02/10/2023 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB29 | |
| HB51 | |
| HB13 | |
| HB46 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 29 | TELECONFERENCED | |
| += | HB 46 | TELECONFERENCED | |
| += | HB 13 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 51 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 10, 2023
3:15 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Ashley Carrick
Representative Zack Fields
MEMBERS ABSENT
Representative Stanley Wright
OTHER LEGISLATORS PRESENT
Representative Andi Story
COMMITTEE CALENDAR
HOUSE BILL NO. 29
"An Act relating to insurance discrimination."
- HEARD & HELD
HOUSE BILL NO. 51
"An Act relating to refrigerants designated as acceptable for
use under federal law."
- MOVED HB 51 OUT OF COMMITTEE
HOUSE BILL NO. 13
"An Act relating to the definition of 'employer' for the
purposes of the State Commission for Human Rights."
- MOVED HB 13 OUT OF COMMITTEE
HOUSE BILL NO. 46
"An Act allowing child care providers that receive state aid to
organize and collectively bargain with the Department of Health;
and establishing the child care provider fund."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 29
SHORT TITLE: INSURANCE DISCRIMINATION
SPONSOR(s): REPRESENTATIVE(s) MCCABE
01/19/23 (H) PREFILE RELEASED 1/9/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) L&C, JUD
02/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 51
SHORT TITLE: USE OF DESIGNATED REFRIGERANTS
SPONSOR(s): REPRESENTATIVE(s) WRIGHT
01/30/23 (H) READ THE FIRST TIME - REFERRALS
01/30/23 (H) L&C
02/06/23 (H) L&C AT 3:15 PM BARNES 124
02/06/23 (H) Heard & Held
02/06/23 (H) MINUTE(L&C)
02/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 13
SHORT TITLE: APPLICABILITY OF HUMAN RIGHTS COMMISSION
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON
01/19/23 (H) PREFILE RELEASED 1/9/23
01/19/23 (H) READ THE FIRST TIME - REFERRALS
01/19/23 (H) L&C, JUD
01/30/23 (H) L&C AT 3:15 PM BARNES 124
01/30/23 (H) Heard & Held
01/30/23 (H) MINUTE(L&C)
02/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 46
SHORT TITLE: CHILD CARE PROVIDER COLLECTIVE BARGAINING
SPONSOR(s): REPRESENTATIVE(s) FIELDS
01/25/23 (H) READ THE FIRST TIME - REFERRALS
01/25/23 (H) L&C, STA, FIN
01/30/23 (H) L&C AT 3:15 PM BARNES 124
01/30/23 (H) Heard & Held
01/30/23 (H) MINUTE(L&C)
02/10/23 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE KEVIN MCCABE
Alaska State Representative
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 29.
BUDDY WHITT, Staff
Representative Kevin McCabe
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave the sectional analysis for HB 29 on
behalf of Representative McCabe, prime sponsor.
GREG SMITH, Legislative Liaison
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
29.
MIKE NEROZZI, Director
Air-Conditioning, Heating, and Refrigeration Institute
Hershey, Pennsylvania
POSITION STATEMENT: Provided invited testimony during the
hearing on HB 51.
HELEN WALTER-TERRINONI, VP of Regulatory Affairs and Policy
Air-Conditioning, Heating, and Refrigeration Institute
Wilmington, Delaware
POSITION STATEMENT: Answered questions during the hearing on HB
51.
REPRESENTATIVE ANDY JOSEPHSON
Alaska State Representative
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, answered questions during
the hearing on HB 13.
KAYLA SVINICKI, Owner
Auke Lake Preschool and Afterschool
Juneau, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 46.
AMANDA TRIPLETT, representing self
Juneau, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 46.
SUSAN DELOACH, Owner
Bright Beginnings Early Learning Center
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 46.
HEIDI PEARSON, representing self
Juneau, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 46.
DANIEL VOLLAND, OD, representing self
Anchorage, Alaska
POSITION STATEMENT: Gave public testimony in support of HB 46.
ACTION NARRATIVE
3:15:38 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:15 p.m.
HB 29-INSURANCE DISCRIMINATION
3:16:10 PM
CHAIR SUMNER announced that the first order of business would be
HOUSE BILL NO. 29, HOUSE BILL NO. 29, "An Act relating to
insurance discrimination."
3:16:43 PM
REPRESENTATIVE KEVIN MCCABE, Alaska State Representative, as
prime sponsor, presented HB 29. He stated insurance companies
discriminate based on certain risk factors for the purposes of
rate management and to incentivize certain risk reduction
measures. He continued that there are some limitations on the
types of discrimination that can be used by insurance companies.
He stated that HB 29 would add political expression,
affiliation, and status as an elected official to the list of
classes protected against discrimination by insurance companies.
3:19:12 PM
BUDDY WHITT, Staff, Representative Kevin McCabe, Alaska State
Legislature, provided the sectional analysis and sponsor's
statement on behalf of Representative McCabe, prime sponsor. He
stated that Section 1 of HB 29 would amend AS 21.36 by adding a
new section that would prohibit insurance brokers from
discriminating against people on the basis of their political
affiliation or expression or a person's status as an elected
official as defined in AS 44.99.205. He said that Section 2
would amend uncodified law to provide effective dates to
insurance companies.
3:20:12 PM
REPRESENTATIVE PRAX asked if Representative McCabe had talked to
insurance providers about the provisions of the bill.
REPRESENTATIVE MCCABE answered that some insurance providers
told him that they would not provide certain policies to elected
officials, including umbrella policies.
REPRESENTATIVE PRAX asked if there are any insurance companies
that will provide that specific coverage.
REPRESENTATIVE MCCABE answered that some providers said they
would.
3:21:41 PM
REPRESENTATIVE CARRICK asked if Representative McCabe had spoken
to any elected officials or other individuals that had been
denied coverage on the grounds covered by the bill.
REPRESENTATIVE MCCABE answered that he had spoken to several
elected officials on the state, municipal, and school board
levels that had been denied umbrella policies due to their
status as an elected official.
3:22:43 PM
REPRESENTATIVE RUFFRIDGE asked if there is a definition of
discrimination attached to the bill, and whether that would
cause the price of insurance to increase.
REPRESENTATIVE MCCABE answered that it is possible for the bill
to cause prices to increase. He stated that he believes there
is a significant difference between discriminating against
someone because they won an election and discriminating against
someone because they received multiple traffic citations.
REPRESENTATIVE RUFFRIDGE asked if the reason for that change in
discrimination was a result of an assumed increase in risk for
the elected official.
REPRESENTATIVE MCCABE answered that he had looked through
multiple actuaries but was unable to find one pertaining to the
risk of being a public official.
3:25:47 PM
REPRESENTATIVE SADDLER asked if any insurance providers
explicitly denied someone coverage because of their status as a
public official.
REPRESENTATIVE MCCABE answered that he had spoken to elected
officials that told him that they had been denied umbrella
coverage due to their status as an elected official.
3:26:58 PM
REPRESENTATIVE PRAX asked if Greg Smith had anything to add to
the previous answers.
GREG SMITH, Legislative Liaison, Department of Commerce,
Community, and Economic Development, answered that insurance
companies have the ability to discriminate but not to
discriminate unfairly. He stated that he was unable to find the
protected classes in statute but understood that certain classes
such as race could not be used to discriminate. He added that
insurance companies sometimes discriminate against "people of
notoriety" due to an assumed level of increased risk.
REPRESENTATIVE PRAX stated that umbrella coverage is excess
liability coverage, and while homeowner's insurance covers
slander and libel, the limit for it is lower. He asked if any
insurance providers would exclude someone from buying liability
coverage on a homeowner's policy because of their status as an
elected official.
MR. SMITH answered that he was unsure.
3:29:52 PM
REPRESENTATIVE RUFFRIDGE asked about the potential of liability
coverage from the special Department of Risk under the
Department of Administration.
MR. SMITH answered that he is unsure how the department works,
but that elected officials would be indemnified in certain
cases.
3:31:38 PM
REPRESENTATIVE CARRICK asked what definition of political
affiliation the bill would use and whether Representative McCabe
knew of anyone that had been denied coverage explicitly for
their political affiliation.
REPRESENTATIVE MCCABE answered that he is unaware of any person
in Alaska that has been denied coverage on the grounds of their
political affiliation; he stated that the bill is modeled after
a similar bill in the state of Texas where there had been
incidents in which a person was denied coverage on those
grounds. He said that he would define political affiliation as
a party registration or stated political belief.
3:33:21 PM
REPRESENTATIVE PRAX asked if it was Representative McCabe's
intention to keep the political affiliation language in the
bill.
REPRESENTATIVE MCCABE answered that he had looked at bills from
other states as models, stating that he believed the one from
Texas made the most sense. He said that he understands why an
insurance company would be able to discriminate based on
circumstances such as driving record; he continued that he does
not believe that should apply to political affiliation. He
stated that the possibility of losing umbrella coverage as a
result of being elected to an office is a barrier to people
wanting to run for office.
REPRESENTATIVE PRAX asked if there were any documents available
pertaining to the Texas bill that HB 29 is modeled after.
MR. WHITT answered that he would be able to retrieve those
documents, including a paper written by a PhD student at the
University of Texas detailing risk pools and discrimination
within those risk pools. He referenced a previous question
asked by Representative Ruffridge and stated that within certain
risk pools, there are certain classes that are still protected
against discrimination. He added that the bill would add a
section to Title 21 preventing discrimination based on political
affiliation and status as an elected official for insurance
coverage.
3:37:31 PM
REPRESENTATIVE SADDLER stated that the definition of "elected
official" given in A.S. 44.99.205 includes only the Governor,
Lieutenant Governor, and members of the legislature, and asked
whether the bill could be improved by expanding the definition
to include local and school board officials.
REPRESENTATIVE MCCABE answered that he believes the bill can be
improved but was concerned about the scope going too far. He
stated his willingness to broaden the definition of elected
officials used by the bill in the future.
[HB 29 was held over.]
HB 51-USE OF DESIGNATED REFRIGERANTS
3:39:21 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 51, HOUSE BILL NO. 51, "An Act relating to
refrigerants designated as acceptable for use under federal
law."
3:39:42 PM
CHAIR SUMNER opened public testimony on HB 51.
3:40:10 PM
MIKE NEROZZI, Director, Air-Conditioning, Heating, and
Refrigeration Institute (AHRI), stated that AHRI supports HB 51,
as it gives the heating, ventilation, and air conditioning
industry the tools it needs to comply with upcoming federal
regulations on hydrofluorocarbons. He stated the economic
impact of AHRI in the U.S. and Alaska. He stated that the
American Innovation and Manufacturing Act was signed into law in
December 2020 by then President Donald Trump, directing the
Environmental Protection Agency (EPA) to restrict the use of
certain refrigerants in commercial refrigeration. He continued
that building codes need to be updated in order to allow the
usage of new refrigerants that would comply with the new
regulations put in place by the EPA. He stated that HB 51
eliminates the timing barrier for the new regulations,
preventing the possibility of a time period in which Alaska
would not have access to refrigerants.
3:43:20 PM
REPRESENTATIVE PRAX asked if the new EPA regulations would also
apply to firefighting agents.
HELEN WALTER-TERRINONI, VP of Regulatory Affairs and Policy,
Air-Conditioning, Heating, and Refrigeration Institute, answered
that they would not.
3:45:10 PM
REPRESENTATIVE PRAX asked if the legislature would need to
consider firefighting agents in the building codes in the
future.
MS. WALTER-TERRONI answered that firefighting suppressants are
protected from the regulations.
3:46:23 PM
CHAIR SUMNER, after ascertaining that no one else wished to
testify, closed public testimony on HB 51.
3:46:36 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 51 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 51 was reported out of the
House Labor and Commerce Standing Committee.
3:46:57 PM
The committee took an at-ease from 3:46 p.m. to 3:50 p.m.
HB 13-APPLICABILITY OF HUMAN RIGHTS COMMISSION
3:50:35 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 13 HOUSE BILL NO. 13, "An Act relating to the
definition of 'employer' for the purposes of the State
Commission for Human Rights."
3:50:56 PM
CHAIR SUMNER opened public testimony on HB 13. After
ascertaining that nobody wished to testify, he closed public
testimony.
3:51:29 PM
REPRESENTATIVE PRAX expressed his concern about the possible
"weaponization" of human rights cases in smaller businesses and
asked if it would be worth holding the bill for the purposes of
taking a deeper look at that conversation.
REPRESENTATIVE ANDY JOSEPHSON, Alaska State Representative, as
prime sponsor of HB 13, answered that he would not be in favor
of holding the bill and stated that a lawyer would not be
necessary in the beginning stages of a complaint. He said that
the Alaska State Commission on Human does a good job on vetting
complaints and filtering out ones without merit.
3:53:54 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 13 out of committee
with individual recommendations and the accompanying fiscal
notes.
3:54:13 PM
REPRESENTATIVE PRAX objected.
A roll call vote was taken. Representatives Ruffridge, Saddler,
Carrick, Fields, and Sumner voted in favor of moving HB 13 out
of committee with individual recommendations and the
accompanying fiscal notes. Representative Prax voted against
it. Therefore, HB 13 was reported out of the House Labor and
Commerce Standing Committee by a vote of 5-1.
3:55:13 PM
The committee took an at-ease from 3:55 p.m. to 3:58 p.m.
HB 46-CHILD CARE PROVIDER COLLECTIVE BARGAINING
3:59:25 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 46, HOUSE BILL NO. 46, "An Act allowing child
care providers that receive state aid to organize and
collectively bargain with the Department of Health; and
establishing the child care provider fund."
3:59:38 PM
CHAIR SUMNER opened public testimony on HB 46.
4:00:03 PM
KAYLA SVINICKI, Owner, Auke Lake Preschool and Afterschool,
stated that she became a child care worker because of
affordability issues with her own children's care. She said
that when she became a home-care provider, she realized that she
needed more training and education to do the best possible job
for the children in her care. She stated that she eventually
became the operator of Auke Lake Preschool and Afterschool in
Juneau, Alaska; the center employs 29 educators and cares for 75
children. She stated that child care employees do not have high
enough wages because raising their wages would cause child care
providers to have to raise the cost of tuition, which many
families would not be able to afford. She stated that child
care providers need state funding to be able to pay their
employees more and give them the training that they need to best
care for the children under their care.
4:04:27 PM
REPRESENTATIVE PRAX asked if the ratio of caretakers to children
at Ms. Svinicki's child care center was due to statutory
regulations, or if her child care center could accept more
children if they were available.
MS. SVINICKI answered that her child care center has a long
waitlist, but the building has more capacity.
REPRESENTATIVE PRAX followed up and asked if the ratio of 3:1
caretakers to children her childcare center has is a regulatory
requirement.
MS. SVINICKI answered that the regulations are different for
different age ranges, but her childcare center employs more
caretakers to children than required to help the staff.
4:05:27 PM
REPRESENTATIVE CARRICK asked whether Ms. Svinicki was losing
employees due to low wages and benefits.
MS. SVINICKI answered that she did lose employees for those
reasons and because of the long work hours. In response to a
follow-up question, she stated that she believes those employees
would continue to work as child care providers if they received
higher compensation.
4:06:16 PM
AMANDA TRIPLETT, representing self, stated that she believes it
is essential for Alaska to have strong child care centers across
the state. She said that child care employees leaving the
industry is a common problem that creates problems for anyone
trying to return to work.
4:07:44 PM
REPRESENTATIVE PRAX asked Ms. Svinicki who pays Auke Lake
Preschool and Afterschool for the child care it provides.
MS. SVINICKI answered that the center's income comes from the
parents paying for their children's care, although Auke Lake
Preschool and Afterschool does have some contracts with tribal
organizations and are seeking funding from the City of Juneau.
In response to a follow up question, she stated that raising
prices would cause families to make a choice between becoming a
single income home or leaving Juneau altogether.
REPRESENTATIVE PRAX asked Ms. Svinicki if her expectation of the
bill is that it would enable child care centers to receive state
funding.
MS. SVINICKI answered that it is.
4:10:31 PM
REPRESENTATIVE RUFFRIDGE asked Ms. Svinicki how the ability to
collectively bargain would affect child care employee wages and
the cost of child care to parents.
MS. SVINICKI answered that the ability to collectively bargain
would allow child care providers to come together to work on the
issue.
REPRESENTATIVE RUFFRIDGE commented on the lack of a fiscal note
for the bill and asked what parents would be able to contribute.
MS. TRIPLETT answered that many families are already unable to
afford child care. She said that she believes the state should
step in to ensure that child care workers are paid better wages
and that families can afford child care.
4:14:40 PM
SUSAN DELOACH, Owner, Bright Beginnings Early Learning Center,
stated that she has been a childcare provider in Alaska for 28
years, and the current operating conditions are the most
difficult she has ever seen. She said that operating costs have
increased 30 percent and it is difficult to find qualified child
care workers, which has reduced the number of children Bright
Beginnings is able to accommodate. She continued that losing
access to child care will cause harm to the economy as parents
will be forced to miss work to care for their children, and the
threat of more child care centers shutting down is greater now
that pandemic relief funds are coming to an end.
4:17:45 PM
HEIDI PEARSON, representing self, stated that the difficulty of
finding child care was made more difficult by the pandemic, and
that the difficulty caused by a lack of access to child care has
caused her and her husband to consider the possibility of one of
them leaving their job. She added that it is more expensive to
send a child to day care then to send a student to the
University of Alaska. She said that she knows people that have
left the state of Alaska in part because of the difficulty of
finding adequate child care.
4:20:41 PM
DANIEL VOLLAND, OD, representing self, stated that the
Municipality of Anchorage is facing a worker shortage that is
affecting the city's ability to provide basic services. He
continued that Anchorage businesses have identified lack of
available child care as one their greatest challenges in finding
employees. He stated that he believes building the child care
workforce is necessary to build the workforce as a whole.
4:24:16 PM
CHAIR SUMNER, after ascertaining that no one else wished to
testify, closed public testimony on HB 46.
4:24:51 PM
REPRESENTATIVE FIELDS, as prime sponsor of HB 46, stated that
the percentage of income going toward child care ranged from 17
to 34 percent, depending largely on whether a household had 1 or
2 parents. He continued that government assistance covers only
the minority of the cost to parents. He stated that there are
431 licensed child care providers in Alaska, with there being a
decrease of over 50 child care centers since 2021. He said that
these closures coincided with a decrease in the total number of
child care employees.
[HB 46 was held over.]
4:28:35 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:28 p.m.