Legislature(1995 - 1996)

03/07/1995 08:03 AM House STA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
             HOUSE STATE AFFAIRS STANDING COMMITTEE                            
                         March 7, 1995                                         
                           8:03 a.m.                                           
 MEMBERS PRESENT                                                               
 Representative Jeannette James, Chair                                         
 Representative Scott Ogan, Vice-Chair                                         
 Representative Joe Green                                                      
 Representative Ivan                                                           
 Representative Brian Porter                                                   
 Representative Caren Robinson                                                 
 Representative Ed Willis                                                      
 MEMBERS ABSENT                                                                
 COMMITTEE CALENDAR                                                            
 * HB 218:    "An Act relating to the payment of certain trucking              
              HEARD AND HELD                                                   
 HB 59:       "An Act relating to raffles and auctions of certain              
              permits to take big game; and providing for an                   
              effective date."                                                 
              PASSED OUT OF COMMITTEE                                          
 * HB 199:    "An Act creating the crime of criminal transmission              
              of HIV."                                                         
              HEARD AND HELD                                                   
 HSTA - 03/07/95                                                               
 * HB 201:    "An Act relating to prisoner litigation,                         
              post-conviction relief, sentence appeals, amending               
              Alaska Administrative Rule 10, Alaska Rules of                   
              Appellate Procedure 204, 208, 209, 215, 521, 603,                
              and 604, and Alaska Rules of Criminal Procedure 11,              
              33, 35, and 35.1;  and providing for an effective                
              SCHEDULED BUT NOT HEARD                                          
 HSTA - 03/07/95                                                               
 * HB 2:      "An Act allowing courts to require certain offenders             
              as a special condition of probation to complete a                
              boot camp program provided by the Department of                  
              Corrections; making prisoners who complete the boot              
              camp program eligible for discretionary parole;                  
              providing for incarceration of certain nonviolent                
              offenders in boot camps operated by the Department               
              of Corrections; allowing the Department of                       
              Corrections to contract with a person for an                     
              alternative boot camp program; creating the Boot                 
              Camp Advisory Board in the Department of                         
              Corrections; and providing for an effective date."               
              SCHEDULED BUT NOT HEARD                                          
 HSTA - 03/07/95                                                               
 * HB 96:     "An Act increasing and requiring annual adjustment               
              of the tax on alcoholic beverages; and providing                 
             for an effective date."                                           
              SCHEDULED BUT NOT HEARD                                          
 (* First public hearing)                                                      
 WITNESS REGISTER                                                              
 REPRESENTATIVE JEANNETTE JAMES                                                
 Alaska State Legislature                                                      
 State Capitol,  Room 102                                                      
 Juneau, Alaska  99801-1182                                                    
 Telephone:  465-3743                                                          
 POSITION STATEMENT:  Provided sponsor statement for HB 218                    
 BOB EAKMAN, General Manager and Lobbyist                                      
 Alaska Independent Truckers Association of Anchorage                          
 200 West 34th Ave, Suite 863                                                  
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 TERRY BANNISTER, Attorney                                                     
 Legislative Legal Counsel                                                     
 Legislative Affairs Agency                                                    
 Goldstein Bldg., Rm 405                                                       
 Juneau, Alaska 99801-1182                                                     
 Telephone:  465-2450                                                          
 POSITION STATEMENT:  Provided background information on HB 218                
 JACK WIEGELE, Vice President                                                  
 Alaska Independent Truckers Association of Anchorage                          
 200 West 34th Ave, Suite 863                                                  
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 CHUCK HIGHT, Master at Arms                                                   
 Alaska Independent Truckers Association of Anchorage                          
 200 West 34th Ave., Suite 863                                                 
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 RANDY CARR, Chief                                                             
 Wage and Hour Administration                                                  
 Department of Labor                                                           
 P.O. Box 107021                                                               
 Anchorage, Alaska 99510-7021                                                  
 Telephone: 269-4914                                                           
 POSITION STATEMENT:  Provided information of HB 218                           
 MONTY MONTGOMERY, Assistant Executive Director                                
 Associated General Contractors                                                
 4041 B Street                                                                 
 Anchorage, Alaska 99503                                                       
 Telephone: 561-5354                                                           
 POSITION STATEMENT:  Opposed HB 218                                           
 STEVE TROSPER, Business Representative                                        
 Teamsters Local 959                                                           
 4300 Boniface Parkway                                                         
 Anchorage, Alaska 99504                                                       
 Telephone: 269-4191                                                           
 POSITION STATEMENT:  Supported HB 218                                         
 JAY EVANS, Owner-Operator                                                     
 Alaska Independent Truckers Association of Anchorage                          
 200 West 34th Ave., Suite 863                                                 
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 BILL EVANS, Owner-Operator                                                    
 Alaska Independent Truckers Association of Anchorage,                         
 and Owner, Davis Transport, Ltd.                                              
 200 West 34th Ave., Suite 863                                                 
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 ROXANNA HORSCHEL, Vice Chair of the Legislative                               
 Committee of the Associated General Contracts; and                            
 Owner, ACME Fence Co.                                                         
 243 E. 87th Ave.                                                              
 Anchorage, Alaska 99515                                                       
 Telephone:  522-1155                                                          
 POSITION STATEMENT:  Opposed HB 218                                           
 CHUCK DAVIS, Owner-Operator                                                   
 Alaska Independent Truckers Association of Anchorage                          
 and Owner, Davis Transport, Ltd.                                              
 200 West 34th Ave, Suite 863                                                  
 Anchorage, Alaska  99503                                                      
 Telephone:  276-1934                                                          
 POSITION STATEMENT:  Supported HB 218                                         
 MICHAEL SWALLING, Owner                                                       
 Swalling Construction Co., Inc.                                               
 P.O. Box 101039                                                               
 Anchorage, Alaska 99510                                                       
 Telephone:  272-3461                                                          
 POSITION STATEMENT:  Opposed HB 218                                           
 REPRESENTATIVE CON BUNDE                                                      
 Alaska State Legislature                                                      
 State Capitol, Room 108                                                       
 Juneau, Alaska 99801-1182                                                     
 Telephone: 465-4843                                                           
 POSITION STATEMENT:  Provided sponsor statement for HB 59                     
 GERON BRUCE, Legislative Liaison                                              
 Alaska Department of Fish and Game                                            
 P.O. Box 25526                                                                
 Juneau, Alaska 99811-5526                                                     
 Telephone: 465-6143                                                           
 POSITION STATEMENT:  Supported HB 59                                          
 CAM RADER, Board Member                                                       
 Foundation for North American Wild Sheep                                      
 3313 Peace Court                                                              
 Anchorage, Alaska 99501                                                       
 Telephone: 333-1272                                                           
 POSITION STATEMENT:  Supported HB 59                                          
 ROD ARNO, President                                                           
 Alaska Outdoor Council                                                        
 P.O. Box 279                                                                  
 Palmer, Alaska 99645                                                          
 Telephone: 376-2913                                                           
 POSITION STATEMENT:  Supported HB 59                                          
 EDDIE GRASSER, Legislative Director                                           
 Alaska Outdoor Council                                                        
 P.O. Box 22394                                                                
 Juneau, Alaska 99802                                                          
 Telephone: 463-3830                                                           
 POSITION STATEMENT:  Supported HB 59                                          
 DUANE BUELL, Member                                                           
 Alaska Wildlife Safeguard                                                     
 9131 Glacier Ave                                                              
 Juneau, Alaska 99801                                                          
 Telephone: 789-9785                                                           
 POSITION STATEMENT:  Supported HB 59                                          
 BARBARA BRINK, Deputy Director                                                
 Alaska Public Defender Agency                                                 
 900 West Fifth Avenue, Suite 200                                              
 Anchorage, Alaska   99501                                                     
 Telephone: 264-4400                                                           
 POSITION STATEMENT:  Opposed HB 199                                           
 PREVIOUS ACTION                                                               
 BILL:  HB 218                                                               
 SPONSOR(S): REPRESENTATIVE(S) JAMES BY REQUEST                                
 JRN-DATE     JRN-PG               ACTION                                      
 03/01/95       531    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 03/01/95       531    (H)   STATE AFFAIRS, TRANSPORTATION,                    
 03/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 BILL:  HB  59                                                                
 SPONSOR(S): REPRESENTATIVE(S) BUNDE,Toohey                                    
 JRN-DATE      JRN-PG              ACTION                                      
 01/06/95        36    (H)   PREFILE RELEASED                                  
 01/16/95        36    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        36    (H)   STATE AFFAIRS, RESOURCES, FINANCE                 
 01/20/95       105    (H)   COSPONSOR(S): TOOHEY                              
 03/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 BILL:  HB 199                                                                
 SHORT TITLE: CRIMINAL TRANSMISSION OF HIV                                     
 SPONSOR(S): REPRESENTATIVE(S) OGAN                                            
 JRN-DATE     JRN-PG               ACTION                                      
 02/27/95       487    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/27/95       487    (H)   STATE AFFAIRS, JUDICIARY, FINANCE                 
 03/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 BILL:  HB 201                                                                
 SHORT TITLE: PRISONER LITIGATION AND APPEALS                                  
 SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR                                  
 JRN-DATE     JRN-PG               ACTION                                      
 02/27/95       488    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 02/27/95       488    (H)   STATE AFFAIRS, JUDICIARY, FINANCE                 
 02/27/95       488    (H)   3 ZERO FISCAL NOTES (LAW, CORR, DPS)              
 02/27/95       488    (H)   2 ZERO FISCAL NOTES (ADM)                         
 02/27/95       488    (H)   GOVERNOR'S TRANSMITTAL LETTER                     
 BILL:  HB   2                                                                
 SPONSOR(S): REPRESENTATIVE(S) WILLIS,Rokeberg                                 
 JRN-DATE      JRN-PG              ACTION                                      
 01/06/95        20    (H)   PREFILE RELEASED                                  
 01/16/95        21    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/16/95        21    (H)   STA, JUD, FIN                                     
 03/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 BILL:  HB  96                                                                
 SPONSOR(S): REPRESENTATIVE(S) BROWN,Davies,Elton                              
 JRN-DATE     JRN-PG               ACTION                                      
 01/19/95        81    (H)   READ THE FIRST TIME - REFERRAL(S)                 
 01/19/95        81    (H)   STATE AFFAIRS, JUDICIARY, FINANCE                 
 01/20/95       106    (H)   COSPONSOR(S): ELTON                               
 03/07/95              (H)   STA AT 08:00 AM CAPITOL 102                       
 ACTION NARRATIVE                                                              
 TAPE 95-23, SIDE A                                                            
 Number 000                                                                    
 The House State Affairs Committee was called to order by Chair                
 Jeannette James at 8:03 a.m.  Members present at roll call were               
 Representatives James, Ogan, Green, Porter, Robinson, and Willis.             
 Representative Ivan arrived shortly after roll call.                          
 HSTA - 03/07/95                                                               
 CHAIR JEANNETTE JAMES, who introduced HB 218 at the request of                
 the Alaska Independent Truckers, read her sponsor statement:                  
 "This bill was filed upon request for the Alaska Independent                  
 Truckers, to provide for their prompt payment.  However, HB 218               
 could fill a niche and open a door for an entire category of                  
 service providers in Alaska.                                                  
 "We claim we want to create jobs.  Here is a way to do it.                    
 "There is a group of skilled workers and professionals in our                 
 state who fall between the cracks.  They are not small                        
 businesses.  They are not employees.  They are each individual                
 operators who provide their own tools, equipment, and expertise               
 for hire.  They offer small businesses all the advantages of a                
 single temporary employee, available only when needed, without                
 the red tape and expense of hiring and firing employees, renting              
 or buying equipment, and training operators.                                  
 "Since these workers are just single independent operators, they              
 do not have a resource of working capitAl and they need to be                 
 paid on a regular and prompt basis.                                           
 "Often these single independent operators do eventually raise                 
 enough capital to create their own small businesses.  They can be             
 the forerunners for a more healthy business environment in Alaska             
 if we clear their way.  HB 218 could be the start."                           
 Number 030                                                                    
 CHAIR JAMES added that, although this is a truckers bill, she has             
 talked to a number of other independent providers of services who             
 would like to see this bill passed so they can be paid promptly,              
 since "this is their pay check."  The blank CS for HB 218, work               
 draft 9-LS0352/G, was the working draft for the committee                     
 Number 067                                                                    
 BOB EAKMAN, General Manager and Lobbyist for the Alaska                       
 Independent Truckers Association of Anchorage, gave a history of              
 the independent owner-operators, stating they fell through the                
 cracks when laws were passed in 1986 requiring the prime                      
 contractor and the subcontractor to be paid within seven days,                
 but failing to address or protect the independent owner-operator.             
 This means the independent trucker's credit is always in jeopardy             
 because he often is not paid in time to meet his own bills and                
 payments.  It also means that sometimes safety considerations get             
 dropped if truckers cannot afford to keep their trucks in                     
 compliance with safety requirements.                                          
 Number 161                                                                    
 REPRESENTATIVE JOE GREEN referred to lines 7 and 8 of page 2 of               
 the blank CS working draft and asked if a trucker could possibly              
 end up submitting three or four bills in a given month.                       
 Number 180                                                                    
 MR. EAKMAN said this was possible, but they agree to not bill                 
 more than twice a month on a given job.  If a trucker has more                
 than one job, it is up to him to keep it straight.                            
 Number 197                                                                    
 REPRESENTATIVE GREEN referred to lines 13 through 15, page 2 of               
 the working draft, asking whether the 1/2 percent per month                   
 interest on the unpaid balance applies only to the actual days                
 which the payment is late.                                                    
 Number 226                                                                    
 MR. EAKMAN answered normal practice must be followed, charging                
 1/2 percent per month or 18 percent per annum, not                            
 fractionalizing it for partial months.                                        
 Number 245                                                                    
 TERRY BANNISTER, Attorney, Legislative Legal Council, Legislative             
 Affairs Agency and drafter of HB 218, agreed to answer questions.             
 REPRESENTATIVE BRIAN PORTER asked Ms. Bannister which statute                 
 provides the mechanism for contractors and subcontractors to be               
 MS. BANNISTER replied it is AS 36.90.200 through 290, which                   
 details contractual and payment requirements for public                       
 construction contracts.                                                       
 REPRESENTATIVE PORTER asked if it required a contract.                        
 MS. BANNISTER replied she thought a written contract was                      
 required.  She added the provisions are different; it goes into               
 more detail than HB 218.                                                      
 Number 297                                                                    
 REPRESENTATIVE PORTER observed an agreement is difficult to                   
 enforce without a written contract.                                           
 Number 305                                                                    
 CHAIR JAMES noted one reason people would become independent                  
 owner-operators is because they have not been able to get a job               
 elsewhere, and this would allow them to sell their skills for                 
 short jobs and get a paycheck which wouldn't be available to them             
 as employees.  She added if these people could be identified,                 
 there would probably be a different category of business license              
 for them.                                                                     
 Number 347                                                                    
 REPRESENTATIVE GREEN inquired whether a small general contractor              
 could use a chit with blanks to fill in.                                      
 MR. EAKMAN said it could be done, using a "boiler-plate                       
 contract."  The problem occurs when a contractor calls with an                
 immediate need for the trucker's service and there is no                      
 discussion of wages; this constitutes a verbal contract, which is             
 defensible in Alaska, yet almost impossible to enforce.                       
 Number 383                                                                    
 CHAIR JAMES mentioned the requirement to fill out a W-9 form,                 
 adding the general contractor should require the contract and                 
 other information to be filled out at the same time.                          
 Number 398                                                                    
 MR. EAKMAN said what happens is truckers end up on a certified                
 payroll, and they should not.                                                 
 Number 409                                                                    
 REPRESENTATIVE SCOTT OGAN said he is an independent contractor                
 himself and has been one for 20 years.  He does not want the                  
 state making statutes which would require the contractors with                
 whom he does business to pay him in 14 days; he believes he has               
 enough business finesse of his own to be sure he has contracts                
 and doesn't want the state involved.  It would set a dangerous                
 precedent and start other business people asking for the same                 
 protection.  There is a certain amount of risk in owning a                    
 business, along with the rewards.  He added he will not be able               
 to support the bill.                                                          
 Number 442                                                                    
 REPRESENTATIVE CAREN ROBINSON asked if they were talking about                
 public or state contracts.                                                    
 MS. BANNISTER said they were dealing with contracts in general.               
 CHAIR JAMES added that HB 218 as currently drafted does not just              
 relate to public contracts.                                                   
 Number 455                                                                    
 JACK WIEGELE, Vice President, Alaska Independent Truckers                     
 Association, testified via teleconference in favor of HB 218.  He             
 stated he has been an owner-operator since 1979, hauling gravel,              
 and he helped draft HB 218.  He said it is simple: they need to               
 be paid in a timely manner.  The 30, 60, 90, and 120 day payments             
 are not adequate.  The whole community should be behind this                  
 Number 491                                                                    
 CHARLES HIGHT, Master at Arms, Alaska Independent Truckers                    
 Association of Anchorage, testified via teleconference.  He said              
 he had been in business since coming to Alaska, and this bill                 
 will help truckers support their families by being paid promptly.             
 He added that truckers who ask for payment are afraid they will               
 be black-balled and not called for the next job, and they can't               
 stay in business being paid in this manner.                                   
 Number 516                                                                    
 RANDY CARR, Chief, Wage and Hour Administration, Alaska                       
 Department of Labor, testified via teleconference.  He said he                
 had no statement to make but was available to answer questions.               
 Number 527                                                                    
 MONTY MONTGOMERY, Assistant, Executive Director, Associated                   
 General Contractors of Alaska, testified via teleconference in                
 opposition to HB 218, stating a prompt pay act is already in                  
 effect requiring a contractor to pay within seven days after he               
 is paid.  It is poor business practice to respond to a request to             
 work without discussing a commitment of money or time.  He added              
 there is no reason a contract can't be sent by FAX machine and                
 signed in advance.                                                            
 Number 553                                                                    
 CHAIR JAMES asked what are the options if a contractor does not               
 hire an independent owner-operator, stating it appears the only               
 choice is to rent a truck, which requires payment in advance, and             
 to hire a driver by payroll, who also gets paid regardless of                 
 whether the contractor gets paid.  She asked if this was correct.             
 MR. MONTGOMERY replied this was correct.                                      
 Number 565                                                                    
 STEVE TROSPER, Business Representative, Teamsters Local 959,                  
 testified via teleconference.  He stated Local 959 supports the               
 bill and also supports the independent truckers who generally are             
 not union members.  He raised the issue of safety and noted that              
 when money isn't coming in, safety isn't given enough attention.              
 He added union owner-operators are routinely paid twice a month               
 on their truck expenses and twice a month on the payroll and the              
 independent operators should be given the same consideration.                 
 Number 582                                                                    
 JAY EVANS, Owner-Operator, Alaska Independent Truckers                        
 Association, testified via teleconference in support of HB 218,               
 saying that independent truckers fall between the cracks under                
 current law and they are just asking for a fair shake.  The                   
 general public expects the truckers to give them a fair shake, be             
 courteous on the road and have their equipment in safe operating              
 condition.  The truckers are more likely to be able to do that if             
 they have received their money in a timely manner.                            
 Number 598                                                                    
 BILL EVANS, Owner-Operator, Alaska Independent Truckers                       
 Association of Anchorage, and with Eagle Equipment, testified via             
 teleconference in support of HB 218, stating he can't pay his                 
 bills if he is operating with a credit situation, nor can he                  
 operate safely if he can't get his money.  He added this is a                 
 real problem for many truckers besides himself.  He said he is                
 100 percent in favor of HB 218.                                               
 Number 618                                                                    
 ROXANNA HORSCHEL, Vice-Chair of the Legislative Committee of the              
 Associated General Contractors (AGC), and owner of Acme Fence                 
 Company in Anchorage, testified via teleconference in opposition              
 to HB 218, though she is absolutely in favor of everyone getting              
 paid in a proper amount of time.  She stated she has problems                 
 understanding how the state can regulate payment; would the state             
 have inspectors to insure contractors issue a pay check 14 days               
 after receiving an invoice?  She said a legal document of some                
 sort needs to be used.  She added independent truckers get paid               
 much more than an employee, to cover wages for possibly 30 or 60              
 days, money to pay their truck payments and insurance, as well as             
 money to support their families.  As an independent business                  
 person, she knows her capital is eaten up not just for 30 or 60               
 days but for the entire first year of being in business.  She                 
 would like to see a formal contract utilized rather than a                    
 statute passed to clean up the situation.                                     
 Number 649                                                                    
 MS. HORSCHEL added that she was the one who put through the                   
 prompt payment bill, and she is very sensitive to people who                  
 don't get paid on time.  In state contracts, the state makes sure             
 the language is appropriate in the contract before a                          
 subcontractor is approved.                                                    
 Number 669                                                                    
 CHAIR JAMES asked, if a subcontractor who is not approved under a             
 state contract is not allowed to be hired, how can the                        
 independent truckers be hired without approval.                               
 MS. HORSCHEL replied that was her point, because she did not know             
 how the state could approve or regulate an independent trucker                
 without a contract.                                                           
 CHAIR JAMES said she did not ask the question to determine how                
 the state would regulate the contract, but as to whether the                  
 independent truckers were approved to be on the job in the first              
 MS. HORSCHEL replied this is done through brokers, who have a                 
 contract with the prime contractor and in turn call out the                   
 truckers.  So the truckers are almost like employees because they             
 are told where to be and when to be there, though they do have to             
 have their own insurance and maintain their own trucks.  She                  
 added again that a formal contract, stating what and when they                
 will be paid, is needed between the truckers and their brokers or             
 their prime contractors.                                                      
 Number 702                                                                    
 CHAIR JAMES said it appears to her, if the independent truckers               
 were identified by statute, the only leverage they would have                 
 would be to write a letter to the contractor or to the state if               
 the 14 days came and went without their getting paid.  This would             
 then be self-enforcing because the contractor would not want                  
 these letters sent to the state.                                              
 TAPE 95-23, SIDE B                                                            
 Number 000                                                                    
 MS. HORSCHEL agreed this could encourage prompt payment, but she              
 stated that option exists currently.  She referred to a situation             
 where such letters were written and it still took a long time for             
 the trucker to get the money owed him.  She reiterated that                   
 without a contract any agreement would be almost impossible to                
 enforce.  If a trucker wants to be independent and get more than              
 the hourly wage required in the Davis Bacon Act she thinks that               
 is wonderful, but a formal agreement is needed to allow them an               
 avenue with the state to insure payment.                                      
 Number 089                                                                    
 CHAIR JAMES asked Ms. Horschel if the brokers would qualify as                
 subcontractors on a state job.                                                
 MS. HORSCHEL said yes, they do fall under that category.  The                 
 truckers who now "fall between the cracks" can go to work for a               
 broker who can collect under the prompt payment bill, but the                 
 truckers themselves cannot collect under the prompt payment bill.             
 Number 113                                                                    
 CHUCK DAVIS, Owner-Operator, Alaska Independent Truckers                      
 Association of Anchorage, and Owner of Davis Transport Ltd.,                  
 testified via teleconference, stating there is a lack of                      
 understanding about how the owner-operators do business with the              
 contractors and subcontractors in Alaska.  Truckers do not have               
 FAX machines in their trucks.  They are called on cellular phones             
 in their trucks and respond sometimes four or five times in one               
 day without an opportunity to negotiate pay rates or pricing.                 
 Their business is sporadic and volatile, and prime contractors                
 take advantage of this by stringing them out for three or four                
 weeks without paying them.  Even if they do reach an                          
 understanding for a pay rate, it sometimes changes during the                 
 course of a job.                                                              
 Number 174                                                                    
 CHAIR JAMES asked Mr. Davis if he hired out to a broker.                      
 MR. DAVIS replied he did, even though he tried to avoid it                    
 because of the difficulties of collecting payment.                            
 CHAIR JAMES asked Mr. Davis to explain what a broker is.  Does he             
 have his own trucks too?  Is he paid by a percent of what the                 
 trucker makes?                                                                
 MR. DAVIS replied it is very complex.  The idea is for a general              
 contractor to be able to make one phone call and get up to 50 or              
 60 trucks.  Brokers exist mainly to assure fulfillment of                     
 minority quotas on state jobs; a broker can exploit a minority                
 partner to fill the quota.                                                    
 CHAIR JAMES asked if a special license is required to be a truck              
 MR. DAVIS said he was not aware of one.                                       
 Number 210                                                                    
 MICHAEL SWALLING, President of Swalling Construction, testified               
 via teleconference in opposition to HB 218.  He is a private                  
 subcontractor and has been in Alaska 30 years.  He stated the                 
 prompt payment bill eliminated a lot of problems with payment of              
 subcontractors.  He can see where independent truckers fall into              
 a crack in the application of that law, but the bill could                    
 require him as a subcontractor to pay the trucker before he                   
 himself gets paid by the prime contractor.  Though the                        
 independent truckers have raised some valid issues, he does not               
 believe HB 218 is the mechanism to solve the problems.  It is                 
 clearly special interest legislation which creates more problems              
 than it solves.                                                               
 Number 225                                                                    
 CHAIR JAMES commented again that if subcontractors were not                   
 hiring independent truckers, their only other option would be to              
 rent trucks, paying cash in advance, and put the driver on                    
 payroll which requires prompt payment.  She said she is not                   
 planning to move the bill out today, adding she has had                       
 conversations with the Associated General Contractors who are                 
 willing to help draft a bill which is more palatable to                       
 Number 244                                                                    
 REPRESENTATIVE PORTER said he could not support the bill in its               
 present form.  He has problems with the idea of a different                   
 standard for prompt payment for truckers versus contractors.  If              
 a trucker wants to be in an independent business, then he or she              
 should expect the standard business practice of a "net 30."  He               
 said he recognizes the safety issue but would like to solve that              
 situation within existing legislation pertaining to                           
 subcontractors.  He added that going beyond that amounts to                   
 negotiating a labor contract or a business agreement through                  
 statute, and he does not like to do that.                                     
 Number 269                                                                    
 CHAIR JAMES clarified that the prompt pay provision requires                  
 payment seven days after the contractor gets paid, so it is not               
 "net 30."                                                                     
 Number 276                                                                    
 REPRESENTATIVE OGAN said he knows of no contractor who gets paid              
 earlier than 30 days.                                                         
 MR. EAKMAN said it is his understanding that in the trucking                  
 industry most prime contractors require payment every two weeks,              
 and the state generally prefers to pay every two weeks.                       
 REPRESENTATIVE ED WILLIS inquired if this legislation plows new               
 ground, or are there statutes in other states to cover this.                  
 MR. EAKMAN replied that some states have a Public Utilities                   
 Commission to handle this; other states are not regulated at all.             
 MR. DAVIS suggested that owner-operators need to be recognized as             
 an entity; they could get a truck check once a month and a                    
 regular payroll check as an employee, like the Teamsters do.  If              
 they can't be listed as employees, maybe they could be listed as              
 Number 349                                                                    
 CHAIR JAMES repeated that she will be working with the AGC and                
 will carry HB 218 over to next Tuesday's meeting.  She added for              
 the record, a summary of a telephone call the day before from Ms.             
 Marie Wilson, 591 West 67th Avenue, Anchorage, objecting to HB
 218 because of the difficulty in enforcing it.                                
 Number 365                                                                    
 CHUCK DAVIS added that people don't realize owner-operators                   
 operate on a very marginal percent of profit, 2 percent to be                 
 exact, and it is very hard to have any working capital between                
 long payment periods.  It is difficult to get contracts in                    
 writing because each job is different; some are by the ton, some              
 are hourly, some are by the load.  Some operators who complain                
 about this are asked to leave.                                                
 CHAIR JAMES said after 35 years in accounting she understands all             
 the problems experienced by owner-operators.  She said they fall              
 through a crack, though they fill a niche and provide a valuable              
 service not available any other way.  She added she does not have             
 an answer but is willing to work with everyone involved to find a             
 solution which addresses safety while allowing people with "the               
 American Dream" to get started with a small initial investment.               
 She recognized they must be careful not to change any existing                
 labor laws.  She held the bill over until next Tuesday.                       
 HSTA - 03/07/95                                                               
 HB 59 - RAFFLE OR AUCTION OF BIG GAME PERMITS                               
 Number 430                                                                    
 REPRESENTATIVE CON BUNDE, Sponsor, said HB 59 is a "win-win easy              
 decision" for the committee.  It extends the program to raise                 
 money to promote fish and wildlife enforcement by raffling or                 
 auctioning big game tags to include any qualified nonprofit                   
 organization that promotes wise use of Alaska's "huntable"                    
 resources.  The organization would get 10 percent of the proceeds             
 and the rest would go to the fish and game fund, thus generating              
 increased income for the fund.  He hopes the positive fiscal note             
 is a modest projection, based on what has been raised in other                
 states with similar auctions and raffles.  For example, $415,000              
 was raised in Nevada in the last ten years, and $170,000 was                  
 raised in Wyoming with sheep and moose permits in the last two                
 Number 463                                                                    
 GERON BRUCE, Legislative Liaison, Alaska Department of Fish and               
 Game, testified in support of HB 59.  It would allow the                      
 department to raise funds and promote Alaska's wildlife resources             
 without affecting the hunting opportunities for Alaskans.  This               
 is done successfully by most of the other western states.                     
 Number 475                                                                    
 REPRESENTATIVE PORTER asked Mr. Bruce how many organizations in               
 Alaska would qualify.                                                         
 MR. BRUCE said "a handful."                                                   
 REPRESENTATIVE BUNDE named some:  Rocky Mountain Elks, Safari                 
 Club, Foundation for North American Wild Sheep (FNAWS), Ducks                 
 Unlimited, Alaska Bow Hunters, Alaska Outdoor Council.  He added              
 it could include numerous other state organizations.                          
 Number 489                                                                    
 REPRESENTATIVE GREEN inquired if a hunter from "outside" winning              
 one of the permits would require a guide.                                     
 MR. BRUCE said yes, he would have to comply with all other laws               
 governing hunting in Alaska.                                                  
 REPRESENTATIVE GREEN asked if the department or the state would               
 be involved in determining what guide to use.                                 
 MR. BRUCE answered no, the Department of Fish and Game would not              
 be involved in that.                                                          
 Number 505                                                                    
 REPRESENTATIVE BUNDE added it would be a great public relations               
 opportunity for guides, and a way for more prominent guides to                
 donate their services with future referrals in mind.  People                  
 bidding on the tags are philanthropists who can afford to                     
 contribute large sums of money.                                               
 Number 517                                                                    
 REPRESENTATIVE GREEN asked if the income to other states were                 
 gross figures or net after the 10 percent is deducted.                        
 REPRESENTATIVE BUNDE answered he is speculating the figure is                 
 gross and reiterated he believes the $25,000 positive fiscal note             
 is conservative.                                                              
 Number 517                                                                    
 REPRESENTATIVE ROBINSON asked to be quickly "walked through the               
 REPRESENTATIVE BUNDE replied tags become available to                         
 organizations, then the tag can either be raffled by selling                  
 tickets over a period of time or auctioned at an event such as an             
 annual banquet, whichever will yield the most income.  The winner             
 is granted the prestigious "Governor's Tag" and then follows the              
 normal process for getting a license and a guide.                             
 Number 553                                                                    
 REPRESENTATIVE GREEN said in another bill there is a problem with             
 out-of-state people getting licenses and affecting federal                    
 contributions.  In HB 59, it appears the license is donated.                  
 Will the income generated cause the federal government to cut its             
 REPRESENTATIVE BUNDE said he had no information that this has                 
 happened in other states.                                                     
 MR. BRUCE concurred, adding that one approach is used for                     
 management protection of the resource and the other is not.                   
 Number 576                                                                    
 CAM RADER, Board Member of the Foundation for North American Wild             
 Sheep (FNAWS), and member of the Alaska Outdoor Council, the                  
 Isaac Walton League, and Ducks Unlimited, testified via                       
 teleconference.  He is a practicing attorney in Anchorage and                 
 holds an assistant guide's license.  He echoed the previous                   
 testimony in support of HB 59, both for consumptive and                       
 nonconsumptive hunters.  Recently FNAWS raised $26,000 with an                
 auction; typically they use the money to assist with surveys of               
 hunting areas, which benefits all users.  He said he is aware of              
 at least eight organizations which would qualify under the                    
 definition as currently drafted.  In 1993, Arizona raised                     
 $303,000, so Representative Bunde's estimate of $25,000 is                    
 "substantially conservative."  He believes local guides would be              
 eager to contribute their time to participate in the program.  He             
 listed large amounts of money raised in other states for Big Horn             
 Sheep permits, and repeated this bill offers a "win-win"                      
 Number 670                                                                    
 ROD ARNO, President, Alaska Outdoor Council, testified via                    
 teleconference in support of HB 59, saying it would provide                   
 direct revenue to the fish and game fund, increase emphasis on                
 hunting education in Alaska, and increase federal funding in                  
 matching funds for licenses by increasing the number of licenses              
 MR. ARNO continued, saying the program would promote the hunting              
 segment of the tourism industry without requiring any additional              
 state funding for advertising.                                                
 TAPE 95-24, SIDE A                                                            
 Number 043                                                                    
 EDDIE GRASSER, Legislative Director for Alaska Outdoor Council,               
 testified in support of HB 59, saying he is a retired                         
 professional guide and has donated many hunts.  He agreed                     
 significant amounts of money could be raised, and suggested a                 
 raffle for a multi-species hunt rather than a single-species                  
 permit, throughout clubs in North America.  He thought $100,000               
 could be raised that way.  He expressed concern that such money               
 given to the fish and game fund should be earmarked and used by               
 the department to benefit hunters, not nonhunters, since the                  
 money will come from hunters.                                                 
 Number 144                                                                    
 DUANE BUELL, representing Alaska Wildlife Safeguard, testified in             
 support of HB 59.  He stated that since Alaska Wildlife Safeguard             
 was founded in 1984, there have been over 2000 phone calls to                 
 their toll free number in Anchorage, reporting fish and game                  
 violations.  These callers can be anonymous, and the calls often              
 lead to convictions.  Fifty percent of the callers refuse the                 
 rewards they are offered, and 60 percent are willing to testify               
 without anonymity.  Funds are raised through raffles, and HB 59               
 would greatly assist those fund-raising efforts.  He suggested                
 the bill could include a multi-species raffle provision.                      
 Number 230                                                                    
 CHAIR JAMES noted the arrival of Representative Ivan earlier.                 
 REPRESENTATIVE ROBINSON asked if there could be a designation as              
 to where the funds go, and expressed concern that general fund                
 allotments would decrease if the bill raises more money.                      
 REPRESENTATIVE BUNDE replied the designated fish and game fund is             
 already in existence, and said it is possible general fund money              
 could decrease, but it will decrease anyway as the budget is cut.             
 He added that line 3, page 3, establishes types of organizations              
 that qualify, and promotes "ethical use of game populations for               
 REPRESENTATIVE PORTER noted that one ethical use for hunting                  
 could include nonhunting.                                                     
 CHAIR JAMES agreed the definition of qualifying organizations is              
 not very clear.                                                               
 REPRESENTATIVE BUNDE said Department of Law came up with that                 
 wording to address that exact problem.                                        
 REPRESENTATIVE IVAN inquired what "ethical use" means.                        
 REPRESENTATIVE BUNDE replied it means legal, accepted hunting                 
 REPRESENTATIVE IVAN asked if it included "subsistence taking."                
 REPRESENTATIVE BUNDE said subsistence would be included, since it             
 involves "killing cleanly and humanely."                                      
 Number 279                                                                    
 REPRESENTATIVE GREEN moved to pass HB 59 from committee with                  
 individual recommendations and accompanying positive fiscal note.             
 There were no objections, so the motion passed.                               
 STA - 03/07/95                                                                
 HB 199 - CRIMINAL TRANSMISSION OF HIV                                       
 Number 296                                                                    
 REPRESENTATIVE OGAN said the intent of HB 199 is simple:  A                   
 person who knowingly has HIV and commits an act that is known to              
 transmit HIV to others is guilty of a Class A felony.                         
 Number 320                                                                    
 BARBARA BRINK, Deputy Director, Alaska Public Defender Agency,                
 testified via teleconference, stating the Alaska Public Defender              
 Agency is concerned about the broad language of HB 199.  Though               
 the agency agrees with the goal of protecting the public's                    
 health, the prohibited behavior must be described more precisely              
 to assure due process notice.  The bill does not define "intimate             
 sexual contact" and thus may not be constitutional.  The bill                 
 lacks a definition of "reasonable efforts"  and criminalizes                  
 conduct such as that of transmission of HIV from a mother to her              
 fetus.  It also includes organ donors who are already governed by             
 stringent medical standards.  It shifts the burden of proof, and              
 only applies to people who are legally married at the time.                   
 Number 355                                                                    
 MS. BRINK reiterated she believes the intent of the bill is                   
 excellent, but use of the criminal code may not be the best way               
 to achieve this goal.  This bill makes it a Class A felony and                
 may discourage people from getting tested for HIV so they won't               
 know what their HIV status is and cannot be held liable; her                  
 agency wants to encourage voluntary testing.  The spread of                   
 communicable disease is a serious issue in Alaska, but laws do                
 not exist to punish people for spreading tuberculosis or                      
 Number 380                                                                    
 MS. BRINK continued she believes there are already laws in Alaska             
 which could be utilized for punishing a person who deliberately               
 and recklessly infect other people; for example, assault in the               
 first degree if there was an intention to inflict injury, which               
 would include intentionally transmitting the virus.  Recklessly               
 engaging in a harmful behavior is also punishable as assault in               
 the second degree and carries a jail sentence of up to ten years.             
 Given these concerns, she urged this bill not be passed from                  
 Number 407                                                                    
 CHAIR JAMES said she "thought we were quite sure what behavior                
 spreads HIV," contrary to Ms. Brink's statement.  She also                    
 wondered if assault included rape, and whether there had ever                 
 been a penalty in the past for people failing to submit to                    
 quarantines for such things as smallpox.                                      
 MS. BRINK replied she was unaware of any penalty for refusal to               
 obey or stay in quarantine status.  The assault charges she was               
 speaking of were separate from rape charges; Alaska's assault                 
 charges are written so broadly, they in fact could cover                      
 consentual activity if that activity recklessly endangered                    
 another person.  If a person engaged in brutal behavior which                 
 could result in HIV transmission, that would be an additional                 
 charge.  Reckless behavior occurs when a person is aware that his             
 or her behavior could injure another person and does it anyway.               
 Number 454                                                                    
 MS. BRINK continued she did not see a definition of "intimate                 
 sexual contact" in the bill, though a companion senate bill does              
 have the definition.  In fact, there is still a lot of discussion             
 among health care professionals as to exactly how the HIV virus               
 can be transmitted, via which bodily fluids and via what bodily               
 contact.  Medical science is not clear on this; there is even a               
 strong school of thought which doubts whether HIV causes AIDS at              
 Number 465                                                                    
 CHAIR JAMES stated HB 59 will be put onto next Tuesday's                      
 calendar.  She adjourned the meeting at 10:05 a.m.                            

Document Name Date/Time Subjects