Legislature(2017 - 2018)BARNES 124

02/03/2017 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Bills Previously Heard/Scheduled TELECONFERENCED
-- Public Testimony --
+= HB 18 RACE CLASSICS TELECONFERENCED
Moved HB 18 Out of Committee
-- Public Testimony --
+= HB 49 EXTEND BOARD OF DIRECT-ENTRY MIDWIVES TELECONFERENCED
Moved HB 49 Out of Committee
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        February 3, 2017                                                                                        
                           3:21 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sam Kito, Chair                                                                                                  
Representative Adam Wool, Vice Chair                                                                                            
Representative Andy Josephson                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Chris Birch                                                                                                      
Representative Gary Knopp                                                                                                       
Representative Colleen Sullivan-Leonard                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Bryce Edgmon (alternate)                                                                                         
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 18                                                                                                               
"An Act relating to race classics."                                                                                             
                                                                                                                                
     - MOVED HB 18 OUT OF COMMITTEE                                                                                             
                                                                                                                                
HOUSE BILL NO. 49                                                                                                               
"An Act extending the termination date of the Board of Certified                                                                
Direct-Entry Midwives; and providing for an effective date."                                                                    
                                                                                                                                
     - MOVED HB 49 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 18                                                                                                                   
SHORT TITLE: RACE CLASSICS                                                                                                      
SPONSOR(s): REPRESENTATIVE(s) ORTIZ                                                                                             
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       L&C, FIN                                                                                               
01/30/17       (H)       L&C AT 3:30 PM BARNES 124                                                                              
01/30/17       (H)       Heard & Held                                                                                           
01/30/17       (H)       MINUTE(L&C)                                                                                            
02/03/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 49                                                                                                                   
SHORT TITLE: EXTEND BOARD OF DIRECT-ENTRY MIDWIVES                                                                              
SPONSOR(s): REPRESENTATIVE(s) KITO                                                                                              
                                                                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       L&C, FIN                                                                                               
02/01/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/01/17       (H)       Heard & Held                                                                                           
02/01/17       (H)       MINUTE(L&C)                                                                                            
02/03/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE DAN ORTIZ                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented HB 18.                                                                       
                                                                                                                                
KATRINA MITCHELL, Gaming Group Manager                                                                                          
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
POSITION STATEMENT:  Answered questions on HB 18.                                                                             
                                                                                                                                
JANEY HOVENDEN, Director                                                                                                        
Division of Corporations, Business, and Professional Licensing                                                                  
(DCBPL)                                                                                                                         
Department of Commerce, Community & Economic Development (DCCED)                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions on HB 49.                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:21:32 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee meeting  to order at  3:21 p.m.   Representatives Wool,                                                               
Josephson, Stutes, Birch, Knopp,  Sullivan-Leonard, and Kito were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
                      HB 18-RACE CLASSICS                                                                                   
                                                                                                                                
3:21:56 PM                                                                                                                    
                                                                                                                                
CHAIR KITO announced that the first order of business would be                                                                  
HOUSE BILL NO. 18, "An Act relating to race classics."                                                                          
                                                                                                                                
3:22:44 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 18.                                                                                    
                                                                                                                                
3:23:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH moved  to adopt  Amendment 1,  [labeled 30-                                                               
LS0199\A.1, Martin, 1/31/17], which read as follows:                                                                            
                                                                                                                                
     Page 1, lines 4 - 10:                                                                                                      
          Delete all material and insert:                                                                                       
               "(40)  "race classic" means a game of chance                                                                     
     where  prizes  are awarded  for  the  closest guess  or                                                                    
     guesses of the  official winning times of  a human race                                                                    
     or races  [, AND  IS LIMITED TO  THE MT.  MARATHON RACE                                                                    
     CLASSIC  OPERATED   AND  ADMINISTERED  BY   THE  SEWARD                                                                    
     CHAMBER OF COMMERCE CONVENTION AND VISITORS' BUREAU];"                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  stated that the amendment  removes the need                                                               
for Ketchikan  to ask for legislation  for the race classic.   He                                                               
also mentioned a letter of support from Seward.                                                                                 
                                                                                                                                
REPRESENTATIVE WOOL objected for discussion purposes.                                                                           
                                                                                                                                
3:24:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN   ORTIZ,  Alaska  State   Legislature,  prime                                                               
sponsor of  HB 18, stated  that he  is neutral to  the amendment.                                                               
He mentioned  that he has  heard some concern from  his community                                                               
about the  potential of other  groups being  able to "hop  on" to                                                               
the  Race to  Alaska or  other  race classics  around the  state.                                                               
Notwithstanding that, he  acknowledged that in order to  do so, a                                                               
group would have to have a permit.                                                                                              
                                                                                                                                
REPRESENTATIVE BIRCH  stated that  HB 18 brought  new information                                                               
to him.   He noted  the effort,  energy, and initiative  taken by                                                               
the [Greater Ketchikan  Chamber of Commerce] to be  added to host                                                               
a classic,  and he stated  that the amendment would  simplify the                                                               
process.    The  amendment allows  any  community,  appropriately                                                               
regulated with a gaming permit, to  do a similar fundraiser.  The                                                               
amendment reduces the amount of state statutes in consideration.                                                                
                                                                                                                                
3:26:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  spoke in  support  of  Amendment 1,  which                                                               
simplifies  community   participation  in  annual  events.     He                                                               
mentioned there are other safeguards in place.                                                                                  
                                                                                                                                
3:27:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  stated that  pre-existing classics  would be                                                               
diluted if every  community had a classic.  He  asked if a gaming                                                               
permit is easy to obtain and could be used for multiple events.                                                                 
                                                                                                                                
REPRESENTATIVE BIRCH said  the legislature doesn't need  to be in                                                               
"the business of  picking the winners and losers."  He noted that                                                               
the bill  addresses the definition  of race classics, and  in the                                                               
years since  the law  has been  around, there  has only  been one                                                               
race  classic.   He stated  that Amendment  1 would  simplify the                                                               
process and  make for better  governance.   He opined that  it is                                                               
not  the legislature's  business to  determine which  communities                                                               
can  have classics.   He  said, "Let  the entrepreneurial  spirit                                                               
rise, and if  somebody wants to have a classic  ... we should not                                                               
stand in the way."                                                                                                              
                                                                                                                                
3:29:48 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  clarified that  ice  classics  are identified  in  a                                                               
separate part of the same statute.                                                                                              
                                                                                                                                
REPRESENTATIVE WOOL maintained his objection.                                                                                   
                                                                                                                                
3:30:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ORTIZ asked  for  [the  Department of  Revenue's]                                                               
observation on the likelihood of  a piling-on effect if Amendment                                                               
1 was adopted.                                                                                                                  
                                                                                                                                
CHAIR KITO paraphrased Representative  Ortiz's question about the                                                               
impact of not  identifying individual classics on  the success of                                                               
any individual classic.                                                                                                         
                                                                                                                                
REPRESENTATIVE ORTIZ reiterated the  concerns of his constituency                                                               
and  the   Greater  Ketchikan  Chamber  of   Commerce  about  the                                                               
potential of groups to pile on to existing races.                                                                               
                                                                                                                                
3:31:51 PM                                                                                                                    
                                                                                                                                
KATRINA  MITCHELL, Gaming  Group  Manager,  Tax Division,  stated                                                               
that she  cannot answer  the question.   She stated  that nothing                                                               
has come  to her  attention [regarding  a piling-on  effect], and                                                               
that there is not a list of  groups wanting to get in on classics                                                               
limited to certain organizations.  She  stated that it is hard to                                                               
predict how groups would react.                                                                                                 
                                                                                                                                
3:33:08 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Knopp, Sullivan-                                                               
Leonard,   and   Birch   voted   in   favor   of   Amendment   1.                                                               
Representatives Stutes,  Josephson, Wool, and Kito  voted against                                                               
it.  Therefore, Amendment 1 failed to  be adopted by a vote of 3-                                                               
4.                                                                                                                              
                                                                                                                                
3:33:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to report  HB 18, out of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB 18  was moved from the  House Labor                                                               
and Commerce Standing Committee.                                                                                                
                                                                                                                                
3:34:24 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 3:34 p.m. to 3:37 p.m.                                                                       
                                                                                                                                
          HB 49-EXTEND BOARD OF DIRECT-ENTRY MIDWIVES                                                                       
                                                                                                                                
3:37:08 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  final order of business  would be                                                               
HOUSE BILL NO. 49, "An Act  extending the termination date of the                                                               
Board of  Certified Direct-Entry  Midwives; and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
3:37:43 PM                                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 49.                                                                                    
                                                                                                                                
3:38:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH asked  how the total cost  would be assessed                                                               
going forward.                                                                                                                  
                                                                                                                                
CHAIR KITO clarified  that the question regards the  cost for the                                                               
board's backlog and previously incurred costs.                                                                                  
                                                                                                                                
3:38:59 PM                                                                                                                    
                                                                                                                                
JANEY  HOVENDEN, Director,  Division  of Corporations,  Business,                                                               
and  Professional  Licensing  (DCBPL),  Department  of  Commerce,                                                               
Community & Economic Development  (DCCED), stated that the latest                                                               
fee  analysis  set  the  fees  at  $3,800  for  new  and  renewal                                                               
licenses.   The current fees are  predicted to get the  board out                                                               
of deficit by 2021.                                                                                                             
                                                                                                                                
REPRESENTATIVE  BIRCH asked  if the  cumulative deficit  would be                                                               
"nibbled away" every year by the $4,000 fees.                                                                                   
                                                                                                                                
MS. HOVENDEN answered that is correct.                                                                                          
                                                                                                                                
3:40:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL asked  if the  board  is allowed  to keep  a                                                               
surplus.                                                                                                                        
                                                                                                                                
MS. HOVENDEN  stated that is  correct; boards  have carry-forward                                                               
[funds] from  year to year.   She  noted that currently  the fees                                                               
are very steep to get the board  out of deficit and would stay at                                                               
that level  until there is  a reasonable surplus, after  which an                                                               
analysis could  be done, resulting  in fees  being set at  a much                                                               
more reasonable level.                                                                                                          
                                                                                                                                
3:41:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP asked how licensing  would be handled if the                                                               
board is not extended.                                                                                                          
                                                                                                                                
MS. HOVENDEN  stated that  the board  is set  to sunset  June 30,                                                               
2017.   Statute allows  for a  one-year period  for the  board to                                                               
help transition to management by  DCCED, which would be effective                                                               
July 1, 2018.                                                                                                                   
                                                                                                                                
REPRESENTATIVE KNOPP  asked whether  the department would  be the                                                               
only qualified management  of the profession -  the board members                                                               
would no longer be qualified.                                                                                                   
                                                                                                                                
MS. HOVENDEN stated  that is correct.  She  stated the department                                                               
would still need consultation from the industry for assistance.                                                                 
                                                                                                                                
3:43:14 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO  asked  if the  legislature  is  exceeding  statutory                                                               
authority  in  authorizing  the   satisfaction  of  arrears  over                                                               
multiple bienniums.                                                                                                             
                                                                                                                                
MS.  HOVENDEN stated  that there  is  an allowance  to recover  a                                                               
deficit over a number of bienniums,  so as to not restrict people                                                               
from their livelihoods  and to continue access  to midwifery care                                                               
in Alaska.                                                                                                                      
                                                                                                                                
CHAIR KITO stated his desire  to ensure that boards have adequate                                                               
opportunity and  statutory ability  to address  significant debt.                                                               
He noted that another piece  of legislation, which will be before                                                               
the  House Labor  and  Commerce Standing  Committee  [at a  later                                                               
date], might address the board's debt in a different way.                                                                       
                                                                                                                                
3:44:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved  to report HB 49 out  of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB 49  was moved from House  Labor and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
3:45:10 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 3:45 p.m. to 3:47 p.m.                                                                       
                                                                                                                                
3:47:37 PM                                                                                                                    
                                                                                                                              
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
3:48 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB018 Supporting Documents-Letter Goucher 1.31.17.pdf HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Amendment 1-Birch 2.1.17.pdf HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Sectional Analysis 01.27.17.pdf HL&C 1/30/2017 3:30:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Sponsor Statement 01.27.17.pdf HL&C 1/30/2017 3:30:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Supporting Document-Chamber Flyer 01.27.17.pdf HL&C 1/30/2017 3:30:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Supporting Document-Chamber Letter 01.27.17.pdf HL&C 1/30/2017 3:30:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Fiscal Note DOR TAX 1.27.17.pdf HL&C 1/30/2017 3:30:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 18
HB018 Amendment 1-Supporting Documents-Seward Chamber of Commerce 2.2.17.pdf HL&C 2/3/2017 3:15:00 PM
HB 18
HB049 Supporting Documents-Letters of Support 2.2.17.pdf HL&C 2/3/2017 3:15:00 PM
HB 49
HB049 Fiscal Note DCCED CBPL 1.27.17.pdf HL&C 2/1/2017 3:15:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 49
HB049 Sponsor Statement 01.30.17.pdf HL&C 2/1/2017 3:15:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 49
HB049 Supporting Documents-Full Sunset Audit 01.30.17.pdf HL&C 2/1/2017 3:15:00 PM
HL&C 2/3/2017 3:15:00 PM
HB 49