HOUSE LABOR AND COMMERCE STANDING COMMITTEE February 25, 1993 3:00 p.m. MEMBERS PRESENT Rep. Bill Hudson Rep. Joe Green Rep. Brian Porter Rep. Jerry Mackie Rep. Bill Williams MEMBERS ABSENT Rep. Joe Sitton Rep. Eldon Mulder COMMITTEE CALENDAR *HB 147: "An Act relating to the disclosure of information by an employer about the job performance of an employee or former employee." HEARD AND MOVED FROM COMMITTEE Overview from the Department of Labor on Workers Compensation and unemployment insurance. CANCELLED * First public hearing. WITNESS REGISTER REP. EILEEN MACLEAN Alaska State Legislature Room 507, State Capitol Juneau, Alaska 99801-1182 465-4833 Position Statement: Sponsor of HB 147 JAMIE PARSONS, President Alaska State Chamber of Commerce 217 2nd St., # 201 Juneau, Alaska 99801 586-2323 Position Statement: Supported HB 147 MIKE MCMULLEN, Manager, System Services Division of Personnel Department of Administration P.O. Box 110201 Juneau, Alaska 99811-0201 465-4430 Position Statement: Supported HB 147 RESA JERREL, Lobbyist National Federation of Independent Business 9159 Skywood Juneau, Alaska 99801 789-4278 Position Statement: Supported HB 147 PREVIOUS ACTION BILL: HB 147 SHORT TITLE: EMPLOYER'S LIABILITY FOR REFERENCE INFO SPONSOR(S): REPRESENTATIVE(S) MACLEAN,Phillips,Porter JRN-DATE JRN-PG ACTION 02/10/93 292 (H) READ THE FIRST TIME/REFERRAL(S) 02/10/93 292 (H) L&C, JUDICIARY 02/25/93 (H) L&C AT 03:00 PM CAPITOL 17 ACTION NARRATIVE TAPE 93-16, SIDE A Number 000 CHAIRMAN HUDSON called the House Labor and Commerce Committee to order at 3:10 p.m., February 25, 1993. Members present were Reps. Hudson, Green, Porter, Williams, and Mackie. HB 147: "An Act relating to the disclosure of information by an employer about the job performance of an employee or former employee." Number 010 REP. EILEEN MACLEAN, SPONSOR OF HB 147, testified that the bill presumes that an employer is acting in good faith, unless it is shown that the reference was knowingly false, deliberately misleading, and was given with malicious purpose or violated the employees civil rights. Rep. MacLean noted that the bill is modeled after a Florida law and is identical to HB 441, which passed the House in the 17th Alaska Legislature and was left in the Senate Rules Committee at the time of adjournment. Rep. MacLean further noted that the bill was supported by the Chamber of Commerce and she was not aware of any opposition. Number 063 JAMIE PARSONS, PRESIDENT, ALASKA STATE CHAMBER OF COMMERCE, stated the Chamber supported the bill and then read the Chamber's position paper. (Copies are available in the Labor and Commerce committee room until the end of session.) MR. PARSONS further stated that the bill is high on the Chamber's priorities list. Number 108 REP. JOE GREEN asked if there had been instances where an employer made statements that caused them some problems with the former employees, legal or otherwise. MR. PARSONS responded that the problem HB 147 addressed is the lack of information coming from former employers for fear of repercussions. Number 124 REP. MACKIE inquired if the bill would cover all employers. REP. MACLEAN answered that the bill was written to cover all situations. Number 133 MIKE MCMULLEN, SYSTEMS MANAGER, DIVISION OF PERSONNEL, DEPARTMENT OF ADMINISTRATION, testified that this was probably the only time he had come before the committee in support of a bill. Mr. McMullen echoed the testimony of the previous speakers and further noted that the state has problems on both ends of the issue. Mr. McMullen said he has noted that state employers find it difficult to obtain information on prospective employees; and on the other end, the state law on confidential records has put a cloak over what information can be given out. Mr. McMullen noted that the risk of making a mistake has made many managers fearful of giving any information out. Number 166 RESA JERREL, NATIONAL FEDERATION OF INDEPENDENT BUSINESS, stated that of NFIB'S 5000 members, 86 percent supported the bill. Ms. Jerrel noted that this was the first time she had ever come before the Labor and Commerce Committee in favor of the bill. Number 200 CHAIRMAN HUDSON noted that Rep. Mackie sent a message stating there was a new sheriff in town. He suggested that even more so there was a new attitude showing interest in economic development and helping business. Chairman Hudson commended Rep. MacLean and the Economic Task Force on the bill. Number 210 REP. PORTER noted his previous experience with this type of problem as chief of the Anchorage police force. REP. PORTER moved HB 147 with two zero fiscal notes and asked unanimous consent. No objections, so ordered. Number 239 CHAIRMAN HUDSON told the committee that the Workers Compensation Section in the Department of Labor, was scheduled to come and give an overview to the committee, but due to illness and prior commitments, the committee would be down to three members after 4:00 p.m., so it was cancelled until further notice. Number 279 REP. MACKIE discussed his interest in seeing the committee pursue some of the liability issues that business faces. Rep. Mackie noted that his family runs a business in the liquor industry with over 100 employees and these issues are important. Number 326 CHAIRMAN HUDSON asked for the committee to forward their constructive ideas in this area. Chairman Hudson expressed to the committee that he didn't believe in biting off so much that you end up with nothing. He feels that some ideas will flow from the Senate side, specifically tort reform. Number 347 REP. PORTER informed the committee that he had a voluminous amount of material from a constituent, Dave McGuire, who lead the charge on tort reform back in 1987. Rep. Porter indicated he would pass this information along to the Labor and Commerce Committee staff. Discussion ensued. Number 382 CHAIRMAN HUDSON formed an informal committee charged with reviewing the information and reporting back to the committee with some recommendations regarding tort reform. CHAIRMAN HUDSON appointed Rep. Mackie as chair, with Reps. Green and Porter serving as members. He asked them to report back in one weeks time. Number 390 CHAIRMAN HUDSON adjourned the meeting at 3:34 p.m.