Legislature(2017 - 2018)BELTZ 105 (TSBldg)

01/30/2018 01:00 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Public Testimony --
-- Please Note Time Change --
*+ SB 126 VISITING PHYSICIANS WITH SPORTS TEAMS TELECONFERENCED
Moved SB 126 Out of Committee
+ HB 208 TRUSTS; COMM PROP TRUSTS; POWERS OF APPT TELECONFERENCED
Moved HB 208 Out of Committee
+= HB 102 LIMITED TEACHER CERTIFICATES; LANGUAGES TELECONFERENCED
Moved CSHB 102(EDC) Out of Committee
+ HB 114 BOILER/PRESSURE VESSEL INSPECTION REPORTS TELECONFERENCED
Moved HB 114 Out of Committee
+ HB 121 OCC. HEALTH AND SAFETY CIVIL PENALTIES TELECONFERENCED
Moved HB 121 Out of Committee
+ HB 124 BENEFIT CORPORATIONS TELECONFERENCED
Moved CSHB 124(FIN) Out of Committee
+ HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Heard & Held
+ HCR 8 KODIAK SEAFOOD & MARINE SCIENCE CENTER TELECONFERENCED
Moved HCR 8 AM Out of Committee
                  HB 124-BENEFIT CORPORATIONS                                                                               
                                                                                                                                
1:12:03 PM                                                                                                                    
CHAIR  COSTELLO  announced the  consideration  of  HB 124.  [CSHB
124(FIN) was before the committee.]                                                                                             
                                                                                                                                
1:12:22 PM                                                                                                                    
REPRESENTATIVE SAM  KITO III,  Alaska State  Legislature, Juneau,                                                               
Alaska,  sponsor  of HB  124,  stated  that  the purpose  of  the                                                               
legislation is to modify Alaska's  corporation structure to allow                                                               
a  corporation to  add a  beneficial component  to its  business.                                                               
This allows  owners and  boards to  take actions  that positively                                                               
impact their  communities and business without  fear of violating                                                               
their fiduciary responsibility to shareholders.                                                                                 
                                                                                                                                
1:15:10 PM                                                                                                                    
CATLYN ELLIS,  Staff, Representative  Sam Kito III,  Alaska State                                                               
Legislature, Juneau, Alaska,  explained that benefit corporations                                                               
work towards  two goals. They  have the  fiduciary responsibility                                                               
to achieve  the best  profits for  their shareholders  while they                                                               
incorporate public benefits and  community improvement into their                                                               
day-to-day   business  practices.   A   benefit  corporation   is                                                               
protected by its  legal framework and is taxed the  same as other                                                               
corporations.  The   business  develops   its  own   articles  of                                                               
incorporation and  is held  accountable through  biannual reports                                                               
to shareholders,  the state, and  the public. Failure  to produce                                                               
these  reports  could  result  in  the  Department  of  Commerce,                                                               
Community  and   Economic  Development  (DCCED)   dissolving  the                                                               
corporation.                                                                                                                    
                                                                                                                                
MS. ELLIS reported that 31  states have a similar designation for                                                               
benefit  corporations. She  noted that  a few  Alaskan businesses                                                               
have gone through  the process of becoming  certified through the                                                               
international benefit  corporation structure. This would  work in                                                               
tandem and provide statewide legal protection.                                                                                  
                                                                                                                                
1:18:49 PM                                                                                                                    
CHAIR  COSTELLO  asked if  a  business  could  form solely  as  a                                                               
benefit corporation.                                                                                                            
                                                                                                                                
MS. ELLIS  answered yes, and  an existing corporation  could vote                                                               
to convert to a benefit corporation                                                                                             
                                                                                                                                
SENATOR  GARDNER asked  1)  the  genesis of  the  bill  and if  a                                                               
business  could  form  as  a benefit  corporation  if  the  state                                                               
doesn't   participate  by   licensure,  and   2)  if   a  benefit                                                               
corporation  is  subject to  penalty  if  it  fails to  meet  its                                                               
beneficial  goal but  does meet  its fiduciary  responsibility to                                                               
shareholders.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KITO  explained  that  the  bill  was  originally                                                               
requested  by Alaskan  businesses because  state law  prohibits a                                                               
corporation   from  using   the   beneficial  component   without                                                               
violating  its   fiduciary  responsibility  to   shareholders.  A                                                               
benefit  corporation  must identify  its  beneficial  use in  the                                                               
articles   of  incorporation   and  biannually   report  on   its                                                               
beneficial  and  fiduciary  responsibility. The  department  will                                                               
review the  reports and  he imagined  the corporation  would have                                                               
the flexibility to scale up or down its beneficial use.                                                                         
                                                                                                                                
MS.  ELLIS  cited  Patagonia  as   an  example  of  a  beneficial                                                               
corporation;  the  bylaws  direct   the  corporation  to  deliver                                                               
products that don't impact the  community, but it isn't specific.                                                               
She confirmed that  Alaska businesses could form  as a beneficial                                                               
corporation,  but   they  wouldn't   have  legal   protection  if                                                               
shareholders said  the corporation  failed to meet  its fiduciary                                                               
responsibilities.                                                                                                               
                                                                                                                                
CHAIR  COSTELLO   noted  the  individuals  available   to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
1:24:28 PM                                                                                                                    
SENATOR MEYER  asked for  an example of  an Alaska  business that                                                               
has formed as a beneficial corporation.                                                                                         
                                                                                                                                
MS.  ELLIS said  Arctic Solar  Ventures  in Anchorage  is one  of                                                               
three  businesses  that  have   gone  through  the  international                                                               
certification process.                                                                                                          
                                                                                                                                
SENATOR  MEYER asked  if the  social benefit  would be  the solar                                                               
panels.                                                                                                                         
                                                                                                                                
MS. ELLIS  replied they listed environmental  and social benefits                                                               
in the bylaws.                                                                                                                  
                                                                                                                                
SENATOR MEYER asked  how social benefit is defined  and who makes                                                               
the determination.                                                                                                              
                                                                                                                                
MS. ELLIS replied the corporation  makes the determination in its                                                               
bylaws.                                                                                                                         
                                                                                                                                
SENATOR MICCICHE  commented that  citing Patagonia as  an example                                                               
isn't  a good  lead-off since  it opposes  many of  the important                                                               
industries in Alaska. He acknowledged  the bottom-line benefit of                                                               
the legislation was  that the corporation identifies  itself as a                                                               
socially responsible entity.                                                                                                    
                                                                                                                                
1:26:22 PM                                                                                                                    
CHAIR COSTELLO  opened public testimony  on HB 124 and  closed it                                                               
after ascertaining that no one wished to testify.                                                                               
                                                                                                                                
1:26:57 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:27:15 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the meeting  and again  opened public                                                               
testimony on HB 124. Finding none, she closed it.                                                                               
                                                                                                                                
SENATOR  GARDNER  pointed  out   that  the  supporting  documents                                                               
include  a letter  from a  coffee  company that  talks about  the                                                               
social value  of empowering indigenous  farmers and  helping them                                                               
earn up to 50 percent more of the specialty coffee dollars.                                                                     
                                                                                                                                
SENATOR  MICCICHE reviewed  the  $22,500 DCCED  fiscal note  that                                                               
does not have a negative impact  to the state. He paraphrased the                                                               
last  paragraph of  the analysis.  "Corporation  filing fees  are                                                               
General  Fund/Program Receipts  fund source  1005 GF/Prgm  (DGF).                                                               
Corporation filing fees  are set in regulation per AS  10 and 32,                                                               
and revenue in excess of  authorized budgeted expenses reverts to                                                               
the State of Alaska general fund."                                                                                              
                                                                                                                                
1:29:39 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  124  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
1:29:52 PM                                                                                                                    
CHAIR COSTELLO  announced that  without objection,  CSHB 124(FIN)                                                               
moved from the Senate Labor and Commerce Standing Committee.                                                                    

Document Name Date/Time Subjects
SB 126 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Testimony.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB126-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
HB208 Sectional Analysis ver A 4.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
HB208-LAW-CIV-01-26-2018.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
Sponsor Statement - HB - 208.pdf SL&C 1/30/2018 1:00:00 PM
HB 208 Fiscal Note 01.26.18
HB102 Supporting Document-Nome Schools Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Koniag KANA Roundtable Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Dr Wilson Letter 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Native Village of Port Lions Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HCR 8 Supporting Document-KSMSC Budget.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document-APICDA 12.10.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document AML 11.5.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 ver A.A.PDF SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Explanation of Changes ver A.A 1.28.17.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Leg Research Report 1.2.16.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Sponsor Statement ver A.A 1.28.18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR8-LEG-SESS-01-29-18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HB102 Fiscal Note EED-SSA-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102.PDF SL&C 1/30/2018 1:00:00 PM
HB 102
HB114 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 ver D.PDF SL&C 1/30/2018 1:00:00 PM
HB 114
HB 114-DOLWD-MI-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB121-DOLWD-OSH-1-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - ver O 2.27.17.PDF SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sponsor Statement 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sectional Analysis 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Support Document - Federal memo to state plans 02.23.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Additional Document - Sponsor's Reply to House Judiciary Committee Questions 3.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Supporting Document-OSHA Fact Sheet 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB124 Explanation of changes from ver A to ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sponsor Statement 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sectional Analysis ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124CS(FIN)-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Support Documents - Letters of Support 4.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 ver. U 5.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB 86 ver A.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Fiscal Note EED-ACPE.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Supporting Document - Letter of Support.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - Questions Memo HLNC.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - ACPE Loan Default Consequences.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - NY Times Student Loans.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Senator Costello Senate Labor and Commerce Committee Follow-up.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
ASMA Letter of Support SB 126.pdf SL&C 1/30/2018 1:00:00 PM
SB 126