Legislature(2001 - 2002)

05/08/2002 10:46 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                           May 08, 2002                                                                                       
                             10:46 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-02 # 90, Side A                                                                                                             
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair Pete Kelly convened  the meeting at approximately 10:46 AM.                                                            
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Dave Donley, Co-Chair                                                                                                   
Senator Lyda Green                                                                                                              
Senator Gary Wilken                                                                                                             
Senator Alan Austerman                                                                                                          
Senator Lyman Hoffman                                                                                                           
Senator Loren Leman                                                                                                             
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:   REPRESENTATIVE VIC KOHRING; REBECCA  GAMEZ, Deputy                                                          
Commissioner,  Department of  Labor and  Workforce Development;  RON                                                            
HULL,  Director,  Division  of Employment  Security,  Department  of                                                            
Labor  and Workforce  Development;  PAM LABOLLE,  President,  Alaska                                                            
State Chamber of Commerce;                                                                                                      
                                                                                                                                
Attending  via  Teleconference:     There  were  no  teleconference                                                           
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
HB 56-MINIMUM WAGE                                                                                                              
                                                                                                                                
The Committee reported the bill from Committee.                                                                                 
                                                                                                                                
SB 268-GUARANTEED REVENUE BONDS FOR VETERANS                                                                                    
                                                                                                                                
The Committee  withdrew a previous motion to adopt  an amendment and                                                            
the bill was reported from Committee.                                                                                           
                                                                                                                                
HB  58-UNEMPLOYMENT COMPENSATION BENEFITS                                                                                       
                                                                                                                                
The  Committee heard  from  the Department  of Labor  and  Workforce                                                            
Development and  the Alaska Chamber of Commerce. Two  amendments and                                                            
a  committee  substitute  were  considered  and  one  amendment  was                                                            
adopted. The bill moved from Committee.                                                                                         
                                                                                                                                
HB 443-TATTOOING AND BODY PIERCING                                                                                              
                                                                                                                                
The  Committee  heard from  the  sponsor  and  the bill  moved  from                                                            
Committee.                                                                                                                      
                                                                                                                                
HB 521-MUNICIPAL IMPROVEMENT AREAS                                                                                              
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 56(FIN)                                                                                              
     "An Act relating to minimum wages; and providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair  Kelly announced no  one was signed  up to testify  on this                                                            
bill.                                                                                                                           
                                                                                                                                
Senator Wilken  "moved to  report the House  Bill 56 from  Committee                                                            
with individual recommendations and attached fiscal note."                                                                      
                                                                                                                                
There being no  objections, CS HB 56(FIN) MOVED from  Committee with                                                            
zero  fiscal  note   #1  from  the  Department  of  Administration,                                                             
affecting all  agencies; zero fiscal note #3 from  the Department of                                                            
Education  and Early  Development;  and  a new  negative  ($201,900)                                                            
fiscal note dated  3/01/02 from the Department of  Health and Social                                                            
Services.                                                                                                                       
                                                                                                                                
Recessed to Call of the Chair 10:47 AM / 7:37 PM                                                                                
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 268                                                                                                        
     "An Act  relating to the issuance  of state-guaranteed  revenue                                                            
     bonds  by the  Alaska Housing  Finance Corporation  to  finance                                                            
     mortgages  for  qualifying   veterans;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.  At the  previous  hearing  a motion  was  made to  adopt                                                            
Amendment #1, although no action was taken.                                                                                     
                                                                                                                                
Amendment  #1:  This  amendment  deletes  "the  first  general"  and                                                            
inserts  "a special election  to be  held on the  date of the  first                                                            
primary"  on page 2 line  24. This amendment  also inserts  language                                                            
following "Act" on line  25. The amended language of Section 4 reads                                                            
as follows.                                                                                                                     
                                                                                                                                
          Sec. 4. The uncodified law of the State of Alaska is                                                                  
     amended by adding a new section to read:                                                                                   
          BALLOT QUESTION.  The question of the state guarantee of                                                              
     bonds  referred  to  in this  Act  shall  be submitted  to  the                                                            
     qualified voters of  the state at a special election to be held                                                            
     on the date  of the first primary election after  the effective                                                            
     date  of  this Act.  The  special  election  shall be  held  in                                                            
     substantial  compliance  with the election  laws of the  state,                                                            
     including  absentee voting  and preparation,  publication,  and                                                            
     mailing  of an election pamphlet  under AS 15.58. The  election                                                            
     pamphlet must comply  with AS 15.58.020(7). The question placed                                                            
     before  the  qualified  voters  of  the state  at  the  special                                                            
     election shall read substantially as follows:                                                                              
                …                                                                                                               
                                                                                                                                
Senator Leman  moved to withdraw his  motion to adopt Amendment  #1.                                                            
                                                                                                                                
There  being no  objection, the  motion  to adopt  Amendment #1  was                                                            
WITHDRAWN.                                                                                                                      
                                                                                                                                
Senator  Green  "moved  Senate   Bill  268  out  of  Committee  with                                                            
individual recommendations and accompanying fiscal note."                                                                       
                                                                                                                                
Senator Leman asked if  the co-chair had spoken with Tam Cook of the                                                            
Division of Legal  and Research Services regarding  issues raised at                                                            
the previous hearing relating to Amendment #1.                                                                                  
                                                                                                                                
Co-Chair  Kelly responded  that Ms. Cook  provided a legal  opinion,                                                            
although it  was not distributed because  Senator Leman removed  his                                                            
motion to adopt the amendment.                                                                                                  
                                                                                                                                
Senator Leman indicated  he would like to review the memorandum at a                                                            
later date.                                                                                                                     
                                                                                                                                
Without objection  SB 268 MOVED from  Committee with fiscal  note #1                                                            
for $1,500 from  the Office of the Governor and zero  fiscal note #2                                                            
from the Department of Revenue.                                                                                                 
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 58(L&C)                                                                                              
     "An Act relating to the calculation and payment of                                                                         
     unemployment compensation benefits; and providing for an                                                                   
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
AT EASE 7:40 PM / 7:42 PM                                                                                                       
                                                                                                                                
Amendment  #1: This  amendment  deletes Sections  2,3,5  and 6;  all                                                            
language from  page 5 line 23, through  page 14 line 31 and  page 15                                                            
lines 2  and 3. This amendment  also changes  the effective  date of                                                            
Section 1 to January 1, 2002.                                                                                                   
                                                                                                                                
Senator Green moved for adoption.                                                                                               
                                                                                                                                
Senator Olson objected.                                                                                                         
                                                                                                                                
Senator Olson  moved to amend the amendment to include  the language                                                            
of  Amendment  #2. This  amendment  changes  the effective  date  of                                                            
Section 1 to  July 1, 2002, on page  15 line 1. He detailed  the net                                                            
effect  of this motion  is that  Section  1 of the  bill would  take                                                            
effect six months prior to that proposed in Amendment #1.                                                                       
                                                                                                                                
Senator Green objected.                                                                                                         
                                                                                                                                
Co-Chair Donley asked for an explanation of the main amendment.                                                                 
                                                                                                                                
Senator Green shared that  Amendment #1 "caps the growth … and stops                                                            
the next incremental growth … at 272."                                                                                          
                                                                                                                                
Co-Chair Kelly advised  Senator Olson to withdraw his motion and re-                                                            
offer it as a separate  amendment after action is taken on Amendment                                                            
#1.                                                                                                                             
                                                                                                                                
Senator  Olson WITHDREW  his motion  to amend  Amendment #1  without                                                            
objection.                                                                                                                      
                                                                                                                                
Senator Green  explained Amendment  #1 deletes much of the  language                                                            
in the original bill and changes the effective date.                                                                            
                                                                                                                                
Co-Chair Kelly clarified  this amendment would "essentially take the                                                            
first years' increase and adopt that in the bill."                                                                              
                                                                                                                                
Senator Green  affirmed and commented the matter could  be revisited                                                            
at a later time.  She stated she was approached "by  several groups"                                                            
concerned about the incremental impacts of the bill.                                                                            
                                                                                                                                
Senator  Wilken spoke  to the extensive  comments  he received  from                                                            
parties  in  support  and  also  in  opposition   to  the  bill.  He                                                            
referenced  a  handout  titled, "Response  to  Chamber  of  Commerce                                                            
Position Statement  and Attachments", prepared by  the Department of                                                            
Labor and Workforce  Development dated  May 8, 2002 [copy  on file.]                                                            
He asked for an  explanation of this handout so he  could understand                                                            
the  impact.  He  understood   that  the  Department   predicts  the                                                            
incremental increases would not occur.                                                                                          
                                                                                                                                
Senator Wilken  shared that  he reviewed  the material to  calculate                                                            
how it  would impact  his  business of  20 employees;  which in  two                                                            
years would  cost him $220.  He spoke to the  "clamor" he has  heard                                                            
that asserts  this "is really  an onerous bill  … and hard  on small                                                            
business,  especially  in light  of the  minimum  wage passing."  He                                                            
assured  that  he  is  sympathetic;  however,   he  calculated  that                                                            
"frankly, it's minimal".                                                                                                        
                                                                                                                                
REBECCA  GAMEZ,   Deputy  Commissioner,  Department   of  Labor  and                                                            
Workforce Development referenced  the first page of a handout titled                                                            
"Alaska's Maximum  Weekly Benefit Amount as a Percentage  of Average                                                            
Weekly Wage".  [Copy on  file]. The Department  issued these  graphs                                                            
and the Alaska Chamber  of Commerce added handwritten notations. The                                                            
Chamber  submitted the  marked-up  versions to  the Committee.]  Ms.                                                            
Gamez  indicated  that  the  handwritten  notations  on  this  graph                                                            
compares, "apples to oranges".                                                                                                  
                                                                                                                                
RON HULL, Director,  Division of Employment Security,  Department of                                                            
Labor  and Workforce  Development  furthered  that  the handwritten                                                             
notations  compare maximum  dependant allowances  to average  weekly                                                            
wages.  He  stressed  the  actual  impact  is  significantly   less,                                                            
explaining that the average  dependant allowance "across all claims"                                                            
is  $20.26,  rather  than $24,  $48,  or  $72 as  indicated  by  the                                                            
notations.                                                                                                                      
                                                                                                                                
Co-Chair Kelly requested clarification.                                                                                         
                                                                                                                                
Mr. Hull qualified  some of the information  contained on  the graph                                                            
is  "guesswork  because  it  isn't  our  work."  He  understood  the                                                            
information  on the graph to infer  that the average weekly  benefit                                                            
amount for  claimant with  three dependants  of $320 would  equal 50                                                            
percent of  the average weekly wage.  He furthered that the  average                                                            
weekly benefit  amount is 46 percent of the average  weekly wage for                                                            
a claimant  with two dependants and  43 percent for a claimant  with                                                            
one dependant.                                                                                                                  
                                                                                                                                
Senator  Wilken  noted  that  the  Alaska  Chamber  of  Commerce  is                                                            
projecting  that the average [maximum]  weekly benefit amount  for a                                                            
claimant with  three dependents would increase to  $392, which would                                                            
increase the  percentage to 62 percent  of the average weekly  wage.                                                            
                                                                                                                                
Mr. Hull  affirmed,  but stressed  that  only three  percent of  the                                                            
"claimant  population" receive  the maximum  weekly benefit  amounts                                                            
with the maximum dependant allowance of three dependants.                                                                       
                                                                                                                                
Senator Wilken next asked the average weekly benefit allowance.                                                                 
                                                                                                                                
Mr. Hull answered, $189 "and some change".                                                                                      
                                                                                                                                
Senator  Wilken  asked the  amount  of the  average  weekly  benefit                                                            
allowance of a  claimant with three dependants under  the provisions                                                            
of this legislation, noting the current amount is $320.                                                                         
                                                                                                                                
Mr. Hull  replied, "If you're  using averages,  you should  use $189                                                            
and change and $20.26 for the average dependants allowance."                                                                    
                                                                                                                                
Senator Wilken calculated the amount to be $209.                                                                                
                                                                                                                                
Mr. Hull affirmed.                                                                                                              
                                                                                                                                
Senator  Wilken again  asked  the revised  amount  according to  the                                                            
provisions of this legislation.                                                                                                 
                                                                                                                                
Mr. Hull responded the  average weekly benefit amount would be $206,                                                            
plus $20.26 for each allowable dependant up to three dependants.                                                                
                                                                                                                                
Senator Wilken  calculated the maximum benefit amount  including the                                                            
maximum  dependant  allowance  at  $392. He  continued  the  average                                                            
weekly benefit would increase from $209 to $226.                                                                                
                                                                                                                                
Mr. Hull affirmed.                                                                                                              
                                                                                                                                
Senator  Wilken  commented  on  the  assertions  that  unemployment                                                             
benefit amounts  in Alaska are low;  however, he pointed  out Alaska                                                            
is  one of  only  12 states  that  provide  additional  benefits  to                                                            
claimants with dependants.                                                                                                      
                                                                                                                                
Senator Wilken  remarked he  does not favor  the amendment,  as this                                                            
legislation  would not  adversely  impact small  businesses. On  the                                                            
contrary, he noted  that the benefit amounts have  not been adjusted                                                            
for  "quite  some   time"  and  that  the  proposed  increases   are                                                            
"manageable" and "affordable."  He announced he supports the bill in                                                            
its current form.                                                                                                               
                                                                                                                                
Senator   Olson  questioned   how  the   Department  explained   the                                                            
information  detailed  in the  graph and  suggested  the Chamber  of                                                            
Commerce  could explain  it differently,  as it  is the entity  that                                                            
compiled the information.                                                                                                       
                                                                                                                                
Co-Chair  Kelly and  Senator Green  established  this discussion  is                                                            
relevant to the amendment.                                                                                                      
                                                                                                                                
PAM LABOLLE, President,  Alaska State Chamber of Commerce,  detailed                                                            
the same  graph, explaining  that  in preparing  it, she utilized  a                                                            
chart issued  by the Department showing  the historic range  between                                                            
the maximum  weekly benefit  amount and the  average weekly  wage in                                                            
Alaska.  She  pointed out  the  variation  of  this range  has  been                                                            
between 30  and 40 percent  and that currently,  the maximum  weekly                                                            
benefit amount  is below 30 percent of the average  weekly wage. She                                                            
emphasized  that this  bill as presented  would  "be a major  policy                                                            
shift for the  State: from keeping this variation  between those two                                                            
levels;  to  taking  it right  up  to  the 50  percent  level."  She                                                            
asserted  this  is  not  including  the  dependant   allowance.  She                                                            
explained that with supplemental  benefits for three dependants, the                                                            
total benefit would equal 50 percent of the average weekly wage.                                                                
                                                                                                                                
Ms.  LaBolle then  stated  that the  amendment calculates  the  base                                                            
amount  of the  maximum  weekly benefit  for  a claimant  with  zero                                                            
dependants at $272; with  one dependant at $296; with two dependants                                                            
at $320, which  is 50 percent of the  average weekly wage;  and with                                                            
three dependants,  to an  amount that is 54  percent of the  average                                                            
weekly wage.                                                                                                                    
                                                                                                                                
Ms.  LaBolle   cited   the  Department   of   Labor  and   Workforce                                                            
Development,  stating that  43 percent  of the  claimants in  Alaska                                                            
receive supplemental  benefits for dependants. She  again referenced                                                            
the graph pointing out  that a claimant with any number of allowable                                                            
dependants  would receive  over  50 percent  of the  average  weekly                                                            
wage.                                                                                                                           
                                                                                                                                
[Note:  The testimony  regarding percentages  is  included in  these                                                            
minutes as presented, despite discrepancies.]                                                                                   
                                                                                                                                
Co-Chair  Kelly  interjected  for  clarification  of the  number  of                                                            
claimants receiving  additional benefits  for allowable dependants.                                                             
                                                                                                                                
Ms Gamez repeated  the Department calculation that  three-percent of                                                            
all claimants  receive the  maximum weekly  benefit and the  maximum                                                            
supplemental benefit for allowable dependants.                                                                                  
                                                                                                                                
Ms. LaBolle continued  with the second page of the  handout provided                                                            
by the  Chamber, titled  "Maximum Weekly  Benefit Amount By  State."                                                            
                                                                   th                                                           
She noted that this chart indicates that Alaska  currently ranks 47                                                             
among all states. She handwrote  on this chart how Alaska ranks when                                                            
including the supplemental  benefits for dependants into the regular                                                            
benefit payments; and how  Alaska would rank "right in the middle of                                                            
the states"  if this legislation were  enacted. She considered  this                                                            
comparison "apples to apples."                                                                                                  
                                                                                                                                
Senator Wilken noted the  Chamber focuses on maximum weekly benefits                                                            
while  the  Department  focus  is on  average  weekly  benefits.  He                                                            
identified  how  Ms.  LaBolle  calculated   the  ranking  of  Alaska                                                            
benefits,  including the  maximum amount  of dependant supplemental                                                             
benefits,  and  asked  if  the  information  for  the  other  states                                                            
reflects the maximum benefit amounts available for those states.                                                                
                                                                                                                                
Ms.  LaBolle   responded  that  because   only  12  states   provide                                                            
supplemental   benefits  for  dependants,  the  chart   in  question                                                            
reflects the  maximum amount of weekly  benefits available  in other                                                            
states  without  any  supplemental  benefits   for  dependants.  She                                                            
emphasized  that  she is  focusing  on the  maximum  benefit  amount                                                            
because it  reflects the titles of  the original handouts  presented                                                            
by the Department.                                                                                                              
                                                                                                                                
Senator  Wilken asked what  criteria determines  the maximum  weekly                                                            
benefit and if factors other than dependants are considered.                                                                    
                                                                                                                                
Ms.  Gamez explained  the  benefit  amount is  solely  based on  the                                                            
amount of  wages earned during  four of the  previous five  quarters                                                            
worked.                                                                                                                         
                                                                                                                                
Ms. Gamez asserted  the Department  attempted to be straightforward                                                             
in the information  it provided to  the Committee. She referenced  a                                                            
letter from  the Department  dated April 15,  2002 addressed  to Co-                                                            
Chair  Kelly,  which  identifies   the other   states  that  provide                                                            
supplemental benefits for  dependants. This letter, she pointed out,                                                            
informs that  of the "entire claimant  population" including  the 43                                                            
percent  of   claimants  who  receive   supplemental  benefits   for                                                            
dependants,  the amount paid for the  supplemental benefits  is less                                                            
than  $20  per claimant.  Therefore,  she  asserted  that  very  few                                                            
claimants   receive   supplemental   benefits  for   maximum   three                                                            
dependents allowance.                                                                                                           
                                                                                                                                
Senator Austerman noted  that 57 percent of claimants do not receive                                                            
supplemental benefits for dependants.                                                                                           
                                                                                                                                
A roll call was taken on the motion to adopt Amendment #1.                                                                      
                                                                                                                                
IN FAVOR: Senator Green, Senator Leman and Senator Olson                                                                        
                                                                                                                                
OPPOSED: Senator Austerman, Senator Hoffman, Senator Wilken, Co-                                                                
Chair Donley and Co-Chair Kelly                                                                                                 
                                                                                                                                
ABSENT: Senator Ward                                                                                                            
                                                                                                                                
The motion FAILED (3-5-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be adopted.                                                                                             
                                                                                                                                
AT EASE 8:06 PM / 8:11 PM                                                                                                       
                                                                                                                                
Co-Chair  Kelly spoke to  a proposed committee  substitute,  Version                                                            
"J", as  a compromise  to Amendment  #1. He  explained this  version                                                            
contains  the  same provisions  of  the Senate  Labor  and  Commerce                                                            
committee substitute  for the first  year after the law is  enacted;                                                            
but establishes  the  maximum amount  at $290 for  the second  year,                                                            
rather  than $320 as  stipulated in  the Senate  Labor and  Commerce                                                            
committee substitute.                                                                                                           
                                                                                                                                
Senator  Green moved  for adoption  of CS  HB 58,  22-GH1016\J  as a                                                            
working draft.                                                                                                                  
                                                                                                                                
Co-Chair Donley  objected noting he  supports the provisions  in the                                                            
Senate Labor and Commerce committee substitute.                                                                                 
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR: Senator  Green, Senator Leman, Senator Olson  and Co-Chair                                                            
Kelly                                                                                                                           
                                                                                                                                
OPPOSED: Senator Wilken,  Senator Austerman, Senator Hoffman and Co-                                                            
Chair Donley                                                                                                                    
                                                                                                                                
ABSENT: Senator Ward                                                                                                            
                                                                                                                                
The motion FAILED (4-4-1)                                                                                                       
                                                                                                                                
The committee substitute FAILED to be adopted.                                                                                  
                                                                                                                                
Amendment #2:  This amendment changes the effective  date of Section                                                            
1 to July 1, 2002, on page 15 line 1.                                                                                           
                                                                                                                                
Senator Olson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Kelly objected for discussion.                                                                                         
                                                                                                                                
Senator  Olson explained  this amendment  would  make the  effective                                                            
date of  the bill  "in front  of us instead  of behind  us," as  the                                                            
original date of January 1, 2002 had passed.                                                                                    
                                                                                                                                
Co-Chair  Donley asked the  reason for the  existing effective  date                                                            
and whether the Department objected to the amendment.                                                                           
                                                                                                                                
Ms Gamez replied that HB  58 was introduced during the first session                                                            
of the Twenty-Second Alaska  State Legislature in the year 2001. She                                                            
stated  that a  retroactive  effective  date  would cause  "a  major                                                            
administrative  problem" and  she stressed  the Department  does not                                                            
oppose the amendment.                                                                                                           
                                                                                                                                
Senator  Austerman  suggested  the  effective  dates  of  the  three                                                            
apropos sections should be amended.                                                                                             
                                                                                                                                
Senator Green  moved to amend the amendment to change  the effective                                                            
date of Section 1 to January  1, 2003, Section 2 to January 1, 2004,                                                            
and Section 3 to January 1, 2005.                                                                                               
                                                                                                                                
Senator  Olson  remarked  he supports  his  amendment  as  initially                                                            
submitted with Section 1 taking effect on July 1, 2002.                                                                         
                                                                                                                                
Senator  Wilken  asked  why  this  amendment  to  the  amendment  is                                                            
necessary.                                                                                                                      
                                                                                                                                
Co-Chair  Kelly   replied  that  a   year  has  passed  since   this                                                            
legislation was introduced.                                                                                                     
                                                                                                                                
Co-Chair  Donley objected to  the adoption  of the amendment  to the                                                            
amendment.                                                                                                                      
                                                                                                                                
A roll call was taken on the motion.                                                                                            
                                                                                                                                
IN FAVOR:  Senator  Green, Senator  Hoffman, Senator  Leman and  Co-                                                            
Chair Kelly                                                                                                                     
                                                                                                                                
OPPOSED: Senator  Olson, Senator Wilken,  Senator Austerman  and Co-                                                            
Chair Donley                                                                                                                    
                                                                                                                                
ABSENT: Senator Ward                                                                                                            
                                                                                                                                
The motion FAILED (4-4-1)                                                                                                       
                                                                                                                                
The amendment FAILED to be amended.                                                                                             
                                                                                                                                
Amendment #2 was ADOPTED without objection.                                                                                     
                                                                                                                                
Senator Wilken commented  this is a good bill with minimal impact on                                                            
small  businesses.  He  informed  that  in  five  years,  the  total                                                            
unemployment  insurance costs to his  company would increase  $1,060                                                            
as a result of this legislation.                                                                                                
                                                                                                                                
Senator  Austerman  "moved  HB  58-individual  recommendations   and                                                            
[indiscernible] fiscal note."                                                                                                   
                                                                                                                                
There being  no objections,  SCS CS  HB 58 (FIN)  was REPORTED  from                                                            
Committee with  a forthcoming zero  fiscal note from the  Department                                                            
of Labor and Workforce Development dated 5/9/02.                                                                                
                                                                                                                                
AT EASE 8:24 PM / 8:24 PM                                                                                                       
                                                                                                                                
                                                                                                                                
     CS FOR HOUSE BILL NO. 443(L&C)                                                                                             
     "An Act retroactively  extending the application  and licensing                                                            
     deadlines   and  amending   the  effective   date  of   certain                                                            
     provisions  relating  to  regulation  of persons  who  practice                                                            
     tattooing  and permanent  cosmetic coloring  or body  piercing;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  VIC  KOHRING,  Sponsor,  reminded the  Committee  of                                                            
other  legislation  previously  passed into  law that  licensed  the                                                            
practice  of tattooing  to address  health and  safety concerns.  He                                                            
commented that  he "was not real thrilled  about that legislation."                                                             
He stated that  in adopting regulations to enforce  the new statute,                                                            
some business  "fell through the cracks,"  and were not notified  of                                                            
an application deadline  to receive a license. He qualified no party                                                            
was at fault  for this; neither the  businesses nor the Division  of                                                            
Occupational  Licensing, because it  had no way to identify  all the                                                            
businesses  performing tattooing  and body  piercing. However,  as a                                                            
result, he informed  that approximately 13 businesses  are operating                                                            
without  the required  license  and  are subject  to  closure if  an                                                            
extension of the  application deadline is not encoded  into statute.                                                            
                                                                                                                                
It was established no public  testimony would be heard on this bill,                                                            
as no interested parties were present to do so.                                                                                 
                                                                                                                                
Co-Chair  Donley "moved CS  for House Bill  443, Labor and  Commerce                                                            
from Committee with its  whopping $3,000 fiscal note with individual                                                            
recommendations."                                                                                                               
                                                                                                                                
There  being  no  objection,  CS HB  443  (L&C)  was  REPORTED  from                                                            
Committee  with  $3,300  fiscal  note  #2  from  the  Department  of                                                            
Environmental Conservation.                                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Pete Kelly adjourned the meeting at 08:27 PM                                                                           

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