SENATE LABOR AND COMMERCE COMMITTEE March 4, 1993 1:47 p.m. MEMBERS PRESENT Senator Tim Kelly, Chairman Senator Steve Rieger, Vice-Chairman Senator Drue Pearce Senator Georgianna Lincoln OTHERS PRESENT Senator Bert Sharp MEMBERS ABSENT Senator Judy Salo COMMITTEE CALENDAR SENATE BILL NO. 76 "An Act preventing persons with felony convictions from being involved in charitable gaming activities as a permittee, licensee, or employee in a managerial or supervisory capacity; and relating to `political uses' and `political organizations' as those terms are used in the charitable gaming statutes." SENATE BILL NO. 122 "An Act relating to the disclosure of information by an employer about the job performance of an employee or former employee." SENATE BILL NO. 112 "An Act relating to the Uniform Commercial Code; amending Alaska Rules of Civil Procedure 8 and 82, and Alaska Rule of Evidence 402; and providing for an effective date." PREVIOUS SENATE COMMITTEE ACTION SB 76 - See Labor & Commerce minutes dated 2/11/93, and 2/25/93. SB 122 - NONE. SB 112 - See Labor and Commerce minutes dated 3/2/93. WITNESS REGISTER Ken Erickson, Aide Senator Drue Pearce State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Testified on SB 76. Chip Thoma Juneau, Alaska 99801 POSITION STATEMENT: Opposed SB 76. Jamie Parsons, President Alaska State Chamber of Commerce 217 Second Street #201 Juneau, Alaska 99801 POSITION STATEMENT: Supported SB 122. Resa Jerrel, President National Federation of Independent Business 9159 Skywood Lane Juneau, Alaska 99801 POSITION STATEMENT: Supported SB 122. Jerry Kurtz, Attorney testified off-net from Anchorage, Alaska POSITION STATEMENT: Supported SB 112. ACTION NARRATIVE TAPE 93-17, SIDE Number 001 CHAIRMAN TIM KELLY called the Labor and Commerce Committee meeting to order at 1:47 p.m. SENATOR KELLY returned SS FOR SENATE BILL NO. 76 (CHARITABLE GAMING RESTRICTIONS) sponsored by SENATOR DRUE PEARCE to committee. SENATOR PEARCE asked KEN ERICKSON from her staff and JERRY LUCKHAUPT from Legislative Legal Counsel, to address the comparisons in the original bill and the sponsor substitute. MR. ERICKSON explained SB 76 contained two basic concepts, beginning with the first half of the bill which denies felons from activity in charitable gaming. The second half of the bill would prohibit direct contributions of net proceeds from charitable gaming to political candidates. MR. ERICKSON explained the sponsor substitute aimed to achieve the same ends, with the first half of the SS combining all of the felony exclusions into a single section, AS 05.15.105. He described these exclusions as being scattered throughout Title 5. The SS would delete the scattered sections and combine their intent into one section for the sake of clarity. MR. ERICKSON explained the second part of the SSSB 76 limits direct political contributions from net proceeds to activities other than bingo and pull-tabs. SENATOR PEARCE said there was presently a ban on classified and class A felons for life, and she explained the pertinent points. She said there had always been a ban on those convicted of "theft and dishonesty," but those convicted of a felony might be considered for resumption of gaming after 10 years. Number 054 SENATOR KELLY offered CHIP THOMA time for some quick testimony. MR. THOMA expressed his pleasure at the inclusion of white collar crime as a preclusion for being involved in gambling activities, since white collar crimes are those of dishonesty and theft. He protested, to his knowledge, any instance of a political party being involved with an operator who stole the proceeds from that political party, as has happen to many of the other charities. He continued to argue for allowing political parties full participation in gaming. SENATOR KELLY noted he had a list of occupations and licenses affected by felony convictions, and he thought the list prevented a person from getting a real job. SENATOR PEARCE moved to adopt CS FOR SENATE BILL NO. 76(L&C) (CHARITABLE GAMING RESTRICTIONS). Without objections, so ordered. SENATOR PEARCE moved to pass CS FOR SENATE BILL NO. 76(L&C) (CHARITABLE GAMING RESTRICTIONS) from committee with individual recommendations and the appropriate fiscal note. Without objections, so ordered. SENATOR KELLY introduced SB 122 (EMPLOYER'S LIABILITY FOR REFERENCE INFORMATION) and invited the sponsor, SENATOR BERT SHARP, to testify. SENATOR SHARP said SB 122 was similar to a bill passed by the Senate last session, and is "An act relating to the disclosure of information by an employer about the job performance of an employee or former employee." He explained it would protect employers from liability in the disclosure of job performance information regarding a former employee to a prospective employer. He gave some statistical background on the increase of such suits in the last few years, and out of fear from these lawsuits, many employers are refusing to give honest or meaningful job performance information to prospective employers. Number 150 SENATOR SHARP explained SB 122 would free up the exchange of information in the work place, assure reasonable protection to employers, and protect only employers who give honest, well-intentioned references. He urged support for SB 122. SENATOR LINCOLN asked SENATOR SHARP if the words, employer and employee, could be defined in the legislation, and she gave examples from her district. SENATOR SHARP explained an employer is a person who engages the services of any number of persons, documented in a personnel file, and paid a remuneration. Number 214 SENATOR LINCOLN said she didn't have a problem with the intent of the legislation, but she described a number of problems faced by employees who do not know what rights they have in relation to their personnel file. She claimed there was false information in some employee files that shouldn't be there, and she asked how the employees could be protected. SENATOR SHARP suggested the business people could speak to the problem she outlined. He also suggested some available documents on the subject. SENATOR LINCOLN asked for assurances that individuals in the villages were protected, too, because the turn-over is quite rapid. She asked for a correction within the legislation to protect the employees in her district. SENATOR KELLY invited JAMIE PARSONS, President of the Alaska State Chamber of Commerce, to testify. MR. PARSONS read the position paper from the ASCC, which supports SB 122 because of the protection it provides employers. He read "While ASCC fully recognizes the value of good employees, it is important that employers be able to share all pertinent information without fear of repercussion, providing they are acting in good faith." MR. PARSONS had no statistics on defamation cases that have been tried, won, or settled out of court. He concluded by explaining SB 122 was the #1 legislative priority for the State Chamber of Commerce, and he described how the decision was reached. Number 284 SENATOR RIEGER asked MR. PARSONS whether there was information in a personnel file any of the data was confidential. MR. PARSONS thought there were standards and rules, and he suggested to SENATOR LINCOLN, that in a small business, the employee should discuss the personnel file with the owner or manager. MR. PARSONS explained the legislation would involve the state, the private sector, and non-profit organizations. SENATOR RIEGER said he liked the bill and referred to line 10 and suggested the Judiciary Committee resolve the type of disclosures. SENATOR KELLY gave a personal experience of being an employer where negative employment might have been furnished, by wasn't because of the skidish nature of the disclosure. SENATOR LINCOLN suggested the bill might be amendment to include "that any written documentation given to an employer, should also be given to the former employee," and she expanded on her request in relation to companies in her district. SENATOR LINCOLN, in reference to line 5, thought this was and area where "information" is defined as to telephone or written. She also referred to line 8 to question the meaning of the sentence. Number 359 SENATOR LINCOLN asked MR. PARSONS if he had any objections to language added to share the written document with the former employee. MR. PARSONS didn't think this would pose a problem, except if it impacted the paper work of the employer. He explained, in his case, most of the references were verbal. SENATOR KELLY wondered aloud the solution to SENATOR LINCOLN'S request and suggested the reference be made available if the employee wish to look at it after it is made available to the former employee. SENATOR SHARP explained, from his past experience, most reference requests were by phone on a past employee, but he thought a hard copy could be sent to the last known address. SENATOR LINCOLN described a procedure for getting the most current address. SENATOR KELLY thought the easiest method would be to have the reference information be available upon request by the former employee. SENATOR SHARP gave what he considered the most often scenario. Number 411 SENATOR KELLY invited RESA JERREL, President of the National Federation of Independent Businesses, to testify. SENATOR LINCOLN asked for a response from her question on line 8 to explain the phrase relating to current or departed employees. She discussed the response with SENATOR SHARP. MS. JERREL explained the support of SB 122 came from her organization in the form of a ballot question where 86% of the NFIB/Alaska members voted to support the legislation. She reviewed the problems of small business people in Alaska who spend a great deal of time hiring and firing employees because of drugs, alcohol, and thievery. She discussed her research on giving a written reference to employers which she offered to share with SENATOR SHARP. SENATOR LINCOLN asked SENATOR SHARP if he recalled the Colorado regulations, and SENATOR SHARP had just received them. He said they would be made available to the next committee, and he disclosed the regulations dealt with giving a copy of the reference to the employee. SENATOR KELLY asked that the regulation information be given to the Judiciary Committee. SENATOR PEARCE move to pass SENATE BILL NO. 122 (EMPLOYER'S LIABILITY FOR REFERENCE INFORMATION) from committee with individual recommendations and no fiscal note. Without objections, so ordered. SENATOR KELLY returned SB 112 (UNIFORM COMMERCIAL CODE REVISIONS) to committee and noted JERRY KURTZ was off-net in Anchorage to testify. Number 458 SENATOR KELLY affirmed from MR. KURTZ he had a copy of the MUNICIPALITY OF ANCHORAGE 1993 LEGISLATIVE PROGRAM dealing with the Uniform Commercial Code, but thought the proposed amendment should be made more specific. He gave some background information on problems to the municipality . SENATOR KELLY asked for the wording on the proposed amendment, and MR. KURTZ said the "s" should be removed from the word, liens, in the phrase "municipal tax liens" and he said there was only one tax lien described in AS 29.45.300. He explained it was the tax lien for municipalities against all personal property as assessed, and he explained the value of the proposed amendment to the municipality. SENATOR KELLY moved the adoption of the following amendment to SB 112: Nothing in these sections shall be construed to defeat the prior and paramount position of the municipal tax lien established in AS 29.45.300. Without objections, so ordered. Number 494 There was some general discussion about the legislation, which will go to Judiciary and Finance committees. SENATOR LINCOLN had a question about the bill in relation to the impact on state funded loan and investment programs. MR. KURTZ explained the first place it would impact the state loans and investments is in Article 9 on security interests, and he referred members to page 5 of SB 112, where the Article 9 amendments begin. He gave some specific examples as his explanation on clarity. SENATOR PEARCE moved to adopt the new committee substitute for SB 112 (UNIFORM COMMERCIAL CODE REVISIONS) incorporating the new amendment. Without objections, so ordered. SENATOR PEARCE moved to pass CS FOR SENATE BILL NO. 112(L&C) (UNIFORM COMMERCIAL CODE REVISIONS) from committee with individual recommendations and a proper fiscal note. Without objections, so ordered. There being no further business to come before the committee, the meeting was adjourned at 2:30 p.m.