ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 28, 2005
1:38 p.m.
MEMBERS PRESENT
Senator Ralph Seekins, Chair
Senator Ben Stevens, Vice Chair
Senator Johnny Ellis
Senator Bettye Davis
MEMBERS ABSENT
Senator Charlie Huggins
COMMITTEE CALENDAR
CONFIRMATION HEARINGS
Alcohol Beverage Control Board
Michael Gordon - Anchorage
William Tull - Palmer
Board of Marine Pilots
Dale Collins - Ketchikan
Real Estate Commission
Gene DuVal - Fairbanks
Roger Stone - Ketchikan
CS FOR HOUSE BILL NO. 61(FIN)
"An Act relating to Calcutta pools and crane classics as
authorized forms of charitable gaming."
MOVED SCS HB 61(L&C) OUT OF COMMITTEE
CS FOR HOUSE BILL NO. 211(FIN)
"An Act extending the termination date of the Board of Dental
Examiners; and relating to dentists and dental hygienists."
MOVED CSHB 211(FIN) OUT OF COMMITTEE
SENATE BILL NO. 173
"An Act relating to the requirements to qualify as a newspaper
in which notices of property sales are published."
HEARD AND HELD
CS FOR HOUSE BILL NO. 216(L&C)(title am)
"An Act relating to policy forms and rates that require filing;
requiring the filing of certain rates, rating schedules, loss
cost adjustments, and rating plans with the director of the
division of insurance; establishing a procedure for the director
of the division of insurance to obtain additional supporting
information from an insurer for a filing; relating to an
application for a rate other than that in an applicable rate
filing; requiring prior approval for certain rating systems and
the procedure for approving a filing; providing for the issuance
of orders relating to nonconforming filings after a hearing;
relating to the regulation of joint underwriting and joint
reinsurance; relating to flex rating; relating to file and use,
filing of rates, supplementary rate information, and supporting
information; authorizing the director of the division of
insurance to require prior approval; relating to form filing
subject to prior approval and form filing subject to file and
use; and providing for penalties relating to file and use."
MOVED CSHB 216(L&C)(TITLE AM) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 61
SHORT TITLE: GAMING: CALCUTTA POOLS & CRANE CLASSICS
SPONSOR(s): REPRESENTATIVE(s) MCGUIRE
01/10/05 (H) READ THE FIRST TIME - REFERRALS
01/10/05 (H) L&C, FIN
01/31/05 (H) L&C AT 3:15 PM CAPITOL 17
01/31/05 (H) Moved CSHB 61(L&C) Out of Committee
01/31/05 (H) MINUTE(L&C)
02/02/05 (H) L&C RPT CS(L&C) 3DP 3NR
02/02/05 (H) DP: KOTT, LEDOUX, ANDERSON;
02/02/05 (H) NR: LYNN, GUTTENBERG, ROKEBERG
02/09/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
02/09/05 (H) <Bill Hearing Postponed>
03/16/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/16/05 (H) Heard & Held
03/16/05 (H) MINUTE(FIN)
03/17/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/17/05 (H) Moved CSHB 61(FIN) Out of Committee
03/17/05 (H) MINUTE(FIN)
03/18/05 (H) FIN RPT CS(FIN) NT 3DP 5NR
03/18/05 (H) DP: HAWKER, FOSTER, CHENAULT;
03/18/05 (H) NR: HOLM, STOLTZE, KELLY, CROFT, MEYER
03/29/05 (H) TRANSMITTED TO (S)
03/29/05 (H) VERSION: CSHB 61(FIN)
03/29/05 (S) READ THE FIRST TIME - REFERRALS
03/29/05 (S) L&C, FIN
04/14/05 (S) L&C AT 1:30 PM BELTZ 211
04/14/05 (S) Heard & Held
04/14/05 (S) MINUTE(L&C)
04/28/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 211
SHORT TITLE: DENTISTS; HYGIENISTS; BD OF DENTAL EXAM.
SPONSOR(s): REPRESENTATIVE(s) KELLY
03/07/05 (H) READ THE FIRST TIME - REFERRALS
03/07/05 (H) L&C, FIN
04/01/05 (H) L&C AT 3:15 PM CAPITOL 17
04/01/05 (H) Moved Out of Committee
04/01/05 (H) MINUTE(L&C)
04/04/05 (H) L&C RPT 4DP 2NR
04/04/05 (H) DP: CRAWFORD, LYNN, ROKEBERG, ANDERSON;
04/04/05 (H) NR: LEDOUX, GUTTENBERG
04/14/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/14/05 (H) Moved CSHB 211(FIN) Out of Committee
04/14/05 (H) MINUTE(FIN)
04/15/05 (H) FIN RPT CS(FIN) 4DP 6NR
04/15/05 (H) DP: CROFT, FOSTER, KELLY, MEYER;
04/15/05 (H) NR: HAWKER, STOLTZE, HOLM, MOSES,
WEYHRAUCH, CHENAULT
04/20/05 (H) TRANSMITTED TO (S)
04/20/05 (H) VERSION: CSHB 211(FIN)
04/21/05 (S) READ THE FIRST TIME - REFERRALS
04/21/05 (S) L&C, FIN
04/26/05 (S) L&C AT 1:30 PM BELTZ 211
04/26/05 (S) -- Meeting Canceled --
04/28/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: SB 173
SHORT TITLE: NEWSPAPER PROPERTY SALES NOTICES
SPONSOR(s): SENATOR(s) COWDERY
04/14/05 (S) READ THE FIRST TIME - REFERRALS
04/14/05 (S) L&C, FIN
04/26/05 (S) L&C AT 1:30 PM BELTZ 211
04/26/05 (S) -- Meeting Canceled --
04/28/05 (S) L&C AT 1:30 PM BELTZ 211
BILL: HB 216
SHORT TITLE: INSURANCE RATES,FORMS,& FILING
SPONSOR(s): LABOR & COMMERCE
03/09/05 (H) READ THE FIRST TIME - REFERRALS
03/09/05 (H) L&C, FIN
03/18/05 (H) L&C AT 3:15 PM CAPITOL 17
03/18/05 (H) <Bill Hearing Postponed to Mon.
3/21/05>
03/21/05 (H) L&C AT 3:15 PM CAPITOL 17
03/21/05 (H) Heard & Held
03/21/05 (H) MINUTE(L&C)
04/01/05 (H) L&C AT 3:15 PM CAPITOL 17
04/01/05 (H) Moved CSHB 216(L&C) Out of Committee
04/01/05 (H) MINUTE(L&C)
04/04/05 (H) L&C RPT CS(L&C) 3DP 3NR
04/04/05 (H) DP: CRAWFORD, ROKEBERG, ANDERSON;
04/04/05 (H) NR: LYNN, LEDOUX, GUTTENBERG
04/19/05 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/19/05 (H) Moved CSHB 216(L&C) Out of Committee
04/19/05 (H) MINUTE(FIN)
04/20/05 (H) FIN RPT CS(L&C) 4DP 2NR
04/20/05 (H) DP: HAWKER, CROFT, MOSES, MEYER;
04/20/05 (H) NR: STOLTZE, CHENAULT
04/27/05 (H) TRANSMITTED TO (S)
04/27/05 (H) VERSION: CSHB 216(L&C)(TITLE AM)
04/28/05 (S) L&C AT 1:30 PM BELTZ 211
WITNESS REGISTER
SHALON SZYMANSKI
Staff to Representative Lesil McGuire
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 61 for the sponsor.
LARRY MEYERS, Deputy Director
Tax Division
Department of Revenue
PO Box 110400
Juneau, AK 99811-0400
POSITION STATEMENT: Available to answer questions on HB 61.
HEATH HILYARD
Staff to Representative Mike Kelly
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 211 for the sponsor.
JIM TOWLE, Executive Director
Alaska Dental Society
9170 Jewel Lake Rd., Suite #203
Anchorage, Alaska 99502
POSITION STATEMENT: Supported HB 211.
PAT DAVIDSON, Legislative Auditor
Division of Legislative Audit
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Supported HB 211.
RYAN MAKINSTER
Staff to Senator Cowdery
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on SB 173 for the sponsor.
JOSH APPLEBEE
Staff to Representative Tom Anderson
Alaska State Capitol
Juneau, AK 99801-1182
POSITION STATEMENT: Commented on HB 216 for the sponsor.
ACTION NARRATIVE
CHAIR RALPH SEEKINS called the Senate Labor and Commerce
Standing Committee meeting to order at 1:38:04 PM. Present were
Senators Ellis, Davis, Ben Stevens and Chair Seekins. Senator
Seekins announced that he is a temporary chair while Senator
Bunde is excused and that Senator Charlie Huggins would
temporary fill his seat on the committee.
1:40:01 PM
CONFIRMATION HEARINGS
^Alcohol Beverage Control Board: Michael Gordon - Anchorage,
William Tull - Palmer
^Board of Marine Pilots - Dale Collins - Ketchikan
^Real Estate Commission: Gene DuVal - Fairbanks, Roger Stone -
Ketchikan
SENATOR BEN STEVENS moved to forward the nominees for all the
boards to the full body. There were no objections and it was so
ordered.
CSHB 61(L&C)-GAMING: CALCUTTA POOLS & CRANE CLASSICS
CHAIR RALPH SEEKINS announced HB 61 to be up for consideration.
SENATOR BEN STEVENS moved to adopt SCS CSHB 61(L&C), version L,
4/22/05.
SENATOR ELLIS objected for an explanation.
SHALON SZYMANSKI, staff to Representative Lesil McGuire,
explained how the CS addresses concerns raised in the last
meeting. Previously, the bill said at least 30 percent of
proceeds must go to charities in Calcutta pools and that has
been changed to no less than 50 percent.
1:42:22 PM
The second change is in section 7, which limits the number of
Calcutta permits per event to only one permit. It also states
that the organization hosting the event is the only organization
that could be granted a permit. The Iditarod Committee could ask
the Boys and Girls Club in Nome to sponsor the event, because
those are non-profit organizations.
1:43:26 PM
Section 10 states that Calcutta pools cannot be held for horse
racing. The last change was a technical change to make it clear
that operators cannot be hired to conduct a Calcutta pool.
1:44:14 PM
SENATOR ELLIS removed his objection and version L was adopted.
1:44:30 PM
LARRY MEYERS, Deputy Director, Tax Division, Department of
Revenue (DOR), was present to answer questions, but there were
none.
1:45:07 PM
SENATOR BEN STEVENS moved to pass SCS CSHB 61(L&C), version L,
from committee with individual recommendations and attached
fiscal note. There were no objections and it was so ordered.
CSHB 211(FIN)-DENTISTS; HYGIENISTS; BD OF DENTAL EXAM.
CHAIR SEEKINS announced HB 211 to be up for consideration.
HEATH HILYARD, staff to Representative Mike Kelly, sponsor of HB
211, related that in addition to being a sunset extension, it
does several things with regards to the regulation of the
practice of dentistry and dental hygienists. It implements a
change of continuing education requirements for dental
hygienists to 700 hours annually rather than the current 14
hours per week. It also modifies the inspection period for
radiological equipment used in dentistry to five years from four
and clarifies the qualifications for licensure by broadening the
criminal activity language on page 4, lines 3 - 7. The intent
was to give relatively vague language to the board so that it
could determine that on a case-by-case basis rather than
mandating specific examples of past activity.
The requirements of specialty licensure were also clarified and
the intent is to offer the board the opportunity to accept any
approved examination rather than specifying a specific
examination in statute.
JIM TOWLE, Executive Director, Alaska Dental Society, supported
HB 211. He offered to answer questions.
PAT DAVIDSON, Division of Legislative Audit, found that this
board is operating effectively in the public's interest and
suggested no changes. She recommended a non-standard six-years
extension in trying to smooth out the number of boards and
commissions that the legislature has to deal with in any
particular year.
1:50:57 PM
SENATOR BEN STEVENS moved to pass CSHB 211(FIN) from committee
with individual recommendations and attached fiscal note. There
were no objections and it was so ordered.
1:51:54 PM At ease 1:52:42 PM
SB 173-NEWSPAPER PROPERTY SALES NOTICES
CHAIR RALPH SEEKINS announced SB 173 to be up for consideration.
RYAN MAKINSTER, staff to Senator Cowdery, explained that SB 173
addresses an issue regarding notice of a fail on execution for
real property. Currently before a sale of property on execution
can take place, a public notice must be given including
certified mail, mail and public notice in a newspaper. SB 173
addresses the fact that the current definition of general
circulation newspaper includes one provision - that it would
have a second-class federal postage permit. This was under the
belief that newspapers in general circulation had that power.
Nowadays there are free newspapers - the Anchorage Press, for
example. And now it has an overwhelming circulation - enough to
qualify in other states as a general circulation newspaper.
The intent of AS 9.35.410 is to notify the public.
What better way to notify the public than a broad-
reaching free newspaper? Basically, all this bill will
do is remove the requirement of a second-class mailing
permit.
As the statute is currently written, periodical permits are
called second-class mailing permits.
1:55:28 PM
SENATOR BEN STEVENS asked when the definition of a second-class
permit was changed to periodical.
MR. MAKINSTER replied that it was changed in 1996. He added that
other provisions for general circulation are that the paper has
to be distributed at least once a week for 50 weeks in each year
and must have a total paid circulation or distribution of 500
copies or 10 percent of the total population of the judicial
district in which it is located.
SENATOR BEN STEVENS asked how many publications this would
affect other than the Anchorage Press.
MR. MAKINSTER replied that the Anchorage Press is the only
publication he knows of.
1:57:27 PM
SENATOR ELLIS asked if the Pulse, in Anchorage, would qualify.
MR. MAKINSTER replied that he didn't know for sure.
If they did a broad notice across all of their
circulations, that would fulfill the number within the
judicial district, but if you specifically went to the
South side, that doesn't have a large enough
circulation to fulfill that, it would have to be in
every publication. I believe under that case, it would
fill the obligation.
SENATOR ELLIS pointed out that there are more than just three
newspapers statewide and asked if the Anchorage Daily News and
Chugiak Eagle River Star would qualify also.
MR. MAKINSTER apologized and said that he was only thinking of
the Anchorage area and forgot to mention that other papers
qualify. The Juneau Empire is another paper that has a
periodical permit, which was previously a class 2 permit.
1:59:10 PM
CHAIR SEEKINS said he had never even seen a copy of the
Anchorage Press and asked how many other people would rely on a
general circulation paper to keep abreast of public notices like
him. He was curious if they are just trying to reach a number or
really trying to fulfill the purpose of a public notice.
MR. MAKINSTER replied that his argument can be made, but on the
other hand, a subscription doesn't automatically reach the
people you want it to and, as a consequence, language says a
publication only has to reach a large enough number to qualify
for general circulation.
CHAIR SEEKINS asked if the bidding process on public notice is
for each notice or to be the publisher of public notices in the
community.
MR. MAKINSTER replied currently when a public notice goes out to
bid, just one entity is being used. He didn't know how this
would change the process.
2:02:19 PM
CHAIR SEEKINS said he was concerned that a general-purpose
publication (not intended primarily for a particular
professional or occupational group) that had a total paid
distribution of at least 500 copies could bid competitively
against a newspaper with tens of thousands of readers.
He has a high regard for trying to reach the greatest number of
people possible with public notice and thought that was part of
the legislature's responsibility. If he puts public notice up
for bid and as a result of a lower bid, he notifies fewer
people, he is not meeting his public responsibility.
MR. MAKINSTER responded that the sponsor's intent is to allow
free circulation newspapers that fulfill the obligations of
having a permit to bid on public notices, but he would work with
Senator Seekins on language that would address his concern with
the smaller-running publications.
2:04:18 PM
SENATOR BEN STEVENS said he would not classify requirement for
public notice as an advertisement.
Most people that follow the public notice for sale of
real property in Anchorage are almost in the business.
Regardless of what publication it's in, they would
know where it's going to go and they would follow it.
He wasn't quite in agreement with requiring that the public
notice has to reach as many people as possible.
2:05:29 PM
CHAIR SEEKINS said he was not that concerned if the intent is to
broaden the availability and distribution, but if it's an
"either or" situation, he did. He thought this bill could easily
be portrayed as single-interest legislation and that probably
wasn't the intent of the sponsor. He asked if the large papers
in the state had commented.
MR. MAKINSTER replied that he had contacted the Anchorage Daily
News circulation manager who didn't have any response.
2:07:35 PM
SENATOR ELLIS asked if notices could be in the free Capital City
Weekly instead of the Juneau Empire.
MR. MAKINSTER replied that he didn't know if the Capital City
Weekly qualified under the circulation number.
2:07:56 PM
CHAIR SEEKINS asked if there was a definition difference between
circulation and the number of copies printed.
MR. MAKINSTER replied that just printing them and leaving them
in warehouses does not fulfill that obligation, they have to at
least be on a stand.
2:08:12 PM
SENATOR BEN STEVENS said that numerous smaller publications have
a big circulation in the west and southwest parts of the state
and they that have to have the periodic bulk rate to fulfill
their distribution rate from their subscription base as well as
their free distribution. He knows that those circulations carry
public notices in them. Their distribution might not be as big
as the Anchorage Press, but because they have the bulk rate,
they have been able to participate under the public notice
process.
CHAIR SEEKINS replied that he wasn't trying to constrict their
participation, but rather he was trying to make sure they didn't
constrict it by this law. He said that he would hold SB 173 so
he could at least talk to his newspaper in Fairbanks. He
asserted that he is not trying to protect the economic interest
of the Anchorage Daily News.
CHAIR SEEKINS announced he would hold SB 173 in committee.
CSHB 216(FIN)TITLE AM-INSURANCE RATES,FORMS,& FILING
2:10:00 PM
CHAIR SEEKINS announced HB 216 to be up for consideration.
JOSH APPLEBEE, staff to Representative Tom Anderson, sponsor of
HB 216, said that it is an insurance rate regulation bill. He
explained that under existing law, property and casualty
insurance rates and forms are subject to the insurance
commissioner's prior approval before they can be put in place.
HB 216 maintains the commissioner's authority to oversee the
rate changes, but allows an insurer to make rate increases or
decreases within the flex band without having to obtain prior
approval from him. The flex band is defined as a cumulative 10
percent shift in rates within a 12-month period.
He said that HB 216 has three basic purposes. It creates an
environment where insurers compete more vigorously on rates and
products offered to consumers; it encourages insurers who are in
the Alaska market to stay here and hopefully it will attract new
insurers to Alaska, which would result in more competition
giving consumers more choices and more competitive pricing.
Third, HB 216 is in alignment with the national movement away
from strict government price controls towards a flexible more
competition-oriented system for the regulation of insurance
rates and insurance forms. It would modernize the state's
regulation system.
2:13:12 PM
CHAIR SEEKINS asked if this is exactly the same as SB 168.
MR. APPLEBEE replied yes.
CHAIR SEEKINS asked if anyone wanted to testify against this
bill. Seeing no response, he asked the will of the committee.
2:13:30 PM
SENATOR BEN STEVENS moved to pass CSHB 216(TITLE AM) from
committee with individual recommendations and attached fiscal
note. There were no objections and it was so ordered.
CHAIR SEEKINS adjourned the meeting at 2:14:25 PM.