Legislature(1999 - 2000)
04/10/2000 04:10 PM House RLS
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE RULES STANDING COMMITTEE
April 10, 2000
4:10 p.m.
MEMBERS PRESENT
Representative John Cowdery, Chairman
Representative Brian Porter
Representative Joe Green
Representative Gail Phillips
Representative Ethan Berkowitz
MEMBERS ABSENT
Representative Pete Kott
Representative Reggie Joule
COMMITTEE CALENDAR
HOUSE BILL NO. 225
"An Act relating to election campaigns and legislative ethics; and
providing for an effective date."
- HOUSE RULES COMMITTEE DID NOT CONCUR WITH THE SENATE
AMENDMENTS
HOUSE BILL NO. 418
"An Act relating to program receipts collected by the division of
insurance and to program receipts collected by the Department of
Community and Economic Development for occupational licenses; and
providing for an effective date."
- MOVED CSHB 418(RLS)OUT OF COMMITTEE
HOUSE BILL NO. 378
"An Act eliminating certain taxes under AS 21.09 on premiums from
the sale of workers' compensation insurance; relating to the
establishment, assessment, collection, and accounting for service
fees for state administration of workers' compensation and worker
safety programs; establishing civil penalties and sanctions for
late payment or nonpayment of the service fee; and providing for an
effective date."
- MOVED CSHB 378(RLS) OUT OF COMMITTEE
HOUSE BILL NO. 334
"An Act relating to the establishment of and accounting for an
administrative cost charge for the state's role in the community
development quota program and to the appropriation of receipts from
the charge; and providing for an effective date."
- NO ACTION TAKEN
PREVIOUS ACTION
BILL: HB 225
SHORT TITLE: CAMPAIGN FINANCE AND LEGISLATIVE ETHICS
Jrn-Date Jrn-Page Action
5/05/99 1180 (H) READ THE FIRST TIME - REFERRAL(S)
5/05/99 1180 (H) JUD
5/06/99 (H) JUD AT 1:00 PM CAPITOL 120
5/06/99 (H) HEARD AND HELD
5/06/99 (H) MINUTE(JUD)
5/06/99 (H) MINUTE(JUD)
5/07/99 (H) JUD AT 1:00 PM CAPITOL 120
5/07/99 (H) CSHB 225(JUD) OUT OF COMMITTEE
5/07/99 (H) MINUTE(JUD)
5/07/99 1247 (H) COSPONSOR(S): KOHRING
5/08/99 1259 (H) JUD RPT CS(JUD) 2DP 4NR
5/08/99 1260 (H) DP: JAMES, ROKEBERG; NR: CROFT,
5/08/99 1260 (H) MURKOWSKI, GREEN, KERTTULA
5/08/99 1260 (H) ZERO FISCAL NOTE (H.JUD)
5/08/99 1271 (H) RULES TO CALENDAR 5/8/99
5/08/99 1271 (H) HELD TO 5/10 CALENDAR
5/10/99 1289 (H) READ THE SECOND TIME
5/10/99 1290 (H) JUD CS ADOPTED UNAN CONSENT
5/10/99 1290 (H) AM NO 1 FAILED Y16 N23 A1
5/10/99 1291 (H) AM NO 2 FAILED Y16 N19 A5
5/10/99 1291 (H) AM NO 3 FAILED Y16 N20 A4
5/10/99 1292 (H) AM NO 4 FAILED Y18 N22
5/10/99 1293 (H) AM NO 5 FAILED Y17 N21 A2
5/10/99 1294 (H) ADVANCED TO THIRD READING UNAN
CONSENT
5/10/99 1294 (H) READ THE THIRD TIME CSHB 225(JUD)
5/10/99 1294 (H) PASSED Y27 N12 A1
5/10/99 1294 (H) EFFECTIVE DATE(S) SAME AS PASSAGE
5/10/99 1295 (H) KERTTULA NOTICE OF RECONSIDERATION
5/11/99 1329 (H) RECONSIDERATION NOT TAKEN UP
5/11/99 1329 (H) TRANSMITTED TO (S)
5/12/99 1385 (S) READ THE FIRST TIME - REFERRAL(S)
5/12/99 1385 (S) JUD
5/14/99 (S) JUD AT 2:30 PM BELTZ 211
5/14/99 (S) HEARD AND HELD
5/14/99 (S) MINUTE(JUD)
5/15/99 (S) JUD AT 12:00 PM BELTZ 211
5/15/99 (S) MOVED CS (JUD) OUT OF COMMITTEE
5/15/99 (S) MINUTE(JUD)
5/16/99 1514 (S) JUD RPT SCS 1DP 2NR SAME TITLE
5/16/99 1514 (S) NR: TAYLOR, HALFORD; DP: DONLEY
5/16/99 1514 (S) (H) ZERO FN (H.JUD)
5/17/99 (S) RLS AT 10:30 AM FAHRENKAMP 203
5/17/99 (S) MINUTE(RLS)
5/17/99 1565 (S) RULES TO CALENDAR AND 1DNP 5/17/99
5/17/99 1580 (S) READ THE SECOND TIME
5/17/99 1580 (S) JUD SCS ADOPTED UNAN CONSENT
5/17/99 1580 (S) AM NO 1 ADOPTED UNAN CONSENT
5/17/99 1580 (S) AM NO 2 FAILED Y6 N14
5/17/99 1581 (S) AM NO 3 NOT OFFERED
5/17/99 1581 (S) AM NO 4 FAILED Y5 N15
5/17/99 1582 (S) AM NO 5 ADOPTED UNAN CONSENT
5/17/99 1582 (S) AM NO 6 FAILED Y5 N15
5/17/99 1583 (S) AM NO 7 ADOPTED Y12 N8
5/17/99 1584 (S) ADVANCED TO THIRD READING UNAN
CONSENT
5/17/99 1584 (S) READ THE 3RD TIME SCS CSHB 225(JUD)
AM S
5/17/99 1584 (S) PASSED Y14 N6
5/17/99 1585 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/17/99 1585 (S) ELLIS NOTICE OF RECONSIDERATION
5/18/99 1610 (S) RECON TAKEN UP - IN THIRD READING
5/18/99 1610 (S) RETURN TO SECOND FOR AM 9 UNAN
CONSENT
5/18/99 1610 (S) AM NO 9 ADOPTED Y14 N4 A2
5/18/99 1614 (S) AUTOMATICALLY IN THIRD READING
5/18/99 1615 (S) RETURN TO SECOND FOR AM 10 UNAN
CONSENT
5/18/99 1615 (S) AM NO 10 FAILED Y7 N13
5/18/99 1617 (S) AUTOMATICALLY IN THIRD READING
5/18/99 1617 (S) PASSED ON RECONSIDERATION Y14 N6
5/18/99 1618 (S) EFFECTIVE DATE(S) SAME AS PASSAGE
5/18/99 1658 (S) TRANSMITTED TO (H) AS AMENDED
5/18/99 1590 (H) HELD UNDER UNFINISHED BUSINESS
5/18/99 1635 (H) RETAINED IN UNFINISHED BUSINESS
5/19/99 1672 (H) RETURN TO RULES COMMITTEE
4/10/00 (H) RLS AT 4:00 PM CAPITOL 120
BILL: HB 418
SHORT TITLE: INSURANCE AND OCCUPATIONAL LICENSE FEES
Jrn-Date Jrn-Page Action
2/23/00 2279 (H) READ THE FIRST TIME - REFERRALS
2/23/00 2279 (H) L&C, FIN
2/28/00 (H) L&C AT 3:15 PM CAPITOL 17
2/28/00 (H) Moved CSHB 418(L&C) Out of Committee
2/28/00 (H) MINUTE(L&C)
3/01/00 2356 (H) L&C RPT CS(L&C) NT 3DP 3NR
3/01/00 2357 (H) DP: HARRIS, CISSNA, ROKEBERG;
3/01/00 2357 (H) NR: MURKOWSKI, SANDERS, HALCRO
3/01/00 2357 (H) 2 FISCAL NOTES (2-DCED)
3/24/00 (H) FIN AT 1:30 PM HOUSE FINANCE 519
3/24/00 (H) Moved CSHB 418(FIN) Out of Committee
3/24/00 (H) MINUTE(FIN)
3/24/00 (H) MINUTE(FIN)
3/27/00 2710 (H) FIN RPT CS(FIN) NT 5DP 1NR 1AM
3/27/00 2711 (H) DP: THERRIAULT, MULDER, BUNDE, MOSES,
3/27/00 2711 (H) FOSTER; NR: DAVIS; AM: GRUSSENDORF
3/27/00 2711 (H) FISCAL NOTE (DCED)
3/27/00 2711 (H) FISCAL NOTE (DCED-#1) 3/1/00
4/10/00 (H) RLS AT 4:00 PM CAPITOL 120
BILL: HB 378
SHORT TITLE: WORKERS COMP AND WORKER SAFETY
Jrn-Date Jrn-Page Action
2/16/00 2211 (H) READ THE FIRST TIME - REFERRALS
2/16/00 2212 (H) L&C, JUD, FIN
2/16/00 2212 (H) 4 FISCAL NOTES (ADM, DCED, 2-LABOR)
2/16/00 2212 (H) GOVERNOR'S TRANSMITTAL LETTER
2/28/00 (H) L&C AT 3:15 PM CAPITOL 17
2/28/00 (H) Heard & Held
2/28/00 (H) MINUTE(L&C)
3/03/00 (H) JUD AT 1:00 PM CAPITOL 120
3/03/00 (H) <Bill Postponed to 3/6>
3/03/00 (H) L&C AT 3:15 PM CAPITOL 17
3/03/00 (H) Moved CSHB 378(L&C) Out of Committee
3/03/00 (H) MINUTE(L&C)
3/06/00 (H) JUD AT 2:15 PM CAPITOL 120
3/06/00 (H) Moved CSHB 378(L&C) Out of Committee
3/06/00 (H) MINUTE(L&C)
3/06/00 2426 (H) L&C RPT CS(L&C) NT 5DP 1NR
3/06/00 2426 (H) DP: HARRIS, CISSNA, BRICE, HALCRO,
3/06/00 2426 (H) ROKEBERG; NR: MURKOWSKI
3/06/00 2427 (H) 4 FNS (ADM, DCED, 2-LABOR) 2/16/00
3/08/00 (H) FIN AT 2:00 PM HOUSE FINANCE 519
3/08/00 (H) Moved CSHB 378(L&C) Out of Committee
3/08/00 (H) MINUTE(FIN)
3/08/00 2451 (H) JUD RPT CS(L&C) NT 5DP
3/08/00 2452 (H) DP: CROFT, GREEN, ROKEBERG, KERTTULA,
3/08/00 2452 (H) KOTT
3/08/00 2452 (H) 4 FNS (ADM, DCED, 2-LABOR) 2/16/00
3/09/00 (H) FIN AT 9:00 AM HOUSE FINANCE 519
3/09/00 (H) -- Meeting Canceled --
3/15/00 2491 (H) FIN RPT CS(L&C) NT 3DP 5NR
3/15/00 2491 (H) DP: MULDER, DAVIES, PHILLIPS;
3/15/00 2491 (H) NR: THERRIAULT, BUNDE, FOSTER,
3/15/00 2491 (H) WILLIAMS, DAVIS
3/15/00 2491 (H) 2 FISCAL NOTES (GOV/ALL DEPTS, UA)
3/15/00 2491 (H) 3 FNS (DCED, 2-LABOR) 2/16/00
4/10/00 (H) RLS AT 4:00 PM CAPITOL 120
WITNESS REGISTER
CATHERINE REARDON, Director
Division of Occupational Licensing
Department of Community & Economic Development
PO Box 110806
Juneau, Alaska 99811-0806
POSITION STATEMENT: Testified on HB 418.
ANNALEE McCONNELL, Director
Office of Management & Budget
Office of the Governor
PO Box 110020
Juneau, Alaska 99811-0020
POSITION STATEMENT: Testified on HB 418.
REPRESENTATIVE MULDER, Chair
House Finance Standing Committee
Alaska State Legislature
Capitol Building, Room 507
Juneau, Alaska 99801
POSITION STATEMENT: Provided clarification regarding HB 418.
MIKE TIBBLES, Staff
to the House Finance Standing Committee
Alaska State Legislature
Capitol Building, Room 511
Juneau, Alaska 99801
POSITION STATEMENT: Provided clarification regarding HB 418.
TOM LAWSON, Director
Division of Administrative Services
Department of Community & Economic Development
PO Box 110803
Juneau, Alaska 99811-0803
POSITION STATEMENT: Discussed ASMI funds.
PAUL GROSSI, Director
Division of Workers' Compensation
Department of Labor & Workforce Development
PO Box 25512
Juneau, Alaska 99802-5512
POSITION STATEMENT: Discussed an unintended consequence of HB 378,
which has been corrected in version G.
ACTION NARRATIVE
TAPE 00-4, SIDE A
Number 0001
CHAIRMAN JOHN COWDERY called the House Rules Standing Committee
meeting to order at 4:10 p.m. Members present at the call to order
were Representatives Cowdery, Porter, Green, Phillips and
Berkowitz.
HB 225-CAMPAIGN FINANCE AND LEGISLATIVE ETHICS
CHAIRMAN COWDERY announced that the first order of business would
be HOUSE BILL NO. 225, "An Act relating to election campaigns and
legislative ethics; and providing for an effective date." [Before
the committee is SCS CSHB 225(JUD) am S.] Chairman Cowdery
recommended that the committee does not concur with the Senate
amendments to HB 225. He requested a motion as such.
Number 0119
REPRESENTATIVE PHILLIPS moved that the House Rules Standing
Committee does not concur with SCS CSHB 225(JUD) am S. There being
no objection, it was so ordered.
The committee took an at-ease from 4:12 p.m. and was called back to
order at 4:13 p.m.
HB 418-INSURANCE AND OCCUPATIONAL LICENSE FEES
CHAIRMAN COWDERY announced that the next order of business would be
HOUSE BILL NO. 418, "An Act relating to program receipts collected
by the division of insurance and to program receipts collected by
the Department of Community and Economic Development for
occupational licenses; and providing for an effective date."
REPRESENTATIVE ROKEBERG pointed out that there is a committee
substitute (CS), version M, for the committee's consideration.
Number 0259
REPRESENTATIVE PORTER moved to adopt CSHB 418, version LS1500\M,
Utermohle, 4/4/00, as the working document before the committee.
There being no objection, it was so ordered.
REPRESENTATIVE ROKEBERG explained that this bill intends to correct
some of the problems with certain areas of the state government
being included in the general fund (GF) category. This bill
provides for the inclusion as designated program receipts of
occupational licensing, the Alaska Seafood Marketing Institute
(ASMI) programs and adds the receipts from the dive fishery
management and those charges and income from the community
development quota program (CDQ). [The bill] provides for a program
in which the costs of the administration under the CDQ program will
be reimbursed to the state. Representative Rokeberg specified that
this would combine three bills into one: HB 333, the dive fishery
bill; HB 334, the CDQ program; [and HB 418].
Number 0413
REPRESENTATIVE PHILLIPS noted that when this bill was heard in
House Finance, it was very important to keep the language for the
dive fishery management assessment in the title in order to assure
that funding is protected. She inquired as to why it was not
included in this version.
REPRESENTATIVE ROKEBERG remarked, "This particular piece of
legislation is the brain child of the [House] Finance committee."
Therefore, he did not know how to respond.
REPRESENTATIVE BERKOWITZ offered to make a conceptual amendment to
reinsert the [dive fishery management assessment] language.
REPRESENTATIVE ROKEBERG suggested that the language was not left in
the title in order to provide flexibility for future "Christmas
tree ornaments."
There was discussion regarding the need to have House Finance staff
before the committee for questions on HB 418.
REPRESENTATIVE BERKOWITZ turned to the sections referring to the
receipts of the Department of Community & Economic Development
(DCED) and mentioned making it effective immediately.
Number 0685
CATHERINE REARDON, Director, Division of Occupational Licensing,
Department of Community & Economic Development, suggested that
portion be effective immediately in order to provide latitude for
"our" budget for fiscal year 2000.
REPRESENTATIVE PHILLIPS stated that she did not recall that being
presented in the House Finance Committee. If it was not important
enough to be brought before House Finance Committee, why is it
before the House Rules Committee? The proper place to have put
such an amendment in would have been the House Finance Committee.
REPRESENTATIVE ROKEBERG related his understanding, "It's my
particular understanding that this particular bill will ameliorate
the problems necessary to have additional appropriations in the
supplemental budget to keep Occupational Licensing operating in
this current fiscal year." Therefore, making it effective
immediately will eliminate that problem. He noted that was [his
understanding] from the Chairman of the House Finance Committee.
REPRESENTATIVE PHILLIPS reiterated the need for such to have been
raised in the House Finance Committee.
REPRESENTATIVE PORTER indicated agreement, but pointed out that it
is not unusual for oversights to be brought before the House Rules
Committee for correction.
Number 0890
ANNALEE McCONNELL, Director, Office of Management & Budget (OMB),
Office of the Governor, mentioned that she had discussed this issue
of an immediate effective date with Representatives Mulder and
Therriault when the bill was in the House Finance Committee. She
had thought there would be an amendment to deal with this issue at
that time.
REPRESENTATIVE MULDER, Chair, House Finance Standing Committee,
Alaska State Legislature, explained that a House Rules Committee
hearing was requested because HB 418 had already moved from the
House Finance Committee. The thought was that the opportunities
created by HB 333 and HB 334 could be addressed at another time.
However, there are some components in HB 333 and HB 334 that are
substantive and needed to be included in HB 418. Therefore, it was
felt best to deal with this in committee. He said, "I think that
they are consist with the intentions of [HB] 418 and that is to
take programs that recognizably funded by users and as such are not
affecting the fiscal gap and are self-supporting and as such should
not be counted against a general fund allocation because they are
separate and they are unique." Therefore, these are different than
a general fund program that is a straight draw. He noted that this
[bill] would allow the dive fishery and CDQ program to go forward.
He indicated that in order for these programs to move forward
without [this bill], there would have to be a reduction in
commercial fishing or subsistence; that would be counterproductive.
Therefore, placing these programs in HB 418 as a designated program
receipt, it would allow these programs to continue without counting
against the general fund allocation.
Number 1071
REPRESENTATIVE PHILLIPS reiterated the importance for including the
dive fishery in the title of the legislation that passed out of the
House Finance Committee.
REPRESENTATIVE MULDER commented that it is a potential problem;
however, he did not fear [the funds not being] returned to those
receiving the services. The intention of the designated program
receipt is that those funds go back towards those programs that pay
for it. He acknowledged that it is a "loose fence" around funding.
REPRESENTATIVE PHILLIPS commented, "That was specifically why we
included the language."
REPRESENTATIVE MULDER remarked that perhaps it is necessary to
[review] the whole point of the SDBR [statutory designated budget
receipt]. He explained that they [SDBR programs] are part of the
general fund, but they are a separate category and do not work
against the goal, specifically economic development in this case.
Therefore, a DBR (designated budget receipt) does return to the
specific program. He guessed that the reason it [the dive fishery
management assessment] is not in the title is because four very
different programs with a common thread of being a designating
program are being combined.
REPRESENTATIVE PHILLIPS inquired as to why, then, the
appropriations for the CDQ program is left [in the title]. She
reiterated that the dive fishery is not included in the title,
although that was very important when heard in the House Finance
Committee.
Number 1296
MIKE TIBBLES, Staff to the House Finance Standing Committee, Alaska
State Legislature, informed the committee that in working with
Legislative Legal Services, there was difficulty in satisfying the
single subject rule. The reference in the title to the CDQ program
is relating to a section of the bill outside of the designated
program receipts. Since the dive fishery had to do only with the
statutory designated program receipts, it was not [inserted in the
title]. None of the programs that dealt only with the statutory
designated program receipts were mentioned [in the title] in order
to comply with the single subject rule and in order to allow
flexibility to add something later.
REPRESENTATIVE BERKOWITZ asked if placing the substance of the
change in the bill, although not included in the title, would
violate the single subject rule.
REPRESENTATIVE MULDER reiterated that they [the programs] are tied
together with the common thread of program receipts.
MR. TIBBLES acknowledged that there is the single subject issue,
but noted there is also the issue of making the title such that
things could not be added or deleted later on in the process. He
indicated that by listing each [program] specifically, it would
eliminate the possibility of adding something later on.
REPRESENTATIVE MULDER stated that he believes Representative
Phillips' concerns are addressed in the bill because the receipts
for Occupational Licensing are specifically listed under
subparagraph (X), those for ASMI are under subparagraph (Y), those
for CDQ are under subparagraph (Z) and the dive fishery program
receipts are listed under subparagraph (AA). The reason for the
inclusion of the language, "relating to the establishment of an
administrative cost charge for the state's role in the community
development quota program" in the title is because it is a bit
different than the other components and [preferable to] having two
bills.
Number 1500
REPRESENTATIVE GREEN asked if these programs are all completely
funded by program receipts.
REPRESENTATIVE MULDER replied yes. He also indicated agreement
with Representative Green's assessment that these programs are
different than Parks, which has some [of both general funds and
program receipts].
CHAIRMAN COWDERY asked if the program receipts return to the
specific program [for which the receipts were collected].
REPRESENTATIVE MULDER replied yes. The receipts collected for each
program return to the program for which it was collected. In
regards to whether the funds can be intermixed, he did not believe
so. In the budget process, the legislature designates an
allocation toward Occupational Licensing that is currently GFPR
(general fund program receipts). He noted, "Provided for the fact
that GFPR is a separate BRU within their allocation, they can only
go toward that function." If Occupational Licensing had some SDPR
in it or if the division had more than just SDPR in it, he guessed
it would be possible, although highly improbable [that the funds
would intermingle]. Oftentimes, programs are fairly protective of
their fund sources and know how much has been raised and collected.
MS. REARDON informed the committee that the division has a statute,
AS 08.010.065, saying that the department will set fees in order
that the revenue equals approximately the regulatory cost of each
profession. Therefore, mingling of funds would be violating that
statute. Furthermore, the frequent audits over fee setting would
probably quickly identify such a violation.
REPRESENTATIVE MULDER commented that the legislature could actually
take the money [such program receipts] and place it in another
area. However, the legislature would be "more or less" in
violation of statute.
Number 1696
REPRESENTATIVE GREEN asked, "Is it because the legislature does
maintain the authority, if we wanted to even though we'd be going
against our own statute, or is it because it's not general fund, it
[they are] program receipts [which are] separate that we don't get
in trouble with violations."
REPRESENTATIVE MULDER answered that it is the former.
CHAIRMAN COWDERY inquired as to whether the ASMI dollars would be
subject to reprogramming or administrative fees.
MS. McCONNELL pointed out that a separate fund code is used for
each program, and therefore they [the funds] would not be moved to
other programs.
CHAIRMAN COWDERY inquired as to how the administrative fees are
established.
TOM LAWSON, Director, Division of Administrative Services,
Department of Community & Economic Development, explained that ASMI
has to budget for its staff and travel expenses, which are part of
the budget presented to the legislature each year. The ASMI funds
that come in under this bill cannot be used for anything except
ASMI-related expenses.
REPRESENTATIVE PORTER stated that due to this statute and existing
law, these funds will be designated to the agencies that develop
the fees. However, this should not be interpreted to mean that
this is designating funds past what is required for an annual
review and reappropriation by the legislature.
MS. McCONNELL agreed.
Number 1888
REPRESENTATIVE PORTER moved to report CSHB 418, version M, out of
committee with individual recommendations.
REPRESENTATIVE BERKOWITZ objected and noted that he had an
amendment that he wanted to offer.
REPRESENTATIVE PORTER rescinded his prior motion.
REPRESENTATIVE BERKOWITZ explained that his amendment addressed
making DCED receipts, under subparagraph (X), effective
immediately.
REPRESENTATIVE PHILLIPS requested that the House Finance chairman
respond to that amendment as it did not come up in the House
Finance Committee.
REPRESENTATIVE MULDER said that he concurred with that amendment.
Number 1975
REPRESENTATIVE BERKOWITZ clarified that the amendment would read as
follows on page 5, insert "Section 10 Section 1(X) takes effect
immediately under AS 01.10 (indisc.)" There being no objection,
the amendment was adopted.
Number 1989
REPRESENTATIVE PORTER moved to report CSHB 418 as amended out of
committee with individual recommendations. There being no
objection, it was so ordered and CSHB 418(RLS) was reported from
the House Rules Standing Committee.
HB 378-WORKERS COMP AND WORKER SAFETY
CHAIRMAN COWDERY announced that the final order of business would
be HOUSE BILL NO. 378, "An Act eliminating certain taxes under AS
21.09 on premiums from the sale of workers' compensation insurance;
relating to the establishment, assessment, collection, and
accounting for service fees for state administration of workers'
compensation and worker safety programs; establishing civil
penalties and sanctions for late payment or nonpayment of the
service fee; and providing for an effective date."
REPRESENTATIVE ROKEBERG informed the committee that subsequent to
passage of HB 378 from the House Labor & Commerce Committee it was
discovered that there was an unintended consequence. He requested
that Mr. Grossi speak to that unintended consequence.
Number 2039
PAUL GROSSI, Director, Division of Workers' Compensation,
Department of Labor & Workforce Development, informed the committee
that the unintended consequence had to do with the annual fee being
charged on claims from injuries prior to the effective date in
which a premium tax had been previously charged. Therefore, the
insurance industry developed a way in which that fee could be
repaid through the premium tax in order to prevent that "double
charge."
REPRESENTATIVE PORTER moved to adopt CSHB 378, version GH2072\G,
Ford, 4/10/00, as the working document before the committee. There
being no objection, it was so ordered.
CHAIRMAN COWDERY inquired as to the difference between the original
version and version G.
MR. GROSSI explained that the problem, as pointed out by the
insurance industry, with the current language is that it would
cause the fee to be charged on injuries prior to the effective date
in which a premium tax had been charged on the premium. In order
to prevent that, the insurance industry offered language that would
allow the fee to come out of the premium tax and prevent "double
charging." He agreed that version G fixes that problem.
Number 2209
REPRESENTATIVE PORTER moved to report CSHB 378, version G, out of
committee with individual recommendations. There being no
objection, it was so ordered and CSHB 378(RLS) was reported from
the House Rules Standing Committee.
ADJOURNMENT
There being no further business before the committee, the House
Rules Standing Committee meeting was adjourned at 4:43 p.m.
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