Legislature(2007 - 2008)CAPITOL 17
02/27/2008 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HCR20 | |
| HB382 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HCR 20 | TELECONFERENCED | |
| *+ | HB 382 | TELECONFERENCED | |
HB 382-SALES OF GOLD JEWELRY 4:20:18 PM VICE-CHAIR NEUMAN announced that the final order of business would be HOUSE BILL NO. 382, "An Act relating to the sale by jewelers of jewelry containing gold." 4:20:38 PM TOM WRIGHT, Staff to Representative Mike Chenault, Alaska State Legislature, began his presentation by stating that HB 382 is not an endorsement of Pebble Mine. This bill was introduced in response to five jewelry retail companies that signed a pledge that states they will not purchase gold that had been mined from the proposed gold and copper mining operation at Pebble Mine. The issue and problem is that these companies signed a pledge before any permitting process has occurred. This bill is an effort to support gold mining industry as a whole. The Pebble Mine project is in the exploratory stage. Retailers cannot currently ascertain the source of their gold. However, next year according to Earthworks-jobs.com and nodirtygold.org jewelers will take steps to establish a chain of custody from mine to store. This bill mandates that Alaskan jewelry retailers may not sell gold products unless the gold was mined within the state. 4:22:42 PM VICE-CHAIR NEUMAN inquired as to whether the process of identifying a chain of custody from mine to store would need to be managed by the state. MR. WRIGHT answered that he did not think it would need state management. 4:24:13 PM MR. WRIGHT, in response to Representative Neuman, responded that he thought chain of custody could be regulated within the industry and that the state would not want to monitor origin of gold. 4:24:57 PM REPRESENTATIVE LEDOUX related her understanding that some major jewelers such as Tiffany and Co. took issue with Pebble Mine so the result is to criminalize jewelers who sell gold mined outside Alaska. MR. WRIGHT agreed that is the intent of HB 382. 4:25:29 PM REPRESENTATIVE LEDOUX referred to a memo of February 14, 2008, from Theresa Bannister, Legislative Counsel, Legal Services that outlines that HB 382 is unconstitutional based on issues with the equal protection, interstate commerce, and takings. She inquired as to whether the sponsor would like HB 382 to pass or if the bill was introduced to make a statement. MR. WRIGHT agreed that HB 382 is a statement bill, but that the sponsor is primarily interested in taking a first step to highlight mining issues before the House Judiciary Standing Committee. 4:26:39 PM VICE-CHAIR NEUMAN reminded members that the legislature makes the laws and that the memo from legal services [outlines issues for the legislature to consider.] 4:26:56 PM REPRESENTATIVE LEDOUX expressed concern in penalizing jewelers due to some complaints by out of state jewelers that have issues with buying gold from a mine that is not yet even permitted. MR. WRIGHT speculated that HB 382 is subject to change and that the penalty provisions would probably be reduced from a class A misdemeanor to a violation with a lesser fine. This bill is a response to some companies that have been rhetorical. 4:27:53 PM REPRESENTATIVE GATTO speculated that groups such as the nodirtygold.org group may expand the realm to other items including diamonds, silver, and platinum. MR. WRIGHT opined that the Pebble Mine project is in the exploratory stage and yet reactions to the mine are not unlike reactions with any resource industry in the state. MR. WRIGHT, in response to Representative Gatto, explained that the Seiko watch could not be sold in Alaska if HB 382 were to pass since the gold is not identified. 4:29:45 PM REPRESENTATIVE BUCH stated that he desires to address these issues in a tangible way. While he understands the sponsor's intent, he characterized HB 382 as a bill that seems frivolous. He noted the volatile relationship between development and the environment. However, he said he would like to put on the record that he doesn't want to be party to something like this bill. He supports the sponsor refuting what the [jewelers] propose, but he said he was not sure HB 382 is the best method. 4:31:12 PM VICE-CHAIR NEUMAN opined that some bills are introduced to facilitate discussions. 4:31:24 PM REPRESENTATIVE GARDNER inquired as to the number of jewelers that signed pledges that have retail outlets in Alaska, and how many Alaskan stores carry their products. In further response to Representative Gardner, Mr. Wright advised that some jewelers carry gold nugget jewelry. He reiterated that besides making a statement, discussions may result in a viable bill. 4:34:39 PM REPRESENTATIVE LEDOUX inquired as to how much gold is produced in the state and if jewelers could obtain all the gold from in state sources. MR. WRIGHT answered that there is a lot of gold mined in Alaska but he was uncertain if it could fulfill the need of jewelers statewide. 4:35:52 PM REPRESENTATIVE GATTO noted that since Alaska does not have smelting capabilities that all Alaskan gold that is smelted is sent overseas. He inquired as to whether the gold could then be designated as Alaskan gold or if it is comingled. MR. WRIGHT answered that it probably would not be considered 100 percent Alaskan gold. 4:36:55 PM GAIL PHILLIPS stated that she formerly was a member of this body, but that she is also a placer miner from a small family run placer mine in Alaska. She opined that it is great for the legislature to focus on Alaska miners. She thought that HB 382 was a worthwhile instrument to send message to those attacking Alaska. She pointed out that HB 382 could be the beginning of identifying a product similar to the Copper River red salmon that is highly regarded. She applauded the sponsors for supporting Alaska's mining industry. 4:38:51 PM GAIL EDGERTON, Owner, Double J Mining and Jewelry, explained that she is a placer miner in eastern interior Alaska and Chicken, Alaska, but has a retail jewelry store in Wasilla. She agreed with Gail Phillip's testimony that it is important to support Alaska's mining industry. She pointed out that most stores sell gold from all over the world. She said she did not know if it is possible to regulate from within the industry. People have a right to buy from where ever and whomever they want, she opined. She loves seeing people buy Alaskan gold. She is bothered by stores that sell gold from other places such as Russia or Australia, but market that gold as being from Alaska, she noted. 4:41:01 PM VICE-CHAIR NEUMAN, in response to Representative Gatto, explained that the Silver Hand Program pertains to Alaska Native art and is not associated with any metal. MS. EDGERTON, in response to Representative Gatto, explained that many pieces of jewelry contain products from all over the world. VICE-CHAIR NEUMAN noted that the Silver Hand program requires that raw materials originate in Alaska. 4:42:42 PM VICE-CHAIR NEUMAN, after first determining that no one wished to testify, announced his intent to hold the bill over for action by the full committee.
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