HOUSE LABOR AND COMMERCE STANDING COMMITTEE February 23, 2000 3:20 p.m. MEMBERS PRESENT Representative Norman Rokeberg, Chairman Representative Andrew Halcro, Vice Chairman Representative Lisa Murkowski Representative John Harris Representative Tom Brice Representative Sharon Cissna Representative Jerry Sanders MEMBERS ABSENT All members present COMMITTEE CALENDAR CS FOR SENATE BILL NO. 229(FIN) "An Act relating to the employment of hearing examiners, arbitrators, and mediators by the Regulatory Commission of Alaska; repealing a requirement that the principal office of the Alaska Oil and Gas Conservation Commission move to the same location as the principal office of the Regulatory Commission of Alaska; relating to the sharing of record-keeping facilities and clerical staff by the two commissions; and providing for an effective date." - MOVED CSSB 229(FIN) OUT OF COMMITTEE HOUSE BILL NO. 314 "An Act clarifying the requirements for limited liability companies and partnerships to qualify for the Alaska bidder's and disability preferences under the State Procurement Code; and providing for an effective date." - MOVED HB 314 OUT OF COMMITTEE CONFIRMATION HEARINGS: Board of Accountants Lottie C. Fleeks - Fairbanks Dean W. Nelson - Anchorage - CONFIRMATIONS ADVANCED Board of Architects Kathleen L. Gardner - Anchorage Ernie Siemoneit - Healy - CONFIRMATIONS ADVANCED Board of Dental Examiners Mary Ann Cerney - Fairbanks David Grant Logan - Juneau - CONFIRMATIONS ADVANCED Board of Labor Relations Richard D. Brickley - Fairbanks Robert A. Doyle - Wasilla - CONFIRMATIONS ADVANCED Board of Marine Pilots Jeffrey L. Thompson - Dutch Harbor - CONFIRMATION ADVANCED Board of Marital and Family Therapy Vivian C. Finlay - Wasilla Ann W. Swift - Fairbanks - CONFIRMATIONS ADVANCED State Medical Board Irvin A. Rothrock - Fairbanks - CONFIRMATION ADVANCED Board of Midwives Dana Brown - Fairbanks Mark Richey - Anchorage - CONFIRMATIONS ADVANCED Board of Nursing Lynn E. Hartz - Anchorage Susan Rinker - Barrow Nancy L. Sanders - Anchorage Mary H. Weymiller - Fairbanks - CONFIRMATIONS ADVANCED Board of Occupational Safety Timothy O. Sharp - Fairbanks - CONFIRMATION ADVANCED Board of Optometry Aharon Sternberg - Anchorage - CONFIRMATION ADVANCED Board of Pharmacy Mark D. Bohrer - Eagle River Ron J. Miller - Chugiak Laura Lee Nelson - Juneau - CONFIRMATIONS ADVANCED Board of Physical and Occupational Therapy Dee Berline - Anchorage - CONFIRMATION ADVANCED Board of Professional Counselors Sondra Sexton-Jones - Wrangell - CONFIRMATION ADVANCED Board of Real Estate Appraisers Eileen R. Bechtol - Homer - CONFIRMATION ADVANCED Board of Social Work Examiners Beverly Haywood - Juneau - CONFIRMATION ADVANCED Board of Veterinary Examiners D. Jean Battig - Fairbanks - CONFIRMATION ADVANCED Worker's Compensation Commission Harriet M. Lawlor - Anchorage - CONFIRMATION ADVANCED HOUSE BILL NO. 323 "An Act relating to the employment of hearing examiners, arbitrators, and mediators by the Regulatory Commission of Alaska; repealing a requirement that the principal office of the Alaska Oil and Gas Conservation Commission move to the same location as the principal office of the Regulatory Commission of Alaska; relating to the sharing of record-keeping facilities and clerical staff by the two commissions; and providing for an effective date." - SCHEDULED BUT NOT HEARD PREVIOUS ACTION BILL: SB 229 SHORT TITLE: REGULATORY COMM. OF ALASKA/AOGCC Jrn-Date Jrn-Page Action 1/28/00 2109 (S) READ THE FIRST TIME - REFERRALS 1/28/00 2110 (S) FIN 1/31/00 2129 (S) COSPONSOR(S): TAYLOR 2/10/00 (S) FIN AT 9:00 AM SENATE FINANCE 532 2/10/00 (S) Scheduled But Not Heard 2/15/00 (S) FIN AT 9:00 AM SENATE FINANCE 532 2/15/00 (S) Moved CS(Fin) Out of Committee 2/15/00 2301 (S) FIN RPT CS 5DP NEW TITLE 2/15/00 2302 (S) DP: PARNELL, TORGERSON, GREEN 2/15/00 2302 (S) PETE KELLY, WILKEN 2/15/00 2302 (S) ZERO FISCAL NOTE (DCED) 2/16/00 (S) RLS AT 11:15 AM FAHRENKAMP 203 2/16/00 (S) MINUTE(RLS) 2/17/00 2330 (S) RLS TO CALENDAR 02/17/00 2/17/00 2332 (S) READ THE SECOND TIME 2/17/00 2332 (S) FIN CS ADOPTED UNAN CONSENT 2/17/00 2332 (S) ADVANCED TO THIRD READING UNAN CONSENT 2/17/00 2332 (S) READ THE THIRD TIME CSSB 229(FIN) 2/17/00 2333 (S) PASSED Y19 N1 2/17/00 2333 (S) EFFECTIVE DATE(S) SAME AS PASSAGE 2/17/00 2334 (S) TRANSMITTED TO (H) 2/18/00 2233 (H) READ THE FIRST TIME - REFERRALS 2/18/00 2233 (H) L&C, FIN 2/18/00 2233 (H) REFERRED TO LABOR & COMMERCE 2/23/00 (H) L&C AT 3:15 PM CAPITOL 17 BILL: HB 314 SHORT TITLE: PROCUREMENT PREFS:PARTNERSHP/LTD LIAB CO Jrn-Date Jrn-Page Action 1/24/00 1987 (H) READ THE FIRST TIME - REFERRALS 1/24/00 1987 (H) L&C, JUD 1/24/00 1987 (H) ZERO FISCAL NOTE (ADM/ALL DEPTS) 1/24/00 1987 (H) GOVERNOR'S TRANSMITTAL LETTER 1/24/00 1987 (H) REFERRED TO LABOR & COMMERCE 2/16/00 (H) L&C AT 3:15 PM CAPITOL 17 2/16/00 (H) Heard & Held 2/21/00 (H) L&C AT 3:15 PM CAPITOL 17 2/21/00 (H) 2/23/00 (H) L&C AT 3:15 PM CAPITOL 17 WITNESS REGISTER SENATOR DRUE PEARCE Alaska State Legislature Capitol Building, Room 111 Juneau, Alaska 99801 POSITION STATEMENT: Testified as sponsor of CSSB 229(FIN). NAN THOMPSON, Chairman Regulatory Commission of Alaska 1016 West Sixth Avenue, Suite 400 Anchorage, Alaska 99501-1963 POSITION STATEMENT: Answered questions regarding CSSB 229(FIN). BOB CHRISTENSON, Chairman Alaska Oil and Gas Conservation Commission 3001 Porcupine Drive Anchorage, Alaska 99501-3120 POSITION STATEMENT: Testified on CSSB 229(FIN). MARK TORGERSON Alaska Labor Relations Agency 3301 Eagle Street, Suite 208 P.O. Box 107026 Anchorage, Alaska 99510-7026 POSITION STATEMENT: Answered question regarding appointments to the boards and commissions. ACTION NARRATIVE TAPE 00-18, SIDE A Number 0001 CHAIRMAN NORMAN ROKEBERG called the House Labor and Commerce Standing Committee meeting to order at 3:20 p.m. Members present at the call to order were Representatives Rokeberg, Halcro, Murkowski and Harris. Representatives Brice, Cissna and Sanders arrived as the meeting was in progress. SB 229-REGULATORY COMM. OF ALASKA/AOGCC CHAIRMAN ROKEBERG announced the first order of business would be CS FOR SENATE BILL NO. 229(FIN), "An Act relating to the employment of hearing examiners, arbitrators, and mediators by the Regulatory Commission of Alaska; repealing a requirement that the principal office of the Alaska Oil and Gas Conservation Commission move to the same location as the principal office of the Regulatory Commission of Alaska; relating to the sharing of record-keeping facilities and clerical staff by the two commissions; and providing for an effective date." Number 0104 SENATOR DRUE PEARCE, Alaska State Legislature, came forward to testify as the sponsor of CSSB 229(FIN). She said SB 229 makes technical changes to last year's SB 133, regarding the abolishment of the APUC [Alaska Public Utilities Commission] and the establishment of the Regulatory Commission of Alaska [RCA]. Senator Pearce stated: Mr. Chairman, let me say that from all indications that I've gotten from all of the industries involved in regulatory issues in Alaska, the changes that we made last year have been well received by the public. The new commission, as they came in the door, have found nearly 800 open dockets and requests for action by the old APUC that had not been dealt with. So, they came in the door with 800 things on their plate, and there have been another 90 to 100 added as they've been doing triage with that huge number of open items. They are making good progress. Number 0220 The three changes in SB 133, two of them are sheer language questions and the third one is actually repealing a provision contained in the original bill. We had obligated the Regulatory Commission of Alaska to co-locate with the Alaska Oil and Gas Conservation Commission [AOGCC], hoping two things would happen. We thought we could achieve some cost savings, both through shared record storage facilities as well as shared clerical staff. The Department of Administration [DOA] conducted a thorough review and came back to the RCA, the AOGCC and to us, and said that we weren't going to be able to achieve economies of scale. In fact, trying to find space in Anchorage where they could co-locate the two agencies, it was going to cost us quite a bit of additional money because the RCA has quite a special lease, I must say, in their present building. And leaving that facility and leaving that space was going to be real costly, and it didn't make a lot of sense to pursuit that. I understand that the Department of Administration, though, is still pursuing getting the AOGCC moved out of their building in Mountain View - which is, as you remember, in extremely poor shape and is no better than it was when I sat here last year - and into new space. We can let the Department of Administration speak to how far along they are in that, but they are certainly moving forward as quickly as they can. The second change in the bill corrects a drafting error. We allowed the commission, in SB 133, to employ hearing officers instead of hearing examiners. The difference is that a hearing officer does not need to be an attorney and the hearing examiner does need to be an attorney. The commission needs hearing examiners because they have to adjudicate legal matters during the hearing process, and that requires them to act as a judge during the hearings. So, they need to be proficient in judicial proceedings.... As the chairman of the RCA attempted to hire people into these positions, she ran into a problem because we had the wrong language. So, we're making that change: officers rather than examiners. The final revision clarifies that the commission can employ and utilize mediators as well as arbitrators in their hearing process. While that was our intent last year, the language in the bill was unclear. Mediation is a less formal process than arbitration. It's more expeditious in finding common ground, and the commission hopes to be able to employ mediation and utilize mediators as a first step, before having to go to a formal arbitration process, in some of the matters that come before the commission. It should help them streamline their activities. That's all the bill does. Number 0462 CHAIRMAN ROKEBERG pointed out that the companion bill to CSSB 229(FIN), HB 323, had been heard in the House Special Committee on Utility Restructuring. He indicated that the bill packet contains a letter that he drafted at the request of Representative Hudson [chair of the House Special Committee on Utility Restructuring]. It contains an analysis of the office space premises situation and recommends against co-locating. SENATOR PEARCE said the point is to get the people moved from the Mountain View building because it is an unsafe location. CHAIRMAN ROKEBERG agreed and said that is the reason CSSB 229 (FIN) should be moved along expeditiously. REPRESENTATIVE MURKOWSKI referred to the issue of hearing examiners versus hearing officers. She wondered if there is a need for hearing officers as well as hearing examiners. NAN THOMPSON, Chairman, Regulatory Commission of Alaska, testified via teleconference from Anchorage. She stated that there is not presently a need to also employ hearing officers because of the nature of the work the RCA assigns to them. The hearing officers generally would be competent to resolve cases where there are not substantial legal issues. The RCA uses the hearing officers to sit with them in some cases and run the hearings procedurally. Generally, the nature of questions presented to the RCA are more complex, and a lawyer is required to assist in resolving issues that are raised. REPRESENTATIVE MURKOWSKI noted that the position descriptions for both hearing examiners and hearing officers are included in the bill packet. It was unclear to her, however, if there was a need for the ability to hire hearing officers. MS. THOMPSON said she does not believe that ability is needed. Number 0643 CHAIRMAN ROKEBERG asked Ms. Thompson is she would like to comment. MS. THOMPSON thanked the committee for the prompt consideration of this bill. She agreed with Senator Pearce's comments and requested passage of the bill by the committee. Number 0677 BOB CHRISTENSON, Chairman, Alaska Oil and Gas Conservation Commission (AOGCC), testified via teleconference from Anchorage. He stated that he supports Senator Pearce and the changes in the bill. He is looking forward to moving the bill. CHAIRMAN ROKEBERG asked Mr. Christenson to describe AOGCC's current location. MR. CHRISTENSON responded that it is a kind of vintage, right- after-the-earthquake, single-storage-lot building in a fairly obscure part of the city. It would be more beneficial to the business process of AOGCC to be closer to their clients and the public. Number 0810 REPRESENTATIVE HALCRO made a motion to move CSSB 229(FIN) out of committee with individual recommendations and the attached fiscal note. There being no objection, CSSB 229(FIN) moved from the House Labor and Commerce Standing Committee. HB 314-PROCUREMENT PREFS:PARTNERSHP/LTD LIAB CO CHAIRMAN ROKEBERG announced the next order of business would be HOUSE BILL NO. 314, "An Act clarifying the requirements for limited liability companies and partnerships to qualify for the Alaska bidder's and disability preferences under the State Procurement Code; and providing for an effective date." Number 0862 REPRESENTATIVE HALCRO, who had chaired the subcommittee on HB 314, indicated he previously had concerns regarding Alaska bidder's preference. He informed the committee: After our discussions with Vern Jones, Chief Procurement Officer [Division of General Services, Department of Administration], who was very helpful, it seems that barring a complete rewrite of the state's procurement code, the amendment that we wish to forward or the goal that we wish to accomplish is not possible. So, at this time, Mr. Chair, I would simply report back that the amendment is not workable and would like to report ... that we should just adopt HB 314 in its original form. REPRESENTATIVE MURKOWSKI made a motion to move HB 314 out of committee with individual recommendations and the attached zero fiscal note. There be no objection, HB 314 moved from the House Labor and Commerce Standing Committee. CONFIRMATION HEARINGS CHAIRMAN ROKEBERG explained that the signing of transmittal letters by individual members did not reflect an intent by any member to vote for or against an individual during any further sessions for the purpose of confirmation. He asked if there were any objections to the appointments to the following boards and commissions: Board of Accountants Lottie C. Fleeks - Fairbanks Dean W. Nelson - Anchorage Board of Architects Kathleen L. Gardner - Anchorage Ernie Siemoneit - Healy Board of Dental Examiners Mary Ann Cerney - Fairbanks David Grant Logan - Juneau Board of Labor Relations Richard D. Brickley - Fairbanks Robert A. Doyle - Wasilla Board of Marine Pilots Jeffrey L. Thompson - Dutch Harbor Board of Marital and Family Therapy Vivian C. Finlay - Wasilla Ann W. Swift - Fairbanks State Medical Board Irvin A. Rothrock - Fairbanks Board of Midwives Dana Brown - Fairbanks Mark Richey - Anchorage Board of Nursing Lynn E. Hartz - Anchorage Susan Rinker - Barrow Nancy L. Sanders - Anchorage Mary H. Weymiller - Fairbanks Board of Occupational Safety Timothy O. Sharp - Fairbanks Board of Optometry Aharon Sternberg - Anchorage Board of Pharmacy Mark D. Bohrer - Eagle River Ron J. Miller - Chugiak Laura Lee Nelson - Juneau Board of Physical and Occupational Therapy Dee Berline - Anchorage Board of Professional Counselors Sondra Sexton-Jones - Wrangell Board of Real Estate Appraisers Eileen R. Bechtol - Homer Board of Social Work Examiners Beverly Haywood - Juneau Board of Veterinary Examiners D. Jean Battig - Fairbanks Worker's Compensation Commission Harriet M. Lawlor - Anchorage Number 1251 MARK TORGERSON, Alaska Labor Relations Agency, testified via teleconference from Anchorage and said he was available to answer any questions. CHAIRMAN ROKEBERG wondered if the positions on the Board of Labor Relations are those that can be removed for cause or if they are removed at the will of the governor. MR. TORGERSON replied that the positions are appointed by the governor and can be removed by the governor only for cause, as stated in AS 23.05.360. There being no objections, the confirmations were advanced to a joint House and Senate session for consideration. ADJOURNMENT Number 1755 CHAIRMAN ROKEBERG adjourned the House Labor and Commerce Standing Committee at 3:54 p.m.