Legislature(1995 - 1996)
05/02/1995 01:40 PM Senate L&C
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SENATE LABOR AND COMMERCE COMMITTEE
May 2, 1995
1:40 P.M.
MEMBERS PRESENT
Senator Tim Kelly, Chairman
Senator John Torgerson, Vice Chairman
Senator Mike Miller
Senator Jim Duncan
Senator Judy Salo
MEMBERS ABSENT
All Members Present
COMMITTEE CALENDAR
SENATE BILL NO. 160
"An Act excluding certain employment by students from the
definition of 'employment' in the state employment security laws."
HOUSE BILL NO. 180
"An Act relating to liquor licenses issued to a hotel, motel,
resort, or similar establishment; and providing for an effective
date."
CS FOR HOUSE BILL NO. 237(JUD) am
"An Act relating to workers' compensation insurance rate filings;
to second independent medical evaluations for workers' compensation
claims; to confidentiality of workers' compensation medical and
rehabilitation information; to immunity for third-party design
professionals from civil actions by recipients of workers'
compensation benefits; to workers' compensation death benefits; to
computation of workers' compensation benefits; to penalties for
fraudulent acts related to workers' compensation; to immunity for
employer workplace safety inspections related to workers'
compensation insurance; and providing for an effective date."
SENATE BILL NO. 158
"An Act relating to pharmacists and pharmacies."
PREVIOUS SENATE COMMITTEE ACTION
SB 160 - No previous action to record.
HB 180 - See Community & Regional Affairs minutes dated
4/12/95.
HB 237 - No previous action to record.
SB 158 - See Labor and Commerce minutes dated 4/25/95.
WITNESS REGISTER
Dwight Perkins, Special Assistant
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Opposed SB 160.
Barbara Cotting, Legislative Aide
Representative Jeannette James
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 180.
Patrick Sharrock, Director
Alcoholic Beverage Control Board
550 W 7th, Ste. 350
Anchorage, AK 99501
POSITION STATEMENT: Supported HB 180.
Mike Kible, owner
McLaren River Lodge
Denali Highway, Alaska
POSITION STATEMENT: Supported HB 180.
Tim Sullivan, Legislative Aide
Representative Eldon Mulder
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 237.
Paul Grossi
Department of Labor
P.O. Box 21149
Juneau, AK 99802
POSITION STATEMENT: Supported HB 237.
Willy Von Hemert, Management Representative
Ad Hoc Committee
1633 W 15th
Anchorage, AK 99501
POSITION STATEMENT: Supported HB 237 and amendments.
Kevin Dougherty
Ad Hoc Committee
2501 Commercial Dr.
Anchorage, AK 99501
POSITION STATEMENT: Supported HB 237 and amendments.
Sherman Ernouf, Legislative Aide
Senator Tim Kelly
State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 158.
Catherine Reardon, Director
Division of Occupational Licensing
Department of Commerce
P.O. Box 110806
Juneau, AK 99811-0806
POSITION STATEMENT: Commented on SB 158.
ACTION NARRATIVE
TAPE 95-20, SIDE A
Number 001
SB 160 EXCLUSIONS FROM UNEMPLOYMENT COVERAGE
CHAIRMAN KELLY called the Senate Labor and Commerce Committee
meeting to order at 1:40 p.m. and announced SB 160 to be up for
consideration.
DWIGHT PERKINS, Department of Labor, was not able to testify, but
submitted this statement:
The Department of Labor opposed SB 160, for the following
reasons:
1. The Employment Security Act already goes far enough in
excluding employment of children by their parents and excluding
employemnt of students by educational institutions. Coverage of
student workers should not be further eroded. AS 23.20.526 (d)(5)-
(6) excludes service by a regularly enrolled student, or a student
enrolled in a work study program for a school, college, or
university.
AS 23.20.526(a)(4) excludes service for a parent by a minor. The
bill would go much further. It would exclude service for any
employer whatsoever, by a worker of any age, so long as the
employer is a parent and the worker is a student between terms.
For example, a thirty-five year old worker with a family, who
happened to be working in a parent-operated business, could be
excluded from coverage shortly after entering training to improve
his or her skills. The worker would be denied UI protection if the
training were interrupted, or the new occupation did not
materialize, or the current employment came to an end. There is no
reason to subject these employees to greater risk than others, just
because they happen to be working for their parents and going to
school when the wage credits are earned.
2. The bill would also create a conflict with federal coverage
provisions. It would exempt students of any age. However Section
330(c)(5) Federal Unemployment Tax Act (FUTA) does not exempt
service of a worker age 21 or older (student or otherwise) in the
employee of his or her parents. An employer would, therefore,
still be liable for the full FUTA tax on affected employees who are
21 or older. Employers are eligible for a credit against the FUTA
tax if the FUTA taxable service is covered under state law, but the
credit would not be available on this particular service, since the
employer would not be paying state taxes on the service under an
approved state law. If reducing the tax burden is an object of the
legislation, very little will be gained by removing the state tax
liability and replacing it with the full federal FUTA liability.
3. The tax burden on the affected students is minimal and the
number of such students is very small. A full-time employee will
pay maximum of $119.50 in UI contributions for the entire calendar
year 1995. A student employed between school terms would pay much
less. The bill addresses only students employed by their parents,
a tiny fraction of the work force.
4. The bill would create an unjustifiable disparate impact on
student workers. It would not affect other similarly situated
workers who happen not to be employed by their parents. The
Department firmly believes that expanding the exemption to these
other students is an even worse idea, but there is no sound policy
reason for targeting a subset of workers on the basis of family
relationship.
5. The terms of the exclusion are vague and there is no feasible
way to base tax liability on a worker's "intention" to remain in
school. Would coverage be retroactive if the worker did not return
to school? Would employer be allowed to certify to the worker's
intentions? The provision would be difficult to enforce and easy
to abuse.
SENATOR TORGERSON explained that SB 160 is just a relief for mom
and pop buisnesses that have the burden of paperwork slapped on
them by undue regulations. It exempts parents from paying
unemployment tax when a child is in college and comes back and goes
to work for them.
SENATOR KELLY said he supported this bill.
SENATOR TORGERSON moved to pass SB 160 from committee with
individual recommendations. There were no objections and it was so
ordered.
HB 180 LIQUOR LICENSES FOR RESORT/LODGES
SENATOR KELLY announced HB 180 to be up for consideration.
BARBARA COTTING, Aide to Representative Jeannette James, said this
bill was requested by lodge owners in very remote areas of
organized boroughs and the Alcohol Beverage Control Board to
correct an inequity. Right now a person in a very remote area with
a large population has to have 40 rental rooms in order to have a
full service liquor license. Those licenses are quite important
for lodge owners to be able to stay in business.
SENATOR SALO said she knows of remote lodges that don't have 40
rooms and do serve liquor and asked if there was a waiver process
already.
PATRICK SHARROCK, Director, Alcoholic Beverage Control Board, said
there aren't waivers currently under the statute. He is under the
impression that some guests bring their own alcohol.
SENATOR KELLY asked if there was a difference in the organized and
unorganized borough. MR. SHARROCK said there was a difference in
the way licenses are issued in the organized and the unorganized
borough. The proposed legislation does not address the unorganized
borough, because there are separate divisions of law for that.
MR. SHARROCK said the number of room required in the Kenai and Mat-
Su borough is 40, because of the population within those boroughs
excluding the population in cities.
SENATOR SALO asked if this meant 40 rooms or 40 beds. MR. SHARROCK
answered 40 rooms. The McLaren River Lodge, the particular one
this bill addresses, is on the Denali Highway between Paxson and
Healy. It, of course, would allow other business people within
boroughs and unified municipalities to meet the new requirement
law. This is supported by the Board.
SENATOR TORGERSON asked if these licenses are like a beer and wine
license. MR. SHARROCK explained this is a full service license and
cannot be transferred to another location.
Number 120
SENATOR SALO asked if a place didn't have 40 rooms would they be
able to sell liquor with food currently. MR. SHARROCK said they
could if they have a minimum of 10 rooms (unorganized borough).
SENATOR KELLY said in the Board's opinion this would not
proliferate the number of beverage dispensing licenses available.
MR. SHARROCK said that was one of the Board's main concerns and
they found clearly that it would not, because of the limiting
factor of having to be on a road that isn't open any less than two
months out of the year. The Board thinks this legislation is
simply addressing an inequity.
SENATOR TORGERSON asked if section 3 of this bill applies to the
Kenai Borough. MR. SHARROCK said, yes, that applies to the Kenai
Borough.
Number 176
MIKE TIBLE, owner of McLaren River Lodge, supported SB 160. He
said he just about single handedly opened up the Denali Highway to
winter recreation and tourism and he is flanked on both sides by
lodges that have full liquor licenses. Economically, it doesn't
make a lot of sense just because he's a mile and a half inside the
Mat-Su Borough. He said this bill would allow the promotion of
tourism in the state by small entrepreneurs, like himself.
SENATOR TORGERSON moved to pass HB 180 with individual
recommendations. There were no objections and it was so ordered.
HB 237 WORKERS' COMPENSATION AMENDMENTS
SENATOR KELLY announced HB 237 to be up for consideration.
TIM SULLIVAN, Staff to Representative Eldon Mulder, said HB 237 was
introduced at the request of Alaska Labor Management Ad Hoc
Committee on Worker's Compensation, a committee formed from several
members from both labor and management. He gave a brief sectional
analysis.
PAUL GROSSI, Department of Labor, said they support the bill
although there is a technical problem with section 5 which his
amendment will address.
Section 5 originally was for the release of information from
medical and rehab providers to obtain information to be submitted
into a file. The amendment on the floor makes it unclear about
whether they have right to the information contained in their own
file. The other problem is that they can't conduct public hearings
and can't issue decisions without that information. SENATOR KELLY
said it was the intention of section 5 to not allow public release
to this type of medical information. He was concerned that it
didn't allow release to the Division of Worker's Compensation. MR.
GROSSI said that was right.
SHERMAN ERNOUF, Legislative Aide to Senator Kelly, noted that
change was embodied in the proposed CS to HB 237.
WILLY VON HEMERT, Management Representative of the Ad Hoc
Committee, supported HB 237 and the two amendments regarding
confidentiality of records and the language dealing with seasonal
and temporary workers.
KEVIN DOUGHERTY, Ad Hoc Committee, said they fully support the bill
as a combined labor management body along with the amendments.
Number 320
SENATOR TORGERSON moved to adopt CS marked K to HB 237. There were
no objections and it was so ordered.
SENATOR TORGERSON moved to pass SCS HB 237(L&C) from committee with
individual recommendations. There were no objections and it was so
ordered.
SB 158 PHARMACISTS AND PHARMACIES
SENATOR KELLY announced SB 158 to be up for consideration. He
asked his aide, Sherman Ernouf, to explain the proposed committee
substitute. MR. ERNOUF said he had worked with many people to
solve many of the issues embodied in this bill. One change he
highlighted was in section 2, page 2, line 8, the liberally
construed "to carry out these objectives and purposes" section,
because in general everyone thought the bill was too broad. The
powers and duties of the Board were altered and the embargo powers
were deleted, he added.
At the request of Occupational Licensing, the requirement that the
secretary give 30 days written notice to all members was deleted
and added that the meetings could be held telephonically. The
executive secretary position was deleted from the bill giving it a
$0 fiscal note.
The removal of Board members for cause was returned to its previous
form. Old section 13, reciprocity and license transfer, was
rewritten because of the administrative problems of trying to
compare qualifications in different states from 10 years ago.
Licensing of facilities has two new sections that leaves out
existing drug facilities. Another section was added to insure that
physicians physicians' assistants, advanced nurse practitioners,
dispensing opticians, and optometrists will not have to license
their facilities as do pharmacies.
SENATOR KELLY noted that these folks are the ones they have already
given the ability previously in law to dispense drugs. MR. ERNOUF
said that was correct and that they are regulated.
Number 484
SENATOR SALO asked about dentists. MR. ERNOUF explained that they
would be added in the committee substitute. He said that the
"controlled substance" clause was added back into the statute, and
although it may be redundant with federal legend drugs which
includes narcotics and controlled substances, but the thought was
that it was a good idea to have the language in statute, also.
Old section 20, which is on page 11, line 13, he said, has one
sentence added about when the Board places a drug under seal when
a pharmacist has had his license suspended or revoked. He said the
Board of Pharmacy can stamp a seal, but can't actually confine an
area. The Department of Health already has that authority and a
sentence has been added saying the Board of Pharmacy shall notify
the Department of Health and Social Services to let them know so
the enforcement mechanism can come in. Both departments support
this issue.
Old section 24, on page 12, line 19, exempts physicians'
assistants, nurse practitioners, dispensing opticians,
optometrists, and dentists (because they are the only ones who are
licensed to dole out drugs) from this whole act.
Old section 25 has been deleted, because it was imposing on others
the record keeping and standard requirements for handling drugs
which they are already subject to.
SENATOR SALO asked if it was legal in the State of Alaska for a
physician to own a pharmacy or to partly own a pharmacy to whom he
is recommending his patients and writing prescriptions.
CATHERINE REARDON, Director, Division of Occupational Licensing,
said it is not currently against the law to own a testing lab,
pharmacy, or other facility to which you might be referring
patients. The medical statute does have a clause saying that a
doctor can be disciplined for violation of "any code of ethics
adopted by regulations by the Board" which has not adopted any
code of ethics, she said.
MS. REARDON informed the committee that the Board members were
under review prior to the most recent issue that came up relating
to the editorials. The administration is putting quite a bit of
time into considering the current members and other possible
appointees. She thought they would see decisions coming up quickly
on that.
She said the issue of record keeping by physicians and other health
care practitioners would probably be coming up in the next
legislative sessions. There are currently no statutes or
regulations which require them to maintain records, with the
exception of nurses who have adopted a regulation regarding record
keeping.
Number 515
SENATOR KELLY asked if the Medical Board served "for cause" or "at
the pleasure of." MS. REARDON answered, "at the pleasure of."
SENATOR MILLER moved to add "dentist" in the two appropriate
places. There were no objections and it was so ordered.
SENATOR KELLY moved to adopt the committee substitute to SB 158.
There were no objections and it was so ordered.
SENATOR SALO moved to pass CSSB 158(L&C) from committee with
individual recommendations. There were no objections and it was so
ordered.
SENATOR KELLY adjourned the meeting at 2:12 p.m.
SENATOR KELLY reopened the meeting to review confirmations on the
Board of Nursing: Bellee L. Cunningham, Kathleen Kloster, and Joe
Senungetuk.
SENATOR KELLY adjourned the meeting, again, at 2:13 p.m.
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