04/04/2018 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB230 | |
| SB125 | |
| HB264 | |
| HB262 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 125 | TELECONFERENCED | |
| += | HB 262 | TELECONFERENCED | |
| += | HB 264 | TELECONFERENCED | |
| += | HB 401 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 230 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 4, 2018
3:18 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
MEMBERS ABSENT
Representative Mike Chenault (alternate)
Representative Bryce Edgmon (alternate)
OTHER LEGISLATORS PRESENT
Senator Pete Kelly
Representative Harriet Drummond
Representative Scott Kawasaki
Representative Steve Thompson
COMMITTEE CALENDAR
HOUSE BILL NO. 230
"An Act relating to the collection of customer information by
telecommunications and Internet service providers; and
establishing an unfair trade practice under the Alaska Unfair
Trade Practices and Consumer Protection Act."
- MOVED HB 230 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 125(CRA)
"An Act extending the expiration date of the authorization to
finance and issue bonds through the Alaska Industrial
Development and Export Authority for a liquefied natural gas
production system and natural gas distribution system for an
Interior energy project; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 264
"An Act relating to a fee for disposable shopping bags; relating
to the sale of reusable shopping bags; relating to the recycling
of disposable shopping bags; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 262
"An Act relating to temporary courtesy licenses for certain
nonresident professionals; and relating to the Department of
Commerce, Community, and Economic Development."
- MOVED CSHB 262(L&C) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 401(L&C)
"An Act relating to insurance; relating to credit for
reinsurance; relating to insurance standard valuation; and
providing for an effective date."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 230
SHORT TITLE: TELECOMMUNICATIONS & INTERNET PRIVACY
SPONSOR(s): REPRESENTATIVE(s) DRUMMOND
04/15/17 (H) READ THE FIRST TIME - REFERRALS
04/15/17 (H) L&C, JUD
05/01/17 (H) L&C AT 3:15 PM BARNES 124
05/01/17 (H) Heard & Held
05/01/17 (H) MINUTE(L&C)
03/30/18 (H) L&C AT 3:15 PM BARNES 124
03/30/18 (H) Heard & Held
03/30/18 (H) MINUTE(L&C)
04/04/18 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 125
SHORT TITLE: EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ
SPONSOR(s): SENATOR(s) KELLY
01/16/18 (S) PREFILE RELEASED 1/8/18
01/16/18 (S) READ THE FIRST TIME - REFERRALS
01/16/18 (S) CRA, FIN
01/25/18 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
01/25/18 (S) Heard & Held
01/25/18 (S) MINUTE(CRA)
01/30/18 (S) CRA AT 3:30 PM BELTZ 105 (TSBldg)
01/30/18 (S) Moved CSSB 125(CRA) Out of Committee
01/30/18 (S) MINUTE(CRA)
01/31/18 (S) CRA RPT CS 4DP 1NR NEW TITLE
01/31/18 (S) DP: BISHOP, GARDNER, STEDMAN, HOFFMAN
01/31/18 (S) NR: MACKINNON
02/12/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/12/18 (S) Heard & Held
02/12/18 (S) MINUTE(FIN)
02/16/18 (S) FIN RPT CS(CRA) 2DP 4NR
02/16/18 (S) NR: MACKINNON, VON IMHOF, OLSON,
MICCICHE
02/16/18 (S) DP: BISHOP, STEVENS
02/16/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/16/18 (S) Moved CSSB 125(CRA) Out of Committee
02/16/18 (S) MINUTE(FIN)
02/21/18 (S) TRANSMITTED TO (H)
02/21/18 (S) VERSION: CSSB 125(CRA)
02/23/18 (H) READ THE FIRST TIME - REFERRALS
02/23/18 (H) L&C, FIN
03/23/18 (H) L&C AT 3:15 PM BARNES 124
03/23/18 (H) -- MEETING CANCELED --
04/04/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 264
SHORT TITLE: SHOPPING BAG FEES & RECYCLING
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
01/16/18 (H) PREFILE RELEASED 1/8/18
01/16/18 (H) READ THE FIRST TIME - REFERRALS
01/16/18 (H) CRA, L&C
01/30/18 (H) CRA AT 3:00 PM BARNES 124
01/30/18 (H) -- MEETING CANCELED --
02/10/18 (H) CRA AT 10:00 AM BARNES 124
02/10/18 (H) Heard & Held
02/10/18 (H) MINUTE(CRA)
02/13/18 (H) CRA AT 8:00 AM BARNES 124
02/13/18 (H) Heard & Held
02/13/18 (H) MINUTE(CRA)
02/22/18 (H) CRA AT 8:00 AM BARNES 124
02/22/18 (H) Moved CSHB 264(CRA) Out of Committee
02/22/18 (H) MINUTE(CRA)
02/23/18 (H) CRA RPT CS(CRA) 1DP 2DNP 3AM
02/23/18 (H) DP: DRUMMOND
02/23/18 (H) DNP: SADDLER, TALERICO
02/23/18 (H) AM: LINCOLN, KREISS-TOMKINS, PARISH
03/09/18 (H) L&C AT 3:15 PM BARNES 124
03/09/18 (H) Scheduled but Not Heard
03/10/18 (H) L&C AT 3:00 PM BARNES 124
03/10/18 (H) Heard & Held
03/10/18 (H) MINUTE(L&C)
04/04/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 262
SHORT TITLE: MILITARY SPOUSE COURTESY LICENSE
SPONSOR(s): REPRESENTATIVE(s) KAWASAKI
01/16/18 (H) PREFILE RELEASED 1/8/18
01/16/18 (H) READ THE FIRST TIME - REFERRALS
01/16/18 (H) MLV, L&C
02/06/18 (H) MLV AT 1:00 PM GRUENBERG 120
02/06/18 (H) Heard & Held
02/06/18 (H) MINUTE(MLV)
02/15/18 (H) MLV AT 1:00 PM GRUENBERG 120
02/15/18 (H) Moved CSHB 262(MLV) Out of Committee
02/15/18 (H) MINUTE(MLV)
02/16/18 (H) MLV RPT CS(MLV) 4DP 1AM
02/16/18 (H) DP: SADDLER, PARISH, LEDOUX, TUCK
02/16/18 (H) AM: RAUSCHER
03/28/18 (H) L&C AT 3:15 PM BARNES 124
03/28/18 (H) <Bill Hearing Canceled>
03/31/18 (H) L&C AT 1:00 PM BARNES 124
03/31/18 (H) Heard & Held
03/31/18 (H) MINUTE(L&C)
04/04/18 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
PATRICK FITZGERALD, Staff
Representative Harriet Drummond
Alaska Legislature
Juneau, Alaska
POSITION STATEMENT: Reintroduced HB 230 on behalf of
Representative Drummond, prime sponsor.
REPRESENTATIVE HARRIETT DRUMMOND
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 230 as prime sponsor.
SENATOR PETE KELLY
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 125 as prime sponsor.
JOSEPH BYRNES, Staff
Senator Pete Kelly
Alaska State Legislature
POSITION STATEMENT: Answered questions in the hearing on SB
125.
GENE THERRIAULT
Alaska Industrial Development and Export Authority
Anchorage, Alaska
POSITION STATEMENT: Testified in the hearing on SB 125.
JOMO STEWART
Interior Gas Utility
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 125.
JON COOK, CFO
Airport Equipment Rentals
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 125.
ELIZABETH WARLICK
Greater Fairbanks Chambers of Commerce
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 125.
JIM WILLIAMS, Chief of Staff
Fairbanks Northstar Borough Mayor
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 125.
CAITLYN ELLIS, Staff
Representative Sam Kito
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the CS to HB 264 on behalf of
House Labor and Commerce Standing Committee.
SUZANNE COHEN
350 Juneau
Juneau, Alaska
POSITION STATEMENT: Testified support of HB 264.
KATHIE WASSERMAN, Executive Director
Alaska Municipal League
Juneau, Alaska
POSITION STATEMENT: Testified in the hearing on HB 264.
MARY VAVIRK
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 264.
LISBETH JACKSON
Palmer, Alaska
POSITION STATEMENT: Testified in support of HB 264.
MICHELLE PUTZ
Bags for Change
Sitka, Alaska
POSITION STATEMENT: Testified in support of HB 264.
SOPHIA TIDLER, Member
Anchorage Waterway Council
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 264.
MATT SEAHOLM
American Progressive Bag Alliance
Washington, DC
POSITION STATEMENT: Testified in opposition to HB 264.
KAREN PERRY
Chugiak, Alaska
POSITION STATEMENT: Testified in opposition to HB 264.
CAROL MONTGOMERY
Matsu Zero Waste Coalition
Palmer, Alaska
POSITION STATEMENT: Testified in the hearing on HB 264.
REPRESENTATIVE SCOTT KAWASAKI
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reintroduced HB 262 as prime sponsor.
WILLAM JODWALIS
Representative Scott Kawasaki
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions in the hearing on HB
262.
SARA CHAMBERS, Deputy Director
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions in the hearing on HB
262.
ACTION NARRATIVE
3:18:51 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:18 p.m. All members were present
at the call to order.
HB 230-TELECOMMUNICATIONS & INTERNET PRIVACY
3:19:37 PM
CHAIR KITO announced that the first order of business would be
HOUSE BILL NO. 230, "An Act relating to the collection of
customer information by telecommunications and Internet service
providers; and establishing an unfair trade practice under the
Alaska Unfair Trade Practices and Consumer Protection Act."
3:20:01 PM
PATRICK FITZGERALD, Staff, Representative Harriet Drummond,
Alaska State Legislature, reintroduced HB 230 on behalf of
Representative Drummond, prime sponsor. He explained that the
proposed bill would replace a protection on the personal
property from internet service providers which was repealed in
the recent decision by the Federal Communications Commission
(FCC).
3:20:33 PM
REPRESENTATIVE DRUMMOND, Alaska State Legislature, presented HB
230 as prime sponsor. She mentioned similar legislation in a
recent vote in the Minnesota State Senate. She remarked that in
March [2018], Congress had voted to lift a ban on the practice
of selling consumer data. She noted that many communities have
limited choice in ISPs.
3:22:45 PM
REPRESENTATIVE KNOPP asked about the rationale behind the
proposed bill.
REPRESENTATIVE DRUMMOND answered that the Alaska constitution
has one of the most stringent privacy protections in the nation.
3:24:41 PM
CHAIR KITO announced that public testimony was open from the
previous hearing. Upon ascertaining that no one was available
to testify, he closed public testimony on HB 230.
REPRESENTATIVE BIRCH stated he did not support the bill. He
said the move to remedy the issue needed to be on a national
level.
REPRESENTATIVE WOOL said he thinks the bill is precautionary,
but he thinks "our data is being bought and sold like crazy,"
and he does not think a box on a form to state that he does not
want his data sold is not a big burden.
3:27:34 PM
REPRESENTATIVE WOOL moved to report HB 230 out of committee with
individual recommendations and the accompanying fiscal notes.
3:27:53 PM
REPRESENTATIVE BIRCH objected.
A roll call vote was taken. Representatives Stutes, Josephson,
Wool, and Kito voted in favor of HB 230. Representatives Birch,
Knopp, and Sullivan-Leonard voted against it. Therefore, HB 230
was reported out of the House Labor and Commerce Standing
Committee by a vote of 4-3.
3:28:38 PM
The committee took an at-ease from 3:28 p.m. to 3:31 p.m.
SB 125-EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ
3:31:27 PM
SENATOR PETE KELLY, Alaska State Legislature, presented SB 125
as prime sponsor. He said the proposed bill was the companion
to HB 261. He explained it would extend the authorization date
for AIDEA bonds for the Interior Energy Project (IEP). He gave
some history of the projects and bonds. He said the sunset is
nearing. He spoke to air quality concerns in the Interior. He
said to date the project is going well. He said the project has
taken a lot of time for due diligence. He spoke to the
distribution system for natural gas in the area. He said
construction had begun on a storage facility. He underlined the
proposed bill does not propose spending more money, just
reauthorizes a project that the AIDEA board has already vetted.
3:35:34 PM
CHAIR KITO asked how much has been spent on the project.
JOSEPH BYRNES, Staff, Senator Pete Kelly, answered questions in
the hearing on SB 125. He referred to the quarterly report on
the project.
3:36:18 PM
REPRESENTATIVE WOOL asked about the ramifications on the project
if the funding is not provided.
SENATOR KELLY suggested the project may be "demobbed."
3:37:07 PM
GENE THERRIAULT, Alaska Industrial Development and Export
Authority (AIDEA), testified in the hearing on SB 125. He
pointed to a table on page 9 of the report showing expenditures
to date. He underlined that none of the bonds have been spent
to date. He spoke to storage issues and an increased source of
LNG. He said there was a general understanding that Fairbanks,
Alaska, has fairly limited overall demand for natural gas. He
said a lot of time was spent negotiating consolidation of the
utilities.
REPRESENTATIVE BIRCH asked how flexible the system is to source
gas from multiple areas.
MR. THERRIAULT answered the project had continually evaluated
the issue. He said it took longer to get a high level of
conversions. He spoke to sourcing from Cook Inlet. He said
supply had been negotiated with Hilcorp. He spoke to working
closely with the railroad. He said the railroad lends itself to
bulk shipments which are more than the current supply. He said
working out logistics with the railroad might tip the costs in
its favor, but currently tankers were used. He said it would
continue to be examined.
3:44:00 PM
REPRESENTATIVE KNOPP asked what is going to be the storage
capacity in the tanks that were being used.
MR. THERRIAULT answered the tank being constructed is 5.2
million gallons. The existing tank is about 300,000 to 350,000
gallons. He said the tank will be redeployed out to North Pole,
Alaska. He said the two tank farms would link together.
CHAIR KITO referred to the report and asked why the authorized
funding is not available for the component of the project.
MR. THERRIAULT answered the remaining capital funds are
committed to Pentex assets for the local utility. He added the
storage tank being constructed is using Sustainable Energy
Transmission and Supply Development Fund (SETS) money.
CHAIR KITO asked for an explanation of the ultimate ownership of
the project. He shared his concern that the state of Alaska is
paying to capitalize a purchase of a utility.
MR. THERRIAULT gave some history of the funding. He described
the AIDEA revolving loan fund. He said AIDEA would oversee the
SETS loans.
3:50:07 PM
CHAIR KITO suggested Mr. Therriault was saying that the money
being used for the utility will be paid back. He said he was
trying to understand what capital the state is putting into the
project and what the benefit to the state is.
MR. THERRIAULT said when AIDEA stepped in, it did not use IEP
funds, but revolving load funds. It was agreed there would be
temporary ownership while an agreement was negotiated with a
local entity. He said the original purchase price came with an
interest rate of 5.06 percent while the funds were deployed. He
said at the end of May the original purchase price plus interest
would be repaid and the revolving loan fund would be made whole.
He explained that as those funds come back, they will be made
available for AIDEA to relend under the terms of the SETS fund.
CHAIR KITO asked how much state General Fund (GF) money is going
into this utility.
MR. THERRIAULT answered that at closing the deal at the end of
May, the full $57.5 million of GF will have been expended to
consolidate the utilities under local control.
CHAIR KITO asked whether the state was purchasing a utility or a
part of the utility.
MR. THERRIAULT answered the funds were provided to the project
to consolidate the project under local control.
CHAIR KITO suggested the money is being given to the utility
directly from AIDEA.
MR. THERRIAULT answered in the affirmative.
3:53:57 PM
JOMO STEWART, Interior Gas Utility, testified in support of SB
125. He stated the plan calls for the use of over $40 million
of the $57 million for bonding authority. He added that the
remaining amount of the funds in the SETs fund would be quite
small.
3:55:11 PM
CHAIR KITO opened public testimony on SB 125.
3:55:24 PM
JON COOK, CFO, Airport Equipment Rentals, testified in support
of SB 125. He stated he was affiliated with a number of
entities in Fairbanks, Alaska, which own the largest retail
properties in the area. He said the lack of an uninterruptable
supply of gas has meant they could not bring new box stores to
town, as all major box stores use natural gas for heating and
cooling. He said having the supply will mean major retailers can
come to town and keep the costs low in the cities and villages.
3:56:59 PM
ELIZABETH WARLICK, Greater Fairbanks Chambers of Commerce,
testified in support of SB 125. She said the extension of AIDEA
bonding would be an essential financing component for the
project.
3:57:36 PM
JIM WILLIAMS, Chief of Staff, Fairbanks North Star Borough
Mayor, Testified in support of SB 125. He said the Interior Gas
Utility (IGU) project is a priority for consistency in pricing.
He said it is believed natural gas is a solution to the area's
air quality problem. He said there was an expectation that the
price of diesel fuel could go up another .43 per gallon due to
new regulations. He urged support of the proposed bill.
3:59:51 PM
CHAIR KITO held over SB 125.
HB 264-SHOPPING BAG FEES & RECYCLING
4:00:00 PM
CHAIR KITO announced that the next order of business would be
HOUSE BILL NO. 264, "An Act relating to a fee for disposable
shopping bags; relating to the sale of reusable shopping bags;
relating to the recycling of disposable shopping bags; and
providing for an effective date."
4:00:49 PM
REPRESENTATIVE WOOL moved to adopt the CS to HB 264 as a working
document. There being no objection, it was so ordered.
4:01:17 PM
CAITLYN ELLIS, Staff, Representative Sam Kito, Alaska State
Legislature, presented the CS to HB 264 on behalf of the House
Labor and Commerce Standing Committee. She paraphrased the
summary of changes [included in committee packet], which reads
as follows [original punctuation provided]:
1. Title: from "An Act relating to a fee for
disposable shopping bags; relating to the sale of
reusable shopping bags; relating to the recycling of
disposable shopping bags; and providing for an
effective date." to "An Act prohibiting disposable
plastic shopping bags; relating to a minimum price for
paper and other shopping bags; relating to the sale of
reusable shopping bags; and providing for an effective
date."
2. Removes the fee for single-use bags and creates a
ban for single-use (disposable) plastic bags.
3. Establishes a minimum 10-cent fee for all other
bags (plastic, reusable). The retail seller keeps 100%
of this fee. Its purpose is to prevent a loophole that
would allow store to give away thick plastic bags in
lieu of single-use plastic bags.
4. Removes the exemption for communities of less than
5,500 persons.
5. Removes the 18-pound weight capacity requirement
for reusable bags.
4:02:48 PM
REPRESENTATIVE WOOL asked whether the proposed bill would
require restaurants to charge for plastic bags used for take-out
orders and "doggy bags".
MS. ELLIS answered that was not addressed in the current
proposed legislation.
4:04:43 PM
SUZANNE COHEN, 350 Juneau, testified in support of HB 264. She
said the only way to change behavior is to establish a fee for
plastic bags. She said Denmark had seen a drop in usage after
establishing a ban. She listed countries and cities which have
established fees or bans on plastic bags. She addressed impacts
on wildlife.
REPRESENTATIVE WOOL asked whether members of 350 Juneau are
small business owners. He asked about being charged extra for
the bags.
MS. COHEN answered that she and her husband own a small business
and described their efforts to reduce usage by reusing the bags
their stock comes in.
REPRESENTATIVE KNOPP asked whether the group had approached
local authorities about the restriction.
MS. COHEN answered the organization was a recent entity. She
said there had been a push which had failed previously.
CHAIR KITO brought up Styrofoam packages and asked whether those
were being addressed by the organization.
MS. COHEN said the parent organization is very much sticking to
climate issues. She said she did not think it was addressing
Styrofoam.
4:11:40 PM
KATHIE WASSERMAN, Executive Director, Alaska Municipal League
(AML), testified in the hearing HB 264. She said the AML has
discussed the issue at length and it was felt [banning bags]
should be a municipal issue. She underlined municipalities can
work directly with local businesses. She shared personal
experience with ordering paper bags which had to be shipped from
out of state, adding to the carbon impact, whereas only one
truckload was needed for the same number of plastic bags. She
said AML is not opposed to the concept but feels it can deal
with plastic bags on a local level.
REPRESENTATIVE JOSEPHSON listed some communities that are
actively looking at the issue. He asked Ms. Wasserman whether
she has seen so many significant communities move in a short
period of time over an issue.
MS. WASSERMAN said she has seen municipalities respond to any
number of things.
REPRESENTATIVE SULLIVAN-LEONARD commented that Representative
Josephson had proved the point that municipalities can deal with
the issue locally.
4:16:19 PM
MARY VAVIRK testified in support of HB 264. She spoke to the
unsightly effects of plastic bags in the environment.
4:17:52 PM
LISBETH JACKSON testified in support of HB 264. She spoke to
the unsightly effects of plastic bags and to the health issues.
She said it is a state issue. She mentioned the tourist
industry and [the importance of] keeping the area beautiful.
REPRESENTATIVE WOOL asked whether Ms. Jackson uses bags in her
business.
MS. JACKSON answered that she doesn't use bags for her B&B
business. She said she does use plastic bags for garbage.
REPRESENTATIVE WOOL asked whether she lives in a community that
bans bags.
MS. JACKSON said she lives near Palmer, Alaska.
REPRESENTATIVE WOOL asked about charges for bags.
MS. JACKSON answered there was never a fee instituted for the
bag ban in the city of Wasilla, Alaska.
4:21:28 PM
MICHELLE PUTZ, Bags for Change, testified in support of HB 264.
She said the Sitka, Alaska, assembly was working on a bag ban or
fee. She said the effort was to move people to reusable bags,
not paper. She said a fee on paper bags would help the plastic
bag ban "in court." She spoke to the toxins in plastics and
health issues. She mentioned a boat incident due to plastic
bags in the ocean. She spoke to local businesses' reactions to
a bag fee.
REPRESENTATIVE JOSEPHSON asked how someone's litigation has
benefited by a ban on plastic bags.
MS. PUTZ answered there was a court case in California in which
the plastic companies tried to sue, but because they had a fee
on paper bags as well, the fee on the paper bags protected them
4:25:47 PM
SOPHIA TIDLER, Member, Anchorage Waterway Council, testified in
support HB 264. She said the council organizes waterway cleanup
and the amount of plastics collected is unsettling. She said
many communities support the ban or fee. She said consumer
behavior change is why she supports the proposed bill. She drew
parallels with the fight for equal rights and the work of Dr.
Martin Luther King, Jr.
4:29:08 PM
MATT SEAHOLM, American Progressive Bag Alliance, testified in
opposition to HB 264. He paraphrased from his written testimony
[included in committee packet], which reads as follows [original
punctuation provided]:
On behalf of the American Progressive Bag Alliance
(APBA), an organization that represents our country's
plastic retail bag manufacturers and recyclers, thank
you for the opportunity to submit this testimony to
share our collective concerns with HB 264, which would
impose a regressive 20-cent fee on disposable shopping
bags or as is being reported in the media, be amended
to ban all plastic retail bags.
We respect and applaud Representatives Josephson and
Drummond and others for taking the goals of waste and
litter reduction seriously. We share a common
commitment to environmental stewardship and
sustainability. Both are critical to ensuring that we
are protecting Alaska's natural beauty and are solid
business principles.
As a waste reduction measureand not just a
fundraising billHB 264 is flawed. Bag bans and taxes
may lead to fewer plastic retail bags being used, but
similar policies have never delivered significant
reductions in overall waste or litter. Policies that
ban plastic bags push consumers to use less
sustainable alternatives by comparison, and bag taxes
often impose a regressive, inequitable burden on the
most income-sensitive residents. That's a serious cost
to consider for Alaska's hard-working families and
fixed income seniors who may incur higher costs to
their grocery bills or be forced to buy more expensive
alternatives to highly reusable plastic retail bags.
Beyond the economic impact for individual families and
shoppers, HB 264 would require Alaska businessesmany
of whom are APBA members' customersto track, report
and remit shopping bag tax revenue to the state. These
additional reporting, training and compliance
obligations will increase the cost of doing business
in Alaska. Those higher costs may not be covered by
the 25-percent allowance this bill designates for
retailers and could end up being passed down as an
additional consumer burden, on top of the initial
regressive transaction fee and ban.
The proposed environmental benefits would neither
relieve the burden on Alaska's fixed income families
and seniors nor deliver meaningful outcomes on
sustainability efforts. Environmental Protection
Agency figures show plastic retail bags comprise just
0.5 percent of national waste, and national studies
find the same bags account for less than one to two
percent of litter.
When compared side-by-side to its alternatives,
plastic retail bags are the most environmentally
friendly choice. In relating the life cycle impacts of
plastic to the alternatives paper and cloth bags
University of Oregon professor David Tyler observed:
"There are really good things about plastic bags
they produce less greenhouse gas, they use less
water and they use far fewer chemicals compared
to paper or cotton. The carbon footprint that
is, the amount of greenhouse gas that is produced
during the life cycle of a plastic bagis less
than that of a paper bag or a cotton tote bag. If
the most important environmental impact you
wanted to alleviate was global warming, then you
would go with plastic."
Across the country, several states and cities have
decided against implementing taxes and bans on plastic
grocery bags because of the burden on the public and
lack of environmental benefits. When Denver, CO
explored, and ultimately rejected, a bag ordinance in
2013, the city's Office of Sustainability concluded,
"Single-use bags of all types constitute well under
one percent of all waste delivered to landfills? There
are no substantiated claims that a bag fee will result
in entirely eliminating even this tiny fraction of
waste sent to landfills? Concluding that a bag fee
will make a substantial dent in waste going to
landfills is misguided." Likewise, voters in Durango,
CO overturned a 10-cent bag fee in 2013, and in 2014,
the Fort Collins, CO City Council repealed their local
fee.
In Austin, TX, and Thurston County, WA, respectively, bag
laws actually led to more landfill waste from reusable bags
and doubled the use of paper bags that use more resources.
MR. SEACOLM spoke to studies in Denmark comparing plastic and
cotton bags, which found that cotton bags have to be used 7,100
times to offset the impact of all environmental indicators.
REPRESENTATIVE JOSEPHSON asked about the bags described in the
Denmark study.
4:34:28 PM
MR. SEAHOLM said the plastic used in Europe is low-density
polyethylene and that is what was studied.
REPRESENTATIVE JOSEPHSON asked whether the bags were light 4
milligram bags.
MR. SEAHOLM answered a variety of bag thicknesses are used.
REPRESENTATIVE JOSEPHSON spoke to the effects of plastic bags in
caribou and reindeer stomachs. He asked what the solution is.
MR. SEAHOLM answered there are other alternatives. He said
recycling is a big part of it. He spoke to reuse. He said a
Quebec study found that 77.7 percent of bags are reused. He
said some of that is for garbage or pet waste. He indicated
that the plastic bags in rivers and streams makes up less than 1
percent. He said some communities found that bans lead to an
increase in litter and waste.
4:38:05 PM
REPRESENTATIVE BIRCH asked about technologies that can aid
degrading of plastics.
MR. SEAHOLM answered there not a biodegradable option. He
stated that paper takes as long to break down as a plastic bag
would.
4:39:44 PM
KAREN PERRY testified in opposition to HB 264. She expressed
her strong opposition to HB 264.
4:40:49 PM
CAROL MONTGOMERY, Matsu Zero Waste Coalition, testified in the
hearing on HB 264. She gave an update on her organization's
activity since her previous testimony. She said plastic bags
are harmful in part due to their light weight which causes them
to "fly all over." She encouraged statewide action.
CHAIR KITO closed public testimony.
CHAIR KITO held over HB 264.
HB 262-MILITARY SPOUSE COURTESY LICENSE
4:44:23 PM
CHAIR KITO announced that the final order of business would be
HOUSE BILL NO. 262, "An Act relating to temporary courtesy
licenses for certain nonresident professionals; and relating to
the Department of Commerce, Community, and Economic
Development."
4:44:29 PM
REPRESENTATIVE SCOTT KAWASAKI, Alaska State Legislature,
reintroduced HB 262 as prime sponsor. He gave numbers of
military and veteran populations in the state. He stated the
University of Alaska, the Fairbanks School District, the State,
and small businesses offer discounts and aid to military. He
said military spouse licensing would align with those efforts to
support military families.
CHAIR KITO asked whether there are laws prohibiting someone from
using a non-Alaska license if they are in the state on a
temporary basis.
REPRESENTATIVE KAWASAKI answered there are different regulations
for different states so sometimes there are differences in
occupational licenses between states. He said there is work
towards a compact so that licenses between states.
4:48:24 PM
REPRESENTATIVE BIRCH shared his concerns regarding occupational
licensing.
4:49:38 PM
WILLAM JODWALIS, Representative Scott Kawasaki, Alaska
Legislature, answered questions in the hearing on HB 262. He
said there was already a law passed in 2011 House Bill 28-
regarding courtesy licenses and HB 262 wouldn't touch or alter
that. He said the proposed bill would set forth a reporting
mechanism for the department to issue a report for statistical
data on occupational licenses issued to military spouses.
4:50:43 PM
REPRESENTATIVE BIRCH asked about the breadth of scope and
latitude for military spouse licensing.
4:51:49 PM
SARA CHAMBERS, Deputy Director, Department of Commerce,
Community & Economic Development (DCCED), answered questions in
the hearing on HB 262. She said currently military spouses can
obtain a 180-day temporary license which can be extended for
another 180 days to give them time to comply with state
licensure requirements. She said the department was looking at
licensure by credential or endorsement. She said this works for
professionals who take a national examination. She stated that
for those who do not have to take an examination, or for those
which require Alaska-specific knowledge, the department has
worked to produce a report providing data. She said the bill
would codify that report. She indicated it is a small
percentage of the overall licenses issued.
REPRESENTATIVE WOOL spoke to the number of military spouses that
utilize the program. He asked whether some may simply be using
the normal channels for licensure.
MS. CHAMBERS answered it's possible some are using normal
channels. She said there is a military licensure webpage for
the information which is linked to all state licensure webpages.
REPRESENTATIVE WOOL asked whether the department has a "military
spouse" box to click on its website.
MS. CHAMBERS answered it does not.
5:01:23 PM
REPRESENTATIVE SULLIVAN-LEONARD mentioned she has worked in
various hospitals. She said military members who came for jobs
often got priority. She asked about the need to create new
legislation.
MS. CHAMBERS shared her understanding that supporters of the
bill would like to have a more codified reporting system. She
said the information could be provided on the department
website. She said the department is happy to produce the
information when asked.
REPRESENTATIVE SULLIVAN-LEONARD asked whether it could be done
without the legislation.
MS. CHAMBERS answered the department does what the legislation
is requiring already, with the exception of the mandate that the
information be delivered to the legislature on a certain date.
CHAIR KITO pointed to subsection g which he said seems to ask
the department to provide informational materials for the
purpose of improving the board's knowledge of licensees. He
asked whether that is part of the fiscal note (FN).
5:03:51 PM
MS. CHAMBERS said the element that produced a change to the FN
was the change from producing a report at the fiscal year (FY)
rather than the calendar year. She said that prior to the
amendment to the bill, there was a zero FN.
5:04:34 PM
The committee took an at-ease from 5:04 p.m. to 5:05 p.m.
5:05:02 PM
CHAIR KITO closed public testimony.
5:05:18 PM
REPRESENTATIVE WOOL moved Amendment 1.
Page 1, line 7:
Delete "calendar"
Insert "fiscal"
MR. JODWALIS indicated the bill sponsor had no objection to the
proposed amendment6.
5:06:01 PM
CHAIR KITO removed his objection to Amendment 1. There being no
other objection, Amendment 1 was adopted.
5:06:12 PM
REPRESENTATIVE JOSEPHSON moved to report HB 262 out of committee
as amended with individual recommendations and the accompanying
fiscal notes. There being no objection, it was so ordered.
5:07:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:07 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB262 Amendment J.1.pdf |
HL&C 4/4/2018 3:15:00 PM |
HB 262 |
| HB264 Supporting Document - Soldotna Resolution.pdf |
HL&C 4/4/2018 3:15:00 PM |
HB 264 |
| HB264 Opposition Letters 3.10.18.pdf |
HL&C 4/4/2018 3:15:00 PM |
HB 264 |
| SB125 Supporting Document-Letter from DEC Div. of Air Quality (Mar. 21, 2018).pdf |
HL&C 4/4/2018 3:15:00 PM |
SB 125 |