Legislature(1993 - 1994)
03/09/1993 01:40 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
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SENATE LABOR AND COMMERCE COMMITTEE
March 9, 1993
1:40 p.m.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator Steve Rieger, Vice Chairman
Senator Drue Pearce
MEMBERS ABSENT
Senator Georgianna Lincoln
Senator Judy Salo
COMMITTEE CALENDAR
SENATE BILL NO. 117
"An Act making appropriations for contract settlement costs
and cost-of-living adjustments for public employees who are
members of certain collective bargaining units; and
providing for an effective date."
SENATE BILL NO. 141
"An Act extending workers' compensation coverage to certain
high school students in uncompensated work-study programs."
SENATE BILL NO. 87
"An Act extending the termination date of the Alaska Public
Utilities Commission to June 30, 1994."
PREVIOUS SENATE COMMITTEE ACTION
SB 117 - No previous action to record.
SB 141 - No previous action to record.
SB 87 - No previous action to record.
WITNESS REGISTER
Nancy Bear Usera, Commissioner
Department of Administration
P.O. Box 110200
Juneau, Alaska 99811-0200
POSITION STATEMENT: Commented on SB 117.
Cheryl Frasca, Director
Budget Review
Office of the Governor
P.O. Box 110020
Juneau, Alaska 99811-0020
POSITION STATEMENT: Commented on SB 117.
Marsha Hubbard, Director
Statewide Budget
University of Alaska
910 Yukon Dr.
Fairbanks, Alaska 99575
POSITION STATEMENT: Commented on SB 117.
Representative Bettye Davis
Capitol Bldg.
Juneau, Alaska 99811-1284
POSITION STATEMENT: Supported SB 141.
Brad Thompson, Deputy Director
Division of Risk Management
Department of Administration
P.O. Box 110218
Juneau, Alaska 99811-0218
POSITION STATEMENT: Commented on SB 141.
Frank Cox
SBA
3111 Briarcliff
Anchorage, Alaska 99508
POSITION STATEMENT: Commented on SB 141.
Bob Lohr, Director
Alaska Public Utilities Commission
1016 W. 6th Ave., #400
Anchorage, Alaska 99501
POSITION STATEMENT: Commented on SB 87.
ACTION NARRATIVE
TAPE 93-18, SIDE A
Number 001
SENATOR KELLY called the Labor and Commerce meeting to order
at 1:40 p.m. and announced SB 117 APPROP: CONTRACT
SETTLEMENT COSTS to be up for consideration.
NANCY USERA, Commissioner, Department of Administration,
summarized the terms of the contract that SB 117
appropriated funds for. On health coverage the same
coverage was maintained, some long term benefits were given
up. There was a 3.6% cost of living increase.
COMMISSIONER USERA said there are 11 different bargaining
units in Alaska. She said the contract had the terms
allowed under the 423 plan and that ASEA was not included in
the negotiations. The contract covered approximately two
thirds of state employees.
Number 249
CHERYL FRASCA, Division of Budget Review, said there were
approximately 16,500 state employees.
Number 270
MARSHA HUBBARD said they had resolved the disputes in the
University budget and that the University is self insured.
SENATOR KELLY asked how they had any leverage in negotiating
for health benefits. MS. HUBBARD said basically they tell
the employees how much money they have to deal with and let
them decide what they want in terms of insurance.
Number 320
SENATOR KELLY announced SB 141 WORKERS' COMP FOR WORK-STUDY
STUDENTS to be up for consideration.
REPRESENTATIVE BETTY DAVIS said that right now employers
will not hire anyone under the age of 18 because the cost
worker's compensation liability triples for people under 18.
The head of a waste firm told her he would allow students to
gain on-the-job training at his facility in a work-study
program if this bill were in place.
SENATOR KELLY asked if anyone had experience with the
current existing non-profit program. REPRESENTATIVE DAVIS
said that would come from the Career Center, because they
already have this component of the program. However, most
of the placements are in the private sector. There would be
an estimated 50 students state-wide coming into this
program.
SENATOR KELLY asked what would the $100,000 in the fiscal
note be used for?
Number 400
FRANK COX, SBA, answered this covers the anticipated cost of
claims for a year. This figure comes from their own
experience with the average per claim cost being $6500.
Statistics from the Department of Labor indicate ten percent
of their employees have incurred worker's compensation
claims. Of people 18 years old and younger, 425 claims per
year are an average.
SENATOR KELLY said his concern with worker's compensation
was paying them a salary if they get hurt where they don't
get a salary if they're training.
REPRESENTATIVE DAVIS said they were trying to cover the
liability aspect of it. She said that there are very few
students under the age of 18 that actually drew some money
in 1991. According to statistics she had, there were 310
claims with an average payment of $1,000. If 10% of the
people covered draw workmen's compensation, the estimate
should be closer to $50,000.
FRANK COX commented that the students train only 2 - 3 hours
a day.
BRAD THOMPSON, Department of Administration, said they don't
have a position on SB 141.
REPRESENTATIVE DAVIS pointed out that most young people are
very healthy and seem to bounce back really soon if they are
injured. She didn't think a small wage would be an
incentive for the to claim workmen's compensation, because
they are also trying to graduate from school. If they
should take longer, they could loose all of their credits.
SENATOR KELLY closed the hearing on SB 141 and announced SB
87 to be up for consideration.
Number 527
BOB LOHR, Executive Director, Alaska Public Utilities
Commission, said the Commission protects the public interest
by certificating and economically regulating only qualified
public utilities and pipeline carriers. It oversees the
availability, affordability, and quality of the utility
services which are essential to Alaska's economic
development.
MR. LOHR and SENATOR KELLY briefly discussed the APUC
budget.
Number 541
SENATOR KELLY asked if it was common for a legislative
committee to recommend a 10 year sunset on an agency.
SENATOR PEARCE explained that the Governor's Task Force on
Boards and Commissions recommended that the sunset be
continued. She personally thought that a 10 year sunset
does away with the reason for having a sunset. Reviewing
the APUC in four or five years makes sense, because there
are so many changes in technology. Legislative Audit
recommended the engineering seat be staggered an idea the
Commission supported.
SENATOR KELLY thanked Mr. Lohr and adjourned the meeting at
4:28 p.m.
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