Legislature(2019 - 2020)BARNES 124
03/02/2020 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB232 | |
| HB93 | |
| HB232 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 232 | TELECONFERENCED | |
| += | HB 93 | TELECONFERENCED | |
| += | HB 235 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 2, 2020
3:19 p.m.
MEMBERS PRESENT
Representative Ivy Spohnholz, Chair
Representative Louise Stutes
Representative Zack Fields
Representative Sara Hannan
Representative Andi Story
Representative Mel Gillis
Representative Sara Rasmussen
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 232
"An Act relating to a municipal air quality improvement tax
credit; and relating to a municipal energy efficient new
construction tax credit."
- MOVED CSHB 232(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 93
"An Act relating to temporary courtesy licenses for certain
nonresident professionals; and relating to the Department of
Commerce, Community, and Economic Development."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 232
SHORT TITLE: MUNICIPAL TAX CREDITS
SPONSOR(s): REPRESENTATIVE(s) HOPKINS
02/03/20 (H) READ THE FIRST TIME - REFERRALS
02/03/20 (H) ENE, L&C
02/11/20 (H) ENE AT 10:15 AM CAPITOL 17
02/11/20 (H) Heard & Held
02/11/20 (H) MINUTE(ENE)
02/20/20 (H) ENE AT 10:15 AM CAPITOL 17
02/20/20 (H) Moved CSHB 232(ENE) Out of Committee
02/20/20 (H) MINUTE(ENE)
02/21/20 (H) ENE RPT CS(ENE) NT 5DP 1NR
02/21/20 (H) DP: FIELDS, LINCOLN, SPOHNHOLZ,
ZULKOSKY, HOPKINS
02/21/20 (H) NR: RAUSCHER
02/26/20 (H) L&C AT 3:15 PM BARNES 124
02/26/20 (H) Heard & Held
02/26/20 (H) MINUTE(L&C)
03/02/20 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 93
SHORT TITLE: MILITARY SPOUSE COURTESY LICENSE
SPONSOR(s): REPRESENTATIVE(s) TUCK
03/13/19 (H) READ THE FIRST TIME - REFERRALS
03/13/19 (H) MLV, L&C
04/02/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/02/19 (H) Heard & Held
04/02/19 (H) MINUTE(MLV)
04/04/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/04/19 (H) -- MEETING CANCELED --
04/09/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/09/19 (H) -- MEETING CANCELED --
04/16/19 (H) MLV AT 1:00 PM GRUENBERG 120
04/16/19 (H) Moved HB 93 Out of Committee
04/16/19 (H) MINUTE(MLV)
04/17/19 (H) MLV RPT 6DP
04/17/19 (H) DP: THOMPSON, RAUSCHER, TUCK, JACKSON,
TARR, LEDOUX
05/06/19 (H) L&C AT 3:15 PM BARNES 124
05/06/19 (H) -- MEETING CANCELED --
05/10/19 (H) L&C AT 3:15 PM BARNES 124
05/10/19 (H) Heard & Held
05/10/19 (H) MINUTE(L&C)
03/02/20 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE GRIER HOPKINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided an opening
statement reviewing HB 232 and answered questions.
NILS ANDREASSEN, Executive Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 232.
AARON WELTERLEN
Alaska State Home Building Association
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 232.
BRANDON SNODGRASS, Construction/Commercial Lender
First National Bank of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 232.
JOSEPH CAISSIE, Assistant State Assessor
Division of Community and Regional Affairs
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
232.
REPRESENTATIVE CHRIS TUCK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 93.
MICHAEL MASON, Staff
Representative Chris Tuck
Juneau, Alaska
POSITION STATEMENT: Provided a sectional analysis for HB 93 on
behalf of Representative Tuck, prime sponsor.
SARA CHAMBERS, Director
Division of Corporations, Business, & Professional Licensing
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 93.
TAMMIE PERREAULT, Regional Liaison
Defense-State Liaison Office
U.S. Department of Defense
Joint Base Lewis-McChord, Washington
POSITION STATEMENT: Answered questions during the hearing on HB
93.
TED MADSEN, Staff
Representative Ivy Spohnholz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained Conceptual Amendment 1, on behalf
of Representative Spohnholz, during the hearing on HB 232.
ACTION NARRATIVE
3:19:44 PM
CHAIR IVY SPOHNHOLZ called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Stutes,
Hannan, Story, and Spohnholz were present at the call to order.
Representatives Fields, Gillis, and Rasmussen arrived as the
meeting was in progress.
HB 232-MUNICIPAL TAX CREDITS
3:20:24 PM
CHAIR SPOHNHOLZ announced that the first order of business would
be HOUSE BILL NO. 232, "An Act relating to a municipal air
quality improvement tax credit; and relating to a municipal
energy efficient new construction tax credit."
3:20:38 PM
REPRESENTATIVE GRIER HOPKINS, Alaska State Legislature, as prime
sponsor, provided a summary of HB 232. He informed the
committee that HB 232 is being introduced at the request of the
Fairbanks North Star Borough. This legislation, he said, allows
local governments to offer municipal tax credits to home and
business owners who invest in property improvements, which
result in increased energy efficiency or improved local air
quality. Relying on the adage that local problems are best
solved through local solutions, HB 232 allows municipalities to
offer tax credits to businesses and or residents who make
investments that will result in cleaner air or reductions in
overall energy use. The bill allows for maximum flexibility by
municipalities who choose to offer these credits. He expressed
his hope that these tools will result in more interior Alaskans
choosing to convert their home heating systems to the expanding
Interior Gas Utility distribution system, thereby maximizing the
return on the state's investment in the system. He reported
that the legislation has garnered support beyond the local
municipality, as Aurora Energy, LLC. and Usibelli Coal Mine,
Inc. have both offered letters of support [included in the bill
packet]. Furthermore, Alaska Municipal League, Alaska State
Homebuilders Association, Interior Gas Utility, Alaska Miners
Association, and Cold Climate Housing Research Center have also
endorsed this legislation. He stated that this is a no harm
bill that offers municipalities maximum flexibility. HB 232 has
been expanded to offer more options for municipalities that are
addressing local air quality concerns and makes credits
available for new construction as well as refurbishments,
remodels, and renovations.
3:23:04 PM
REPRESENTATIVE HANNAN speculated that Fairbanks has already
figured out how much tax credit they will have to give to get a
return. She inquired as to the amount they think they will need
to give as an incentive to get their ideal results in reduced
air pollution.
REPRESENTATIVE HOPKINS said he has not heard what their specific
plans are. He explained that hooking each type of home system
up to a natural gas system will vary in cost. Much of the
available area for hookup to Interior Gas Utilities is within
the city of Fairbanks, as well as in North Pole, which is
outside the city. It will fluctuate based on who pays what
property tax to which entity and where they are in that system.
3:24:14 PM
CHAIR SPOHNHOLZ pointed out that HB 232 as its currently
defined, would only allow for the tax credits to be good for one
year at a time. She asked if that was intentional.
REPRESENTATIVE HOPKINS answered no, it was through legal
drafting. He offered his understanding that the local
municipality would need to make sure that they maintain them
throughout each year's assessment period.
CHAIR SPOHNHOLZ speculated that, "it does seem that there might
be times when an energy efficiency improvement - you might want
to take the tax credit over multiple years, or there might be
some projects that might take longer." She asked if there has
been any discussion about that.
REPRESENTATIVE HOPKINS offered his understanding that they are
assessed annually, and property taxes are paid for the previous
year. He went on to say, "it would be what those assessments
are for that previous year and so they would get that one-year
tax credit for that (indisc.) carry forward, or would they be
able to offset tax credits for future years and that would be
available to the municipality to write how they'd like it."
3:26:08 PM
CHAIR SPOHNHOLZ asked if it's possible to have a credit that is
larger than the tax liability in any one year.
REPRESENTATIVE HOPKINS explained that in terms of property tax
credit, he's never heard of it done that way. He added, "if
your home is worth less than $100,000, that property tax would
be written only up to the $92,485 - or whatever it would be, not
in addition - those additional tax credits left over."
CHAIR SPOHNHOLZ asked if the tax credit would apply against the
tax itself or if it would apply against the taxable value of the
property.
REPRESENTATIVE HOPKINS said the cost itself, adding that the
resident must pay to the borough.
CHAIR SPOHNHOLZ clarified, "the tax itself to the borough, not
the tax value of the property."
REPRESENTATIVE HOPKINS answered yes.
3:27:07 PM
CHAIR SPOHNHOLZ pointed out that the term "energy efficient
construction" is not currently defined in statute. She asked if
there is any other reference statute.
REPRESENTATIVE HOPKINS noted that after speaking with
Legislative Legal Services, they were not concerned about that.
CHAIR SPOHNHOLZ asked if that would take place at the local
level.
REPRESENTATIVE HOPKINS acknowledged that his intent is to give
municipalities the maximum flexibility in regard to
construction, adding that he heard a number of ideas that could
hopefully be done at the local level.
CHAIR SPOHNHOLZ clarified that there are multiple ways they
could be structured, depending on what the community wants.
REPRESENTATIVE HOPKINS said there are many ways that the energy
improvements have shown to be effective. He shared several
examples.
3:28:29 PM
REPRESENTATIVE HANNAN questioned whether there are specific
commercial enterprises in the Fairbanks North Star Borough that
anticipate taking advantage of the tax credit and reducing their
air pollution as opposed to the individual homeowner coming
onboard with a new energy efficient system.
REPRESENTATIVE HOPKINS said the intention is that commercial
businesses would also be able to hook up to the Interior Gas
Utility system and not limit that to homeowners. He addressed
the Aurora Energy Plant and their consideration of creating a
dry wood kiln for Fairbanks residents to be able to purchase
dried firewood, which would allow for better air quality
improvement. He went on to say that this bill would be an
economic boost to communities by giving municipalities the
ability to create tax incentives for new construction. He
explained that there are ways of reducing the new constructors
tax liability without negatively impacting the municipalities
revenue or offsetting the lose revenues onto other people.
3:31:30 PM
REPRESENTATIVE GILLIS asked if someone would receive tax credits
if they are already saving energy, or if the bill specifically
applies to new construction.
REPRESENTATIVE HOPKINS said it would not apply to past
improvements.
REPRESENTATIVE GILLIS clarified that it would not apply to
someone who had already spent $15,000 to put a heated floor in.
REPRESENTATIVE HOPKINS confirmed that.
3:32:14 PM
CHAIR SPOHNHOLZ in response to Representative Gillis, noted that
the bill specifically says to allow for tax credits based on
real property improvements made in the immediately preceding tax
year.
3:32:31 PM
CHAIR SPOHNHOLZ opened public testimony.
3:32:44 PM
NILS ANDREASSEN, Executive Director, Alaska Municipal League,
commended the bill sponsor for the construction of the HB 232
and maximizing local control. He said that the way the bill is
constructed empowers local governments and allows them to set
the terms that they deem necessary for their economic
development and tax evaluation. This gives local governments
additional tools to look for solutions to air quality and energy
efficiency improvements. He offered his belief that the more
tools created for local governments the more ability they have
to address the needs of Alaskans.
3:34:11 PM
AARON WELTERLEN, Alaska State Home Building Association,
informed the committee that he is a local contractor in
Fairbanks and a member of both the Interior Alaska Building
Association and the Alaska State Home Building Association
(ASHBA). He stated that the ASHBA looks forward to HB 232
passing as quickly as possible. The ASHBA has a long history of
supporting energy efficient construction, he said. They have
supported state programs in the past, such as home energy
rebates and funding for low income (indisc.). He said that
Fairbanks has some of the highest energy costs in the country.
He explained that most consumers want energy efficient homes but
often can't afford them, due to low appraisals and high
construction costs. He added that HB 232 could stimulate
housing starts in the Fairbanks community. Energy efficient
construction pays dividends for years to come in terms of
monthly cost reductions, as well as healthy homes which lead to
healthy inhabitants, he said. Remodeling poorly constructed
homes is more expensive than building them properly up front,
which is why the ASHBA fully supports this bill. He said it
would improve the standard of living for homeowners and tenants.
3:36:41 PM
REPRESENTATIVE RASMUSSEN noted that Alaska housing is working
with the Appraisal Institute to ensure that appraisers are well
trained in valuing energy efficient properties.
3:37:23 PM
BRANDON SNODGRASS, Construction/Commercial Lender, First
National Bank of Alaska, stated that he is a board member for
the Anchorage Home Builders Association (AHBA) and the Alaska
State Home Building Association (ASHBA). He informed the
committee that energy efficient homes are more beneficial to the
environment, cost less to maintain, last longer, and provide
healthier living spaces for their occupants. He recounted
having seen people who have reduced the planned efficiency of
their home because of the equity requirements and evaluation of
the property. When building a new home, the borrow typically
needs 20-25 percent equity in the project upfront - through land
or cash. If the evaluation comes in lower than the total cost,
often times borrowers will sacrifice energy efficiency instead
of coming up with the extra cash. He addressed various
appraisal issues related to energy efficiencies. He offered his
belief that this bill would add to the economy and create new
business opportunities for businesses to enter the market or for
existing businesses to grow.
REPRESENTATIVE RASMUSSEN asked if solar will be included under
the Anchorage ordinance.
3:42:57 PM
MR. SNODGRASS said there is no mention of solar [power]. He
noted that there are a growing number of solar projects
happening in Anchorage. He offered his understanding that he
financed the only home in the Anchorage inspection area that is
completely off the grid with solar and wind power.
3:44:04 PM
CHAIR SPOHNHOLZ questioned whether the one-year limitation on
the tax credit represents an obstacle or a natural framework.
MR. SNODGRASS offered his understanding that the one-year limit
referred to things that had happened within the last year. The
way the proposed municipality ordinance is written in Anchorage,
he said, would allow for five years of tax exemptions for
anything that was retrofitted or built within the last year when
the credit was applied for.
CHAIR SPOHNHOLZ said she wants to ensure that local communities
have the flexibility to implement this. In Anchorage, for
example, adding energy efficient elements to a higher value
property could be expensive; however, they could pay themselves
back if they were spread out over several years for which the
municipality would be willing to offer a multi-year tax credit,
as they have identified energy efficiency as a primary strategy
in their climate action plan at the local level. She reiterated
that she wants to offer communities the ability to offer multi-
year tax credits.
MR. SNODGRASS replied that he fully supports that.
3:46:25 PM
REPRESENTATIVE HOPKINS agreed. He said the improvements would
be made the previous year; however, the tax credit could be for
multiple years afterward. He provided several examples.
CHAIR SPOHNHOLZ asked Mr. Caisse to answer the question
regarding tax exemptions over multiple years.
3:47:33 PM
JOSEPH CAISSIE, Assistant State Assessor, Division of Community
and Regional Affairs, Department of Commerce, Community &
Economic Development, disclosed that he is not a lawyer although
he did attend law school. He said he would have read that to
mean only one year after the improvement is made.
3:48:00 PM
REPRESENTATIVE HANNAN sought clarification on his understanding
of the issue in question.
MR. CAISSIE stated that he would interpret the current language
to mean "only the one year after and if you are intending
something like five years, I think you might want to reword the
bill."
CHAIR SPOHNHOLZ read the following:
An ordinance may provide for an energy efficient new
construction tax credit to offset a portion of
property taxes due on a residential commercial
property that during the immediately preceding tax
year was improved with energy efficient new
construction.
CHAIR SPOHNHOLZ added that they may want to spend more time on
this to get it right. She asked if anyone is available from
Legislative Legal Services.
3:49:17 PM
CHAIR SPOHNHOLZ closed public testimony. She announced that
they would resume HB 232 at the end of this committee meeting.
HB 93-MILITARY SPOUSE COURTESY LICENSE
3:49:33 PM
CHAIR SPOHNHOLZ announced that the next order of business would
be HOUSE BILL NO. 93, "An Act relating to temporary courtesy
licenses for certain nonresident professionals; and relating to
the Department of Commerce, Community, and Economic
Development."
3:50:01 PM
REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, as prime
sponsor, introduced HB 93 and paraphrased the sponsor statement
included in the committee packet, which read in its entirety as
follows [original punctuation provided]:
House Bill 93 calls for the Alaska Department of
Commerce, Community and Economic Development to
prepare an annual report to allow the Alaska
Legislature to evaluate the progress of a program to
make temporary courtesy occupational licenses
available to the spouses of active duty service
members stationed in Alaska. In 2011, the Alaska
Legislature passed House Bill 28 to provide expedited
temporary courtesy licenses if a military spouse
possesses a license from a previous jurisdiction with
similar requirements to the State of Alaska. However,
the bill didn't include reporting requirements.
Making temporary courtesy licenses available to the
spouses of active duty service members allows them to
practice their chosen trade without having to go
through the time-consuming process of meeting state
licensure requirements before beginning work.
Expediting courtesy licenses for military spouses
allows them to go to work quickly after relocating to
Alaska, while they work to fulfill the state
requirements for their license.
The requirement in House Bill 93 for an annual report
will allow the Alaska Legislature, the Joint Armed
Services Committee, military installations, and local
communities to track the progress of the Department of
Commerce, Community and Economic Development in making
temporary courtesy licenses available to military
spouses. HB 93 also calls for the department to
produce and distribute informational materials about
temporary courtesy licenses to each board authorized
to issue such licenses. The intent of this stipulation
is to improve the board's knowledge of the licenses,
the application process, and the best practices in
providing applicant support. Additionally, the bill
calls for the department to encourage boards to
designate a single employee to serve as the point of
contact for public information and inquiries related
to temporary courtesy licenses for military spouses.
The annual report called for in HB 93 would also
highlight many of the opportunities available to help
military spouses enter the workforce in Alaska. To
date, a low number of eligible professionals have
taken advantage of the temporary courtesy license
program in Alaska, and many participants have reported
delays. House Bill 93 would help identify
inefficiencies in the program.
Legislation similar to House Bill 93 passed the Alaska
House of Representatives unanimously in 2018 but was
not taken up by the Alaska State Senate.
Making temporary courtesy occupational and other
licenses available to military spouses is a priority
for the U.S. Department of Defense.
REPRESENTATIVE TUCK continued to provide several statistics on
military families and spouses.
3:54:57 PM
CHAIR SPOHNHOLZ inquired as to the length of a temporary
license.
REPRESENTATIVE TUCK answered 180 days.
CHAIR SPOHNHOLZ asked how many days temporary licenses can be
extended for.
REPRESENTATIVE TUCK said another 180 days.
REPRESENTATIVE TUCK stated that HB 93 seeks to create a progress
report for the legislature. He added that the original bill
allowing temporary licensure for spouses passed in 2011. He
explained that the bill calls for the Department of Commerce,
Community & Economic Development (DCCED) to produce and
distribute the information annually and biennially to the
legislature, and it calls for the department to encourage
professional licensing boards to designate a single employee to
serve as the point of contact for public information.
3:56:14 PM
The committee took a brief at-ease.
3:56:20 PM
MICHAEL MASON, Staff, Representative Chris Tuck, on behalf of
Representative Tuck, prime sponsor, presented the sectional
analysis for HB 93 included in the committee packet.
REPRESENTATIVE TUCK added that this is a difficult process. He
said the report will help the legislature understand the
direction and how to help the department get there. He added
that because of the high turnover from one administration to
another, consistent progress and oversight is desired.
3:59:53 PM
REPRESENTATIVE STUTES asked what prompted this bill.
REPRESENTATIVE TUCK replied that military spouses who were
unable to get their temporary licenses over the years is what
prompted HB 93.
4:00:14 PM
REPRESENTATIVE STUTES offered her understanding that this
legislation is amending the original bill to include a reporting
requirement.
REPRESENTATIVE TUCK acknowledged that the original bill passed
in 2011; however, despite all the different occupational
licenses available, they still lack the ability to issue
temporary licenses for military spouses. He said it's important
to look at the past experiences of other states, as well as
their requirements and if there are any existing problems with
their reciprocity or with issuing licenses.
REPRESENTATIVE STUTES expressed confusion and asked for the
difference between the current bill and the original legislation
that passed in 2011.
REPRESENTATIVE TUCK explained that the difference is that the
current bill implements the reporting requirements that go to
the legislature while fulfilling the conditions of the 2011
legislation.
REPRESENTATIVE STUTES asked if there's already a reciprocity
agreement in place.
REPRESENTATIVE TUCK said a bill that allows temporary licenses
has passed; however, not all the criteria is being met, as
temporary licenses for all occupations are not being issued yet.
REPRESENTATIVE STUTES sought to clarify the purpose of HB 93.
REPRESENTATIVE TUCK explained that there are various alignments
that needs to happen for a temporary license to be issued per
profession. He reiterated that the report would show the
progress being made for each occupation by every state.
CHAIR SPOHNHOLZ summarized that this was already allowed in a
bill that passed in 2011, but it's not being implemented and
executed in every state. She added that HB 93 requests a report
on what needs to be done and why.
4:04:41 PM
MR. MASON noted that military spouses are not using the program
as much as was anticipated. The hope is that the report will
increase attention and the dedicated person on each board will
help facilitate more usage of the temporary licenses.
REPRESENTATIVE STUTES asked how the need for HB 93 came to
light.
REPRESENTATIVE TUCK explained that HB 93 was prompted by
military spouses not being able to get temporary licenses.
4:05:46 PM
SARA CHAMBERS, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community &
Economic Development, said that the 2011 legislation states that
the department and boards may issue temporary licenses; however,
it does not mandate that temporary licenses be issued or created
for military spouses. She reported that there is a level of
frustration among Alaska's military families and military
community that boards can choose to issue a temporary license or
not. She said that this is one in a continuum of best practices
that the U.S. Department of Defense is illuminating for state
legislatures and state licensing professionals. Furthermore,
temporary licensing is one of the lighter ways to accommodate
military families. She added that there is a wide range of
things that could be done, with licensing compacts being the
most desired aspect. This report, she said, would compel the
department to provide the data that legislators could use to see
what is being done, how it's being used, whether there is a
demand that is being met or not, and if Alaska is at risk for
losing military basing or expansion opportunities because of a
lack of response to workplace economic needs.
4:08:26 PM
REPRESENTATIVE FIELDS asked in general, which temporary licenses
are currently being issued.
MS. CHAMBERS stated that there are over 200 types of licenses
that are offered among the 21 boards and 22 professions.
REPRESENTATIVE FIELDS asked if temporary licenses can be issued
for doctors
MS. CHAMBERS answered yes.
4:09:03 PM
REPRESENTATIVE FIELDS noted that several groups like Americans
for Prosperity have worked to deregulate occupational licensing
with the goal of breaking unions and driving down wages. He
stated that he supports HB 93 and Alaska's military families;
however, he said he wants to make sure that military families
are not being used as (indisc.) to undermine Alaska's (indisc.)
and high wages.
CHAIR SPOHNHOLZ concurred with the concern that Alaska's
licensure standards are not being undermined by forces outside
of the state. She said she wants to make sure that military
spouses are supported and that the state is taking advantage of
the human capital.
4:09:48 PM
MS. CHAMBERS, responding to a question from Representative
Hannan, explained that through attrition, waning interests, or
competing priorities, some of the boards have failed to adopt
temporary licenses.
REPRESENTATIVE HANNAN asked if the omnibus bill concerning
temporary licenses passes, "would it be duplicative of the law
that already gives that authority on military spouses."
MS. CHAMBERS said the omnibus bill was crafted to subsume this.
She explained that it would continue to require expediting
military spouse licensure, while opening an opportunity for more
than just military spouses to take advantage of temporary
licensing.
4:13:26 PM
REPRESENTATIVE HANNAN noted that there is no fiscal note for HB
93. She questioned whether Ms. Chambers anticipates a fiscal
note to make this goal of more temporary licenses achievable.
MS. CHAMBERS offered her belief that they have adequate
authority to get that done. She said they would make a budget
request if a problem arose.
CHAIR SPOHNHOLZ reminded members that HB 93 is just providing a
report on the work that's already been done.
4:14:28 PM
REPRESENTATIVE STORY asked if the boards have access to staff
from the DCCED to help them understand the goals of the
department.
4:14:59 PM
MS. CHAMBERS explained that all the boards have assigned staff
who work every day to support and process licenses. She said
the department has an interesting staffing structure in which
most boards have licensing examiners who tend to be junior level
assistants. Furthermore, several boards have executive
administrators, which are partially exempt positions, who can
engage in policy. She said in the absence of an executive
administrator, the department's management team helps provide
information to the board and its examiners. She noted that at
the end of the day, the boards are responsible for hearing the
information that is being passed along to them.
4:17:39 PM
REPRESENTATIVE RASMUSSEN expressed her concern about the
temporary licenses. She said "I want to make sure that we're
not putting any group before another group, so we have Alaskans
who are trying to start working and they need to get their
approval through a board, and we also have military families who
are coming in and maybe it becomes a status quo to do everybody
with temporary licenses, but again the exposure to liability
worries me.
4:20:21 PM
CHAIR SPOHNHOLZ agreed that she would be reticent to "rip the
band aid off" when it comes to major reforms. She said that
it's legislators' job to do the due diligence to understand the
implications of the decisions that are being discussed. She
reiterated that today's discussion is about HB 93 which would
require a report around military spouse licensure, not about the
omnibus bill that was introduced by the governor.
REPRESENTATIVE FIELDS noted that he has heard from doctors who
are very opposed to anything that would expand or even use
temporary licensing for medical professionals. He added that
they are very concerned about the health and safety implications
involved with such a step.
4:21:32 PM
REPRESENTATIVE GILLIS asked if military personnel and their
spouses can apply for a temporary license at this time.
MS. CHAMBERS confirmed that they can if the board offers a
temporary license; however, part of the problem is that not all
boards offer temporary licenses, and if they aren't in
regulation then they're not available for people to apply for.
REPRESENTATIVE GILLIS asked if the boards currently offer any
temporary licenses.
MS. CHAMBERS answered yes, the boards currently offer quite a
few temporary licenses for a variety of programs including
doctors and nurses.
REPRESENTATIVE GILLIS inquired as to how many licenses have been
requested in the last three years. He opined that the term
"shall" instead of "may" sounds like "you're not giving
licenses." He asked how many have been requested and how many
have been given.
CHAIR SPOHNHOLZ clarified that the language in the original bill
was "may" not "shall."
4:23:04 PM
MS. CHAMBERS said the numbers stay low. She explained that they
don't have a "push-a-button-and-this-is-the-number-of-military-
licenses-that-are-available-type system." She offered her
belief that the report would help the department get there,
because what's expected in the report would cause them to make
some database changes. She approximated that last year they had
100 or fewer military spouse applications.
REPRESENTATIVE GILLIS questioned whether 50 percent of the
license requests made by military spouses have been granted.
MS. CHAMBERS explained that if they're qualified, they are
issued a license. She said she would expect that all of them
are qualified because they are coming from a state where they're
already licensed and credentialled.
4:25:46 PM
REPRESENTATIVE RASMUSSEN addressed the zero fiscal note and
asked how the department would be able to handle the necessary
database changes for the reporting requirement with no
additional cost incurred.
MS. CHAMBERS said over the last few years, the department has
been figuring out a way to get certain levels of database
changes done without having to request additional IT help. She
said they are trying to keep the cost low and not hire
contractors or additional staff.
4:26:26 PM
CHAIR SPOHNHOLZ asked how many boards oversee licensure.
MS. CHAMBERS answered 21 licensing boards and 22 regulated
professions.
CHAIR SPOHNHOLZ asked how many of them have executive
administrators.
MS. CHAMBERS said seven.
CHAIR SPOHNHOLZ questioned whether they have the capacity to
undertake the support of the boards that would be necessary to
explore military spouse licensure in each case.
MS. CHAMBERS answered yes, they have systems for communicating
with boards and farming out that communication responsibility to
the management team, which occurs regularly.
4:27:31 PM
REPRESENTATIVE TUCK added that U.S. Department of Defense has a
contract with the University of Minnesota to evaluate
occupational board implementation of laws and policies that
support military spouses in all 50 states. He directed
attention to a report included in the committee packet, entitled
"Military Spouse Licensure Portability Examination State
Report." He reported one of the study's general findings: that
there's no information available pertaining to how many spouses
have transferred their licenses in the last year. It went on to
say that spouses cannot be licensed by endorsement or temporary
licensure for any of the following boards: cosmetology, dental
hygiene, massage therapy, mental health counseling, occupational
therapy, and the real estate commission. He indicated that
temporary licenses are issued on a board-by-board basis and that
it's necessary to find out where each board is at, where the
legislature can help out, and to understand why some occupations
do not have temporary licensure. He addressed a concern from
Representative Fields with an anecdotal example.
4:31:05 PM
REPRESENTATIVE HANNAN returned attention to the University of
Minnesota's analysis of the portability exam and the six boards
that they chose to study. She sought clarification on why those
six were specifically selected. She asked if it's because they
have the highest number of applicants or if military spouses are
most likely to hold licensure and ask for reciprocity in those
areas.
REPRESENTATIVE TUCK deferred to Ms. Perreault.
4:32:20 PM
TAMMIE PERREAULT, Regional Liaison, Defense-State Liaison
Office, U.S. Department of Defense, said the six specific
occupations were chosen randomly by the researchers because they
felt that they represented a cross-section of occupations which
military spouses participated in. She said they used these
[six] occupations in all 50 states, adding that there's an
identical report for each state that addresses the same
research.
4:33:17 PM
REPRESENTATIVE HANNAN asked when the study was conducted.
MS. PERREAULT replied the study was conducted in 2017. After
completion, they asked each state to go back and look at how
their occupational licensure laws were being implemented and how
they are working for the military spouses, which is part of what
led to HB 93 and this reporting request.
4:34:35 PM
REPRESENTATIVE TUCK clarified that HB 28 states that boards may
issue temporary licenses, but also that they shall expedite
application procedures for military spouses. There's a
combination of both "may" and "shall," he said.
4:35:05 PM
MS. PERREAULT addressed the PowerPoint presentation included in
the committee pack, entitled "Defense-State Liaison Office."
She explained that most of the information had been covered and
directed attention to slide 9, entitled "Licensure Portability."
She said the slide shows where different efforts have been made
for license portability by different states and where Alaska
falls on this continuum.
4:36:21 PM
REPRESENTATIVE HANNAN asked Ms. Perreault where she would place
Alaska on the continuum.
MS. PERREAULT stated that Alaska is in the yellow zone for this
particular subject. She went on to say that Alaska is fully
implementing its current laws; however, the state has not
implemented or adopted any interstate occupational licensure
compacts.
CHAIR SPOHNHOLZ pointed out that Alaska is not displayed
anywhere on the continuum.
MR. MASON indicated that Alaska is represented by the lighter
shade of yellow on slide 9.
CHAIR SPOHNHOLZ announced that HB 93 was held over.
4:38:33 PM
The committee took a brief at-ease.
HB 232-MUNICIPAL TAX CREDITS
4:39:47 PM
CHAIR SPOHNHOLZ announced that the final order of business would
be resuming HOUSE BILL NO. 232, "An Act relating to a municipal
air quality improvement tax credit; and relating to a municipal
energy efficient new construction tax credit."
CHAIR SPOHNHOLZ moved to adopt Conceptual Amendment 1, as
follows:
Page 1, line 6
Following "for"
Delete "an"
Insert "a single or multiple year"
Page 1, line 8
Following "year"
Insert "prior to the municipality's initial
approval of the tax credit"
Page 1, line 14
Following "for"
Delete "an"
Insert "a single or multiple year"
Page 2, line 2
Following "year"
Insert "prior to the municipality's initial
approval of the tax credit"
REPRESENTATIVE STUTES objected for the purpose of discussion.
4:40:29 PM
TED MADSEN, Staff, Representative Ivy Spohnholz, Alaska State
Legislature, on behalf of Representative Spohnholz, explained
that the intent behind Conceptual Amendment 1 is to allow for
municipalities to offer single or multiple year energy
efficiency and air quality improvement tax credits. He
proceeded to read the two sections of legislation as if the
amendment was adopted. He offered his understanding from prior
committee discussion that their intent is that this energy
efficiency and air quality tax credit could be offered for
multiple years after the improvements are made. He asked if
that is accurate.
CHAIR SPOHNHOLZ confirmed that her intention is to make sure
that local municipalities have the opportunity to extend multi-
year tax credits should they choose to do so.
4:42:29 PM
REPRESENTATIVE HOPKINS acknowledged that is consistent with the
intent of the initial legislation. He said now that the
language specifically allows for single or multiple year tax
credits for both types of improvements based on when the
improvement was made, he is supportive of Conceptual Amendment
1.
MR. MADSEN noted that on the final line of Conceptual Amendment
1 it says, "legislative legal may make conforming changes in
line with the intent of this amendment." He shared his belief
that through this discussion the intent has been made clear and
Legislative Legal Services will understand the committee's
intention.
CHAIR SPOHNHOLZ agreed that the intention is clear.
REPRESENTATIVE STUTES removed her objection. There being no
further objection, Conceptual Amendment 1 was adopted.
4:44:05 PM
REPRESENTATIVE STUTES moved to report CSHB 232, Version
LS1355\K, out of committee with individual recommendations and
the accompanying fiscal notes. Without objection, CSHB 232(L&C)
was moved out of the House Labor and Commerce Standing
Committee.
4:45:27 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:45 p.m.