03/30/2018 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB15 | |
| SB165 | |
| SB45 | |
| HB384 | |
| HB230 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 384 | TELECONFERENCED | |
| += | HB 230 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 15 | TELECONFERENCED | |
| += | SB 165 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 30, 2018
3:24 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
MEMBERS ABSENT
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
Representative Mike Chenault (alternate)
Representative Bryce Edgmon (alternate)
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 15(FIN)
"An Act relating to possession of an electronic smoking product
or a product containing nicotine by a minor and to selling or
giving a product containing nicotine or an electronic smoking
product to a minor; relating to business license endorsements to
sell cigarettes, cigars, tobacco, products containing tobacco,
electronic smoking products, or products containing nicotine;
and relating to citations for certain offenses concerning
tobacco, products containing nicotine, or electronic smoking
products."
- MOVED HCS CSSB 15(L&C) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 45(FIN)
"An Act relating to an exemption from the regulation of
construction contractors."
- MOVED CSSB 45(FIN) OUT OF COMMITTEE
HOUSE BILL NO. 384
"An Act relating to the Regulatory Commission of Alaska and
broadband Internet regulations."
- HEARD & HELD
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."
- HEARD & HELD
SENATE BILL NO. 165
"An Act relating to the Alaska comprehensive health insurance
fund; and providing for an effective date."
- MOVED SB 165 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 15
SHORT TITLE: E-CIGS/TOBACCO/NICOTINE & MINORS; SALES
SPONSOR(s): SENATOR(s) STEVENS
01/18/17 (S) PREFILE RELEASED 1/13/17
01/18/17 (S) READ THE FIRST TIME - REFERRALS
01/18/17 (S) L&C, JUD
02/14/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/14/17 (S) Heard & Held
02/14/17 (S) MINUTE(L&C)
02/21/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/21/17 (S) Heard & Held
02/21/17 (S) MINUTE(L&C)
02/28/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/28/17 (S) <Bill Hearing Canceled>
03/02/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/02/17 (S) Moved CSSB 15(L&C) Out of Committee
03/02/17 (S) MINUTE(L&C)
03/06/17 (S) L&C RPT CS 4DP NEW TITLE
03/06/17 (S) DP: COSTELLO, HUGHES, MEYER, GARDNER
03/27/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/27/17 (S) Heard & Held
03/27/17 (S) MINUTE(JUD)
03/29/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/29/17 (S) <Bill Hearing Canceled>
04/03/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/03/17 (S) Heard & Held
04/03/17 (S) MINUTE(JUD)
04/05/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/05/17 (S) Heard & Held
04/05/17 (S) MINUTE(JUD)
04/07/17 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
04/07/17 (S) Moved CSSB 15(JUD) Out of Committee
04/07/17 (S) MINUTE(JUD)
04/10/17 (S) JUD RPT CS 3DP 1NR 1AM NEW TITLE
04/10/17 (S) NR: COGHILL
04/10/17 (S) DP: WIELECHOWSKI, KELLY, COSTELLO
04/10/17 (S) AM: MEYER
04/10/17 (S) FIN REFERRAL ADDED AFTER JUD
02/16/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/16/18 (S) Heard & Held
02/16/18 (S) MINUTE(FIN)
02/28/18 (S) FIN RPT CS 6DP 1NR NEW TITLE
02/28/18 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON
IMHOF, STEVENS, MICCICHE
02/28/18 (S) NR: OLSON
02/28/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/28/18 (S) Moved CSSB 15(FIN) Out of Committee
02/28/18 (S) MINUTE(FIN)
03/08/18 (S) TRANSMITTED TO (H)
03/08/18 (S) VERSION: CSSB 15(FIN)
03/09/18 (H) READ THE FIRST TIME - REFERRALS
03/09/18 (H) L&C, FIN
03/21/18 (H) L&C AT 3:15 PM BARNES 124
03/21/18 (H) -- MEETING CANCELED --
03/23/18 (H) L&C AT 3:15 PM BARNES 124
03/23/18 (H) -- MEETING CANCELED --
03/28/18 (H) L&C AT 3:15 PM BARNES 124
03/28/18 (H) Heard & Held
03/28/18 (H) MINUTE(L&C)
03/30/18 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 45
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS
SPONSOR(s): LABOR & COMMERCE
02/01/17 (S) READ THE FIRST TIME - REFERRALS
02/01/17 (S) L&C, FIN
02/07/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/17 (S) Heard & Held
02/07/17 (S) MINUTE(L&C)
02/28/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/28/17 (S) Moved SB 45 Out of Committee
02/28/17 (S) MINUTE(L&C)
03/01/17 (S) L&C RPT 1DP 4NR
03/01/17 (S) DP: COSTELLO
03/01/17 (S) NR: HUGHES, MEYER, STEVENS, GARDNER
04/07/17 (S) FIN AT 9:00 AM SENATE FINANCE 532
04/07/17 (S) Heard & Held
04/07/17 (S) MINUTE(FIN)
04/11/17 (S) FIN AT 1:30 PM SENATE FINANCE 532
04/11/17 (S) Moved CSSB 45(FIN) Out of Committee
04/11/17 (S) MINUTE(FIN)
04/12/17 (S) FIN RPT CS 5DP 1NR SAME TITLE
04/12/17 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON
IMHOF, MICCICHE
04/12/17 (S) NR: OLSON
04/15/17 (S) TRANSMITTED TO (H)
04/15/17 (S) VERSION: CSSB 45(FIN)
04/16/17 (H) READ THE FIRST TIME - REFERRALS
04/16/17 (H) L&C
03/23/18 (H) L&C AT 3:15 PM BARNES 124
03/23/18 (H) -- MEETING CANCELED --
03/26/18 (H) L&C AT 3:15 PM BARNES 124
03/26/18 (H) Heard & Held
03/26/18 (H) MINUTE(L&C)
03/30/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 384
SHORT TITLE: REGULATORY COMM OF AK; BROADBAND INTERNET
SPONSOR(s): GUTTENBERG
02/21/18 (H) READ THE FIRST TIME - REFERRALS
02/21/18 (H) L&C, FIN
03/30/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 230
SHORT TITLE: TELECOMMUNICATIONS & INTERNET PRIVACY
SPONSOR(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
BILL: SB 165
SHORT TITLE: COMPREHENSIVE HEALTH INSURANCE FUND
SPONSOR(s): SENATOR(s) MACKINNON
01/26/18 (S) READ THE FIRST TIME - REFERRALS
01/26/18 (S) L&C, FIN
02/22/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/22/18 (S) Moved SB 165 Out of Committee
02/22/18 (S) MINUTE(L&C)
02/26/18 (S) L&C RPT 5DP
02/26/18 (S) DP: COSTELLO, STEVENS, MICCICHE, MEYER,
GARDNER
02/27/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/27/18 (S) Heard & Held
02/27/18 (S) MINUTE(FIN)
02/28/18 (S) FIN RPT 6DP 1NR
02/28/18 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON
IMHOF, STEVENS, MICCICHE
02/28/18 (S) NR: OLSON
02/28/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/28/18 (S) Moved SB 165 Out of Committee
02/28/18 (S) MINUTE(FIN)
03/05/18 (S) TRANSMITTED TO (H)
03/05/18 (S) VERSION: SB 165
03/07/18 (H) READ THE FIRST TIME - REFERRALS
03/07/18 (H) L&C, FIN
03/21/18 (H) L&C AT 3:15 PM BARNES 124
03/21/18 (H) -- MEETING CANCELED --
03/23/18 (H) L&C AT 3:15 PM BARNES 124
03/23/18 (H) -- MEETING CANCELED --
03/26/18 (H) L&C AT 3:15 PM BARNES 124
03/3018 (H) L&C at 3:24 PM BARNES 124
WITNESS REGISTER
KATIE STEFFENS
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 15.
JOE DARNELL
Division of Behavioral Health
Department of Health and Social Services (DHSS)
Anchorage, Alaska
POSITION STATEMENT: Answered questions in the hearing on SB 15.
JAMES SQUYRES
Rural Deltana, Alaska
POSITION STATEMENT: Testified in opposition to SB 45.
NATASHA MCCLANAHAN, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reintroduced SB 165 on behalf of Senator
Costello, prime sponsor.
REPRESENTATIVE DAVID GUTTENBERG
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 384 as prime sponsor.
RICH GAZAWAY, Regulatory Commission of Alaska (RCA)
Anchorage, Alaska
POSITION STATEMENT: Testified in the hearing on HB 384.
STEPHEN MCALPINE, Commissioner, Regulatory Commission of Alaska
(RCA)
Anchorage, Alaska
POSITION STATEMENT: Answered questions in the hearing on HB
384.
PATRICK FITZGERALD, Staff
Representative Harriet Drummond
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reintroduced HB 230 on behalf of
Representative Drummond, prime sponsor.
REPRESENTATIVE HARRIET DRUMMOND
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reintroduced HB 230 as prime sponsor.
ACTION NARRATIVE
3:24:48 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:24 p.m. Representatives Stutes,
Birch, Wool, Josephson, and Kito were present at the call to
order.
SB 15-E-CIGS/TOBACCO/NICOTINE & MINORS; SALES
3:25:42 PM
CHAIR KITO announced that the first order of business would be
SENATE BILL NO. 15, "An Act relating to possession of an
electronic smoking product or a product containing nicotine by a
minor and to selling or giving an electronic smoking product to
a minor; relating to business license endorsements to sell
cigarettes, cigars, tobacco, products containing tobacco,
electronic smoking products, or products containing nicotine;
and relating to citations for certain offenses concerning
tobacco or nicotine products."
CHAIR KITO announced that public testimony was still open from
the previous hearing.
3:26:56 PM
KATIE STEFFENS testified in support of SB 15. She described the
particulate matter emanating from vaping devices. She stated
she thinks it is important to keep these products out of the
hands of minors.
REPRESENTATIVE WOOL asked how many tickets are going out to kids
for having e-cigarettes.
3:30:08 PM
JOE DARNELL, Division of Behavioral Health, Department of Health
and Social Services (DHSS), answered questions in the hearing on
SB 15. He stated people cannot be cited for using vape products
which was the aim of the proposed bill.
3:30:49 PM
CHAIR KITO closed public testimony.
3:31:02 PM
REPRESENTATIVE WOOL moved to report CS for SB 15 out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, it was so ordered.
3:31:26 PM
The committee took an at-ease from 3:31 p.m. to 3:32 p.m.
SB 165-COMPREHENSIVE HEALTH INSURANCE FUND
3:32:46 PM
CHAIR KITO announced that the next order of business would be
SENATE BILL NO. 165, "An Act relating to the Alaska
comprehensive health insurance fund; and providing for an
effective date."
3:33:29 PM
CHAIR KITO stated that public testimony was still open from the
previous hearing. Upon ascertaining that no one was available
to testify, he closed public testimony on SB 165.
3:34:03 PM
REPRESENTATIVE WOOL moved to report SB 165 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, it was so ordered.
3:34:24 PM
The committee took an at-ease from 3:34 p.m. to 3:34 p.m.
SB 45-EXEMPTION: LICENSING OF CONTRACTORS
3:34:29 PM
CHAIR KITO announced that the next order of business would be
SENATE BILL NO. 45, "An Act relating to an exemption from the
regulation of construction contractors."
CHAIR KITO said public testimony was still open on SB 45 from
the previous hearing.
3:36:40 PM
JAMES SQUYRES testified in opposition of SB 45. He paraphrased
from his written statement. He mentioned the bill had been
presented in several legislative sessions without success. He
questioned the validity of the committee bill.
3:39:36 PM
REPRESENTATIVE WOOL asked about the changes to the bill through
the years.
3:39:55 PM
NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State
Legislature, reintroduced SB 165 on behalf of Senator Costello,
prime sponsor. She answered there had been changes but that she
did not have the bill history before her. She stated she would
provide the information to the committee.
REPRESENTATIVE STUTES surmised that all the bill does is require
the builder to provide information on the home after two years.
MS. MCCLANAHAN answered in the affirmative.
REPRESENTATIVE STUTES asked why two years was established as the
limit.
CHAIR KITO said it was the minimal amount of time required to
build a house for personal use. He said it was thought that
multiple properties built in two years indicated competition
with licensed contractors.
REPRESENTATIVE STUTES suggested the proposal would not preclude
the builder needing to get the appropriate permits.
MS. MCCLANAHAN clarified the proposed bill would apply to owner
builders and not to licensed contractors.
REPRESENTATIVE STUTES surmised the proposed bill would not
preclude the individual from getting the permits required by a
contractor.
MS. MCCLANAHAN deferred to the department.
CHAIR KITO answered that it does not preclude the local
authority from requiring the appropriate permits.
REPRESENTATIVE WOOL said he remembered that earlier iterations
of the bill required anyone building within two years to get a
contractor's license.
MS. MCCLANAHAN answered that the requirement is not in the
proposed legislation.
3:42:57 PM
CHAIR KITO closed public testimony on SB 45.
3:43:23 PM
REPRESENTATIVE WOOL moved to report SB 45 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, it was so ordered.
3:43:42 PM
The committee took an at-ease from 3:43 p.m. to 3:46 p.m.
HB 384-REGULATORY COMM OF AK; BROADBAND INTERNET
3:46:01 PM
CHAIR KITO announced that the next order of business would be
HOUSE BILL NO. 384, "An Act relating to the Regulatory
Commission of Alaska and broadband Internet regulations."
3:46:12 PM
REPRESENTATIVE DAVID GUTTENBERG, Alaska State Legislature,
presented HB 384 as prime sponsor. He stated that the proposed
bill represents a conflict that needs to be remediated or
corrected. He said it is not clear which entity in the state
is responsible for broadband. He read the definition in statute
of telecommunications from AS 42.05.990(13), which reads as
follows:
(13) "telecommunications" means the transmission and
reception of messages, impressions, pictures, and
signals by means of electricity, electromagnetic
waves, and any other kind of energy, force variations,
or impulses whether conveyed by cable, wire, radiated
through space, or transmitted through other media
within a specified area or between designated points.
REPRESENTATIVE GUTTENBERG said the entities cannot establish
amongst themselves who has jurisdiction on broadband internet
access. He said the FCC says they don't have responsibly of any
kind. He stated the RCA says it does not have authority. He
said he thinks someone in the state should have authority. He
added that there is no entity for consumer complaints or
information.
REPRESENTATIVE GUTTENBERG spoke to the issue of mapping. He
said his district appears on maps to have fast speeds, but it
does not. He said he has spoken to the Department of
Administration (DOA) about increasing access to the state's
broadband and they also say it is not their role. He stated he
thinks the RCA is the appropriate entity to oversee broadband in
the state.
3:53:36 PM
REPRESENTATIVE BIRCH stated his opposition to the bill,
comparing it to the debate over Uber services in the previous
year. He said he thinks it is a federal issue.
3:55:00 PM
REPRESENTATIVE GUTTENBERG answered the FCC has exclusive remedy
to regulate, so the state would not have the ability to regulate
[broadband] like a utility. He said there are things that the
state can do, such as mapping. He said there is no one that
could provide consumer protection. He added there are thing
the FCC doesn't do, but which are not covered by an entity in
the state. He said the consumers need an avenue and the FCC
isn't it. He said it's up to the states. He pointed to service
in the denser areas. He stated the FCC has a "hands-off"
position and the state isn't providing the information. He said
he does not think the [ISPs] are doing anything illegal, just
looking after their business plan. He said the state has no one
looking after its interests. He reiterated that he thinks the
RCA is the right entity.
REPRESENTATIVE STUTES asked if the proposed bill mirrors the net
neutrality bill.
REPRESENTATIVE GUTTENBERG answered it does not. He said, if
you don't have broadband, net neutrality isn't an issue." He
said the proposed bill attempts to ensure that people have
internet access.
4:00:08 PM
REPRESENTATIVE WOOL asked what the RCA position is.
CHAIR KITO stated that representatives from the RCA would be
testifying. He asked about the change Representative Guttenberg
would make to the statute.
REPRESENTATIVE GUTTENBERG said that under the existing statute
defining telecommunications, RCA says they don't have authority
to regulate the service. He said the legal opinion is that the
RCA does have authority.
CHAIR KITO asked whether Representative Guttenberg was
anticipating that the RCA will field complaints against the
entities even if the entities are not regulated by the RCA.
REPRESENTATIVE GUTTENBERG said he is defining that RCA is
covering this.
CHAIR KITO asked what Representative Guttenberg wants the RCA to
cover.
REPRESENTATIVE GUTTENBERG said he would like to see examples of
where the state could be more competitive. He remarked there is
limited competition in the state. He said the amount of money
coming into the ISP carriers now prevents a lot of competition
from happening. He said he thinks there are places where
competition can be promoted.
CHAIR KITO said he was trying to understand how the bill as it
is written would institute the change for the RCA to regulate
the industry. He asked said it does not seem that the RCA would
be able to be proactive to increase broadband when that hasn't
been their role with other utilities.
4:05:43 PM
REPRESENTATIVE GUTTENBERG said the FCC has preempted regulation
by the state. He said the proposed bill would just put internet
and broadband under their purview.
REPRESENTATIVE STUTES asked for definitions of "they" and "it"
in the context of the proposed bill.
REPRESENTATIVE GUTTENBERG answered that the FCC (they) is the
only entity that can regulate broadband (it) and internet. He
said the RCA can do things inside the state that the FCC is not
doing.
4:08:34 PM
RICH GAZAWAY, Regulatory Commission of Alaska (RCA) Anchorage,
Alaska, testified in the hearing on HB 384. He indicated he was
testifying with Stephen McAlpine and David Parrish of the common
carrier section.
CHAIR KITO asked what the RCA would be eligible or prepared to
do with respect to broadband internet.
MR. GAZAWAY said that the RCA has never proclaimed that it has
no jurisdiction over broadband whatsoever. He informed that the
federal government has precluded much of the RCA's activity in
the internet market. He said the RCA cannot impose a regulatory
cost charge (RCC). He added that under the Net Neutrality order
it has been further limited so that the RCA cannot require non-
discriminatory access. He stated there is an informational
docket open requesting information regarding broadband networks,
and the RCA was told by carriers that it cannot ask for that
information. He informed that any network carrying interstate
service can fall under the RCA's jurisdiction. He acknowledged
that the RCA does not have rate oversight jurisdiction.
4:11:03 PM
REPRESENTATIVE BIRCH referred to a Legal Service memorandum
stating that with the proposed bill, the RCA will still not be
able to regulate any area that is preempted by federal law and
any attempt by the RCA to reinstate that the FCC intends to
preempt by the order would likely be unconstitutional. He
shared his concern about the state attempting to define Alaska
as a unique market and thereby compromise competition.
MR. GAZAWAY asked whether the question is whether he agrees with
the legal opinion.
REPRESENTATIVE BIRCH said he is concerned about defining Alaska
as different from the other 49 states.
MR. GAZAWAY said the jurisdictional oversight refers to the
telecommunications industry. He added there was no oversight on
other entities. He said, "they are subsidized while other ISPs
are not." He said there were federally funded performance
grants.
4:14:34 PM
REPRESENTATIVE WOOL asked Mr. Gazaway whether he agrees whether
broadband falls under the definition of telecommunications that
has been presented.
MR. GAZAWAY clarified that as staff his opinion is not binding
on the commission, but he agrees.
4:15:23 PM
STEPHEN MCALPINE, Commissioner, Regulatory Commission of Alaska
(RCA), answered questions in the hearing on HB 384. He pointed
out that it has been stated that the RCA is "totally
preemptive." He said there are varying opinions. He said that
by putting it in statute, it can only clarify that which has
some doubt.
REPRESENTATIVE WOOL asked about voice over internet protocol
(VOIP) regulation.
MR. GAZAWAY answered that VOIP is not regulated by the RCA. He
said payment expectations can be imposed, but states all have a
different approach. He mentioned that some states have sued
over the issue and there has never been a proclamation from the
FCC either way.
4:17:13 PM
CHAIR KITO opened public testimony on HB 384.
4:17:36 PM
REPRESENTATIVE GUTTENBERG pointed to a sheet of paper that helps
see what other states have done with broadband. He spoke to a
2008 broadband taskforce report. He said it states there needs
to be an entity that regulates broadband, and Alaska has none.
He mentioned the universal service fund. He suggested those
funds could be used for grants. He opined that Alaska, with its
distances and lack of infrastructure, has to do something to
promote access to broadband.
4:20:03 PM
CHAIR KITO held over HB 384.
HB 230-TELECOMMUNICATIONS & INTERNET PRIVACY
4:20:23 PM
CHAIR KITO announced that the final 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."
4:20:36 PM
PATRICK FITZGERALD, Staff, Representative Harriet Drummond,
Alaska State Legislature, reintroduced HB 230 on behalf of
Representative Drummond, prime sponsor. He paraphrased the
sponsor statement which reads as follows [original punctuation
provided]:
House Bill 230 restricts any telecommunication service
or internet service provider from collecting personal
information of a private customer without the consent
of the customer to protect the privacy and individual
liberty of every Alaskan.
Alaska is one of the most independent states in the
Union which is reflected by the citizens who live
here. In a time of the most technologically advanced
society, Alaskans pride themselves on independence,
individual liberty and privacy. HB230 will protect
privacy of Alaskans' personal information stored on a
cyber based utility.
Cell phones, computers, laptops and tablets are all
modern tools with which private citizens are able to
conduct commerce and trade. Online shopping and bill
paying have become very popular with easy
accessibility to businesses and providers. Many of
these devices have the capability to retain memory of
any account number, social security number, credit
card information, medical information and online
purchases. Passing HB 230 will put into law that
telecommunication companies and internet service
providers must be given consent by the user of any
service or device before selling, trading, or gifting
information entered by a private citizen.
HB230 prevents discrimination of users who decline to
allow the sharing of personal information by
telecommunication companies and internet service
providers. HB230 simply restricts large companies from
selling information of a private citizen to the
highest bidder without the consent of the user.
Passing HB230 will assure users of cyber connected
devices that no information is collected without the
express written consent of the user. HB230 keeps
Alaskans' information private, preserving the
individual liberty and independence of every Alaskan.
4:22:01 PM
REPRESENTATIVE BIRCH shared his concern about unintended
consequences with the proposed bill.
MR. FITZGERALD emphasized that the aim is not to accuse any
Alaska ISP of acting in the way described in the bill. He
stated the interest is in putting something in place in the
absence of federal law.
REPRESENTATIVE BIRCH said that it strikes him there is a
presumption of guilt.
4:25:49 PM
REPRESENTATIVE WOOL said he wonders how the effects of the bill
"will play out."
MR. FITZGERALD answered that ISPs have contracts. He said that
if ISPs are found to be selling information without consent, the
bill would provide for civil recourse.
REPRESENTATIVE WOOL asked whether the behavior is occurring
currently.
MR. FITZGERALD answered the legislation was suggested by the
Council of State Governments in reaction to the roll-back of
federal legislation.
REPRESENTATIVE WOOL asked whether the proposed bill is
preemptive.
4:31:26 PM
REPRESENTATIVE HARRIET DRUMMOND, Alaska State Legislature,
reintroduced HB 230 as prime sponsor. She answered that the
proposed bill does not have anything to do with net neutrality.
She described the legislative internet offering in the Capitol
Building. She said the bill would pertain to business and
resident internet contracts.
CHAIR KITO asked whether Alaska ISPs are not currently treating
consumers with respect.
REPRESENTATIVE DRUMMOND answered the proposed bill is
preemptive.
CHAIR KITO noted there is a penalty section in the bill. He
asked what the penalty is for violation of the provision.
MR. FITZGERALD shared his understanding that penalties would be
established by the department governing the issue.
CHAIR KITO asked to receive information on penalties.
4:35:38 PM
CHAIR KITO stated that public testimony is still open. Upon
ascertaining that no one was available to testify, he closed
public testimony on HB 230.
4:36:05 PM
REPRESENTATIVE BIRCH stated he does not support the proposed
bill.
4:37:06 PM
REPRESENTATIVE WOOL said he would like to have more information
on the proposed bill.
CHAIR KITO held over HB 230.
4:38:41 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:38 p.m.