04/27/2004 01:32 PM Senate L&C
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+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 27, 2004
1:32 p.m.
TAPE(S) 04-35, 36
MEMBERS PRESENT
Senator Con Bunde, Chair
Senator Ralph Seekins, Vice Chair
Senator Gary Stevens
Senator Hollis French
MEMBERS ABSENT
Senator Bettye Davis
COMMITTEE CALENDAR
SENATE BILL NO. 377
"An Act relating to the state's mechanical code, to mechanical
contractors and mechanical administrators, to mechanical
standards and inspections involved in certain housing loans, and
to the adoption of the state's mechanical code; and providing
for an effective date."
MOVED SB 377 OUT OF COMMITTEE
SENATE BILL NO. 369
"An Act exempting a person who allows a student of the
University of Alaska to gain practical work experience with the
person while participating in a practicum from vicarious
liability as an employer, and exempting the student
participating in a practicum from the Alaska Wage and Hour Act;
and providing for an effective date."
MOVED CSSB 369(L&C) OUT OF COMMITTEE
SENATE BILL NO. 254
"An Act relating to the levy and collection of an assessment on
certain tourism-related and recreation-related goods and
services, and repealing the levy of excise taxes of certain
passenger and recreation vehicles; and providing for an
effective date."
MOVED CSSB 254(L&C) OUT OF COMMITTEE
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 29(JUD) am
"An Act relating to real estate licensees and real estate
transactions; and providing for an effective date."
MOVED SCS CSSSHB 29(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 305
"An Act relating to the calculation and payment of unemployment
compensation benefits; and providing for an effective date."
MOVED SCS HB 305(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 339(JUD)
"An Act relating to opt-out marketing plans for sales, to free
trial periods for goods or services, and to acts that are
unlawful as unfair trade practices."
MOVED CSHB 339(JUD) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 549(JUD) am
"An Act relating to unsolicited communications following an
aircraft accident."
MOVED SCS CSHB 549(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 419(RES)
"An Act relating to regional seafood development associations
and to regional seafood development taxes."
MOVED CSHB 419(RES) OUT OF COMMITTEE
HOUSE BILL NO. 464
"An Act extending the termination date of the Board of Certified
Real Estate Appraisers."
MOVED HB 464 OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 351(JUD)
"An Act relating to the devices, including carbon monoxide
detection devices, required in dwellings; and providing for an
effective date."
MOVED CSHB 351(JUD) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 540(L&C)
"An Act relating to workers' compensation insurance rates; and
providing for an effective date."
PENDING REFERRAL
PREVIOUS COMMITTEE ACTION
BILL: SB 377
SHORT TITLE: STATE MECHANICAL CODE
SPONSOR(s): LABOR & COMMERCE
03/26/04 (S) READ THE FIRST TIME - REFERRALS
03/26/04 (S) L&C, FIN
04/01/04 (S) L&C AT 1:30 PM BELTZ 211
04/01/04 (S) Heard & Held
04/01/04 (S) MINUTE(L&C)
04/15/04 (S) L&C AT 1:30 PM BELTZ 211
04/15/04 (S) Heard & Held
04/15/04 (S) MINUTE(L&C)
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 369
SHORT TITLE: UNIV. STUDENT PRACTICUM LIABILITY/WAGES
SPONSOR(s): JUDICIARY
03/19/04 (S) READ THE FIRST TIME - REFERRALS
03/19/04 (S) L&C, JUD
04/20/04 (S) L&C AT 2:00 PM BELTZ 211
04/20/04 (S) Scheduled But Not Heard
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 254
SHORT TITLE: TOURISM MARKETING CONTRACTS
SPONSOR(s): SENATOR(s) THERRIAULT
01/12/04 (S) PREFILE RELEASED 1/9/04
01/12/04 (S) READ THE FIRST TIME - REFERRALS
01/12/04 (S) L&C, FIN
02/12/04 (S) L&C AT 1:30 PM BELTZ 211
02/12/04 (S) Heard & Held
02/12/04 (S) MINUTE(L&C)
03/16/04 (S) L&C AT 1:30 PM BELTZ 211
03/16/04 (S) -- Rescheduled to 03/18/04 --
03/18/04 (S) L&C AT 1:30 PM BELTZ 211
03/18/04 (S) -- Rescheduled from 03/16/04 --
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 29
SHORT TITLE: REAL PROPERTY TRANSACTIONS/LICENSEES
SPONSOR(s): REPRESENTATIVE(s) ROKEBERG
01/21/03 (H) PREFILE RELEASED (1/10/03)
01/21/03 (H) READ THE FIRST TIME - REFERRALS
01/21/03 (H) L&C, JUD
01/20/04 (H) SPONSOR SUBSTITUTE INTRODUCED
01/20/04 (H) READ THE FIRST TIME - REFERRALS
01/20/04 (H) L&C, JUD
02/04/04 (H) L&C AT 3:15 PM CAPITOL 17
02/04/04 (H) Moved CSSSHB 29(L&C) Out of Committee
02/04/04 (H) MINUTE(L&C)
02/05/04 (H) L&C RPT CS(L&C) 6DP 1NR
02/05/04 (H) DP: CRAWFORD, LYNN, GATTO, ROKEBERG,
02/05/04 (H) DAHLSTROM, ANDERSON; NR: GUTTENBERG
02/18/04 (H) JUD AT 1:00 PM CAPITOL 120
02/18/04 (H) Heard & Held
02/18/04 (H) MINUTE(JUD)
02/20/04 (H) JUD AT 1:00 PM CAPITOL 120
02/20/04 (H) Moved CSSSHB 29(JUD) Out of Committee
02/20/04 (H) MINUTE(JUD)
02/26/04 (H) JUD RPT CS(JUD) 4DP 2NR
02/26/04 (H) DP: SAMUELS, ANDERSON, OGG, MCGUIRE;
02/26/04 (H) NR: GARA, GRUENBERG
03/04/04 (H) TRANSMITTED TO (S)
03/04/04 (H) VERSION: CSSSHB 29(JUD) AM
03/05/04 (S) READ THE FIRST TIME - REFERRALS
03/05/04 (S) L&C, JUD
04/15/04 (S) L&C AT 1:30 PM BELTZ 211
04/15/04 (S) Heard & Held
04/15/04 (S) MINUTE(L&C)
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/22/04 (S) UNIV. STUDENT PRACTICUM LIABILITY/WAGES
04/23/04 (S) JUD AT 8:00 AM BUTROVICH 205
04/23/04 (S) <Pending Referral>
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 305
SHORT TITLE: UNEMPLOYMENT COMPENSATION BENEFITS
SPONSOR(s): LABOR & COMMERCE
05/07/03 (H) READ THE FIRST TIME - REFERRALS
05/07/03 (H) L&C, FIN
05/09/03 (H) L&C AT 3:15 PM CAPITOL 17
05/09/03 (H) Moved Out of Committee
05/09/03 (H) MINUTE(L&C)
05/10/03 (H) L&C RPT 4DP 2NR
05/10/03 (H) DP: CRAWFORD, GUTTENBERG, DAHLSTROM,
05/10/03 (H) ANDERSON; NR: LYNN, ROKEBERG
05/15/03 (H) FIN RPT 6DP 3NR
05/15/03 (H) DP: KERTTULA, BERKOWITZ, FOSTER,
05/15/03 (H) MEYER, HARRIS, WILLIAMS; NR: HAWKER,
05/15/03 (H) STOLTZE, MOSES
05/15/03 (H) FIN AT 8:30 AM HOUSE FINANCE 519
05/15/03 (H) Moved Out of Committee
05/15/03 (H) MINUTE(FIN)
05/16/03 (H) TRANSMITTED TO (S)
05/16/03 (H) VERSION: HB 305
05/17/03 (S) READ THE FIRST TIME - REFERRALS
05/17/03 (S) L&C, FIN
05/19/03 (S) L&C AT 8:00 AM BELTZ 211
05/19/03 (S) Heard & Held
05/19/03 (S) MINUTE(L&C)
02/03/04 (S) L&C AT 1:30 PM BELTZ 211
02/03/04 (S) Heard & Held
02/03/04 (S) MINUTE(L&C)
04/01/04 (S) L&C AT 1:30 PM BELTZ 211
04/01/04 (S) Heard & Held
04/01/04 (S) MINUTE(L&C)
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 339
SHORT TITLE: TRADE PRACTICES: FREE TRIAL/OPT-OUT PLANS
SPONSOR(s): REPRESENTATIVE(s) MEYER
01/12/04 (H) PREFILE RELEASED (1/2/04)
01/12/04 (H) READ THE FIRST TIME - REFERRALS
01/12/04 (H) L&C, JUD
02/02/04 (H) L&C AT 3:15 PM CAPITOL 17
02/02/04 (H) Moved CSHB 339(L&C) Out of Committee
02/02/04 (H) MINUTE(L&C)
02/05/04 (H) L&C RPT CS(L&C) NT 4DP 2NR 1AM
02/05/04 (H) DP: CRAWFORD, LYNN, DAHLSTROM,
02/05/04 (H) ANDERSON; NR: GATTO, ROKEBERG;
02/05/04 (H) AM: GUTTENBERG
03/05/04 (H) JUD AT 1:00 PM CAPITOL 120
03/05/04 (H) -- Meeting Postponed to 3/16/04 --
03/16/04 (H) JUD AT 1:00 PM CAPITOL 120
03/16/04 (H) Heard & Held
03/16/04 (H) MINUTE(JUD)
03/29/04 (H) JUD AT 1:00 PM CAPITOL 120
03/29/04 (H) Bill Postponed To 3/30/04
03/30/04 (H) JUD AT 1:00 PM CAPITOL 120
03/30/04 (H) Scheduled But Not Heard
03/31/04 (H) JUD AT 1:00 PM CAPITOL 120
03/31/04 (H) Moved CSHB 339(JUD) Out of Committee
03/31/04 (H) MINUTE(JUD)
04/01/04 (H) JUD RPT CS(JUD) NT 5DP
04/01/04 (H) DP: HOLM, GARA, GRUENBERG, OGG, MCGUIRE
04/07/04 (H) TRANSMITTED TO (S)
04/07/04 (H) VERSION: CSHB 339(JUD)
04/08/04 (S) READ THE FIRST TIME - REFERRALS
04/08/04 (S) L&C, JUD
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/22/04 (S) EXTEND BOARD OF REAL ESTATE APPRAISERS
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 549
SHORT TITLE: UNSOLICITED COMMUNICATION:AIRCRAFT CRASH
SPONSOR(s): JUDICIARY
03/29/04 (H) READ THE FIRST TIME - REFERRALS
03/29/04 (H) JUD
04/05/04 (H) JUD AT 1:00 PM CAPITOL 120
04/05/04 (H) -- Meeting Postponed to Tues. 4/6/04 --
04/06/04 (H) JUD AT 1:00 PM CAPITOL 120
04/06/04 (H) Moved CSHB 549(JUD) Out of Committee
04/06/04 (H) MINUTE(JUD)
04/07/04 (H) JUD RPT CS(JUD) NT 4DP 1NR 1AM
04/07/04 (H) DP: SAMUELS, HOLM, ANDERSON, MCGUIRE;
04/07/04 (H) NR: GARA; AM: OGG
04/21/04 (H) TRANSMITTED TO (S)
04/21/04 (H) VERSION: CSHB 549(JUD) AM
04/22/04 (S) READ THE FIRST TIME - REFERRALS
04/22/04 (S) L&C, JUD
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 419
SHORT TITLE: REGIONAL SEAFOOD DEVELOPMENT ASS'NS./TAX
SPONSOR(s): REPRESENTATIVE(s) OGG BY REQUEST OF SALMON INDUSTRY
TASK FORCE
02/02/04 (H) READ THE FIRST TIME - REFERRALS
02/02/04 (H) EDT, RES, FIN
02/10/04 (H) EDT AT 10:00 AM CAPITOL 120
02/10/04 (H) Heard & Held
02/10/04 (H) MINUTE(EDT)
02/24/04 (H) EDT AT 5:15 PM CAPITOL 120
02/24/04 (H) Moved CSHB 419(EDT) Out of Committee
02/24/04 (H) MINUTE(EDT)
02/26/04 (H) EDT RPT CS(EDT) 2DP 2NR 1AM
02/26/04 (H) DP: CRAWFORD, HEINZE; NR: DAHLSTROM,
02/26/04 (H) CISSNA; AM: KOHRING
03/05/04 (H) RES AT 1:00 PM CAPITOL 124
03/05/04 (H) Moved CSHB 419(RES) Out of Committee
03/05/04 (H) MINUTE(RES)
03/12/04 (H) RES RPT CS(RES) 5DP 2NR
03/12/04 (H) DP: LYNN, GATTO, STEPOVICH, WOLF,
03/12/04 (H) HEINZE; NR: GUTTENBERG, MASEK
03/23/04 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/23/04 (H) Moved CSHB 419(RES) Out of Committee
03/23/04 (H) MINUTE(FIN)
03/24/04 (H) FIN RPT CS(RES) 9DP 1AM
03/24/04 (H) DP: MEYER, HAWKER, JOULE, CROFT, MOSES,
03/24/04 (H) FATE, FOSTER, HARRIS, WILLIAMS;
03/24/04 (H) AM: STOLTZE
03/31/04 (H) TRANSMITTED TO (S)
03/31/04 (H) VERSION: CSHB 419(RES)
04/01/04 (S) READ THE FIRST TIME - REFERRALS
04/01/04 (S) L&C, FIN
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/22/04 (S) WORKERS' COMPENSATION INSURANCE RATES
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 464
SHORT TITLE: EXTEND BOARD OF REAL ESTATE APPRAISERS
SPONSOR(s): RULES BY REQUEST OF LEG BUDGET & AUDIT
02/16/04 (H) READ THE FIRST TIME - REFERRALS
02/16/04 (H) L&C
03/03/04 (H) L&C AT 3:15 PM CAPITOL 17
03/03/04 (H) Heard & Held
03/03/04 (H) MINUTE(L&C)
03/05/04 (H) L&C AT 3:15 PM CAPITOL 17
03/05/04 (H) -- Meeting Canceled --
03/15/04 (H) L&C AT 3:15 PM CAPITOL 17
03/15/04 (H) Moved Out of Committee
03/15/04 (H) MINUTE(L&C)
03/16/04 (H) L&C RPT 3DP 2NR
03/16/04 (H) DP: GATTO, ROKEBERG, ANDERSON;
03/16/04 (H) NR: DAHLSTROM, GUTTENBERG
03/16/04 (H) FIN REFERRAL ADDED AFTER L&C
03/24/04 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/24/04 (H) Heard & Held
03/24/04 (H) MINUTE(FIN)
03/31/04 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/31/04 (H) Moved Out of Committee
03/31/04 (H) MINUTE(FIN)
04/01/04 (H) FIN RPT 10DP
04/01/04 (H) DP: MEYER, HAWKER, STOLTZE, JOULE,
04/01/04 (H) CROFT, CHENAULT, FATE, FOSTER, HARRIS,
04/01/04 (H) WILLIAMS
04/13/04 (H) TRANSMITTED TO (S)
04/13/04 (H) VERSION: HB 464
04/14/04 (S) READ THE FIRST TIME - REFERRALS
04/14/04 (S) L&C, FIN
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/22/04 (S) REGIONAL SEAFOOD DEVELOPMENT
ASS'NS./TAX
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 351
SHORT TITLE: CARBON MONOXIDE DETECTION DEVICES
SPONSOR(s): REPRESENTATIVE(s) GATTO, GRUENBERG
01/12/04 (H) PREFILE RELEASED (1/2/04)
01/12/04 (H) READ THE FIRST TIME - REFERRALS
01/12/04 (H) L&C, STA
01/21/04 (H) L&C AT 3:15 PM CAPITOL 17
01/21/04 (H) Heard & Held
01/21/04 (H) MINUTE(L&C)
01/23/04 (H) L&C AT 3:15 PM CAPITOL 17
01/23/04 (H) Moved CSHB 351(L&C) Out of Committee
01/23/04 (H) MINUTE(L&C)
01/26/04 (H) L&C RPT CS(L&C) 5DP
01/26/04 (H) DP: CRAWFORD, LYNN, GATTO, GUTTENBERG,
01/26/04 (H) ANDERSON
02/19/04 (H) STA AT 8:00 AM CAPITOL 102
02/19/04 (H) Scheduled But Not Heard
02/26/04 (H) STA AT 8:00 AM CAPITOL 102
02/26/04 (H) Moved CSHB 351(STA) Out of Committee
02/26/04 (H) MINUTE(STA)
03/01/04 (H) STA RPT CS(STA) 3DP 1DNP 3NR
03/01/04 (H) DP: GRUENBERG, SEATON, LYNN;
03/01/04 (H) DNP: COGHILL; NR: HOLM, BERKOWITZ,
03/01/04 (H) WEYHRAUCH
03/01/04 (H) JUD REFERRAL ADDED AFTER STA
03/19/04 (H) JUD AT 1:00 PM CAPITOL 120
03/19/04 (H) Moved CSHB 351(JUD) Out of Committee
03/19/04 (H) MINUTE(JUD)
03/22/04 (H) JUD RPT CS(JUD) 4DP
03/22/04 (H) DP: GARA, SAMUELS, GRUENBERG, MCGUIRE
03/31/04 (H) TRANSMITTED TO (S)
03/31/04 (H) VERSION: CSHB 351(JUD)
04/01/04 (S) READ THE FIRST TIME - REFERRALS
04/01/04 (S) L&C, STA
04/22/04 (S) L&C AT 1:30 PM BELTZ 211
04/22/04 (S) TRADE PRACTICES: FREE TRIAL/OPT-OUT
PLANS
04/27/04 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
Mr. Pete Kelly
University of Alaska
Fairbanks AK
POSITION STATEMENT: Supports SB 369.
Representative Norm Rokeberg
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 29.
Ms. Peggy Ann McConnochie
Alaska Association of Realtors
Juneau AK
POSITION STATEMENT: Supports HB 29.
Commissioner Greg O'Claray
Department of Labor & Workforce
Development
PO Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Supports HB 305.
Mr. Bill Kramer, Chief
Unemployment Insurance
Division of Employment Security
Department of Labor & Workforce
Development
PO Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Supports HB 305.
Representative Kevin Meyer
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 339.
Ms. Cynthia Drinkwater
Department of Law
PO Box 110300
Juneau, AK 99811-0300
POSITION STATEMENT: Supports HB 339.
Ms. Virginia Torness
Alaska Public Interest Research Group (AKPIRG)
PO Box 101093
Anchorage AK 99510
POSITION STATEMENT: Supports HB 339.
Ms. Vanessa Tondini
Staff to Representative Lesil McGuire
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 549 for sponsor.
Mr. Bruce McGlasson, President
Grant Aviation
Alaska
POSITION STATEMENT: Supports HB 549.
Mr. Robert Jacobson, President
Wings of Alaska
Juneau AK
POSITION STATEMENT: Supports HB 549.
Representative Dan Ogg
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Sponsor of HB 419.
Mr. Jerry McKune
United Fishermen of Alaska
211 4th Street, Suite 110
Juneau, Alaska 99801-1172
POSITION STATEMENT: Supports HB 419.
Mr. Henry Webb
Staff to Representative Ralph Samuels
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 464 for sponsor.
ACTION NARRATIVE
TAPE 04-35, SIDE A
SB 377-STATE MECHANICAL CODE
CHAIR CON BUNDE called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present were Senators
Gary Stevens, Hollis French, Ralph Seekins and Chair Con Bunde.
Senator Bettye Davis was excused. The first order of business to
come before the committee was SB 377.
SENATOR RALPH SEEKINS moved to pass SB 377 from committee with
individual recommendations and attached fiscal note. Senators
Gary Stevens, Hollis French and Ralph Seekins voted yea; Chair
Con Bunde voted nay; and SB 377 moved from committee.
SB 369-UNIV. STUDENT PRACTICUM LIABILITY/WAGES
CHAIR CON BUNDE announced SB 369 to be up for consideration.
SENATOR RALPH SEEKINS, sponsor, explained that SB 369 amends
current law by exempting the University of Alaska students
participating in practicum programs from state wage and hour
provisions. It also provides certain protections relating to
vicarious liability. The intent is to revitalize private sector
involvement in this key element of the educational process.
The University offers certain fields of study, which
require students to achieve experience and proficiency
in a real world setting before a degree can be
conferred. By and large, these involve medically
oriented endeavors such as the dental profession. Over
the years it's become increasingly difficult for the
University to entice private sector placement sites to
become involved in an internship program. A legitimate
concern expressed by placements sites is that absent
statutory clarification, practicum students could be
considered as employees with respects to certain labor
laws.
But of particular distress is the exposure to
vicarious liability. High costs associated with
potential liability have effectively chilled the
private sector's willingness to be involved in vital
practicum programs. SB 369 proposes a statutory fix
designed to protect practicum sites interested in
offering their facilities to university interns. The
threshold requirement that students not be paid
insures that sites will not use practicum placement
immunity to take advantage of employees who are also
students. From a liability perspective, this proposal
is designed to leave each entity - the university, the
student and the site - responsible for its own
liability.
MR. PETE KELLY, University of Alaska, supported Senator Seekins'
comments. He added that five years ago, the legislature gave the
university money over and above its operating needs and with
that money it designed some hands-on training programs. Most of
those require a certain amount of unpaid work - a practicum or
internship. These are becoming the most popular programs within
the University. As that is growing, the community is stepping up
to provide those hours, but liability is a concern.
SENATOR GARY STEVENS asked how many students he is talking
about.
MR. KELLY didn't have an exact number.
SENATOR HOLLIS FRENCH said that a memo in the bill folder said
the legislature should exclude practicum placements, but it's
not signed or attributed to any person and asked who prepared
it.
MR. KELLY replied that was an analysis prepared by the
University's general counsel and includes references to workers'
compensation, which is not in the bill.
SENATOR SEEKINS moved to pass CSSB 369(L&C) from committee with
attached fiscal note and individual recommendations.
SENATOR HOLLIS FRENCH objected saying:
If you're working with the direction and supervision
of that professor, it stands to reason that the things
you're going to do are going to be things you've been
instructed to do. So, if you're instructed to do
something dumb or foolish or negligent and someone
gets hurt badly, because of that bad instruction or
your bad interpretation of that instruction, it seems
to me that people shouldn't have to absorb that loss
on to themselves.... It's not that citizen's fault;
it's the professor's or the practicum student's....
SENATOR GARY STEVENS asked to speak with the general university
counsel. From a liability perspective the proposal is designed
to leave each student on a site responsible for his own
liability. "So, liability isn't being avoided or ignored. The
University would still be liable for any incident that could
occur. Wouldn't that be true?"
MR. KELLY replied that is correct.
SENATOR GARY STEVENS hypothesized if the dental instructor told
a student to pull a certain tooth and the student does, but it's
the wrong tooth, the University would be liable.
MR. KELLY replied that the dentist would be liable. If a student
is hurt, he can appeal to the Workers' Compensation Board. If it
decides against him, the student could sue. "Liability isn't
automatically assigned to the practicum provider site as it
would be in an employer employee relationship."
CHAIR BUNDE said he would like to see these legal issues
addressed in the Judiciary Committee.
SENATOR SEEKINS, Chair of the Senate Judiciary Committee,
assured him that would be the case.
CHAIR BUNDE called for the roll. Senators Ralph Seekins, Gary
Stevens and Chair Con Bunde vote yea; Senator Hollis French
voted nay; and CSSB 369(L&C) moved from committee.
SB 254-TOURISM MARKETING CONTRACTS
CHAIR CON BUNDE announced SB 254 to be up for consideration.
SENATOR RALPH SEEKINS moved to adopt CSSB 254(L&C), version \X.
There were no objections and it was so ordered.
CHAIR BUNDE said that the committee had heard the bill before
and it appears to have some constitutional issues and said he
would suggest a Judiciary referral to the Senate President.
SENATOR SEEKINS moved to pass CSSB 254(L&C) from committee with
individual recommendations.
SENATOR HOLLIS FRENCH objected.
CHAIR BUNDE called for the roll. Senators Ralph Seekins, Gary
Stevens and Chair Con Bunde voted yea; Senator Hollis French
voted nay; and CSSB 254(L&C) moved from committee.
CSSSHB 29(L&C) - REAL PROPERTY TRANSACTIONS/LICENSEES
CHAIR CON BUNDE announced SCS SSCSHB 29(L&C) to be up for
consideration. He noted that Amendment 1 (that was held over
from a discussion on April 15) was up for consideration again.
23-LS0189\BA.4
Bannister
A M E N D M E N T 1
OFFERED IN THE SENATE
TO: CSSSHB 29(JUD) am
Page 5, line 11:
Delete all material.
Insert "to imply a duty to
(1) investigate
(A) a matter that the licensee has not
agreed to investigate; or
(B) a matter that is not known by the
seller, prospective buyer, lessor, prospective lessee,
or licensee; or
(2) disclose, unless otherwise provided by law,
events that have occurred on the real estate that might
affect whether a person wants to buy or lease the real
estate."
REPRESENTATIVE NORM ROKEBERG explained Amendment 1.
Amendment 1 amends the language on page 5, line 11,
clarifying the duties of a licensee as to whether they
have a duty to investigate. The amendment indicates
that there's no implied duty to investigate matters
that the licensee has not agreed to investigate or
matters not known by the licensee or the buyer,
etc.....
The subsection (2) provisions within the amendment
indicate that there's no duty to disclose, unless
otherwise provided by law, events such as [in the]
disclosure form, which every seller of real estate,
whether they are represented by a licensee or not, has
to make....
REPRESENTATIVE ROKEBERG said this concerns the psychological
impairment section and can include such things as illnesses like
AIDS or HIV, which is proscribed by federal law.
CHAIR BUNDE asked if a methamphetamine lab has to be disclosed.
REPRESENTATIVE ROKEBERG answered that it does have to be
disclosed.
CHAIR BUNDE said the duty to disclose as otherwise provided by
law applies to physical problems or limitations to the property.
He asked if Amendment 1 addresses psychological issues.
REPRESENTATIVE ROKEBERG replied yes. In the instance of a
haunted house, one would have the duty to disclose that if one
knows about it, but one wouldn't have a duty to investigate that
issue in order to disclose it.
MS. PEGGY ANN MCCONNOCHIE, Alaska Association of Realtors,
commented:
For the question of if there's a ghost in the house -
how do you investigate whether or not there is a ghost
or not?.... There were suspicions told to me that
there was a ghost in the house and I felt it was my
duty to disclose. Whether or not you believe in ghosts
is not material. If you don't know that, how do you go
out and investigate whether there is or is not a
ghost?
CHAIR BUNDE asked a more practical question - when there has
been a suicide in the house and you're aware of it, you
disclose, but you don't have a duty to research whether anyone
had taken his life in that home - unless it's common knowledge.
MS. MCCONNOCHIE agreed with that. The issue is how one would go
about an investigation like that. Right now Realtors don't know
what to do, but want to deal with it in this amendment.
SENATOR HOLLIS FRENCH asked where exactly in the disclosure
document a realtor tells a perspective buyer that there was a
double homicide in the house.
MS. MCCONNOCHIE said there is no specific question on the form
that asks that, because there is no statutory requirement for
it. If this bill passes, Realtors would use an amended form.
SENATOR FRENCH said he understands the amendment would foreclose
that disclosure.
REPRESENTATIVE ROKEBERG said this bill doesn't affect the nature
of the disclosure statement, which applies to all sellers of
real estate, whether they are represented by a licensee or not.
HB 29 only regulates the activities of licensees. He does not
want to create a legal duty to disclose a homicide, for
instance. The reason he is addressing the issue is because case
law in the State of Alaska hasn't addressed it yet and, "It's a
field day for lawyers."
SENATOR FRENCH agreed with Representative Rokeberg and Ms.
McConnochie that someone shouldn't have to hunt down the history
of a property, but if a double homicide was committed there last
week and someone just came to town and didn't know about, "If
everyone in town knows about it except for this poor buyer, I
think someone should tell the buyer." He was trying to figure
out where that is addressed.
REPRESENTATIVE ROKEBERG responded that it isn't written down.
Disclosure is an implied duty, but he didn't want to put that in
statute.
SENATOR FRENCH asked what happens if a person buys a place and
then finds out there was a double homicide in it and doesn't
want to live there anymore. "Can they go after the seller and
say, 'Hey, you should have told me?' I think this bill says no."
MS. MCCONNOCHIE responded that is a material fact about the
house that the seller has to disclose. The question becomes does
a double homicide three houses away need to be disclosed, also.
That's what we need direction on. How far away is no
longer reasonable.... Keep in mind that it is a
material fact in some cultures that they cannot buy a
home in which a murder has occurred. That's a material
fact of that culture, but not to everyone.
SENATOR FRENCH said he would support "near, but not on the real
estate".
MS. MCCONNOCHIE said the Real Estate Commission needs to be able
to write the regulations to support the statement. She said
Realtors in Anchorage and Juneau view disclosures differently.
SENATOR SEEKINS said, "What is not required should not be
implied. I think this is saying you can't imply some duty beyond
what we have statutorily or on a regulatory basis required for
disclosure...."
MS. MCCONNOCHIE chimed in, "Bingo!"
SENATOR FRENCH said the law has very narrow requirements.
REPRESENTATIVE ROKEBERG agreed with Senator Seekins' statement.
CHAIR BUNDE asked for a roll call vote on Amendment 1. Senators
Gary Stevens, Ralph Seekins and Chair Con Bunde voted yea;
Senator Hollis French voted nay; and Amendment 1 was adopted.
CHAIR BUNDE noted that people with further issues could discuss
the bill in its next committee of referral, Judiciary.
SENATOR SEEKINS moved SCS CSSSHB 29(L&C) from committee with
attached fiscal note. Senators Hollis French, Gary Stevens,
Ralph Seekins and Chair Con Bunde voted yea; and SCS CSSSHB
29(L&C) moved from committee.
HB 305-UNEMPLOYMENT COMPENSATION BENEFITS
CHAIR CON BUNDE announced HB 305, version D, to be up for
consideration.
COMMISSIONER GREG O'CLARAY, Department of Law (DOL), said he had
new information regarding a 26-week waiting period.
MR. BILL KRAMER, Chief, Unemployment Insurance Program,
Department of Law (DOL), brought a possible unintended
consequence to the committee's attention.
Last year, 13,780 people who filed for benefits under
the voluntary quit, misconduct work provisions that
have been discussed here recently - if these
individuals were denied 26 weeks instead of six, as
has been discussed, there's a possibility that the
number of claims that are filed throughout the year
could cause us to fall below the level required for
the federal extended benefits to trigger on in Alaska.
Part of the reason we trigger on to extended benefits
each year in Alaska is because we have a high
recipient rate....
The state has received it every year since 1971.
CHAIR BUNDE asked if people had to wait 26 weeks, would fewer
ask to get benefits or be discouraged from filing at all.
MR. KRAMER replied that would be hard to predict. The number of
weeks claimed is part of the calculation the federal government
uses to trigger benefits. If the number of claims is reduced
because of the extended denied period, it could change the time
period for which the state gets extended benefits or the fact
that we get it at all. During the last nine years of 1994 -
2002, an average of $7.3 million per year has been paid.
CHAIR BUNDE asked what the other 47 states do about extended
benefits.
MR. KRAMER replied that it depends on the economic conditions
within the state. Alaska triggers on every year during the
winter through mid-summer. Most states do not trigger on to
extended benefits regularly. During the recent recession only a
handful of other states triggered on to the regular extended
benefits program.
CHAIR BUNDE drew attention to the chart that the department
provided the committee on unemployment benefits that indicates
denials are fairly steady across the past three years. The
number of people who have applied for and received benefits has
gone up fairly substantially.
SENATOR SEEKINS asked what the trigger is for Alaskans to
receive federal extended benefits.
MR. KRAMER replied that there are three different formulas in
place and federal law allows states to trigger on through any
one of the three. The most common one - and the one that Alaska
triggers - looks at the insured unemployment rate (IUR). It's
calculated by dividing the average number of weeks of UI claimed
for the past 13-week period. That number is divided by the
average covered employment for the past four quarters of the
past year. Recent figures indicate that 231,355 individuals were
in covered employment in the state and the 13-week average was
17,797 weeks of unemployment, an insured unemployment rate of
6.56. That figure triggers the state for a minimum of 13 weeks
extended benefits.
SENATOR SEEKINS asked how much the state pays out in
unemployment insurance per year.
MR. KRAMER replied that it changes year to year. In 2003, $174
million was paid out; it was a high year and included two
federal extension programs. One was a temporary extended
unemployment compensation, which was 100 percent federally
funded, and that was simply turned on by Congress without a
trigger. At the same time, Alaska was triggered on to regular
extended benefits, which was federally funded also.
SENATOR SEEKINS asked how much federal money the state got.
MR. KRAMER replied $10 million in regular extended benefits and
$40 million for the temporary extension program.
CHAIR BUNDE asked what the state's portion of the total was.
MR. KRAMER guessed about $130 million.
CHAIR BUNDE speculated that the state pays out $130 million in
order to get the $40 million in federal funds. He asked if
something more than six weeks, but less than 26 weeks, wouldn't
stop the trigger.
MR. KRAMER replied the challenge is trying to guess what people
will do under the rules.
Would some people now stay employed because the
penalty is stiffer? Will some people find other ways
to maintain their wellbeing when they are unable to
get unemployment benefits? It's hard to predict....
He added that people who are denied through the current six-week
provision are prevented from receiving any extended benefits for
a benefit year.
TAPE 04-35, SIDE B
2:20 p.m.
CHAIR BUNDE mused that this situation begs the question of what
denying unemployment benefits to some people would do to the
state's welfare rolls.
SENATOR SEEKINS moved to pass SCS HB 305(L&C) from committee
with individual recommendations and attached fiscal note.
Senators Gary Stevens, Hollis French, Ralph Seekins and Chair
Con Bunde voted yea; and SCS HB 305(L&C) moved from committee.
CS HB 339(JUD)-TRADE PRACTICES: FREE TRIAL/OPT-OUT PLANS
CHAIR CON BUNDE announced CSHB 339(JUD) to be up for
consideration in Labor and Commerce for the first time.
REPRESENTATIVE KEVIN MEYER, sponsor, said this is truly a
consumer protection bill that addresses two distinct marketing
practices. The first is the free trial period and the second is
the opt out marketing program. The free trial period pertains to
magazines that offer someone to view its magazine for 30 days
and then if he likes it, the billing starts. Unfortunately, it's
not always clear after that free trial period as to what one's
obligations are. This bill requires that the seller clearly
disclose all material terms and conditions of the free trial
period. This includes any obligations the user has during the
free trial period and describes the charges and how they will be
made after the product has been used in the free trial period.
It will shift the burden onto the business to prove that it
fully disclosed all of its requirements and obligations for
using the product during the free trial period.
The second issue is the opt-out marketing plan. Last year,
telecommunication companies were offering a service on cell
phones that unless a person opted out, he or she automatically
got charged for it. This isn't fair. Also, sometimes when you
try to opt out of something, that 1-800 number can be on eternal
hold. "It's very frustrating for the buyer." Businesses rely on
people not opting out.
MS. DRINKWATER, Department of Law (DOL), said that
Representative Meyer gave a very accurate summary of the purpose
of the bill, which the department supports, and she would be
happy to answer questions.
MS. VIRGINIA TORNESS, Alaska Public Interest Research Group
(AKPIRG), supported HB 339, because it will better protect
consumers in Alaska. Opt out plans have often been used to trap
consumers in the purchasing of goods or services, simply because
they did not check a box or send back the appropriate form. This
is essentially true of most free trial offers.
CHAIR BUNDE noted a letter from AARP in support of HB 339.
SENATOR SEEKINS moved to pass CSHB 339(JUD) from committee with
individual recommendations and fiscal note. Senators Gary
Stevens, Hollis French, Ralph Seekins and Chair Con Bunde voted
yea; and CSHB 339(JUD) moved from committee.
HB 549-UNSOLICITED COMMUNICATION:AIRCRAFT CRASH
CHAIR CON BUNDE announced HB 549 to be up for consideration.
2:29 - 2:30 - at ease
MS. VANESSA TONDINI, staff to Representative Lesil McGuire,
sponsor, said this bill regulates "ambulance chasing lawyers."
Normally, those lawyers are governed by the Alaska Rules of
Professional Conduct. This particular issue deals with Rule 7.3,
which states, "An attorney shall not solicit by in person or
live telephone contact professional employment from a
perspective client with whom the lawyer has no family or prior
professional relationship without a significant motive for the
lawyer's doing." The reason is because an overwhelmed client
might find it difficult to fully evaluate all the alternatives
after an event has just happened. Even though this rule exists,
it hasn't controlled the problem that is taking place in Alaska,
especially after aviation accidents.
The federal government recognized the vulnerability of aviation
accident victims and their families in 1996 when it passed the
Aviation Disaster Family Assistance Act. It mandates that air
carrier provide specific support for family members of those who
were injured or killed in an accident. It also prohibited
unsolicited contact by attorneys for 30 days. In 2000, the law
was amended to expand the scope of unsolicited contact to
include any associate, agent, employee or other representative
of the attorney and expanded the time from 30 to 45 days.
The enforcement of this law requires action by the Civil
Aeronautics Board and the U.S. Attorney General; the penalty for
violation is a $1,000 fine. However, the law is hardly enforced
and there is legal debate about whether or not the federal law
is enforceable against attorneys who violate it in Alaskan
aviation accidents that happen entirely within the state. It is
especially prevalent in rural Alaska where support services are
hard to get. She explained:
We don't want them to be preyed upon by not good
lawyers, in other words, until they, themselves decide
that it's time to initiate that process.
HB 549 was based on the federal law and we felt this
law was necessary because it needs to apply to flights
that take place within Alaska. Like the federal law,
it doesn't interfere with the performance of the
family support function provided for in the Family
Assistance Act by the air carriers. Also, in our bill
we made it clear that we don't want any attorneys to
contact these people, so we added the reference to the
air carrier's attorney, as well.
Regarding the sanctions against attorneys, we felt
that a civil financial penalty is inadequate because
the financial incentive of representing an aircraft
accident victim could be so great that they would
almost be willing to take the financial fee of $1,000
if they're getting a multimillion dollar payment out
of this. We felt a criminal sanction would be the best
deterrent.
SENATOR SEEKINS moved to adopt SCS HB 549(L&C), version I, as
the working document. There were no objections and it was so
ordered.
MS. TONDINI thanked the committee for bringing the blank CS
forward as last minute floor amendments and other changes were
needed. She explained that language on page 1, lines 12 - 15,
was added on the floor of the House to clarify that during the
45-day period following an aircraft accident, neither an agent
nor a representative or the air carrier or its insurer may not
initiate contact for the purpose of offering a final settlement.
The sponsor did not object to that.
MS. TONDINI explained that air carriers might have obligations,
such as providing short-term financial assistance and page 2,
subsection (c), clarifies that the prohibitions do not apply to
those activities.
The other area of the bill that was amended in the House was the
removal of the penalty section in subsection (d), page 2, lines
8 - 12. The bill originally read $10,000 for the first offense
and $100,000 for a second offense, but that language was
removed. The problem when a fine is not specifically mentioned
is that it would allow a judge to impose a term of imprisonment,
which was never the intent of the sponsor. The sponsor felt
comfortable with making it a class A misdemeanor with a fine of
$100,000 or the fee the attorney would have received through the
violation of this act. Some people felt that contact needed to
be defined in section (e).
CHAIR BUNDE asked if the amount of the fine would be accepted by
the courts as just, based on the severity of the crime.
MS. TONDINI hoped so and noted that AS 12.55.035 sets out
maximum fines for each level of crime. Ordinarily, the maximum
fine for a class A misdemeanor is $10,000, but another provision
allows the legislature to establish otherwise.
CHAIR BUNDE said he thought it was a good idea to protect people
who are in a state of stress, but asked why this is limited to
aircraft accidents.
MS. TONDINI replied that she thought this should be a policy for
all situations and added that it applies in situations that the
Alaska Rules of Professional Conduct govern.
CHAIR BUNDE asked if the recovery from an aircraft accident is
potentially much larger than for an average automobile accident.
MS. TONDINI replied that is correct.
SENATOR SEEKINS asked why she didn't insert "whichever is
greater" after the penalty and if the sponsor wanted the court
to have that discretion.
MS. TONDINI replied that language on page 2, line 9, attempts to
say that it shall be the greater of the two.
SENATOR FRENCH said he had a hard time differentiating between
someone who was in the World Trade Center and someone who was on
the plane that crashed into it. He didn't know which family was
more grievously wounded or incapable of making a decision. He
was concerned that the bill focuses on air carriers. He is also
concerned about the penalty for lawyers who break the
professional rules, because, "A lawyer's ticket to practice law
is immensely valuable. You can't put a value on it. If you lose
your ticket to practice, you have to go find another line of
work...." He also thought lawyers must have made some serious
violations against plane crash victims and he wanted to hear
about those.
MS. TONDINI agreed with his first point and said this bill
doesn't try to give more weight to one side or the other, but
tries to focus on an attorney's bad conduct.
SENATOR SEEKINS moved to delete section (e) from the CS the
committee just adopted. There were no objections and it was so
ordered.
MR. BRUCE MCGLASSON, President, Grant Aviation, asked for some
protection for the air carriers. He said that the professional
rules are routinely ignored with impunity in western Alaska. He
has found that victims who have truly been injured will
immediately contact an attorney, but attorneys are routinely
contacting other people who were on planes, but didn't have
specific injuries.
The attorneys are racing to them immediately after the
accidents to sign them, because if they go home and
think it over for a few days, they are unharmed.... I
would like just a cooling off period to protect us
from that kind of behavior.
MR. MCGLASSON said that airlines are unable to buy insurance
coverage that is adequate for someone who has truly suffered
horrific damages, like an untimely death or a permanent
disability.
Insurance companies are terrified of this onslaught of
small suits that can only be described as extorted.
They have a client that has no damages that they can
point to, but they have signed up immediately after
and within a week of the accident, we'll get a letter
from the attorney offering to settle this case of
$50,000 or $100,000, because they know our insurers
will look at the cost of defense and probably opt to
settle rather than go to trial. The consequences are
horrible for us. Our insurance rates have more than
doubled in the last five or six years or tripled in
some cases. Our available coverage has been dropped in
some cases. In some cases, we've been able to insure
our seats for $500,000 a seat. It was $1 million a few
years ago and now it's not even an option at any
price. Many carriers in the state are looking at
limitations of $300,000, because the insurance
companies are afraid of the onslaught of suits that
[are] presented to them.
CHAIR BUNDE asked if he had actual situations that he could
share with the committee.
MR. MCGLASSON replied yes; in one instance an attorney actually
went to the hospital in Bethel and waited for the people who
were in the airplane to walk out the door. "That type of
immediate contact - it's almost guaranteed to generate a client
for him."
MR. MCGLASSON related that another incident happened a couple of
weeks before Christmas when attorneys sent letters to every
person in the village where the accident occurred.
MR. ROBERT JACOBSON, President, Wings of Alaska, said he is also
a member of the Alaska Air Carrier's Association Board of
Directors and has its approval to speak on its behalf. He
supported HB 549 and agreed with Mr. McGlasson's testimony.
Rates have tripled for many carriers throughout the
state, limits have come down. Some of us that used to
enjoy $10 million and $20 million smooth coverage are
now being offered a half million dollars a seat. For
those of you that have been involved with any aviation
incidents over the year, a half a million dollars
truly isn't enough to take care of the people who are
truly deserving in an accident like that.
To address Senator French's concern whether it was
people inside the Towers or on the airplane - in a
situation like this, the Aviation Disaster Family
Assistance Act addresses them altogether.... Aviation
accidents, because of the calamity of it, even if it's
one or two people in an air taxi accident like there
would be in an automobile accident, the settlements
and the awards are usually 10 times what they are in
an automobile accident. As a result, our rates have to
be commensurate.
Because we depend so much on aviation in Alaska - it's
a taxi service, it's a bus service for so many people
up here. We air carriers are struggling to provide the
service and provide good service. At the same time,
we're getting beat up and we're getting affected - in
this case, by some people who aren't acting honorably
in their profession....
SENATOR FRENCH asked Mr. McGlasson if he filed a bar complaint
against the individual who waited at the hospital to drive the
victims home.
MR. MCGLASSON said he hadn't, but it was a recent occurrence and
he didn't realize he could do that.
SENATOR FRENCH asked if it happened within the last six months
and if he knew of any other incidents.
MR. MCGLASSON replied that it had happened within the last six
months and in a small community like Bethel, he couldn't tell
which attorneys had relationships with the people or not. In the
accidents he had been involved in, the people had been contacted
immediately in almost every case. "It is the rule rather than
the exception."
SENATOR FRENCH advised him to take the options that are open to
him and to use the least force possible.
MR. JACOBSON said that most people involved in an aircraft
accident don't understand what is possible.
When they are contacted by a plaintiff attorney who
says, 'I can get $100,000 for you because you now have
a fear of flying - and that's happened to us. We had
an accident in 1998 where nobody was injured, people
got a little wet from their hips down. We took them to
the hospital as we do in every case and they were
checked out and released. There was no physical or
admitted injuries, but one of the four, we took care
of her hospital bills and offered her $2,500 to move
on. She said fine. The others retained a plaintiff
attorney and they were promised big amounts because
they now have a fear of flying.
SENATOR FRENCH asked him if they were contacted by attorneys or
the other way around.
MR. JACOBSON admitted he didn't know. His point was that the
people ended up with less, because the plaintiff's attorney took
30 percent plus expenses. "In a situation like that, we're going
to defend those as strong as we can and the victims end up with
less and that's a shame, but that's what is happening, too."
SENATOR SEEKINS said it seems to him that since this is already
covered in a code of ethics, there is no problem with those who
follow their code of ethics. If some attorneys are not following
their code of ethics, the legislature can put some statutory
teeth behind it.
SENATOR SEEKINS moved to pass SCS CSHB 549(L&C) from committee
with attached fiscal note and individual recommendations.
SENATOR FRENCH objected saying he wanted to hear from at least
one person who had been badgered by a lawyer after a traumatic
injury or accident.
That's what I thought the heart of this bill was about
- not so much fixing insurance rates, but sort of
keeping a protective aura around a person who has been
through a tragedy. We didn't hear that. So, I guess
I'm a little bit on the fence about what the object of
the bill is....
The way I read this bill now is if I bump my head in
an airplane accident and have to have two stitches,
I've been injured, and 44 days later a lawyer sends a
letter to me saying maybe you need some
representation, that person is guilty of a misdemeanor
and shall be sentenced to pay a fine of $100,000. I
share your concerns, Mr. Chairman, that someone is
going to challenge that and it's going to get booted
out and you're going to be left with no direction
whatsoever about what to do. I think this bill needs a
little bit more fine-tuning.
CHAIR BUNDE asked for a roll call vote. Senators Ralph Seekins,
Gary Stevens and Chair Con Bunde voted yea; Senator Hollis
French voted nay; and SCS CSHB 549(L&C) moved from committee.
CSHB 419(RES)-REGIONAL SEAFOOD DEVELOPMENT ASS'NS./TAX
CHAIR CON BUNDE announced CS HB 419(RES) to be up for
consideration.
REPRESENTATIVE DAN OGG, sponsor, said HB 419 came out of the
Joint Legislative Salmon Task Force. Fishermen wanted a way to
tax themselves so they could develop their seafood products. The
idea initially came from the Copper River where fishermen
advertise their Copper River Red Salmon, the first salmon
fishery of the year and they are highly prized in the west coast
markets. Some of the grants to help develop their program are
ending and other areas of the state have got the idea of
marketing regional fish. Kodiak and Cook Inlet are working on
similar programs. Twelve regions were developed in the state in
which to administer these programs and each area would have one
program. The bill allows 21 percent of a region's permit holders
to apply to the Department of Community & Economic Development
(DCED) for an election to form an organization. If 51 percent of
the permit holders vote in favor, they form an organization. The
bill allows them to tax themselves in an election in which they
pick a .5, 1, 1.5 or 2 percent taxation rate. If it passes, they
have established their assessment. This bill also gives them the
power to provide an infrastructure for improvements like fish
chillers for members' use.
TAPE 04-36, SIDE A
REPRESENTATIVE OGG explained that folks could untax themselves
with the same method. Twenty-five percent of the permit holders
could ask for a new election to untax.
MR. JERRY MCKUNE, United Fishermen of Alaska (UFA), said a lot
of fishermen in the state are excited about this bill. Grants
are drying up as the sponsor said and this would allow a lot of
fisheries to raise $200,000 to $300,000 at the 1 percent range.
This will also allow fishermen to work with processors and
others in the communities to put promotional programs together
and get more value off the salmon and work on quality problems,
such as installing ice machines in remote areas.
CHAIR BUNDE asked if he knew of any opposition to this bill.
MR. MCKUNE replied that probably some fishermen would get
worried with talk about taxes.
If you have a use for this money, you have to convince
your fleet to take this on and have an election,
you're going to have to do some education of that
fleet to convince them why you want to use the
money.... plus every fisherman gets to sit on the
committee that's in that particular fishery. So, they
all get to have their say....
Some areas probably don't have need for it or won't
have a need for it for a while until they have a
separate fishery. When you break it down to certain
fisheries, there are some gillnet fisheries I see in
the state that could probably do this right away and
try to get this passed once it's on the books and in
other fisheries, like seine fisheries, it would be a
little bit more complicated and would have to be
talked through to whether that's going to be a benefit
for them.
SENATOR GARY STEVENS asked Representative Ogg to explain how the
voting would take place and how latent permits would be dealt
with.
REPRESENTATIVE OGG replied that this issue received a lot of
discussion and the recommendation of the task force is to go
with 50 percent of the actual permits voting, which is how the
aquaculture voting is set up and it works fine.
CHAIR BUNDE asked if the size of a quorum was discussed.
REPRESENTATIVE OGG replied:
The mechanism in which the ballots go out - knowing
how fishermen are and being one myself - sometimes you
don't get the notice. So you are sent out two ballots,
two separate mailings. So, you're most assured to get
everybody and it's pretty clear what's going on and
it's in your high interest to participate. If there's
latent fishermen who aren't fishing, they won't pay a
tax, because they don't have any product that they're
selling. Once they start to fish again, they will pay
a tax.
MR. MCKUNE added that each region has to publish two notices in
a newspaper.
SENATOR SEEKINS asked if there is any requirement to make sure a
ballot was ever received.
REPRESENTATIVE OGG replied no; nothing more is needed than the
two mailings to addressees on the limited entry permit cards.
CHAIR BUNDE asked what level of participation the aquaculture
associations have among eligible voters.
REPRESENTATIVE OGG said he didn't know.
MR. MCKUNE replied that the Prince William Sound Aquaculture
Association had an 80 percent return when it first started. He
thought the same would be the case with this program.
CHAIR BUNDE postulated that an election wouldn't be valid unless
10 or 15 percent of the permit holders participated and wanted
that discussed in the Finance Committee. The way it is written
now, two out of three people could decide an issue. Although he
doubted that would happen, he also sees low voter turnout in
general elections.
SENATOR SEEKINS asked if other forms of notification that an
election is going to take place are required.
MR. MCKUNE answered that the bill requires two ballots and two
notices in the newspaper of the region in which the election
will take place and a minimum of two public meetings must take
place.
SENATOR GARY STEVENS moved to pass CSHB 419(RES) from committee
with attached fiscal note and individual recommendations.
Senators Hollis French, Ben Stevens, Ralph Seekins and Chair Con
Bunde vote yea; and CSHB 419(RES) moved from committee.
HB 464-EXTEND BOARD OF REAL ESTATE APPRAISERS
CHAIR CON BUNDE announced HB 464 to be up for consideration and
explained that it simply extends the Board of Certified Real
Estate Appraisers.
MR. HENRY WEBB, staff to Representative Ralph Samuels, said the
Board of Certified Real Estate Examiners is charged with
establishing exam standards for certification of real estate
appraisers, adopting rules of professional conduct and insuring
the observance of state and federal regulations within the
industry. Legislative Audit recommended that it be extended to
2008, which is what this bill does.
SENATOR GARY STEVENS moved to pass HB 464 from committee with
individual recommendations and attached fiscal note. There were
no objections and it was so ordered.
HB 351-CARBON MONOXIDE DETECTION DEVICES
CHAIR CON BUNDE announced HB 351 to be up for consideration.
An unidentified representative of Representative Max Gruenberg,
sponsor, said that it was introduced in response to public
outcry over tragedies that have occurred throughout the state
over the last several years. Several families have actually died
from carbon monoxide poisoning in the short term, but long-term
effects occur in children and adults as well.
CHAIR BUNDE asked if state law or local ordinance requires a
smoke detector.
The representative replied that current state law requires a
smoke detector in every domicile.
SENATOR GARY STEVENS moved to pass HB 351 from committee with
attached fiscal note and individual recommendations. Senators
Gary Stevens, Hollis French and Chair Con Bunde voted yea; and
HB 351 moved from committee. There being no further business to
come before the committee, he adjourned the meeting at 3:24 p.m.
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