Legislature(2013 - 2014)

03/28/2014 03:30 PM L&C


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                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 28, 2014                                                                                         
                           3:30 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Mike Chenault                                                                                                    
Representative Bob Herron                                                                                                       
Representative Dan Saddler                                                                                                      
Representative Andy Josephson                                                                                                   
Representative Craig Johnson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lora Reinbold, Vice Chair                                                                                        
Representative Charisse Millett                                                                                                 
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 60                                                                                                               
"An  Act  adopting and  relating  to  the Uniform  Real  Property                                                               
Transfer on Death Act."                                                                                                         
                                                                                                                                
     - MOVED CSHB 60(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 230                                                                                                              
"An  Act allowing  the Alaska  Industrial Development  and Export                                                               
Authority to issue  bonds for an oil or  gas processing facility;                                                               
and  creating the  oil  and gas  infrastructure  fund to  finance                                                               
construction  or   improvement  of  an  oil   or  gas  processing                                                               
facility."                                                                                                                      
                                                                                                                                
     - MOVED CSHB 230(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 281                                                                                                              
"An Act relating to prescription  of drugs by a physician without                                                               
a physical examination."                                                                                                        
                                                                                                                                
     - MOVED CSHB 281(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 288                                                                                                              
"An Act  creating the  Arctic infrastructure  development program                                                               
and  fund  in  the  Alaska   Industrial  Development  and  Export                                                               
Authority."                                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 302                                                                                                              
"An  Act  relating to  the  practice  of public  accounting;  and                                                               
relating to rules  of professional conduct for  the profession of                                                               
public accounting."                                                                                                             
                                                                                                                                
     - MOVED CSHB 302(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 328                                                                                                              
"An Act  establishing the Board  of Massage  Therapists; relating                                                               
to  the licensing  of massage  therapists; and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 253                                                                                                              
"An Act  providing for  the licensing  and regulation  of private                                                               
investigators  and private  investigator agencies;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 203                                                                                                              
"An  Act relating  to  payment or  reimbursement  of health  care                                                               
insurance claims."                                                                                                              
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 60                                                                                                                   
SHORT TITLE: UNIFORM REAL PROPERTY TRANSFERS ON DEATH                                                                           
SPONSOR(s): REPRESENTATIVE(s) GRUENBERG                                                                                         
                                                                                                                                
01/16/13       (H)       PREFILE RELEASED 1/11/13                                                                               
01/16/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/13       (H)       L&C, JUD                                                                                               
03/21/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/21/14       (H)       -- MEETING CANCELED --                                                                                 
03/24/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/14       (H)       Heard & Held                                                                                           
03/24/14       (H)       MINUTE(L&C)                                                                                            
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 230                                                                                                                  
SHORT TITLE: AIDEA BONDS FOR PROCESSING FACILITIES                                                                              
SPONSOR(s): REPRESENTATIVE(s) SEATON                                                                                            
                                                                                                                                
01/21/14       (H)       PREFILE RELEASED 1/10/14                                                                               
01/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/14       (H)       L&C, FIN                                                                                               
02/21/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/21/14       (H)       Heard & Held                                                                                           
02/21/14       (H)       MINUTE(L&C)                                                                                            
03/14/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/14/14       (H)       Heard & Held                                                                                           
03/14/14       (H)       MINUTE(L&C)                                                                                            
03/24/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/14       (H)       Heard & Held                                                                                           
03/24/14       (H)       MINUTE(L&C)                                                                                            
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 281                                                                                                                  
SHORT TITLE: PRESCRIPTION WITHOUT PHYSICAL EXAMINATION                                                                          
SPONSOR(s): REPRESENTATIVE(s) GATTIS                                                                                            
                                                                                                                                
01/27/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/14       (H)       HSS, L&C                                                                                               
02/13/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
02/13/14       (H)       Heard & Held                                                                                           
02/13/14       (H)       MINUTE(HSS)                                                                                            
02/27/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
02/27/14       (H)       Moved CSHB 281(HSS) Out of Committee                                                                   
02/27/14       (H)       MINUTE(HSS)                                                                                            
02/28/14       (H)       HSS RPT CS(HSS) 4DP                                                                                    
02/28/14       (H)       DP: SEATON, PRUITT, KELLER, HIGGINS                                                                    
03/17/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/17/14       (H)       Heard & Held                                                                                           
03/17/14       (H)       MINUTE(L&C)                                                                                            
03/26/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/26/14       (H)       Heard & Held                                                                                           
03/26/14       (H)       MINUTE(L&C)                                                                                            
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 288                                                                                                                  
SHORT TITLE: AIDEA: ARCTIC DEVELOPMENT PROGRAM/FUND                                                                             
SPONSOR(s): REPRESENTATIVE(s) HERRON                                                                                            
                                                                                                                                
01/29/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/29/14       (H)       L&C, FIN                                                                                               
02/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/28/14       (H)       Heard & Held                                                                                           
02/28/14       (H)       MINUTE(L&C)                                                                                            
03/17/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/17/14       (H)       Heard & Held                                                                                           
03/17/14       (H)       MINUTE(L&C)                                                                                            
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 302                                                                                                                  
SHORT TITLE: PUBLIC ACCOUNTANTS                                                                                                 
SPONSOR(s): REPRESENTATIVE(s) THOMPSON                                                                                          
                                                                                                                                
02/10/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/14       (H)       L&C                                                                                                    
03/05/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/05/14       (H)       -- MEETING CANCELED --                                                                                 
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 328                                                                                                                  
SHORT TITLE: BOARD/LICENSING OF MASSAGE THERAPISTS                                                                              
SPONSOR(s): REPRESENTATIVE(s) NAGEAK                                                                                            
                                                                                                                                
02/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (H)       L&C, FIN                                                                                               
03/05/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/05/14       (H)       -- MEETING CANCELED --                                                                                 
03/10/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/10/14       (H)       Heard & Held                                                                                           
03/10/14       (H)       MINUTE(L&C)                                                                                            
03/21/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/21/14       (H)       -- MEETING CANCELED --                                                                                 
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 253                                                                                                                  
SHORT TITLE: PRIVATE INVESTIGATORS/AGENCIES                                                                                     
SPONSOR(s): REPRESENTATIVE(s) HUGHES, GRUENBERG                                                                                 
                                                                                                                                
01/21/14       (H)       PREFILE RELEASED 1/17/14                                                                               
01/21/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/14       (H)       L&C, FIN                                                                                               
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MAX GRUENBERG                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 60.                                                                     
                                                                                                                                
REPRESENTATIVE PAUL SEATON                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 230.                                                                    
                                                                                                                                
REPRESENTATIVE LYNN GATTIS                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 281.                                                                    
                                                                                                                                
LYNNETTE BERGH, Staff                                                                                                           
Representative Steve Thompson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the prime sponsor,                                                                
Representative Steve Thompson, on HB 302.                                                                                       
                                                                                                                                
REPRESENTATIVE BEN NAGEAK                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 328.                                                                    
                                                                                                                                
MARY SCHLOSSER, Staff                                                                                                           
Representative Benjamin Nageak                                                                                                  
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 328.                                                               
                                                                                                                                
VICTORIA DANCE, Massage Therapist                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 328.                                                               
                                                                                                                                
MARTY HESTER, Deputy Director                                                                                                   
Juneau Office, Division of Insurance                                                                                            
Department of Commerce, Community & Economic Development (DCCED)                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 328.                                                               
                                                                                                                                
GINGER BLAISDELL, Staff                                                                                                         
Representative Shelley Hughes                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of one of the joint                                                                  
prime sponsors for HB 253, Representative Shelley Hughes.                                                                       
                                                                                                                                
H.H. "TRES" LEWIS III                                                                                                           
Private investigator                                                                                                            
Mendenhall Investigations, Inc.                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 253.                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:30:48 PM                                                                                                                    
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee meeting to order at  3:30 p.m.  Representatives Herron,                                                               
Johnson, Josephson, Chenault, and Olson  were present at the call                                                               
to order.   Representative Saddler arrived as the  meeting was in                                                               
progress.                                                                                                                       
                                                                                                                                
         HB 60-UNIFORM REAL PROPERTY TRANSFERS ON DEATH                                                                     
                                                                                                                                
3:31:26 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE BILL NO.  60, "An Act adopting and relating  to the Uniform                                                               
Real Property Transfer on Death Act."                                                                                           
                                                                                                                                
CHAIR  OLSON removed  his  objection [Version  C  was before  the                                                               
committee].                                                                                                                     
                                                                                                                                
3:32:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MAX   GRUENBERG,   Alaska   State   Legislature,                                                               
explained  that HB  60 is  a Uniform  Real Property  Transfers on                                                               
Death Act  and will allow  people to  sign a deed  effective upon                                                               
their death.   The deed can  be revoked later or  superseded with                                                               
another deed; a person can disclaim  it so long as it is recorded                                                               
so the chain  of title is very  clear.  A "wild deed  will," or a                                                               
will that is  not recorded, will not generally supersede  it.  He                                                               
reported  21  states  have  adopted  this  and  four  others  are                                                               
considering it.   It is  now part of  the uniform act  with South                                                               
Dakota being the most recent state  to adopt these changes.  This                                                               
bill will help a  lot of people and AARP has  endorsed it, and he                                                               
just  received a  letter from  the  Commission on  Aging and  the                                                               
Alaska Association of  Realtors, Inc. who are  also endorsing the                                                               
bill.   He is not  aware of any opposition  unless it would  be a                                                               
few lawyers  afraid of losing  a little business.   He reiterated                                                               
that  this  should help  people  with  estate planning  and  will                                                               
continue to "tweak" the bill in the next committee of referral.                                                                 
                                                                                                                                
3:33:53 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 60.                                                                                      
                                                                                                                                
3:34:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON moved  to report HB 60, Version  C, out of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.   There  being no objection,  the CSHB  60(L&C) was                                                               
reported from the House Labor & Commerce Committee.                                                                             
                                                                                                                                
3:34:06 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:34 to 3:35 p.m.                                                                            
                                                                                                                                
          HB 230-AIDEA BONDS FOR PROCESSING FACILITIES                                                                      
                                                                                                                                
3:35:12 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL  NO. 230,  "An  Act  allowing the  Alaska  Industrial                                                               
Development and  Export Authority  to issue bonds  for an  oil or                                                               
gas   processing  facility;   and  creating   the  oil   and  gas                                                               
infrastructure fund to finance construction  or improvement of an                                                               
oil or gas processing facility."                                                                                                
                                                                                                                                
CHAIR OLSON removed  his objection [Version N,  which was adopted                                                               
on March 24, 2014, was before the committee].                                                                                   
                                                                                                                                
3:35:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PAUL  SEATON, Alaska State  Legislature, explained                                                               
the  changes in  the proposed  committee substitute  (CS) for  HB                                                               
230,  Version N.   He  stated that  this version  will allow  the                                                               
Alaska  Industrial  Development  & Export  Authority  (AIDEA)  to                                                               
issue development bonds for oil  and gas processing facilities on                                                               
the North Slope in order  to incentivize obtaining additional oil                                                               
in the pipeline, in particular  from small independent operators.                                                               
In addition, on  page 2, lines 21-23, at the  suggestion of legal                                                               
services, language  was added  to make it  easier to  qualify for                                                               
tax  credits.   He  commented  that  this  language needs  to  be                                                               
further addressed; hence the pending amendment.                                                                                 
                                                                                                                                
3:36:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to  adopt Amendment 1,  labeled 28-                                                               
LS1053\N.1, Nauman, 3/24/14, which read:                                                                                        
                                                                                                                                
     Page 1, lines 2 - 3:                                                                                                       
          Delete   "providing   a   tax   credit   for   the                                                                  
          construction or improvement of an oil or gas                                                                        
     processing facility;"                                                                                                    
                                                                                                                                
     Page 2, lines 16 - 28:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
3:37:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON explained that  Amendment 1 will remove the                                                               
tax credit since it would  also have inadvertently affected SB 21                                                               
tax credits.  There was no intention to do so, he said.                                                                         
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:37:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to  adopt Amendment 2,  labeled 28-                                                               
LS0153\N.2, Nauman, 3/25/14, which read:                                                                                        
                                                                                                                                
     Page 2, line 4:                                                                                                            
          Delete "for allow"                                                                                                    
          Insert "allow for"                                                                                                    
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
REPRESENTATIVE   SEATON   thanked  Representative   Saddler   for                                                               
pointing out  the inversion of  words.  He characterized  this as                                                               
being a technical change.                                                                                                       
                                                                                                                                
There being no further objection, Amendment 2 was adopted.                                                                      
                                                                                                                                
3:38:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  moved to  report the  proposed CS  for HB                                                               
230,  Version   N,  labeled  28-LS1053\N,  Nauman,   3/17/14,  as                                                               
amended,  out of  committee with  individual recommendations  and                                                               
the  accompanying fiscal  note.   There being  no objection,  the                                                               
CSHB  230(L&C)  was reported  from  the  House Labor  &  Commerce                                                               
Standing Committee.                                                                                                             
                                                                                                                                
3:40:44 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
        HB 281-PRESCRIPTION WITHOUT PHYSICAL EXAMINATION                                                                    
                                                                                                                                
3:40:57 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL NO. 281, "An Act  relating to prescription of drugs by                                                               
a physician  without a physical examination."  [CSHB 281(HSS) was                                                               
before the committee.]                                                                                                          
                                                                                                                                
CHAIR  OLSON stated  the  committee has  heard  the bill  several                                                               
times.  During the last hearing  on March 26, 2014, the committee                                                               
experienced  some technical  audio difficulties  yet was  able to                                                               
take testimony.                                                                                                                 
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  adopt  the proposed  committee                                                               
substitute  (CS)   for  HB  281,  labeled   28-LS1234\N,  Martin,                                                               
3/27/14, as the working document.                                                                                               
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
3:42:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  GATTIS, Alaska State Legislature,  said that                                                               
Version  N  will  recognize the  telemedicine  practices  by  the                                                               
Department of Corrections (DOC) and  the Department of Health and                                                               
Social Services (DHSS).                                                                                                         
                                                                                                                                
3:43:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  if subparagraph  (B) on  page 1,                                                               
lines 11-14 addresses DOC's concerns.                                                                                           
                                                                                                                                
REPRESENTATIVE GATTIS answered that it does.                                                                                    
                                                                                                                                
3:43:47 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Version N was before the committee.                                                                                  
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 281.                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON  commented that  he "feels  better about                                                               
this legislation."  He referred to  a March 18, 2014, letter from                                                               
the  state  medical  board  and  he was  unsure  of  the  board's                                                               
concerns, whether the board is "a  tough nut to crack", but he is                                                               
somewhat more comfortable with the bill.                                                                                        
                                                                                                                                
3:44:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to report  the proposed  committee                                                               
substitute  (CS) for  HB 281,  Version N,  out of  committee with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There being  no objection,  the CSHB  281(L&C) was  reported from                                                               
the House Labor & Commerce Standing Committee.                                                                                  
                                                                                                                                
3:45:10 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:45 p.m. to 3:48 p.m.                                                                       
                                                                                                                                
         HB 288-AIDEA: ARCTIC DEVELOPMENT PROGRAM/FUND                                                                      
                                                                                                                                
3:47:57 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 288, "An  Act creating the  Arctic infrastructure                                                               
development   program  and   fund   in   the  Alaska   Industrial                                                               
Development and Export Authority."                                                                                              
                                                                                                                                
CHAIR  OLSON explained  that the  committee has  requested a  new                                                               
committee substitute  for the bill  and the sponsor has  asked to                                                               
have the bill held over to a future date.                                                                                       
                                                                                                                                
[HB 288 was held over.]                                                                                                         
                                                                                                                                
3:48:00 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:48 p.m. to 3:51 p.m.                                                                       
                                                                                                                                
                   HB 302-PUBLIC ACCOUNTANTS                                                                                
                                                                                                                                
3:51:05 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE BILL  NO. 302, "An Act  relating to the practice  of public                                                               
accounting;  and relating  to rules  of professional  conduct for                                                               
the profession of public accounting."                                                                                           
                                                                                                                                
3:51:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  adopt  the proposed  committee                                                               
substitute  (CS)   for  HB  302,  labeled   28-LS1292\N,  Martin,                                                               
3/11/14, as the working document.                                                                                               
                                                                                                                                
CHAIR OLSON objected for purpose of discussion.                                                                                 
                                                                                                                                
3:51:51 PM                                                                                                                    
                                                                                                                                
LYNNETTE  BERGH,  Staff,  Representative Steve  Thompson,  Alaska                                                               
State Legislature, stated that HB  302 was drafted in response to                                                               
the Alaska  Board of  Public Accountancy's  (BPA) FY  2013 annual                                                               
report recommendations.   The proposed committee  substitute (CS)                                                               
for HB 302,  Version N, addresses AS  08.04.080, the professional                                                               
rules of conduct  for the profession of public  accounting.  This                                                               
section of  statute sets the timeframe  the BPA must use  for the                                                               
adoption of  any rules or  amendments and the effective  date for                                                               
each licensee or  firm.  The proposed CS, Version  N, would amend                                                               
the number of  days for noticing from  60 days to 30  days.  This                                                               
timeframe  is   in  line  with  the   Division  of  Corporations,                                                               
Business, and Professional Licensing's (DCBPL) guidelines.                                                                      
                                                                                                                                
3:53:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  for  clarification  on the  change                                                               
from 60 days to 30 days.                                                                                                        
                                                                                                                                
MS. BERGH characterized  this as a housekeeping  matter since the                                                               
original statute  didn't match with the  division guidelines, and                                                               
the BPA noted the discrepancy.                                                                                                  
                                                                                                                                
3:53:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether it was a clerical error.                                                                   
                                                                                                                                
MS.  BERGH  referred to  AS  44.62.190,  which provides  division                                                               
guidelines  for  noticing  any  regulation  changes.    She  read                                                               
subsection  (a),   "At  least  30   days  before   the  adoption,                                                               
amendment,  or repeal  of a  regulation, notice  of the  proposed                                                               
action shall be...."                                                                                                            
                                                                                                                                
3:54:09 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON removed his objection.                                                                                              
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 302.                                                                                     
                                                                                                                                
3:54:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to report  the proposed  committee                                                               
substitute  (CS) for  HB 302,  Version N,  out of  committee with                                                               
individual  recommendations  and  the accompanying  fiscal  note.                                                               
There being  no objection,  the CSHB  302(L&C) was  reported from                                                               
the House Labor & Commerce Standing Committee.                                                                                  
                                                                                                                                
3:55:00 PM                                                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
          HB 328-BOARD/LICENSING OF MASSAGE THERAPISTS                                                                      
                                                                                                                              
3:56:38 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL NO.  328 "An  Act establishing  the Board  of Massage                                                               
Therapists; relating to the licensing  of massage therapists; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:56:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON  made  a  motion to  adopt  Amendment  1,                                                               
labeled 28-LS1431\N.2, Martin, 3/25/14, which read as follows:                                                                  
                                                                                                                                
     Page 7, line 31:                                                                                                           
          Delete ", awareness, and education by Ida P.                                                                          
     Rolf"                                                                                                                      
          Insert "and awareness who has graduated from a                                                                        
     program  or  is a  current  member  of an  organization                                                                    
     recognized   by   the  International   Association   of                                                                    
     Structural  Integrators, including  the Rolf  Institute                                                                    
     of Structural Integration"                                                                                                 
                                                                                                                                
     Page 9, line 4, following "medicines,":                                                                                    
          Insert "the practice of physical therapy,"                                                                            
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
3:57:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BEN  NAGEAK,  Alaska State  Legislature,  thanked                                                               
members for  the opportunity to ask  for support for HB  328.  He                                                               
explained  that  HB  328  would  establish  a  Board  of  Massage                                                               
Therapists  and provide  regulation for  certification.   Massage                                                               
therapists have  requested licensure  but have  also asked  for a                                                               
few changes,  which are incorporated  into amendments  "N.1" [not                                                               
yet  before   the  committee]  and  Amendment   1,  [labeled  28-                                                               
LS1431\N.2, Martin, 3/25/14, currently  under consideration].  He                                                               
asked his staff to explain the proposed amendments.                                                                             
                                                                                                                                
3:57:59 PM                                                                                                                    
                                                                                                                                
MARY  SCHLOSSER, Staff,  Representative  Benjamin Nageak,  Alaska                                                               
State Legislature, explained  Amendment 1.  She  referred to page                                                               
7,  line  31  of  HB  328 and  stated  that  the  Alaska  Massage                                                               
Therapist  Licensure  Coalition  (AMTLC) asked  for  this  change                                                               
because the  International Association of  Structural Integrators                                                               
(IASI) wanted  clarification that  the practice of  Rolfing would                                                               
be exempted  from this  bill.  She  noted the  Rolfing profession                                                               
has very high  standards.  Secondly, on page 9,  line 4, language                                                               
was inserted to  clarify that massage therapists  do not practice                                                               
physical  therapy.   This change  was requested  by the  physical                                                               
therapists.   In response to  a question, Ms. Schlosser  said she                                                               
wasn't familiar with other groups seeking licensure.                                                                            
                                                                                                                                
CHAIR OLSON  remarked that athletic  trainers would  be addressed                                                               
in a separate licensing bill.                                                                                                   
                                                                                                                                
4:00:09 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  removed his objection  to Amendment 1.   There being                                                               
no further objection, Amendment 1 was adopted.                                                                                  
                                                                                                                                
4:00:22 PM                                                                                                                    
                                                                                                                                
VICTORIA  DANCE,  Massage  Therapist,  stated she  is  a  massage                                                               
therapist  who  works  for  a  medical office  in  Juneau.    She                                                               
previously testified  in opposition to  the bill because  it only                                                               
requires  a minimum  of 500  hours of  training since  ordinances                                                               
already  require the  same minimum  hours.   It  didn't make  any                                                               
sense to go  to the expense of  a board for licensing.   She said                                                               
she has contacted  the AMTLC to increase  the minimum requirement                                                               
for  licensure, but  the  coalition has  not  been interested  in                                                               
changing the  number of  hours so she  decided to  testify before                                                               
the committee  with her  request.   She provided  her background,                                                               
such that  she is a  massage therapist  who has been  licensed in                                                               
Arizona  since  1983.    She   was  the  director  of  Continuing                                                               
Education at the  Desert Institute of the Healing  Arts in Tucson                                                               
prior to  working as a massage  therapist in a medical  clinic in                                                               
Juneau  for the  last  five years.   She  also  holds a  Master's                                                               
Degree in Higher Education Administration.   She asked to address                                                               
the educational qualifications and aspects of HB 328.                                                                           
                                                                                                                                
4:02:06 PM                                                                                                                    
                                                                                                                                
MS. DANCE  suggested that the  educational requirement  should be                                                               
increased  to  600  hours  since  almost  every  standard-setting                                                               
organization  for  massage therapy  in  the  nation recommends  a                                                               
minimum  of  600 to  625  hours  training.   [The  Commission  on                                                               
Massage   Therapy   Accreditation]   (COMTA),   an   organization                                                               
recognized by  the U.S. Secretary  of Education to  specialize in                                                               
accrediting massage  therapy schools,  requires 600 hours.   [The                                                               
Entry-Level Analysis Project] ELAP  [a research project initiated                                                               
by  the Coalition  of National  Massage Therapy  Organizations in                                                               
March  2012] has  recommended a  minimum of  625 hours  training.                                                               
She also discussed training hours  with Pete Whitridge, president                                                               
of  the Alliance  for Massage  Therapy  Education, [a  non-profit                                                               
organization  established  to  serve  as  an  independent  voice,                                                               
advocate,  and  resource for  the  entire  education sector]  who                                                               
said, "There  is a  tremendous divergence  between 500  hours and                                                               
625 or  700 hours."   Mr. Whitridge  further stated  that setting                                                               
the  minimum requirement  of 500  hours  does the  state a  great                                                               
disservice  in terms  of  current  suggested practice  especially                                                               
with the  growing field of  medical massage.  He  emphasized that                                                               
it is important at the  beginning of a massage therapist's career                                                               
to  have   additional  training  and  context   of  medicine  and                                                               
insurance billing, which is not possible in a 500-hour program.                                                                 
                                                                                                                                
MS.  DANCE  explained that  a  500-hour  program teaches  massage                                                               
therapists  the   basics  of   Swedish  massage   techniques  for                                                               
relaxation and  introduces them to  a potpourri of  techniques to                                                               
later study during continuing education  credits.  She emphasized                                                               
her belief  that it is  not possible to teach  massage therapists                                                               
much  beyond  the basic  protocols  in  an entry  level  500-hour                                                               
training  program.    The American  Manual  Medicine  Association                                                               
(AMMA),  [a non-profit  corporation  serving all  members of  the                                                               
health care community who serve  the public health through manual                                                               
therapy] recommends  a minimum  of 600 hours  of training.   Some                                                               
state boards,  including Ohio's,  are currently in  a predicament                                                               
since  these states  must now  amend their  enabling statutes  in                                                               
order to increase  the minimum qualifications for  licensure.  In                                                               
fact, only  14 states currently  require as  few as 500  hours of                                                               
training, she said.  She characterized  this bill as one that has                                                               
been modeled  after a  boiler plate from  the early  2000s, which                                                               
needs updating.                                                                                                                 
                                                                                                                                
CHAIR OLSON  asked whether she  has shared her concerns  with the                                                               
bill sponsor.                                                                                                                   
                                                                                                                                
MS. DANCE related she has  recently provided the sponsor's office                                                               
with her concerns.                                                                                                              
                                                                                                                                
4:04:58 PM                                                                                                                    
                                                                                                                                
MARTY HESTER, Deputy Director,  Division of Insurance, Department                                                               
of Commerce,  Community & Economic Development,  asked to address                                                               
the  applicability to  health insurance  policies.   He explained                                                               
that HB 328  does not amend Title 21, the  Alaska insurance code.                                                               
It would not  change the ability of an insurer  to write a policy                                                               
that  did  not  cover  massage  or  that  required  a  doctor  or                                                               
chiropractor  to prescribe  a  massage in  order  to qualify  for                                                               
coverage.   The  licensure  will  not change  the  ability of  an                                                               
insurer  to  require  that  billing   be  processed  through  the                                                               
prescribing doctor's  office or in a  particular manner; however,                                                               
the Patient  Protection and Affordable  Care Act  (PPACA) applies                                                               
to  all class  providers and  prohibits provider  discrimination.                                                               
One  provision of  PPACA  prevents  insurers from  discriminating                                                               
against entire  classes of  health care  providers if  the health                                                               
care providers are  willing to abide by the  terms and conditions                                                               
of participation and are acting  within the scope of practice and                                                               
in compliance with the state licensure requirements.                                                                            
                                                                                                                                
4:06:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked for clarification on  the insurance                                                               
aspects.                                                                                                                        
                                                                                                                                
MR. HESTER  said a question  arose as to whether  massage therapy                                                               
would  specifically be  covered under  health insurance  policies                                                               
and if  a massage  therapist could bill  an insurer  directly for                                                               
the services  they provided.  He  explained that HB 328  does not                                                               
change  the insurance  code to  affect  those items  nor does  it                                                               
change the PPACA  mandating the insurer to  provide that coverage                                                               
for massage therapy.                                                                                                            
                                                                                                                                
REPRESENTATIVE JOSEPHSON said none of this surprised him.                                                                       
                                                                                                                                
4:08:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether it  would be the status quo,                                                               
and massage therapy will not be covered by insurance.                                                                           
                                                                                                                                
MR. HESTER  said it  depends on the  insurance plan.   Currently,                                                               
Premera Blue Cross Blue Shield  provides massage therapy coverage                                                               
but  Aetna or  other insurance  coverage may  differ.   This bill                                                               
doesn't mandate the coverage these plans offer.                                                                                 
                                                                                                                                
4:08:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER related  his  understanding  that HB  328                                                               
does not change insurance law to  mandate or not, that it depends                                                               
on the  policy and it  does not  affect the [PPACA's]  mandate to                                                               
cover massage therapy.                                                                                                          
                                                                                                                                
MR. HESTER answered yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOSEPHSON related his  understanding that it would                                                               
depend on whether  a doctor prescribed the massage  therapy as to                                                               
the insurance coverage.  He  suggested it might change the result                                                               
if  a doctor  prescribed  the massage  rather  than someone  just                                                               
going to a massage therapist.                                                                                                   
                                                                                                                                
MR. HESTER answered that it  would depend on the health insurance                                                               
the individual has as to  the insurance coverage or reimbursement                                                               
for massage therapy.                                                                                                            
                                                                                                                                
4:09:28 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 328.                                                                                     
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked whether  the two  amendments were                                                               
incorporated into the bill.                                                                                                     
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:11:29 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON explained that members  did not have adequate time to                                                               
consider amendment [N.1] in members'  packets so it will be taken                                                               
up at a later date.                                                                                                             
                                                                                                                                
[HB 328 was held over.]                                                                                                         
                                                                                                                                
4:11:25 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease from 4:11 p.m. to 4:15 p.m.                                                                  
                                                                                                                                
             HB 253-PRIVATE INVESTIGATORS/AGENCIES                                                                          
                                                                                                                                
4:15:33 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE  BILL NO.  253, "An  Act  providing for  the licensing  and                                                               
regulation  of  private  investigators and  private  investigator                                                               
agencies; and providing for an effective date."                                                                                 
                                                                                                                                
4:15:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON moved  to  adopt  the proposed  committee                                                               
substitute  (CS)   for  HB  253,  labeled   28-LS1012\N,  Martin,                                                               
3/11/14, as the working document [Version N].                                                                                   
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
4:16:00 PM                                                                                                                    
                                                                                                                                
GINGER  BLAISDELL, Staff,  Representative Shelley  Hughes, Alaska                                                               
State Legislature, stated that HB  253 would create a new program                                                               
to  license private  investigators.   She  explained  that a  few                                                               
months ago  a constituent  brought information  to Representative                                                               
Hughes regarding the lack of  professional requirements to become                                                               
a private investigator  in Alaska.  Currently,  an individual can                                                               
become a  private investigator by completing  a one-page business                                                               
license  application,  paying  a   $50  fee,  and  selecting  the                                                               
commercial  business   license  code  561611   for  investigative                                                               
services.   There are 139  active private  investigator licensees                                                               
in  Alaska,   including  30  licensees  with   Lower  48  mailing                                                               
addresses and 109  in the state.  She added  that 42 other states                                                               
have   varying  requirements   to  be   licensed  as   a  private                                                               
investigator and HB 253 incorporates some of their provisions.                                                                  
                                                                                                                                
4:17:15 PM                                                                                                                    
                                                                                                                                
MS. BLAISDELL  stated that HB 253  requires private investigators                                                               
to   obtain  a   professional   license  to   become  a   private                                                               
investigator.  It creates a  misdemeanor if a person practices as                                                               
a private investigator without the  license.  The bill identifies                                                               
a  scope   of  practice,   outlining  education   and  experience                                                               
necessary  to  qualify  for  two   classes  of  licensure.    She                                                               
explained that for  a class A license, the individual  must be 21                                                               
years  of age,  have at  least a  high school  diploma or  higher                                                               
education,  and  have  1,500  hours   of  work  in  investigative                                                               
services.  A  class B license requires an individual  be 18 years                                                               
of age  or older, hold a  high school diploma or  equivalent, and                                                               
be  employed  by a  private  investigator.   In  addition,  these                                                               
individuals must  provide fingerprints for a  background check at                                                               
the state and national levels.                                                                                                  
                                                                                                                                
MS. BLAISDELL related that a  person falsifying information on an                                                               
application is  subject to  a class A  misdemeanor.   She advised                                                               
that   the  Department   of   Commerce,   Community  &   Economic                                                               
Development  (DCCED)  shall issue  a  class  A  or B  license  to                                                               
qualified  individuals.    She related  that  the  bill  includes                                                               
prohibited practices,  including wearing a uniform  or presenting                                                               
a badge that would cause  a reasonable individual to believe that                                                               
the private investigator has  official law enforcement authority.                                                               
Further, a  private investigator  cannot solicit business  for an                                                               
attorney,  and  exemptions are  included  for  those who  conduct                                                               
investigations but are not private investigators.                                                                               
                                                                                                                                
4:18:50 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL  reviewed  the committee  substitute,  Version  N,                                                               
which  removes  a  provision  to   require  firearms  so  private                                                               
investigators would  not be granted  authority to  carry firearm.                                                               
She related  that fire  investigators would  also be  exempt, and                                                               
the  proposed   committee  substitute  also   removes  continuing                                                               
education  requirements since  no  one in  the  state is  readily                                                               
available  to provide  the  instruction.   Private  investigators                                                               
have expressed  a willingness to  pay for the cost  for licensing                                                               
fees and  background checks.   The  primary concern  for creating                                                               
licensure for  private investigators is to  improve public safety                                                               
for  citizens.   She explained  that the  people seeking  private                                                               
investigator services  may be  under duress  or reaching  out for                                                               
help and  may be vulnerable  to unscrupulous investigators.   For                                                               
example,  a person  in  need  may be  more  willing  to give  out                                                               
personal  and  private  information  to  a  professional  who  is                                                               
presumed to  have an association with  a legal entity, such  as a                                                               
private investigator,  and could  be unwittingly  taken advantage                                                               
of during that time.                                                                                                            
                                                                                                                                
4:20:22 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL shared  the story  that highlighted  the need  for                                                               
this bill.  She explained  that a family's daughter went missing,                                                               
and the  case became a high  profile case in Alaska.   The family                                                               
was  approached by  a private  investigator offering  services to                                                               
locate their  daughter.  It later  came to light that  the person                                                               
was an unscrupulous private investigator  who was a convicted sex                                                               
offender in another  state, had served many years in  prison as a                                                               
felon, and  had a  history of crimes  committed in  another state                                                               
prior  to moving  to  Alaska.   She  said  it's  time to  protect                                                               
Alaska's  citizens by  reviewing the  individuals who  are asking                                                               
for  a  professional  status  to  collect  personal  and  private                                                               
information so no  others will prey on Alaskans in  their time of                                                               
need.                                                                                                                           
                                                                                                                                
4:21:09 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL provided  an analysis  of  Version N.   Section  1                                                               
would  add   a  new  regulation  of   private  investigators  and                                                               
establish a  new chapter in law.   Section 2 limits  the practice                                                               
of  private investigating  to  those  individuals licensed  under                                                               
chapter 85.   She  stated that  Section 2  will also  provide the                                                               
scope  of practice  and identify  the kinds  of information  that                                                               
private  investigators  can  collect  and  outlines  the  general                                                               
requirements, such that the person  may not have a misdemeanor or                                                               
a felony  in the  prior 10 years  and may not  be convicted  of a                                                               
crime of  dishonesty or  sexual misconduct.   The person  may not                                                               
have a  dishonorable discharge  from the  military, or  have been                                                               
determined  to  be  mentally  incompetent  by  a  court  of  law.                                                               
Additionally,  the  individual  may  not  currently  be  a  peace                                                               
officer or  in a position in  law enforcement that may  present a                                                               
conflict of interest.                                                                                                           
                                                                                                                                
4:22:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT referred to  the general requirements for                                                               
private investigators  that prohibit  individuals who have  had a                                                               
misdemeanor or a felony in the  prior 10 years.  He asked whether                                                               
that would include driving under the influence of alcohol.                                                                      
                                                                                                                                
MS. BLAISDELL  related her understanding  that it would  refer to                                                               
any misdemeanor or felony in the prior 10 years.                                                                                
                                                                                                                                
4:23:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CHENAULT was  unsure of the number  of crimes that                                                               
are included as misdemeanors.                                                                                                   
                                                                                                                                
CHAIR OLSON did not think it would limit it.                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  suggested  that any  misdemeanor  would                                                               
provide grounds  for removal of a  private investigator's license                                                               
or prevent license renewal.                                                                                                     
                                                                                                                                
CHAIR  OLSON asked  whether these  provisions were  taken out  of                                                               
model language.                                                                                                                 
                                                                                                                                
MS. BLAISDELL  clarified that the  language was taken  from other                                                               
state laws for licensing private  investigators and many of these                                                               
states broadly  stated no misdemeanor  or felony in the  prior 10                                                               
years without providing any exceptions.                                                                                         
                                                                                                                                
4:23:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   saw   a   "carve   out"   for   fire                                                               
investigators and  wondered if there  was one for  peace officers                                                               
so they are not subject to this license.                                                                                        
                                                                                                                                
MS. BLAISDELL referred  to page 10, to  exemptions, but suggested                                                               
that  peace  officers  are  handled  in  another  section.    She                                                               
referred to  [page 3, paragraph  (7)], which  restricts currently                                                               
employed peace officers from being private investigators.                                                                       
                                                                                                                                
4:25:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER referred  to page  2, lines  20-21, which                                                               
requires  that  private  investigators   must  be  a  citizen  or                                                               
resident alien of  the U.S.  He asked if  consideration was given                                                               
to requiring private investigators to be residents of Alaska.                                                                   
                                                                                                                                
MS. BLAISDELL  recommended against that since  instances occur in                                                               
which a private investigator is  brought in from out-of-state who                                                               
has  special  skills.     She  suggested  that   it  may  include                                                               
investigators  conducting confidential  work  for oil  companies.                                                               
In further response, she agreed the language was considered.                                                                    
                                                                                                                                
4:26:41 PM                                                                                                                    
                                                                                                                                
MS. BLAISDELL  referred to page  3, proposed AS  08.85.140, which                                                               
outlines class A and B  private investigator qualifications.  She                                                               
explained the  reason to  establish two  separate classes  was to                                                               
provide  progression for  the profession.   For  example, a  high                                                               
school graduate might be hired  by someone who does investigative                                                               
work  and  can  obtain  job  skills.   Once  the  person  obtains                                                               
investigative skills,  the person  can obtain  a higher  level of                                                               
professional licensure.   She characterized  it as a part  of the                                                               
process to make sure skilled  people are providing information to                                                               
courts and in the legal system.                                                                                                 
                                                                                                                                
4:27:32 PM                                                                                                                    
                                                                                                                                
MS. BLAISDELL  referred to page  4, AS 08.85.160,  which outlines                                                               
the   criteria  in   the  license   application,  including   the                                                               
requirement  for fingerprints  and  local  and national  criminal                                                               
background checks.   This statute  asks for letters  of character                                                               
references from three citizens with  no prior felony record.  She                                                               
noted that the felony list is available on court view.                                                                          
                                                                                                                                
4:28:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  asked  whether  restrictions  on  tattoos                                                               
should be included.   He wondered if a  psychological test should                                                               
be required instead of a statement of mental health.                                                                            
                                                                                                                                
MS. BLAISDELL answered  that tattoos were not  considered and she                                                               
did  not  recall seeing  tattoos  in  other  states' laws.    She                                                               
offered to consider adding it.   She recalled that two states did                                                               
do a mental  health examination, but most others  did not include                                                               
one.   She was  unsure whether  Health Insurance  Portability and                                                               
Accountability  Act of  1996 (HIPAA)  requirements covered  this.                                                               
She offered to consider this matter for the committee.                                                                          
                                                                                                                                
REPRESENTATIVE HERRON  said that given  the reality shows  he has                                                               
seen that some private investigators need psychological testing.                                                                
                                                                                                                                
REPRESENTATIVE  SADDLER  referred  to  page  [5]  line  7,  which                                                               
requires an  Alaska driver's license number  and expiration date.                                                               
He asked  whether the  specific requirement  for an  applicant to                                                               
provide an  Alaska driver's license  should be deleted  since the                                                               
bill  doesn't require  a  private investigator  to  be an  Alaska                                                               
resident.                                                                                                                       
                                                                                                                                
MS. BLAISDELL  acknowledged that probably  is a good point.   She                                                               
related  that this  language was  put in  to provide  a secondary                                                               
point of  identification through  the Division of  Motor Vehicles                                                               
as a means  of providing identification.  In  further response to                                                               
a question, she agreed it should require a driver's license.                                                                    
                                                                                                                                
4:30:59 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL referred  to page  6 to  AS 08.85.170,  related to                                                               
investigation  of  applicants,  which gives  the  department  the                                                               
authority  to  verify  the applicant's  information.    She  also                                                               
referred  to  [AS 08.85.200]  to  reciprocity,  which allows  the                                                               
department  to  issue  a  license card  to  someone  licensed  in                                                               
another  state and  allow  them to  conduct  specialized work  in                                                               
Alaska.    She further  referred  to  [AS 08.85.210]  to  license                                                               
cards,  which provides  identification that  the individual  is a                                                               
private  investigator  and helps  to  ensure  the individual  has                                                               
undergone  some type  of check  rather than  just printing  off a                                                               
business card with private investigator printed on it.                                                                          
                                                                                                                                
4:32:09 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL  referred  to   the  private  investigator  agency                                                               
certificate [AS  08.85.220], which allows investigators  who hold                                                               
class A licenses and are primary  employees of a business that is                                                               
licensed and  bonded to hire  a class B investigator  and provide                                                               
training  similar  to an  apprenticeship  program.   She  further                                                               
referred to  AS 08.85.230 to  license renewal,  which establishes                                                               
the process for license renewal, which is non-transferable.                                                                     
                                                                                                                                
4:32:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  referred  to  page  7  to  the  agency                                                               
certification.     He  asked   whether  consistency   exists  for                                                               
professions  since some  require errors  and omissions  insurance                                                               
while others do not.                                                                                                            
                                                                                                                                
MS. BLAISDELL  explained that the errors  and omissions insurance                                                               
is  a requirement  by almost  every  state.   She suggested  that                                                               
individuals  on  line  could more  specifically  answer  how  the                                                               
process works.                                                                                                                  
                                                                                                                                
4:33:50 PM                                                                                                                    
                                                                                                                                
MS. BLAISDELL  added that a  provision for firearms  training was                                                               
removed.  She pointed out  that a number of private investigators                                                               
requested firearms  training; however, firearms are  not normally                                                               
required to conduct business as a private investigator.                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSON  related his  understanding that  the bill                                                               
will set  a higher standard  for private investigators.   He said                                                               
that anyone can  carry a firearm in Alaska.   He asked whether it                                                               
would  be  prudent  to  ask   private  investigators  to  have  a                                                               
concealed carry permit  or some type of training  for any private                                                               
investigators who are carrying firearms.                                                                                        
                                                                                                                                
MS. BLAISDELL answered that a  concealed carry permit would be an                                                               
individual's  personal  choice.    She  related  that  putting  a                                                               
section in  the bill to  require specific firearm  training might                                                               
have  a  tendency  to  give  a  higher  authority  to  a  private                                                               
investigator,  suggesting  they  should  carry a  firearm.    She                                                               
further  related her  understanding that  other state  laws allow                                                               
concealed carry permits.                                                                                                        
                                                                                                                                
4:35:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON suggested that  perhaps the language might                                                               
require  any  private  investigators carrying  firearms  to  have                                                               
training.  He offered his belief that  if the goal of the bill is                                                               
an  attempt to  raise  the standards  for private  investigators,                                                               
that higher  standards should be required.   He was unsure  as to                                                               
whether  his suggestion  is a  good idea  but he  would like  the                                                               
sponsor to consider firearms training.                                                                                          
                                                                                                                                
REPRESENTATIVE HERRON  related his  understanding that it  was in                                                               
an earlier version  of the bill but dropped out.   He also shared                                                               
the concern that Representative Johnson expressed.                                                                              
                                                                                                                                
REPRESENTATIVE JOHNSON noted that  police who carry firearms must                                                               
have a higher standard.   He did not want to  take away the right                                                               
of any  individual to carry  firearms, but if individuals  are on                                                               
the job as  private investigators and are  carrying weapons, that                                                               
these professionals are in a different situation.                                                                               
                                                                                                                                
4:36:53 PM                                                                                                                    
                                                                                                                                
MS. BLAISDELL  referred to the original  version of HB 253  to AS                                                               
08.85.240, which read:   "Firearms training.  A  licensee may not                                                               
carry a firearm while practicing  as a private investigator until                                                               
the license[e] has completed firearms  training acceptable to the                                                               
department."    She  was  unsure   whether  DCCED  would  be  the                                                               
appropriate  department  to   determine  the  training;  however,                                                               
perhaps something similar could be reinserted.                                                                                  
                                                                                                                                
REPRESENTATIVE CHENAULT remarked that the  DCCED is not the right                                                               
department to issue firearm permits.                                                                                            
                                                                                                                                
4:37:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  commented that working as  an attorney,                                                               
he  would   infrequently  have  the   need  to  hire   a  private                                                               
investigator; however, he recalled  that the private investigator                                                               
would typically be doing research  or would follow someone with a                                                               
camera.   He  did  not think  that  they had  any  intent to  put                                                               
themselves in  danger, but other  private investigators  may also                                                               
wish to be bodyguards.  He  suggested that perhaps there might be                                                               
a variety of purposes for private investigators.                                                                                
                                                                                                                                
4:38:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  asked  whether  this  bill  deals  with                                                               
bodyguards.   He did  not think  that was part  of the  duties of                                                               
private investigators although he was unsure.                                                                                   
                                                                                                                                
CHAIR  OLSON  offered his  belief  that  there  is at  least  one                                                               
private investigator who works as a bodyguard in Anchorage.                                                                     
                                                                                                                                
REPRESENTATIVE  CHENAULT  was  not  sure if  that  person  was  a                                                               
private investigator.                                                                                                           
                                                                                                                                
4:39:05 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL  related  that  in   speaking  with  a  number  of                                                               
investigators  in  the  state  and  discussing  endorsements  for                                                               
private investigator's licensing that  the profession could spill                                                               
over  into  other  areas  such   as  bail  enforcement,  fugitive                                                               
recovery, and  executive protection.   She said the focus  was to                                                               
put  into  place  a  background  check  to  ensure  that  private                                                               
investigators are  not felons preying  on people.  She  said that                                                               
specific endorsements could be considered in the future.                                                                        
                                                                                                                                
4:39:59 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL  referred  to  AS  08.85.240,  to  confidentiality                                                               
language, which  ensures that private  investigator's information                                                               
is   kept  confidential   and  place   of  residence   and  other                                                               
information is not released to the public.                                                                                      
                                                                                                                                
MS. BLAISDELL  referred to AS 08.85.250  to prohibited practices.                                                               
For example,  violations could  be for such  things as  wearing a                                                               
police uniform,  flashing lights  on a  car, and  making material                                                               
misstatements.                                                                                                                  
                                                                                                                                
4:41:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER referred to page  10, line 4, to paragraph                                                               
(6)  which prohibits  the department  from issuing  a license  to                                                               
someone who has solicited business  for an attorney in return for                                                               
compensation.  He  asked whether that would  constitute an ethics                                                               
violation.                                                                                                                      
                                                                                                                                
MS.  BLAISDELL  related  her  understanding  that  if  a  private                                                               
investigator would solicit  business that it would  be similar to                                                               
the  situation  in  which  an attorney  would  be  considered  an                                                               
"ambulance chaser."  She said  that a private investigator cannot                                                               
solicit someone  who is in a  vulnerable state.  She  pointed out                                                               
that  people  can  easily  find  licensed  private  investigators                                                               
themselves.                                                                                                                     
                                                                                                                                
4:42:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER was unsure  how one would solicit business                                                               
for an attorney.                                                                                                                
                                                                                                                                
MS. BLAISDELL  answered this is more  a code of conduct.   It was                                                               
presumed  that   the  private  investigator  would   not  solicit                                                               
business.   She agreed that  a private investigator could  dig up                                                               
"dirt on a  person" and generate business for an  attorney to get                                                               
the individual out of trouble.                                                                                                  
                                                                                                                                
4:43:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  suggested  that some  states  are  more                                                               
sophisticated than  Alaska.  He  recalled hearing of  an incident                                                               
in  which  a young  man  was  involved in  a  car  accident.   He                                                               
discovered  that  some people  monitor  police  reports and  send                                                               
letters to  the individuals involved  asking if anyone  was hurt.                                                               
He surmised that something similar  might occur in Alaska and the                                                               
middle man is just cut out.                                                                                                     
                                                                                                                                
4:44:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked whether  a prohibited practice should                                                               
include the use of drones.                                                                                                      
                                                                                                                                
MS. BLAISDELL  answered that  the drones  are operated  by people                                                               
and  if the  person shouldn't  be gathering  information in  that                                                               
way, including a  certificate to fly and  gather the information,                                                               
the person  should not be gathering  it.  She offered  her belief                                                               
that  discussions on  drones will  crop up  but a  potential task                                                               
force could consider it.                                                                                                        
                                                                                                                                
REPRESENTATIVE HERRON  asked whether  the sponsor  would consider                                                               
it as prohibited practice.                                                                                                      
                                                                                                                                
MS. BLAISDELL agreed to do so.                                                                                                  
                                                                                                                                
REPRESENTATIVE SADDLER  thought the devices were  unmanned aerial                                                               
systems.                                                                                                                        
                                                                                                                                
4:46:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT  believed  that the  bill  for  unmanned                                                               
aerial  aircraft  also  has  provisions   to  not  allow  certain                                                               
aspects.   He  didn't  recall, but  he  envisioned that  anything                                                               
unlawful  would be  covered,  whether the  person  was a  private                                                               
investigator or police officer, or other professional.                                                                          
                                                                                                                                
MS. BLAISDELL  clarified that either unmanned  aircraft or drones                                                               
are considered to be universal terms.                                                                                           
                                                                                                                                
4:47:06 PM                                                                                                                    
                                                                                                                                
MS.   BLAISDELL   referred   to  AS   08.85.260,   immunity   for                                                               
complainants, which  provides immunity against  damages resulting                                                               
from a complaint filed in good  faith.  For example, if a private                                                               
investigator has  overstepped a  personal boundary,  if it  is in                                                               
good  faith, an  action can't  be taken.   Private  investigators                                                               
might be watching someone who doesn't want to be watched.                                                                       
                                                                                                                                
MS.  BLAISDELL referred  to AS  08.85.270  to the  administrative                                                               
procedures   act,   which   allows  the   department   to   adopt                                                               
regulations.                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  asked   whether   the  immunity   for                                                               
complainants  was written  a  little broadly.    For example,  he                                                               
related  a scenario  in which  the  private investigator  punches                                                               
someone  - a  tort of  personal injury  - or  says something  bad                                                               
publically, which would  be a tort of defamation.   He questioned                                                               
whether this  seems to say  that a private investigator  could be                                                               
sued and he was unsure that was intended.                                                                                       
                                                                                                                                
MS. BLAISDELL agreed it was somewhat broad.                                                                                     
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  suggested  it  might  specify  that  a                                                               
private investigator  was acting  in the  official capacity  as a                                                               
private investigator.                                                                                                           
                                                                                                                                
CHAIR OLSON suggested it be tightened up.                                                                                       
                                                                                                                                
MS. BLAISDELL  referred to page  10, line 17, which  references a                                                               
person licensed under this chapter,  but she noted it doesn't say                                                               
while acting in that capacity, which could improve the language.                                                                
                                                                                                                                
REPRESENTATIVE JOHNSON concurred.                                                                                               
                                                                                                                                
4:49:36 PM                                                                                                                    
                                                                                                                                
MS.  BLAISDELL  referred to  AS  08.85.300  to exemptions.    She                                                               
explained that  this statute refers to  licensing requirements in                                                               
this  chapter that  do not  apply  to certain  individuals.   For                                                               
example,  most  of  these exemptions  apply  to  individuals  who                                                               
conduct  investigative work  in  their normal  work,  such as  an                                                               
auditor investigating  expenditures of a business,  attorneys who                                                               
investigate on behalf of their  clients, and collection agencies.                                                               
She recalled a request that  a person conducting an investigation                                                               
to determine the  cause of a fire, explosion,  or accident should                                                               
also  be  exempt  from  the   requirement  to  obtain  a  private                                                               
investigator's  license.   However, only  about four  individuals                                                               
conduct this type of investigation  in Alaska and they are highly                                                               
qualified in investigating fires, she said.                                                                                     
                                                                                                                                
MS.  BLAISDELL  referred  to  AS   08.85.310  to  the  definition                                                               
section.    Additionally, [Sections  3,  4,  and 5]  provide  the                                                               
technical and transitional provisions of the bill.                                                                              
                                                                                                                                
4:51:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT   referred  to   the  fiscal   note  for                                                               
approximately  $60,000.   He didn't  anticipate much  change with                                                               
the committee substitute,  but assumed a new fiscal  note will be                                                               
issued  that  relates  to  the committee  substitute  (CS).    He                                                               
expressed  concern that  issuing identification  cards and  other                                                               
costs associated with the bill will have some fiscal impact.                                                                    
                                                                                                                                
CHAIR OLSON surmised DCCED will testify at the next hearing.                                                                    
                                                                                                                                
4:52:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked how  many  people  are engaged  as                                                               
private investigators.                                                                                                          
                                                                                                                                
MS. BLAISDELL answered  that there are 139  business licenses for                                                               
private investigators,  with 109 in  Alaska and 30 out  of state.                                                               
She  recalled a  retired police  officer who  is a  bail bondsman                                                               
indicated that he  has tripled his wages.  She  was unsure of the                                                               
salary,  but   perhaps  the  Department  of   Labor  &  Workforce                                                               
Development has figures.                                                                                                        
                                                                                                                                
4:53:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER asked  whether  a private  investigator's                                                               
license is  required to be a  bail bondsman or to  return someone                                                               
who has jumped bail.                                                                                                            
                                                                                                                                
MS.  BLAISDELL answered  no;  however,  private investigators  do                                                               
conduct all kinds of tasks.                                                                                                     
                                                                                                                                
4:54:30 PM                                                                                                                    
                                                                                                                                
H.H.   "TRES"  LEWIS   III,   Private  investigator,   Mendenhall                                                               
Investigations,  Inc., stated  that he  has worked  as a  private                                                               
investigator in  Alaska for 28 years.   He was involved  with the                                                               
first bill related to licensing  private investigators in Alaska.                                                               
He  said  this bill  has  serious  flaws  and issues  that  could                                                               
significantly impact the profession.   In response to a question,                                                               
he  responded  that  he  has  held  discussions  with  the  prime                                                               
sponsors of HB 253.                                                                                                             
                                                                                                                                
MS. BLAISDELL referred to page  2, lines [21-22], the requirement                                                               
that a person  may not be convicted of a  misdemeanor.  He stated                                                               
that  he is  aware  of  one private  investigator  in Alaska  who                                                               
shoplifted a carton of cigarettes at  the age of 18.  That person                                                               
served 10  years in  the U.S.  Army as  a military  policeman and                                                               
later became  an Alaska  State Trooper;  however, under  the bill                                                               
since this individual previously  committed a crime of dishonesty                                                               
the person  would prohibited from  being a  private investigator.                                                               
He asked members to consider striking this language.                                                                            
                                                                                                                                
4:56:27 PM                                                                                                                    
                                                                                                                                
MR. LEWIS stated that Alaska  has a set of regulations considered                                                               
barrier  crimes, which  is used  for many  professions, including                                                               
nurses  and  janitors.     He  offered  his   belief  that  those                                                               
regulations,  located in  the  Alaska  administrative code  (AAC)                                                               
Title 7, offers greater protection  to the public than the simple                                                               
language of not  having been convicted of a crime  in the past 10                                                               
years.  He  offered his belief that other states  have barrier of                                                               
10 years for felonies and 5  years for misdemeanors.  He referred                                                               
to  [page  3,  line  2   to  paragraph  (5)],  which  relates  to                                                               
dishonorable  discharge from  the armed  forces.   He said  he is                                                               
aware of several people discharged  with a dishonorable discharge                                                               
due  to post-traumatic  stress disorders.    These soldiers  came                                                               
home and have managed to  put their lives back together; however,                                                               
these individuals could not serve  as private investigators under                                                               
the bill and  this does them a disservice.   He expressed concern                                                               
about  the multiple  tier  licensing system.    He suggested  one                                                               
license is all that is required.                                                                                                
                                                                                                                                
4:57:37 PM                                                                                                                    
                                                                                                                                
MR.  LEWIS did  not object  to an  "apprentice license,"  but the                                                               
person  must  have a  letter  that  the private  investigator  is                                                               
willing to hire  the person as an apprentice.   He found that the                                                               
agency  license would  just be  another avenue  for the  state to                                                               
charge  fees,  which  is not  necessary,  especially  since  most                                                               
private investigators are solo practitioners.                                                                                   
                                                                                                                                
MR.  LEWIS expressed  concern about  the education  requirements.                                                               
He  said he  was aware  of a  successful private  investigator in                                                               
Anchorage  who does  not have  a high  school diploma  or general                                                               
education  development  (GED).   This  person  would not  qualify                                                               
under  the bill  to  be  a private  investigator.   He  expressed                                                               
concern  about the  requirement for  the 1,500  hours or  more of                                                               
billable hours  required [on  page 4, lines  5-11 of  Version N].                                                               
He suggested some kind of formula  is necessary.  For example, if                                                               
someone worked in the public  defender's office for 20 years, the                                                               
individual  should  receive  credit.     He  surmised  the  1,500                                                               
billable hours came  out of the California law,  but the majority                                                               
of the private investigators in  Alaska have worked in the public                                                               
defender's  agency,  the  Office   of  Public  Advocacy,  or  law                                                               
enforcement.   He considered himself  an exception, since  he was                                                               
mentored by an attorney who spent three years training him.                                                                     
                                                                                                                                
4:59:23 PM                                                                                                                    
                                                                                                                                
MR. LEWIS  expressed concerns about requirements  for information                                                               
on the  application.   For example,  he did  not find  his wife's                                                               
occupation to be relevant to his private investigator license.                                                                  
                                                                                                                                
MR.   LEWIS   expressed   concern  with   the   requirement   for                                                               
identification card  and weapons.   He said  that the ID  card is                                                               
dangerous since  the public may  interpret that  the investigator                                                               
has some caliber of law  enforcement.  Instead, he suggested that                                                               
private investigator's be required  to place their license number                                                               
on a  business card.  Further,  the state could list  all private                                                               
investigators on the state's website  so the public can determine                                                               
whether  the person  is a  legitimate private  investigator.   He                                                               
said that in  28 years he has  never had the need  for a firearm.                                                               
In fact, he  emphasized that it should be a  prohibited act for a                                                               
private investigator  to carry a  firearm since it,  again, would                                                               
lead the  public into thinking  the private investigator  is some                                                               
sort  of law  enforcement officer.   He  objected to  the bonding                                                               
requirement  since  he  found  $100,000  ridiculously  low.    He                                                               
reported that he  could obtain a $1,000,000 policy  as an unarmed                                                               
private  investigator for  $800  per  year.   He  could not  find                                                               
anyone in Alaska would issue a corporate bond in Alaska.                                                                        
                                                                                                                                
5:01:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  asked  whether  private  investigators                                                               
want this licensure.                                                                                                            
                                                                                                                                
MR. LEWIS answered  that some people do not want  it.  He offered                                                               
his belief  that "the absolute  best of  all worlds" would  be to                                                               
require  private   investigators  to  be   registered,  including                                                               
listing their  names, addresses, telephone number,  and insurance                                                               
policy.  He  suggested confirmation that the person  has not been                                                               
convicted of  a felony or misdemeanor  in the past 10  years, and                                                               
that the private investigator's license  was issued by the state.                                                               
He said this type of registration  would be similar to the method                                                               
Colorado uses, which  is a simple process, but  would still offer                                                               
a greater level of protection to the citizens of Alaska.                                                                        
                                                                                                                                
CHAIR OLSON noted that public comment will remain open.                                                                         
                                                                                                                                
[HB 253 was held over.]                                                                                                         
                                                                                                                                
5:02:29 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:02 p.m.                                                                                                                       

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