOL 120
04/19/96 (H) MINUTE(JUD)
04/22/96 (H) L&C AT 3:00 PM CAPITOL 17
BILL: HB 345
SHORT TITLE: PENSION INVESTMENT BOARD PROCUREMENTS
SPONSOR(S): REPRESENTATIVE(S) FOSTER, Ivan
JRN-DATE JRN-PG ACTION
05/10/95 2088 (H) READ THE FIRST TIME - REFERRAL(S)
05/10/95 2088 (H) STATE AFFAIRS, L&C, FINANCE
03/21/96 (H) STA AT 8:00 AM CAPITOL 102
03/21/96 (H) MINUTE(STA)
03/21/96 3259 (H) COSPONSOR(S): IVAN
03/26/96 (H) STA AT 8:00 AM CAPITOL 102
03/26/96 (H) MINUTE(STA)
03/27/96 3390 (H) STA RPT CS(STA) 2DNP 4NR
03/27/96 3391 (H) DNP: ROBINSON, WILLIS
03/27/96 3391 (H) NR: JAMES, PORTER, GREEN, OGAN
03/27/96 3391 (H) FISCAL NOTE (REV)
04/03/96 (H) L&C AT 3:00 PM CAPITOL 17
04/17/96 (H) L&C AT 3:00 PM CAPITOL 17
04/18/96 (H) L&C AT 2:00 PM CAPITOL 17
04/19/96 (H) L&C AT 3:00 PM CAPITOL 17
04/22/96 (H) L&C AT 3:00 PM CAPITOL 17
WITNESS REGISTER
NANCY SLAGLE, Director
Division of Budget Review
Office of Management and Budget
Office of the Governor
P.O. Box 110020
Juneau, Alaska 99811-0200
Telephone: (907) 465-4681
POSITION STATEMENT: Answered questions on HB 416.
SHERMAN ERNOUF, Legislative Assistant
to Senator Tim Kelly
Capitol Building, Room 101
Juneau, Alaska 99801
Telephone: (907) 465-3822
POSITION STATEMENT: Gave sponsor statement for CSSB 186(L&C)
ACTION NARRATIVE
TAPE 96-39, SIDE A
Number 001
The House Labor and Commerce Standing Committee was called to order
by Chairman Pete Kott at 3:08 p.m. Members present at the call to
order were Representatives Sanders, Elton, Rokeberg and Kott.
Representative Kubina arrived at 3:11 p.m.
HB 416 - OMNIBUS STATE FEES & COST ASSESSMENTS
Number 075
CHAIRMAN PETE KOTT announced the first order of business would be
HB 416, "An Act relating to fees or assessment of costs for certain
services provided by state government, including hearing costs
related to the real estate surety fund; fees for authorization to
operate a postsecondary educational institution or for an agent's
permit to perform services for a postsecondary educational
institution; administrative fees for self-insurers in workers'
compensation; business license fees; fees for activities related to
coastal zone management, training relating to emergency management
response, regulation of pesticides and broadcast chemicals, and
subdivision plans for sewage waste disposal or treatment; and
providing for an effective date."
Number 102
REPRESENTATIVE KIM ELTON made a motion to CSHB 416, Version F, with
the attached fiscal notes out of the House Labor and Commerce
Committee.
REPRESENTATIVE NORMAN ROKEBERG objected for the purpose of another
amendment. He said he would offer an amendment to delete the
section which relates to the surety bonds. He said the reason is
offering the amendment is because of testimony given the previous
Friday by Ms. Reardon where she had already calculated the cost of
the hearing, support fees and licenses.
CHAIRMAN KOTT asked Representative Rokeberg to identify the lines.
He noted the committee is working from the committee substitute
dated 4/19/96, Version F, Cook.
Number 216
REPRESENTATIVE ROKEBERG indicated it is page 2, lines 9 through 17,
which is shown as Section 2.
CHAIRMAN KOTT objected for the purpose of discussion.
Number 269
REPRESENTATIVE ELTON pointed out that there is a motion on the
floor. He indicated he would withdraw it at the Chair's request.
CHAIRMAN KOTT asked Representative Elton to withdraw his motion.
REPRESENTATIVE ROKEBERG moved that Section 2 be deleted on page 2,
lines 9 through 17.
CHAIRMAN KOTT explained there is conceptual Amendment 3 to delete
Section 2 of the committee substitute. He said he would object for
the purpose of discussion.
REPRESENTATIVE ROKEBERG said he proposed the amendment because of
the testimony he heard from Catherine Reardon the Division of
Occupational Licensing. She testified that the adjustment in the
biannual license fee for real estate brokers, agents and associate
brokers was such that it included the costs of carrying out the
hearings. If the committee approves this particular provision, the
department would be double dipping those costs as they would be
drawing monies from the surety fund to pay for hearings that are
already going to be paid for presumably out of the operating income
generated by the license fees.
Number 388
REPRESENTATIVE ELTON indicated the testimony he recalls is that
this section allows the division to draw on the surety fund for
those cases as the expenses were incurred rather than waiting until
the end of it and drawing down on the fund. He said he thought he
had a further understanding that one of the concerns that they had
is that once that fund gets up to $500,000, any additional money
spills back over into the general fund. This was a way of
protecting the surety fund. Representative Elton said he further
understood that the testimony indicated that the commission,
itself, had recommended this change.
CHAIRMAN KOTT indicated that was his recollection.
REPRESENTATIVE ROKEBERG said he doesn't disagree with what
Representative Elton said, but she also testified that she was
double dipping. In other words, she recovered the costs and the
estimates from the licensure fees.
CHAIRMAN KOTT said he seems to recall that testimony, but also that
it couldn't be helped based on how the two systems worked (indisc.)
to one another in that if in fact there was more in the fund....
REPRESENTATIVE ROKEBERG said if there are surplus funds in the
surety fund, it goes into the general fund. The licensure fees are
adjusted biannually to make contribution if there is a shortfall in
the surety fund.
Number 532
NANCY SLAGLE, Director, Division of Budget Review, Office of
Management and Budget, Office of the Governor, came forward to
address the committee. She said the committee is correct in what
has been stated. However, when it comes to the setting of
occupational licensing fees, Ms. Reardon stated that there is
difficulty in trying to cut back in the amount you're charging
without having this particular legislation in place first. You
then can go back and adjust those license fees based on HB 416 so
that there wouldn't be that double charging. The money would be
expended from the surety fund in the future, not from the program
receipts. You then can adjust those license fees in the future to
bring them back down in line to what your actual expenses are. The
statutes covering occupational licensing requires that what your
charge covers you're expenses for the program.
CHAIRMAN KOTT questioned where the Senate version of this bill is.
MS. SLAGLE indicated it is in the Senate Finance Committee.
Number 652
CHAIRMAN KOTT stated he would still maintain his objection.
REPRESENTATIVE GENE KUBINA said it sounds like Ms. Slagle is saying
that if this section is left in the bill, the fees would actually
go down.
Number 673
REPRESENTATIVE ROKEBERG withdrew his amendment. He said if his
suspicions are correct, he would bring up his concern on the floor.
Number 697
REPRESENTATIVE ELTON made a motion to move CSHB 416, Version F,
with the attached fiscal notes, out of committee with individual
recommendations.
CHAIRMAN KOTT asked if there was an objection.
REPRESENTATIVE ROKEBERG asked for a brief at ease.
CHAIRMAN KOTT called the committee back to order and asked if there
was an objection to moving the bill. Hearing none, CSHB 416(L&C)
was moved out of the House Labor and Commerce Committee.
SB 186 - LIMITED LIABILITY PARTNERSHIPS
Number 787
CHAIRMAN KOTT announced the committee would hear CSSB 186(L&C), "An
Act relating to partnerships; and providing for an effective date."
He noted the committee has heard the House bill relating to this
issue.
Number 801
SHERMAN ERNOUF, Legislative Assistant to Senator Tim Kelly,
explained CSSB 186. He said the Senate bill and the House bill are
identical except for the definition of "partnership" on page 8 of
both bills. Mr. Ernouf said in SB 186, they deleted the language
on line 14, "unless the context indicates otherwise." That was a
technical change requested by the Board of Accountancy. He stated
that is the only change between the two bills.
CHAIRMAN KOTT asked if there were any witnesses to testify on the
measure. There being none, Chairman Kott closed the public
hearing.
Number 854
REPRESENTATIVE ELTON moved that CSHB 186(L&C) be moved out of
committee with the attached zero fiscal note and individual
recommendations.
CHAIRMAN KOTT asked if there was an objection. Hearing none, CSHB
186(L&C) was moved out of the House Labor and Commerce Committee.
SB 316 - HEALTH INSURANCE NOMENCLATURE
Number 884
CHAIRMAN KOTT said the committee would hear SB 316(title am), "An
Act changing the term `disability' to `health' in the context of
insurance coverage." He noted the committee has heard the
companion bill which is currently in the House Rules Committee.
Chairman Kott said the word "disability" was removed and the word
"health" was inserted. There was some confusion indicated by the
providers. In order to alleviate some of that confusion the
wording was changed. He noted there is disability within the
health insurance arena, but it doesn't stand alone.
Number 946
REPRESENTATIVE ROKEBERG made a motion to move SB 316(title am),
with individual recommendations and the attached zero fiscal note.
CHAIRMAN KOTT asked if there was an objection. Hearing none, SB
316(title am) was moved out of the House Labor and Commerce
Committee.
HB 345 - PENSION INVESTMENT BOARD PROCUREMENTS
Number 972
CHAIRMAN KOTT announced the last order of business would be HB 345,
"An Act relating to the procurement of investment and brokerage
services by the Alaska State Pension Investment Board." He said
the bill has been heard on two separate occasions where there was
conflicting testimony both in support or in opposition to the bill.
Chairman Kott indicated there is a proposed committee substitute,
Version K, Bannister, 4/10/96, which has been adopted.
Number 1000
REPRESENTATIVE ROKEBERG made a motion to move conceptual Amendment
1. Delete on page 2, line 31, and on page 3, lines 1 through 6.
Renumber the following section accordingly.
CHAIRMAN KOTT said there is a motion to delete subsection (10) in
Section 2. He said he would object for the purpose of discussion.
REPRESENTATIVE ROKEBERG said, "There were some questions about the
whole broad scope of what (indisc.). Then there is judicial
language about -- for example, `Without materially sacrificing
competency or performance.' There was a question about defining
what that meant. And also, without materially -- and the question
being materially increasing the cost to the board, which we had
testimony - really was the difference between retail and wholesale
purchase of large blocks of securities and the like. Additionally,
Mr. Chairman, I think the intent of the bill is meritorious and
that language is set forth somewhat differently in subsection (11)
of the CS which is allegedly language from the Permanent Fund
Dividend Program, recommending in-state investments and use of in-
state investment vehicles as much as possible, insofar as they're
consistent with investment policies established by the board. So
the thrust of the bill is maintained in subsection (11), but the
ambiguities of the language as contained in subsection (10) can be
deleted, and then we can without bad conscience move this bill
along if that's (indisc.) - or we could take this under further
consideration."
Number 1139
CHAIRMAN KOTT said if subsection 10 is removed, we would be left
with the status quo. This is what the board is operating under
currently as far as their authority. Chairman Kott then withdrew
his objection to the amendment. He stated he had some problems
with the language "materially." Increasing it causes some concern.
Chairman Kott said he doesn't know if there is anything else to
substitute that with. Chairman Kott asked if there were further
objections.
REPRESENTATIVE ELTON said he really doesn't have an objection. He
stated he thinks he'll probably vote for the amendment because it
does remove some language that can create a problem. He said his
feeing about the bill, in total, whether the language is removed or
not is that he doesn't think it does anything at all. By removing
Section 10, we've made sure it does nothing at all. He said he
kind of objects to a bill that doesn't do anything.
CHAIRMAN KOTT asked if there was an objection to the amendment.
Hearing none, Amendment 1 was adopted.
Number 1249
REPRESENTATIVE ROKEBERG made a motion to move CSHB 345(L&C), as
amended, with individual recommendations and the accompanying
fiscal note revisions.
CHAIRMAN KOTT said there is a motion to move CSHB 345(L&C), as
amended, with individual recommendations and the accompanying
fiscal note.
Number 1286
REPRESENTATIVE ELTON objected. He said, "This committee
substitute, when we got it, without the mandated level is --
essentially does nothing. That's the way I read the bill, but lets
say that it does do something that I'm missing. I mean I almost
prefer having a 7 percent back in because if this does actually
mean something, I don't want them doing 50 percent. So I guess I'm
going to vote `No' on moving this until somebody can tell us what
we're accomplishing by doing this. I mean that's the big problem
I've got with this. I think now it does nothing, but if we're
moving this along because it does do something, I don't want them
doing it at the 50 percent level rather than the 7 percent level."
CHAIRMAN KOTT said he thinks it makes a legislative statement that
we would like the board, in their investment strategies, to
consider in-state investments to the extent that they're available
and have the same or higher expected yield with the same level of
risk.
REPRESENTATIVE ROKEBERG said there is "Findings and Purpose"
language in the bill.
Number 1398
REPRESENTATIVE KUBINA pointed out that he doesn't think the title
is appropriate any longer with the amendment that passed.
REPRESENTATIVE ROKEBERG said he thinks the title is O.K. the way it
is.
CHAIRMAN KOTT said they could check with the drafter of the bill.
REPRESENTATIVE ELTON said he would maintain his objection.
CHAIRMAN KOTT asked the secretary to please call the roll.
Representatives Sanders and Elton were against the motion.
Representatives Kubina, Rokeberg and Kott voted in favor of the
motion.
CHAIRMAN KOTT announced the bill didn't move. He stated you need
four affirmative votes to move the bill.
ADJOURNMENT
Number 1640
CHAIRMAN KOTT adjourned the House Labor and Commerce Committee
meeting at 3:33 p.m.
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