02/27/2008 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HCR20 | |
| HB382 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HCR 20 | TELECONFERENCED | |
| *+ | HB 382 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 27, 2008
3:06 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Vice Chair
Representative Carl Gatto
Representative Gabrielle LeDoux
Representative Robert L. "Bob" Buch
Representative Berta Gardner
MEMBERS ABSENT
Representative Kurt Olson, Chair
Representative Jay Ramras
COMMITTEE CALENDAR
HOUSE CONCURRENT RESOLUTION NO. 20
Encouraging the installation of fire sprinkler systems in
residences.
- MOVED HCR 20 OUT OF COMMITTEE
HOUSE BILL NO. 382
"An Act relating to the sale by jewelers of jewelry containing
gold."
- HEARD AND HELD
PREVIOUS COMMITTEE ACTION
BILL: HCR 20
SHORT TITLE: RESIDENTIAL FIRE SPRINKLER SYSTEMS
SPONSOR(s): REPRESENTATIVE(s) SEATON
01/31/08 (H) READ THE FIRST TIME - REFERRALS
01/31/08 (H) L&C, STA
02/27/08 (H) L&C AT 3:00 PM CAPITOL 17
BILL: HB 382
SHORT TITLE: SALES OF GOLD JEWELRY
SPONSOR(s): REPRESENTATIVE(s) CHENAULT
02/19/08 (H) READ THE FIRST TIME - REFERRALS
02/19/08 (H) L&C, RES
02/27/08 (H) L&C AT 3:00 PM CAPITOL 17
WITNESS REGISTER
REPRESENTATIVE PAUL SEATON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as the prime sponsor of HCR 20.
CRAIG GOODRICH, Fire Chief
Anchorage Fire Department
Anchorage, Alaska
POSITION STATEMENT: Testified on HCR 20.
JEFF BRIGGS
Alaska Professional Firefighters Association (APFA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HCR 20.
DOUG SCHRAGE, President
Alaska Fire Chiefs Association (AFCA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HCR 20.
WARREN CUMMINGS, Fire Chief
City of Fairbanks Fire Department
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HCR 20.
KELLY NICOLELLO, Assistant Fire Marshal
Division of Fire and Life Safety
Central Office
Department of Public Safety (DPS)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HCR 20.
SARAH MCNAIR-GROVE
Actuary P/C
Juneau Office
Division of Insurance
Department of Commerce, Community, & Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Testified on HCR 20.
PAULA SCAVERA, Special Assistant
Office of the Commissioner
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Testified on HCR 20.
TOM WRIGHT, Staff
to Representative Mike Chenault
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 382 on behalf of the prime
sponsor, Representative Mike Chenault.
GAIL PHILLIPS
Homer, Alaska
POSITION STATEMENT: Testified on HB 382.
GAIL EDGERTON, Owner
Double J Mining and Jewelry
Wasilla, Alaska.
POSITION STATEMENT: Testified on HB 382.
ACTION NARRATIVE
VICECHAIR MARK NEUMAN called the House Labor and Commerce
Standing Committee meeting to order at 3:06:08PM.
Representatives Buch, Gardner, LeDoux, and Neuman were present
at the call to order. Representatives Gatto arrived as the
meeting was in progress.
HCR 20-RESIDENTIAL FIRE SPRINKLER SYSTEMS
3:06:33 PM
VICE-CHAIR NEUMAN announced that the first order of business
would be HOUSE CONCURRENT RESOLUTION NO. 20, Encouraging the
installation of fire sprinkler systems in residences.
REPRESENTATIVE PAUL SEATON, Alaska State Legislature, stated
that he would begin his presentation with a short video
presentation.
REPRESENTATIVE SEATON offered several video clips that will
demonstrate the safety aspects that HCR 20 promotes. He showed
the video clips.
3:11:13 PM
The committee took an at-ease from 3:11 p.m. to 3:12 p.m.
3:12:04 PM
REPRESENTATIVE SEATON related an experience he had that
demonstrated the sprinkler system. The system puts out a fine
water mist and activates with a lower temperature rate than
smoke alarm systems. If fire sprinkler systems were installed
in homes in the kitchen, boiler, or furnace rooms and adjacent
to the fireplace, the systems would cover approximately 85
percent of the fire hazards in a non-smoking household. He
explained the purpose of HCR 20 is to save lives and prevent
millions of dollars in property loss. The Fire Marshal has
developed a pilot program to recognize levels of fire protection
installed in single family dwellings in the state called the
Residential Safety Star Program. Under the program, residents
who install partial or complete fire protection sprinkler
systems can obtain recognition ranging from the Bronze Star to a
Platinum Star rating.
REPRESENTATIVE SEATON explained that as the video clip
demonstrated, the fire sprinkler head is easily installed in the
regular plumbing system, and each sprinkler covers about a 12
foot diameter when activated. The Department of Labor &
Workforce Development (DLWD) would work with the Fire Marshal's
office to provide training to plumbers in order to avoid the
need for specialized fire installers. He referred to a handout
in the committee packet labeled "Fire Deaths Year Comparison."
He noted that there were 20 deaths in Alaska in 2005, 21 deaths
in 2006, and 24 deaths in 2007. He opined that the majority of
these fatalities could have been prevented. The majority of
fires are caused by unattended cooking and combustibles too
close to heat sources. The installation cost is minimal. Fire
sprinklers are about $35 per sprinkler head, he noted. He
related that he has even installed sprinklers in his boat since
they can withstand heating and thawing conditions. He explained
the ease in installing sprinkler heads. He also offered that
HCR 20 would encourage insurance companies to recognize the
benefits of fire protection offered by the fire sprinkler
system.
3:20:06 PM
VICE-CHAIR NEUMAN inquired as to whether the fire sprinkler
system needs to be installed by qualified installers as
mentioned in the packet information provided by the state's Fire
Marshal. Alaskans often like to build their own homes and he'd
like to see homeowners be able to do the installation, he
opined.
REPRESENTATIVE SEATON answered that the sprinklers are easy to
install as evidenced by the video clip. He explained that it is
most important to get people to install the fire suppression
systems. He noted that the Residential Fire Sprinkler Incentive
Program, or "gold star program" would require the sprinkler
system to be installed or inspected by a plumber. Although,
nothing prevents a person from installing the fire sprinkler
system, he recommended that a qualified plumber inspect and
certify the system to ensure that the sprinkler heads are
installed correctly and to qualify under the "gold star
program."
3:22:26 PM
VICE-CHAIR NEUMAN related his experiences with systems that need
a required flow to sustain the system, to maintain a certain
pressure, and he wondered whether the system needed a backup
capacity.
REPRESENTATIVE SEATON explained that HCR 20 would apply to
residential and not commercial buildings. While it is not 100
percent effective, the residential fire protection offered is
very good. For those who are building new homes, a more
elaborate federal program for certified sprinkler systems is
currently in place. However, the cost is high and the stringent
requirements tend to keep people from using the national
program. Using residential sprinkler heads will offer
homeowners protection against loss of life and property, he
opined.
VICE-CHAIR NEUMAN inquired as to whether the sprinklers are
feasible for retrofitting mobile homes. He further inquired
whether HCR 20 would help lower insurance rates in rural areas.
REPRESENTATIVE SEATON offered that HCR 20 will encourage
homeowners to install inexpensive fire sprinkler systems in
their homes, at least in the high risk rooms such as the kitchen
and furnace rooms to increase safety for residences. The
sponsor related that he doesn't have an expectation that these
sprinkler systems will be as effective as the expensive systems
installed in new homes that adhere to more stringent national
standards. However, he stressed the importance of adding
sprinklers to enhance fire protection in existing homes.
3:27:46 PM
REPRESENTATIVE LEDOUX inquired as to whether the sponsor should
consider a program to be incorporated in a bill form along with
a fiscal note instead of this resolution.
REPRESENTATIVE SEATON answered that the purpose of HCR 20 is to
educate and encourage residents, which fits in well with the
Fire Marshal's pilot program, he opined. He said he anticipates
some insurance companies will recognize and encourage people to
install fire sprinklers by offering them reduced rates.
REPRESENTATIVE LEDOUX referred to the last resolve clause of HCR
20, which speaks to developing a program and a curriculum to
train licensed plumbers to install residential fire sprinkler
systems. She inquired as to whether funding is necessary to
accomplish HCR 20.
REPRESENTATIVE SEATON acknowledged that some of the training is
already available in existing curriculum. This resolution would
encourage the departments to work together, he opined.
3:31:39 PM
REPRESENTATIVE SEATON, in response to Representative Gatto,
responded that he brought along a recessed sprinkler for members
to examine.
3:32:19 PM
REPRESENTATIVE GATTO recapped causes of residential fires,
including unattended cooking, smoking cigarettes, and candles.
He pointed out that water damage can result in expensive
repairs. He expressed concern that during power outages, if the
sprinkler freezes that it would render the sprinkler useless.
While he supports installing sprinkler systems, he noted that
smoke detectors are important in saving lives, especially ones
with hard wired alarms.
3:35:49 PM
REPRESENTATIVE GARDNER related her understanding of HCR 20 such
that the resolution supports the current efforts to create a
model program, requests insurance companies to provide reduced
insurance rates for homeowners who have installed fire sprinkler
systems, and requests that the Division of Insurance should
recognize incentives for homeowners. She inquired as to the
method that the Division of Insurance would uses to recognize
incentives for homeowners. She further inquired how the
homeowner would shut off a sprinkler system once a fire is
extinguished.
REPRESENTATIVE SEATON answered that the homeowner would turn off
the sprinkler system by turning off the main water to the house.
He offered that as seen in the video clip, the system releases
10 to 15 gallons a minute as compared to 100 gallons a minute
from a firefighter's hose.
3:40:37 PM
REPRESENTATIVE BUCH offered that mechanisms such as a ball valve
can assist homeowners in stopping water flow. He pointed out
the importance of homeowners to contact qualified plumbers to
install the sprinklers. He related his understanding that the
resolution supports, but does not require action. However,
since lives are saved with the installation of these systems,
HCR 20 would help protect families. He related his further
understanding that homeowners who install the systems can
demonstrate to insurance companies the safeguards provided by
the sprinkler systems, which may translate into savings on
premiums.
REPRESENTATIVE SEATON agreed that HCR 20 does not mandate the
sprinkler systems. Some insurance such as State Farm Insurance
are interested in homeowners installing sprinkler systems since
the companies want to protect consumers and have fewer fires
happen. He further offered that the sprinklers do not have a
history of randomly activating without a fire present.
3:44:37 PM
VICE-CHAIR NEUMAN expressed concern that homeowners doing their
own installations might not qualify for the Fire Marshal's "gold
star program." He referred the first whereas clause on page 2,
line 3 of HCR 20, which identifies that a licensed plumber can
install sprinkler systems.
REPRESENTATIVE SEATON referred page 2, line 4-5, of HCR 20,
which read, "ignition sources and can verify the existence of
residential fire sprinkler systems to the state fire marshal;
and". He explained that a homeowner could do the installation
and have a certified licensed plumber check the system. The
plumber could verify to the fire marshal that the system is
appropriately installed.
3:47:14 PM
CRAIG GOODRICH, Fire Chief, Anchorage Fire Department, offered
that he previously has served as Fire Marshal and as the
Executive Director of Fire Industrial Safety and Health for
Alyeska Pipeline Service Company. As Fire Marshal, he served as
committee chair on the Fire Marshals of North America committee
for sprinkler systems. While he said he does not purport to be
an expert, he said he does have extensive experience with fire
suppression systems. He related that the North Slope Borough
(NSB), has been "sprinkling" and has had a zero square foot
ordinance for almost two decades. Due to construction costs of
$500 per square foot at 1992 rates, the NSB could no longer
afford to replace its residences, he opined. Since 1992, the
NSB has not had a single fire fatality in any building that uses
a sprinkler system. The systems that the NSB uses are similar
to the ones proposed in HCR 20. He characterized the program in
HCR 20 as a great model. He answered an earlier question by
noting that there are several products that can withstand
freezing and thawing. He opined that while smoke detectors are
valuable, a sprinkler system that covers the kitchen and furnace
areas of a home is infinity better.
3:51:37 PM
JEFF BRIGGS, Alaska Professional Firefighters Association
(APFA), stated that the APFA is in support of HCR 20.
Nationally, few deaths occur in buildings with working sprinkler
systems. Not only are they proven to save lives, but they also
save millions of dollars in property loss. He opined that one
day all buildings will be required to have sprinkler systems
installed just as currently all residences must have smoke and
carbon monoxide detectors. He explained that during his career
he has observed many fires that have been contained by sprinkler
systems. He related an example in which a fire started in a
boiler in a garage and melted the solder in the copper piping.
The leaking water acted as sprinkler system. In 2006, Alaska
had 21 fire fatalities, 20 of which were in residences. He
noted that this is nearly 3 times national average per hundred
thousand in population. He concluded that the APFA believes
that HCR 20 is a step in the right direction.
3:53:22 PM
CHIEF GOODRICH, in response to Representative Gatto, explained
that dry-pipe refers to a fairly sophisticated mechanical
engineering system. The dry-pipe is where the sprinkler system
is charged with compressed air and is a system often used in
buildings in which the temperature may fall below freezing. In
the dry-pipe system, there is a time delay as the compressed air
is discharged first from the sprinkler heads before the water.
3:55:48 PM
DOUG SCHRAGE, President, Alaska Fire Chiefs Association (AFCA),
stated that he is also the Operating Chief, Anchorage Fire
Department, but he is only representing the AFCA today. He
offered that AFCA strongly advocates sprinkler programs and
anything that promotes their use, which is why AFCA supports HCR
20. Although fire sprinklers should be mandated in some
circumstances and areas, the AFCA recognizes this may not be
realistic for all communities. Smoke detectors and carbon
monoxide detectors have value, he opined, and the fire
department's mission is to save lives and property. However,
sprinklers add a component to protect property that smoke
detectors cannot provide. Residential fire sprinklers will help
to protect Alaska's population, he opined. He concluded with
the statement that, "Alaska has one of the highest per capita
death rate from fires."
3:58:30 PM
WARREN CUMMINGS, Fire Chief, City of Fairbanks Fire Department,
stated that that the City of Fairbanks Fire Department supports
HCR 20 since it is one of the tools that can save lives. He
offered that fires kill more people in the United States than
all natural disasters. He offered that 80 percent of all fire
deaths occur in the home. The single most cost effective way to
prevent fire deaths in residences is by installing fire
sprinkler systems, he opined. Combined with smoke alarms, fire
sprinklers cut the risk from fire deaths in the home by 82
percent, he opined. If a fire does occur, homeowners can expect
90 percent lower financial losses than those without sprinkler
systems. He noted that one to two sprinkler heads installed in
a home can save homes. Only the sprinkler closest to the fire
will activate, he noted. Of the 10 fire fatalities in Fairbanks
in the last 12 years, 9 lives would have been saved if sprinkler
systems had been present, he opined. Builders would put
sprinklers in homes if the systems increase value of home, he
opined. Encouraging installation of sprinklers can be achieved
through building code requirements and incentives such as
insurance breaks. He related that he personally has had a
system in his home since 1980. Initially the insurance company
threatened to raise the rates initially but insurance companies
have recognized the value of sprinkler systems. Although he
obtains a tax rebate from the Fairbanks North Star Borough for
his sprinkler system, the system is currently valued at the
initial cost. Thus, while his home has tripled or quadrupled in
value, the tax relief is not valued at current appraisal rates,
but should be, he opined. The City of Fairbanks Fire Department
supports passage of HCR 20.
4:02:13 PM
KELLY NICOLELLO, Assistant Fire Marshal, Division of Fire and
Life Safety, Central Office, Department of Public Safety (DPS),
stated that according to the United States Fire Administration,
in 2005 alone the U.S. suffered 396,000 residential fires
incurring 3,055 deaths. The DPS finds these statistics
unacceptable. This proposed resolution recognizes the levels of
fixed fire protection installed in single family dwellings.
This policy is embodied in the Residential Safety Star Program,
he noted. To attain the appropriate level of recognition, the
fixed protection system shall be installed by qualified
installers, permitted in 13 AAC 50.035, or otherwise approved by
the manufacturer with concurrence of the SFMO. The society
needs to change its culture, he suggested. Too long our society
has awarded victim status to people who have had fires occur in
their homes, he opined. Firefighters and other family members'
lives are risked due to acts of carelessness which are rewarded
by an outpouring of compassion, positive affirmation, and
financial assistance, he further opined. He asked, "Shouldn't
we reward positive proactive outcomes rather than rewarding
negative results?" This resolution would bring forth a
voluntary, positive, individual approach to fire safety in our
homes and would provide the means to reward families who install
residential fire sprinkler suppression system. He urged members
to support HCR 20.
4:05:23 PM
VICE-CHAIR NEUMAN, after first determining no one else wished to
testify, closed public testimony on HCR 20.
SARAH MCNAIR-GROVE, Actuary P/C, Juneau Office, Division of
Insurance, Department of Commerce, Community, & Economic
Development (DCCED),in response to Representative Gardner,
stated that the division recognizes the [Residential Safety
Star] Program by reviewing rates that insurance companies charge
in Alaska. The division would also check for sprinkler credits
when the companies file their rating plans. She offered that
several companies currently offer such approved credits.
4:06:35 PM
MS. MCNAIR-GROVE, in response to Vice-Chair Neuman, agreed that
if a homeowner installed his/her own sprinkler system that was
inspected by a state licensed building inspector, it would
qualify for the program. She added that the division reviewed
the language in the approved rules, which states the home must
have an appropriately installed sprinkler system. She opined
with building inspector approval, the sprinkler system would
qualify. In further response to Vice-Chair Neuman, Ms. McNair-
Grove explained that the homeowner would get a credit for a
sprinkler system. She offered that the rates vary by company
between 4-10 percent. She did not believe homeowners would be
penalized if they did not have sprinkler systems installed in
their homes.
VICE-CHAIR NEUMAN inquired as to whether the division could
verify whether Barrow homeowners have received a reduction in
insurance rates.
MS. MCNAIR-GROVE answered that her information does not break
out rates by location. In further response to Vice-Chair
Neuman, Ms. McNair-Grove pointed out that to the extent that
fires are reduced in Alaska, the overall losses to the insurance
would be reduced, which would also have an effect on premium
rates.
4:10:24 PM
PAULA SCAVERA, Special Assistant, Office of the Commissioner,
Department of Labor & Workforce Development (DLWD), stated that
she obtains a credit on her homeowner's insurance for having
hard wired smoke detectors in her home.
4:11:06 PM
REPRESENTATIVE GARDNER noted that HCR 20 encourages the DLWD to
work with the state Fire Marshal to create a program and a
curriculum to train licensed plumbers to install residential
fire sprinkler systems. She inquired as to whether this is this
a mandate.
MS. SCAVERA answered that the department licenses plumbers, who
have special endorsements. The department also has existing
curricula. However, all of the details have not been worked out
with the fire marshal's office. She related that if a plumber
passed the curriculum, the department would likely have a card
or an endorsement. She offered that this is a resolution so it
is not mandatory. In further response to Representative
Gardner, Ms. Scavera answered that there are many types of
curriculum available. She offered she reviewed one that the
National Fire Protection Association has developed, which the
division is not endorsing, as an example.
4:13:21 PM
VICE-CHAIR NEUMAN inquired as to whether a plumber would have to
have a special endorsement in order to be recognized in the
program.
MS. SCAVERA answered that the program is still in a conceptual
stage since the division has not yet coordinated the program
with the fire marshal's office. In further response to
Representative Neuman, Ms. Scavera noted that Alaska has adopted
the Uniform Plumbing Code which references sprinkler systems in
residences.
4:15:21 PM
VICE-CHAIR NEUMAN referenced a letter in the packet from the
Anchorage Firefighters Local 1264 and read: "The IAFF looks
forward to the day when all new residential construction has
sprinkler systems. This is a step toward that direction and a
step towards saving lives of Alaskan civilians and first
responders." Vice-Chair Neuman inquired as to whether the prime
sponsor agreed that HCR 20 was a step toward mandatory
residential sprinkler systems.
REPRESENTATIVE SEATON answered that is not the intention of HCR
20 to require mandatory sprinkler systems in homes. He
reiterated the purpose of HCR 20, which is to create an
awareness to help protect homes, children, and families. This
resolution is not a stepping stone to mandatory sprinkler
systems, he opined. He surmised the IAFF hopes that in the
future new houses are all protected.
4:16:52 PM
REPRESENTATIVE GATTO moved to report HCR 20 out of committee
with individual recommendations and the accompanying fiscal
notes.
There being no objection, HCR 20 was reported from the House
Labor and Commerce Standing Committee.
4:17:45 PM
The committee took an at-ease from 4:17 p.m. to 4:20 p.m.
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.
4:43:00 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:43 p.m.
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