Legislature(2017 - 2018)BARNES 124

03/22/2017 03:15 PM LABOR & COMMERCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 132 TRANSPORTATION NETWORK COMPANIES TELECONFERENCED
Heard & Held
*+ HB 144 EXTEND BOARD OF VETERINARY EXAMINERS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 14 FCC: INCREASE RURAL HEALTH CARE BUDGET TELECONFERENCED
Moved HJR 14 Out of Committee
+= HB 157 LIFE & HEALTH INSURANCE GUARANTY ASSN. TELECONFERENCED
Moved HB 157 Out of Committee
-- Public Testimony --
+= HB 119 AIDEA:DIVIDEND TO STATE;INCOME;VALUATION TELECONFERENCED
Moved HB 119 Out of Committee
-- Public Testimony --
+= HB 79 OMNIBUS WORKERS' COMPENSATION TELECONFERENCED
Moved CSHB 79(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 22, 2017                                                                                         
                           3:19 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 Mike Chenault (alternate)                                                                                        
Representative Bryce Edgmon (alternate)                                                                                         
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE JOINT RESOLUTION NO. 14                                                                                                   
Urging  the Federal  Communications  Commission  to increase  the                                                               
Rural  Health  Care Program  budget  sufficiently  to adjust  for                                                               
inflation,  advances in  technology  and  the services  available                                                               
with  increased  broadband,  and   the  increase  in  demand  for                                                               
broadband-based services and  provide for any unused  funds to be                                                               
carried  forward to  future funding  years,  ensuring that  rural                                                               
communities in  the state continue  to have access  to affordable                                                               
broadband telehealth services.                                                                                                  
                                                                                                                                
     - MOVED HJR 14 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 157                                                                                                              
"An  Act  relating  to  the  Alaska  Life  and  Health  Insurance                                                               
Guaranty Association; and providing for an effective date."                                                                     
                                                                                                                                
     - MOVED HB 157 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 119                                                                                                              
"An  Act relating  to the  dividends from  the Alaska  Industrial                                                               
Development  and Export  Authority;  relating to  the meaning  of                                                               
'mark-to-market   fair   value,'   'net  income,'   'project   or                                                               
development,' and  'unrestricted net income' for  purposes of the                                                               
Alaska   Industrial  Development   and   Export  Authority;   and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 119 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 144                                                                                                              
"An  Act  extending   the  termination  date  of   the  Board  of                                                               
Veterinary Examiners; and providing for an effective date."                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 86                                                                                                               
"An  Act  relating to  nonrenewal  of  occupational licenses  for                                                               
default on a student loan."                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 79                                                                                                               
"An Act  relating to workers' compensation;  repealing the second                                                               
injury  fund upon  satisfaction  of claims;  relating to  service                                                               
fees and  civil penalties  for the  workers' safety  programs and                                                               
the workers'  compensation program; relating to  the liability of                                                               
specified  officers and  members of  specified business  entities                                                               
for  payment   of  workers'   compensation  benefits   and  civil                                                               
penalties;  relating  to  civil penalties  for  underinsuring  or                                                               
failing to  insure or provide security  for workers' compensation                                                               
liability; relating  to preauthorization  and timely  payment for                                                               
medical  treatment and  services provided  to injured  employees;                                                               
relating  to incorporation  of  reference  materials in  workers'                                                               
compensation  regulations;  relating  to proceedings  before  the                                                               
Workers'  Compensation Board;  providing for  methods of  payment                                                               
for  workers' compensation  benefits;  relating  to the  workers'                                                               
compensation benefits  guaranty fund  authority to claim  a lien;                                                               
excluding  independent  contractors  from  workers'  compensation                                                               
coverage;  establishing  the  circumstances under  which  certain                                                               
nonemployee executive  corporate officers and members  of limited                                                               
liability  companies may  obtain workers'  compensation coverage;                                                               
relating to the  duties of injured employees to  report income or                                                               
work; relating  to misclassification  of employees  and deceptive                                                               
leasing;   defining   'employee';   relating  to   the   Workers'                                                               
Compensation Board's  approval of  attorney fees in  a settlement                                                               
agreement; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED CSHB 79(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 132                                                                                                              
"An  Act   relating  to  transportation  network   companies  and                                                               
transportation network company drivers."                                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HJR 14                                                                                                                  
SHORT TITLE: FCC: INCREASE RURAL HEALTH CARE BUDGET                                                                             
SPONSOR(s): REPRESENTATIVE(s) EDGMON                                                                                            
                                                                                                                                
03/06/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/17       (H)       L&C                                                                                                    
03/15/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/15/17       (H)       -- MEETING CANCELED --                                                                                 
03/17/17       (H)       L&C AT 3:15 PM CAPITOL 106                                                                             
03/17/17       (H)       Heard & Held                                                                                           
03/17/17       (H)       MINUTE(L&C)                                                                                            
03/20/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/17       (H)       Moved HJR 14 Out of Committee                                                                          
03/20/17       (H)       MINUTE(L&C)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 157                                                                                                                  
SHORT TITLE: LIFE & HEALTH INSURANCE GUARANTY ASSN.                                                                             
SPONSOR(s): LABOR & COMMERCE BY REQUEST                                                                                         
                                                                                                                                
03/06/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/17       (H)       L&C                                                                                                    
03/13/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/13/17       (H)       -- MEETING CANCELED --                                                                                 
03/15/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/15/17       (H)       -- MEETING CANCELED --                                                                                 
03/20/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/17       (H)       Heard & Held                                                                                           
03/20/17       (H)       MINUTE(L&C)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 119                                                                                                                  
SHORT TITLE: AIDEA: DIVIDEND TO STATE;INCOME;VALUATION                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/13/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/17       (H)       L&C, FIN                                                                                               
03/13/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/13/17       (H)       -- MEETING CANCELED --                                                                                 
03/20/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/17       (H)       Heard & Held                                                                                           
03/20/17       (H)       MINUTE(L&C)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 144                                                                                                                  
SHORT TITLE: EXTEND BOARD OF VETERINARY EXAMINERS                                                                               
SPONSOR(s): KITO                                                                                                                
                                                                                                                                
02/24/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/24/17       (H)       L&C, FIN                                                                                               
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 86                                                                                                                   
SHORT TITLE: STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                          
SPONSOR(s): CLAMAN                                                                                                              
                                                                                                                                
01/27/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/17       (H)       EDC, L&C                                                                                               
03/01/17       (H)       EDC RPT 7DP                                                                                            
03/01/17       (H)       DP: TALERICO, PARISH, KOPP, SPOHNHOLZ,                                                                 
                         JOHNSTON, FANSLER, DRUMMOND                                                                            
03/01/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/01/17       (H)       Moved HB 86 Out of Committee                                                                           
03/01/17       (H)       MINUTE(EDC)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 79                                                                                                                   
SHORT TITLE: OMNIBUS WORKERS' COMPENSATION                                                                                      
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/25/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/17       (H)       L&C, JUD, FIN                                                                                          
02/20/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/20/17       (H)       Heard & Held                                                                                           
02/20/17       (H)       MINUTE(L&C)                                                                                            
03/01/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/01/17       (H)       <Bill Hearing Canceled>                                                                                
03/06/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/06/17       (H)       Heard & Held                                                                                           
03/06/17       (H)       MINUTE(L&C)                                                                                            
03/08/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/08/17       (H)       <Bill Hearing Canceled>                                                                                
03/15/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/15/17       (H)       -- MEETING CANCELED --                                                                                 
03/17/17       (H)       L&C AT 3:15 PM CAPITOL 106                                                                             
03/17/17       (H)       <Bill Hearing Canceled>                                                                                
03/20/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/20/17       (H)       Heard & Held                                                                                           
03/20/17       (H)       MINUTE(L&C)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 132                                                                                                                  
SHORT TITLE: TRANSPORTATION NETWORK COMPANIES                                                                                   
SPONSOR(s): WOOL                                                                                                                
                                                                                                                                
02/15/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/17       (H)       TRA, L&C                                                                                               
02/23/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
02/23/17       (H)       <Bill Hearing Canceled>                                                                                
02/28/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
02/28/17       (H)       Heard & Held                                                                                           
02/28/17       (H)       MINUTE(TRA)                                                                                            
03/02/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
03/02/17       (H)       Heard & Held                                                                                           
03/02/17       (H)       MINUTE(TRA)                                                                                            
03/06/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/06/17       (H)       Scheduled but Not Heard                                                                                
03/07/17       (H)       TRA AT 1:30 PM BARNES 124                                                                              
03/07/17       (H)       Moved CSHB 132(TRA) Out of Committee                                                                   
03/07/17       (H)       MINUTE(TRA)                                                                                            
03/08/17       (H)       TRA RPT CS(TRA) 1DP 4NR 2AM                                                                            
03/08/17       (H)       DP: WOOL                                                                                               
03/08/17       (H)       NR: SULLIVAN-LEONARD, NEUMAN, DRUMMOND,                                                                
                         STUTES                                                                                                 
03/08/17       (H)       AM: CLAMAN, KOPP                                                                                       
03/10/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/10/17       (H)       Heard & Held                                                                                           
03/10/17       (H)       MINUTE(L&C)                                                                                            
03/17/17       (H)       L&C AT 3:15 PM CAPITOL 106                                                                             
03/17/17       (H)       Heard & Held                                                                                           
03/17/17       (H)       MINUTE(L&C)                                                                                            
03/18/17       (H)       L&C AT 12:30 AM CAPITOL 106                                                                            
03/18/17       (H)       -- Continued from 3/17/17 --                                                                           
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CHRYSTAL KOENENMAN, Staff                                                                                                       
Representative Sam Kito, III                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the hearing of HB 144, presented the                                                              
legislation on behalf of Representative Kito, prime sponsor.                                                                    
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Legislative Audit & Budget                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  During the  hearing of HB 144, discussed the                                                             
sunset audit.                                                                                                                   
                                                                                                                                
DOCTOR RACHAEL BERNGARTT, Veterinarian                                                                                          
Alaska Board of Veterinary Examiners                                                                                            
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During  the hearing  of  HB 144,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
LEA McKENZIE                                                                                                                    
Sutton, Alaska                                                                                                                  
POSITION STATEMENT:   During the hearing of HB 144,  spoke to the                                                             
improvements necessary as to veterinary care in rural Alaska.                                                                   
                                                                                                                                
DOCTOR JIM HAGEE, Member                                                                                                        
Board of Veterinary Examiners                                                                                                   
Chugiak, Alaska                                                                                                                 
POSITION STATEMENT:  During the  hearing of HB 144, explained the                                                             
activities of the Board of Veterinary Examiners.                                                                                
                                                                                                                                
REPRESENTATIVE MATT CLAMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During the hearing of HB  86, presented the                                                             
legislation as prime sponsor.                                                                                                   
                                                                                                                                
OWEN PHILLIPS, Staff                                                                                                            
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During the hearing of HB  86, discussed the                                                             
legislation.                                                                                                                    
                                                                                                                                
MARIE MARX, Director                                                                                                            
Division of Workers' Compensation                                                                                               
Department of Labor & Workforce Development                                                                                     
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During the  hearing of  CSHB 79,  answered                                                             
questions.                                                                                                                      
                                                                                                                                
AVES THOMPSON, Executive Director                                                                                               
Alaska Trucking Association (ATA)                                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   During  the hearing  of  CSHB 79,  offered                                                             
testimony.                                                                                                                      
                                                                                                                                
LAURA STIDOLPH, Staff                                                                                                           
Representative Adam Wool                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   During the  hearing of CSHB  132, discussed                                                             
the changes in Version R.                                                                                                       
                                                                                                                                
JOHN BINDER, Deputy Commissioner of Aviation                                                                                    
Commissioner's Office                                                                                                           
Department of Transportation & Public Facilities                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   During  the hearing  of CSHB  132, answered                                                             
questions.                                                                                                                      
                                                                                                                                
MITCHELL MATTHEWS, Representative                                                                                               
Uber Technologies                                                                                                               
Seattle, Washington                                                                                                             
POSITION STATEMENT:   During  the hearing of  HB 132,  answered a                                                             
question.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:19:32 PM                                                                                                                    
                                                                                                                                
CHAIR  SAM KITO  called  the House  Labor  and Commerce  Standing                                                             
Committee meeting  to order at  3:19 p.m.   Representatives Kito,                                                               
Josephson, Wool, Birch, Knopp,  Sullivan-Leonard, and Stutes were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
         HJR 14-FCC: INCREASE RURAL HEALTH CARE BUDGET                                                                      
                                                                                                                                
3:21:46 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  first order of business  would be                                                               
HOUSE JOINT RESOLUTION NO. 14,  Urging the Federal Communications                                                               
Commission  to  increase the  Rural  Health  Care Program  budget                                                               
sufficiently to adjust for inflation,  advances in technology and                                                               
the  services   available  with  increased  broadband,   and  the                                                               
increase in  demand for broadband-based services  and provide for                                                               
any unused funds  to be carried forward to  future funding years,                                                               
ensuring that  rural communities  in the  state continue  to have                                                               
access to affordable broadband telehealth services.                                                                             
                                                                                                                                
CHAIR KITO advised that                                                                                                         
the  House Labor  and  Commerce Standing  Committee  is the  only                                                               
committee of referral  for HJR 14, and  that legislation requires                                                               
a fiscal note.                                                                                                                  
                                                                                                                                
3:22:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to rescind  the committee's  action on                                                               
March  20, 2017,  in moving  HJR 14  out of  the House  Labor and                                                               
Commerce Standing  Committee.  There  being no objection,  HJR 14                                                               
was back before the House Labor and Commerce Standing Committee.                                                                
                                                                                                                                
CHAIR KITO  advised he  will attach the  zero-fiscal note  to HJR                                                               
14.                                                                                                                             
                                                                                                                                
CHAIR KITO,  in response to Representative  Birch, explained that                                                               
according  to  statute, every  piece  of  legislation that  moves                                                               
through a body is required to have  a fiscal note whether it is a                                                               
zero-fiscal note,  or not.  The  fiscal note was not  prepared at                                                               
the time of moving HJR 14  from committee, and he will now attach                                                               
the  zero-fiscal note  to the  resolution,  thereby, meeting  the                                                               
statutory requirement.  No other change is being made, he said.                                                                 
                                                                                                                                
3:23:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WOOL   moved  to  report  HJR   14,  Version  30-                                                               
LS0422\[J] out  of committee with individual  recommendations and                                                               
the accompanying  zero fiscal  note.   There being  no objection,                                                               
HJR  14  moved  from  the   House  Labor  and  Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:23:42 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:23 p.m. to 3:26 p.m.                                                                       
                                                                                                                                
         HB 157-LIFE & HEALTH INSURANCE GUARANTY ASSN.                                                                      
                                                                                                                                
3:26:37 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE  BILL NO.  157, "An  Act relating  to the  Alaska Life  and                                                               
Health  Insurance  Guaranty  Association; and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR KITO,  after ascertaining  no one wished  to testify  on HB                                                               
157, closed public testimony.                                                                                                   
                                                                                                                                
3:27:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to report HB  157, Version 30-LS0410\J                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal notes.   There  being no  objection, HB  157                                                               
moved from the House Labor and Commerce Standing Committee.                                                                     
                                                                                                                                
3:28:03 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:28 p.m. to 3:31 p.m.                                                                       
                                                                                                                                
        HB 119-AIDEA:DIVIDEND TO STATE;INCOME;VALUATION                                                                     
                                                                                                                                
3:31:53 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL  NO. 119, "An Act  relating to the dividends  from the                                                               
Alaska Industrial  Development and Export Authority;  relating to                                                               
the  meaning  of  'mark-to-market   fair  value,'  'net  income,'                                                               
'project  or  development,'  and 'unrestricted  net  income'  for                                                               
purposes  of   the  Alaska  Industrial  Development   and  Export                                                               
Authority; and providing for an effective date."                                                                                
                                                                                                                                
CHAIR KITO, after  ascertaining no one wished  to testify, closed                                                               
public testimony on HB 119.                                                                                                     
                                                                                                                                
3:32:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL  moved to report HB  119, Version 30-GH1677\A                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying  fiscal notes.   There  being no  objection, HB  119                                                               
moved from the House Labor and Commerce Standing Committee.                                                                     
                                                                                                                                
3:33:02 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:33 p.m. to 3:35 p.m.                                                                       
                                                                                                                                
          HB 144-EXTEND BOARD OF VETERINARY EXAMINERS                                                                       
                                                                                                                                
3:35:43 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL  NO. 144,  "An Act extending  the termination  date of                                                               
the  Board   of  Veterinary  Examiners;  and   providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
CHAIR KITO  explained that HB  144 is  one of three  sunset bills                                                               
this year, and opined there will be 11 sunset bills next year.                                                                  
                                                                                                                                
3:36:33 PM                                                                                                                    
                                                                                                                                
CHRYSTAL KOENENMAN,  Staff, Representative Sam Kito,  III, Alaska                                                               
State  Legislature, advised  that  HB 144  extends  the Board  of                                                               
Veterinary  Examiners  until June  30,  2025.   The  Division  of                                                               
Legislative  Audit concurred  and  recommends  a full  eight-year                                                               
sunset and  believes the  board is operating  in the  best public                                                               
interest of the state, and  the health, safety, and well-being of                                                               
all  of  the  animals  and  livestock in  the  State  of  Alaska.                                                               
Concern was  expressed regarding  the board  and its  actions for                                                               
rural Alaska and  the animals in rural Alaska.   In 2010, private                                                               
citizens brought  these concerns  to the board,  and in  2012 and                                                               
2013,  the  board  took  appropriate   regulatory  action.    She                                                               
explained that it  increased the scope of  the "courtesy license"                                                               
allowing courtesy licensees  to apply to spay  and neuter clinics                                                               
in rural  Alaska.  The  regulations allow  veterinary technicians                                                               
to travel  to rural Alaska  and work remotely  with veterinarians                                                               
stationed  on the  road-system  in  an effort  to  help ease  the                                                               
burden in rural Alaska, and follow  the desires of pet owners and                                                               
prevent pets from procreating.                                                                                                  
                                                                                                                                
3:38:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH asked whether  other states or jurisdictions                                                               
operate without some sort of oversight of veterinarians.                                                                        
                                                                                                                                
MS. KOENEMAN answered, "No."                                                                                                    
                                                                                                                                
3:39:22 PM                                                                                                                    
                                                                                                                                
KRIS CURTIS, Legislative Auditor,  Division of Legislative Audit,                                                               
Alaska  State Legislature,  advised  that  Legislative Audit  did                                                               
conduct a  sunset review  of the  Board of  Veterinary Examiners,                                                               
dated March of 2016.  She  explained that the purpose of a sunset                                                               
audit is  to determine  whether a board  is serving  the public's                                                               
interest  and whether  it should  be extended.   The  Division of                                                               
Legislative  Audit  did  find  that this  board  is  serving  the                                                               
public's  interest  by  appropriately  licensing  and  regulating                                                               
veterinarians  and veterinary  technicians,  she  remarked.   The                                                               
division recommends an eight-year  extension which is the maximum                                                               
allowed in statutory,  with the one recommendation  found on page                                                               
7  of the  audit.   The division  noted that  the board's  annual                                                               
reports submitted during the audit  period included the status of                                                               
prior  sunset  audit  findings of  the  dental  examiners  sunset                                                               
findings,  she offered.    Therefore, she  pointed  out that  the                                                               
division  recommended the  board chair  review the  annual report                                                               
before submission,  and described this as  a minimal housekeeping                                                               
type of  recommendation and it  did not  impact the sunset.   She                                                               
pointed  to page  5  of the  audit  report and  advised  it is  a                                                               
listing  of  the licenses  and  the  license  counts, and  as  of                                                               
February 2016,  there were 670  total licenses representing  a 57                                                               
percent  increase since  the  last  sunset audit  of  2008.   She                                                               
turned  to page  6 of  the audit  and said  it is  a schedule  of                                                               
revenues and  expenditure, at  the end  of FY13  the board  had a                                                               
surplus of  approximately $108,000  and the fees  were decreased.                                                               
At the  end of February 2016,  it was operating in  a deficit and                                                               
at that  point, the management  of the Division  of Corporations,                                                               
Business, and  Professional Licensing  did say it  would reassess                                                               
fees at the end of FY16.                                                                                                        
                                                                                                                                
3:41:32 PM                                                                                                                    
                                                                                                                                
CHAIR KITO noted  that of the boards in committee,  there are two                                                               
running for a full eight-years,  with 10-11 boards coming up next                                                               
year.  He asked Ms. Curtis  how the Division of Legislative Audit                                                               
will try  to make  sure the  audits do  not all  hit in  a single                                                               
year,  or whether  there was  a  plan to  be sure  they would  be                                                               
spread out more equitably from year-to-year.                                                                                    
                                                                                                                                
MS. CURTIS responded that the  Division of Legislative Audit will                                                               
conduct the  audits as it usually  does, and it will  look at the                                                               
findings.   In the event  the division is waffling  between five,                                                               
six, or  seven years, it will  look at its workload  to determine                                                               
how  it all  falls  out.   She  described  that  the Division  of                                                               
Legislative  Audit's recommendation  is simply  a recommendation.                                                               
She stated  that sometimes  the department  may recommend  a six-                                                               
year   extension,  and   someone  will   propose  a   three-years                                                               
extension,  or  a  controversial  issue   will  pop  up  and  the                                                               
organization will only have a  two-year extension.  She explained                                                               
that even though  the Division of Legislative Audit  may plan for                                                               
a smooth  workload over the  years, sometimes that just  does not                                                               
happen.                                                                                                                         
                                                                                                                                
3:42:56 PM                                                                                                                    
                                                                                                                                
DOCTOR   RACHAEL  BERNGARTT,   Veterinarian,   Alaska  Board   of                                                               
Veterinary Examiners, advised she has  been in Alaska since 2002,                                                               
and served on the board over one-year.                                                                                          
                                                                                                                                
REPRESENTATIVE KNOPP  noted an  email petition  from a  number of                                                               
unhappy  constituents  who  were  not happy  with  the  Board  of                                                               
Veterinary Examiners.  He acknowledged  that he could barely read                                                               
the  email  and only  saw  "a  bunch  of signatures,"  and  asked                                                               
whether she was aware of the issue.                                                                                             
                                                                                                                                
3:44:05 PM                                                                                                                    
                                                                                                                                
MS. KOENEMAN responded  that the pushback she referred  to in her                                                               
opening statement was with regard  to those 318 signatures of the                                                               
petition.   The  concern  was about  veterinarian  care in  rural                                                               
Alaska and the spay and neuter  clinics, and she advised that the                                                               
board  did take  appropriate steps  in 2012  and 2013  addressing                                                               
those issues.                                                                                                                   
                                                                                                                                
CHAIR KITO opened public testimony on HB 144.                                                                                   
                                                                                                                                
3:45:15 PM                                                                                                                    
                                                                                                                                
LEA  McKENZIE said  she was  testifying  on her  own behalf,  and                                                               
advised that the  people signing the 2010  petition believe there                                                               
has not been any improvement  in veterinary care in rural Alaska,                                                               
and asked  the committee to not  extend the board for  eight more                                                               
years  due to  the pet  care crisis  in rural  Alaska.   Prior to                                                               
2010, a veterinarian offered relief  to the people and animals in                                                               
the area  and, she  advised, veterinarians  are still  willing to                                                               
come  to  Alaska but  not  under  the conditions  that  currently                                                               
exist.   She  stated  that  "Alaska has  a  reputation for  being                                                               
unfriendly to,  and even  hostile, toward  those vets  that would                                                               
like come  and do their non-profit  work in rural Alaska."   This                                                               
service would  not impact the state's  budget as it is  footed by                                                               
non-profits existing outside  of Alaska.  Until  Alaska becomes a                                                               
friendlier environment for  these vets to help  rural Alaska, the                                                               
crisis affecting  animals and people  in these remote  areas will                                                               
continue.                                                                                                                       
                                                                                                                                
3:48:26 PM                                                                                                                    
                                                                                                                                
DOCTOR JIM HAGEE, Member, Board  of Veterinary Examiners, advised                                                               
that  he is  a practicing  veterinarian  in Chugach,  has been  a                                                               
resident of Alaska since 1998,  has practiced veterinary medicine                                                               
over 45-years, and  has been a member of the  Board of Veterinary                                                               
Examiners  for the  last 5-years.   He  explained that  the board                                                               
does deal with  rural Alaska, and for 6-years he  traveled to the                                                               
City of Dillingham practicing veterinary  care every other month.                                                               
Rural Alaska does  need veterinary care, he  acknowledged, yet on                                                               
the other hand it must  be remembered that veterinary medicine as                                                               
an  organized  discipline is  a  for-profit  entity.   Non-profit                                                               
groups  have  been instrumental  in  bringing  low-cost spay  and                                                               
neuters to the  villages; however, the continuity of  care is not                                                               
there.   In  order for  veterinarians, who  operate a  for-profit                                                               
business, to  go to villages  to provide continual care,  a great                                                               
economic  burden is  placed on  the veterinarian.   He  described                                                               
that going into  the village has to be almost  like a donation as                                                               
a  way  of  giving  back.    So far,  he  advised,  there  is  no                                                               
organization that  will provide  continued veterinary  care, only                                                               
sporadic spay and neuter care.                                                                                                  
                                                                                                                                
3:50:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH thanked Dr. Hagee  for his service, years of                                                               
volunteering  in  the Dillingham  area,  and  he appreciates  Dr.                                                               
Hagee's service on the board.                                                                                                   
                                                                                                                                
REPRESENTATIVE  STUTES  commented  that living  in  rural  Alaska                                                               
where  there is  one veterinarian  clinic most  of the  time, she                                                               
said she fails to see  how this board's unfriendliness plays into                                                               
this subject, and that she was confused by the testimony.                                                                       
                                                                                                                                
CHAIR  KITO   advised  that   the  committee   may  be   able  to                                                               
independently look  at what is  going on with veterinary  care in                                                               
rural  Alaska,  and  determine whether  there  are  other  things                                                               
legislators may be able to help facilitate from "our role here."                                                                
                                                                                                                                
REPRESENTATIVE  STUTES  related  that   as  the  owner  of  three                                                               
animals, that would be a beautiful thing.                                                                                       
                                                                                                                                
CHAIR KITO advised public testimony would remain open on HB 144.                                                                
                                                                                                                                
[HB 144 was held over.]                                                                                                         
                                                                                                                                
        HB  86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                    
                                                                                                                                
3:52:01 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE  BILL   NO.  86,   "An  Act   relating  to   nonrenewal  of                                                               
occupational licenses for default on a student loan."                                                                           
                                                                                                                                
3:52:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MATT CLAMAN,  Alaska State  Legislature, reminded                                                               
the  committee that  Thomas Jefferson  said, "Government  is best                                                               
which governs least,"  and the goal in bringing HB  86 forward is                                                               
to  revoke the  Alaska Commission  on Post-Secondary  Education's                                                               
authority  to  use non-renewal  of  occupational  licenses as  an                                                               
incentive to  ensure repayment of  student loans in  the instance                                                               
of a default.   He described that the  consequences of defaulting                                                               
are already severe,  and as the commission has  not exercised its                                                               
authority since 2010, it makes sense to repeal these statutes.                                                                  
                                                                                                                                
3:53:21 PM                                                                                                                    
                                                                                                                                
OWEN PHILLIPS,  Staff, Representative  Matt Claman,  Alaska State                                                               
Legislature,  reiterated  that  HB 86  repeals  current  statutes                                                               
allowing the Alaska Commission  on Postsecondary Education (ACPE)                                                               
to threaten non-renewal of  occupational licenses for individuals                                                               
who  have  defaulted  on  their  student  loans.  Repealing  this                                                               
authority will allow licensed individuals  to continue their work                                                               
and earn  an income  and pay back  their defaulted  loans without                                                               
fear  of  losing  their  license.     He  noted  that  there  are                                                               
difficulties one faces if defaulting  on their student loans such                                                               
as,  late  fees, court  costs,  liens  on property,  and  adverse                                                               
reports to  consumer reporting agencies.   Under current statute,                                                               
the  Alaska  Commission  on Postsecondary  Education  (ACPE)  has                                                               
authority to provide  notice to the licensing  authority for non-                                                               
renewal of a  license.  Many of the laws  giving authority to the                                                               
ACPE were  passed in  the 1990s  and 2000s  when student  aid was                                                               
often  provided by  states, currently,  most  loans are  provided                                                               
federally.   Last year, he  advised, the State of  Montana became                                                               
the first  state to repeal  similar statutes and 21  states still                                                               
have similar  statutes.   This bill allows  Alaska to  follow the                                                               
example of the  State of Montana and reduce that  number to 20 in                                                               
order  to   protect  the  state's  nurses,   pharmacists,  social                                                               
workers, teachers, correctional officers, and many others.                                                                      
                                                                                                                                
3:54:47 PM                                                                                                                    
                                                                                                                                
MR. PHILLIPS offered an analysis of the bill as follows:                                                                        
                                                                                                                                
     Section 1 deletes language that is no longer necessary                                                                     
     after the repeals mentioned in Sec. 2.                                                                                     
                                                                                                                                
     Sec.  2 repeals  AS  14.43.145(a)(4),  which gives  ...                                                                    
     authority  to  the  commission  to  provide  notice  of                                                                    
     default  to a  licensing  entity for  non-renewal of  a                                                                    
     license.  Repeals AS 14.43.148,  which indicates that a                                                                    
     licensing entity may  not renew a license  if they have                                                                    
     received notice  from the commission that  the licensee                                                                    
     has defaulted on  a loan issued by the  commission.  AS                                                                    
     21.27.390(d), which references temporary licenses.                                                                         
                                                                                                                                
3:56:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH remarked  that "This is kind  of our version                                                               
of -- of  they're trying to collect on debt,"  and noted that the                                                               
debt collection appeared  reasonable.  He asked  the magnitude of                                                               
the  debt,  and  the  number   of  recipients  impacted  by  this                                                               
legislation.                                                                                                                    
                                                                                                                                
MR.  PHILLIPS opined  that  since 2010,  the  commission has  not                                                               
acted upon the section forcing the default.                                                                                     
                                                                                                                                
REPRESENTATIVE BIRCH  remarked that  in the event  someone misses                                                               
their car payments, the "repo man"  tows away the car.  The State                                                               
of  Alaska  presumably has  a  fairly  significant liability  out                                                               
there, vis-a-vis  many educated  folks.    Granted  the authority                                                               
has  not been  exercised,  he  remarked, but  it  is  a means  of                                                               
enforcing collection  at some level.   He  asked the size  of the                                                               
liability,  how   rapidly  that   liability  is  paid   off,  the                                                               
timeframe, and how many people it impacts.                                                                                      
                                                                                                                                
REPRESENTATIVE  CLAMAN responded  that  the  Alaska Student  Loan                                                               
Corporation  has multiple  means  to encourage  payment and  this                                                               
method  has  rarely been  used  because  there are  fewer  Alaska                                                               
student  loans due  to more  federal student  loans.   He related                                                               
that taking  away someone's nursing license,  for example, causes                                                               
that person  to work at  a lower wage  and makes the  person more                                                               
likely to default.                                                                                                              
                                                                                                                                
4:00:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  related that  he was not  disputing whether                                                               
HB  86  might be  a  good  idea,  his  question was  whether  the                                                               
necessary research had been performed  in order to understand the                                                               
general  magnitude of  the liability,  how many  people would  be                                                               
impacted, and the timeframe in which the loans would be repaid.                                                                 
                                                                                                                                
MR.  PHILLIPS opined  that  prior to  2010,  this non-renewal  of                                                               
licensing  authority  was  used  155  times,  and  of  those  155                                                               
individuals,  49 did  not pay  any  amount, left  the state,  and                                                               
assumed to  have found  a license  elsewhere.   He said  he would                                                               
reach  out  to  Stephanie   Butler,  Executive  Director,  Alaska                                                               
Commission  on  Postsecondary  Education (ACPE)  in  response  to                                                               
Representative Birch's questions.                                                                                               
                                                                                                                                
REPRESENTATIVE BIRCH  advised he was looking  for numbers roughly                                                               
to the nearest $500,000.                                                                                                        
                                                                                                                                
4:02:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  asked Representative  Claman, "Do  you just                                                               
read the  books until  you find  a statute  that doesn't  fit any                                                               
longer?"   He asked  what brought this  issue forward  because it                                                               
had been unused for eight years.                                                                                                
                                                                                                                                
REPRESENTATIVE CLAMAN credited  one idea to a  prior staff member                                                               
currently  attending law  school, and  answered that  someone had                                                               
approached  the  staffer  with  this issue.    The  staff  member                                                               
performed  research and  realized  the non-renewal  authorization                                                               
was  rarely  used  and  brought  it  to  Representative  Claman's                                                               
attention.                                                                                                                      
                                                                                                                                
CHAIR KITO  opened public testimony.   After ascertaining  no one                                                               
wished to testify, closed public testimony on HB 86.                                                                            
                                                                                                                                
[HB 86 was held over.]                                                                                                          
                                                                                                                                
              HB  79-OMNIBUS WORKERS' COMPENSATION                                                                          
                                                                                                                                
4:04:46 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that  the next order  of business  would be                                                               
HOUSE BILL  NO. 79,  "An Act  relating to  workers' compensation;                                                               
repealing  the second  injury fund  upon satisfaction  of claims;                                                               
relating to  service fees  and civil  penalties for  the workers'                                                               
safety programs  and the workers' compensation  program; relating                                                               
to the liability  of specified officers and  members of specified                                                               
business entities  for payment of workers'  compensation benefits                                                               
and   civil   penalties;   relating  to   civil   penalties   for                                                               
underinsuring  or  failing  to insure  or  provide  security  for                                                               
workers'  compensation  liability; relating  to  preauthorization                                                               
and timely  payment for medical  treatment and  services provided                                                               
to  injured employees;  relating  to  incorporation of  reference                                                               
materials  in  workers'  compensation  regulations;  relating  to                                                               
proceedings  before the  Workers'  Compensation Board;  providing                                                               
for  methods  of  payment  for  workers'  compensation  benefits;                                                               
relating  to the  workers'  compensation  benefits guaranty  fund                                                               
authority  to claim  a  lien;  excluding independent  contractors                                                               
from   workers'    compensation   coverage;    establishing   the                                                               
circumstances   under   which   certain   nonemployee   executive                                                               
corporate  officers and  members of  limited liability  companies                                                               
may  obtain  workers'  compensation  coverage;  relating  to  the                                                               
duties of  injured employees to  report income or  work; relating                                                               
to   misclassification  of   employees  and   deceptive  leasing;                                                               
defining  'employee';  relating   to  the  Workers'  Compensation                                                               
Board's approval of attorney fees  in a settlement agreement; and                                                               
providing  for an  effective date."   [Before  the committee  was                                                               
CSHB 79, Version 30-GH1789\O.]                                                                                                  
                                                                                                                                
4:05:19 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:05 p.m. to 4:06 p.m.                                                                       
                                                                                                                                
4:06:07 PM                                                                                                                    
                                                                                                                                
MARIE   MARX,  Director,   Division   of  Workers   Compensation,                                                               
Department  of  Labor  &  Workforce  Development,  said  she  was                                                               
available for questions.                                                                                                        
                                                                                                                                
4:06:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   BIRCH  asked,   "whether  we've   achieved  some                                                               
recognition that it's  gonna be necessary to  modify that without                                                               
-- so we don't  entangle a bunch of folks that  we would not have                                                               
otherwise intended to entangle in this bill?"                                                                                   
                                                                                                                                
MS. MARX  answered that  the division  has continuously  met with                                                               
stakeholder  groups  over  the  past two  months  to  define  the                                                               
definition in  a manner allowing true  independent contractors to                                                               
operate, while  at the same  time ensuring those  individuals who                                                               
are employees are covered under  the Alaska Workers' Compensation                                                               
Act,  and the  department and  stakeholders are  comfortable with                                                               
the  current language.   Recently,  she said,  a request  was put                                                               
forth  to the  department  "that  to be  frank"  were issues  not                                                               
previously raised  with the department.   The  department advised                                                               
the stakeholder  groups that the department  will always continue                                                               
discussions as part  of the process, and noted  that the majority                                                               
of the great work  had been completed.  This bill  is a good bill                                                               
for  employers,  injured  workers,  increased  efficiencies,  and                                                               
offers  more  than  the independent  contractor  definition,  she                                                               
described.   To  the extent  new issues  were recently  raised by                                                               
stakeholder  groups, the  department  advised it  is, of  course,                                                               
open to discussions, she explained.                                                                                             
                                                                                                                                
REPRESENTATIVE BIRCH advised  that he wanted to  be certain those                                                               
stakeholder groups  were comfortable  with that  provision before                                                               
he supported moving the bill out of this committee.                                                                             
                                                                                                                                
MS.  MARX reiterated  her understanding  that stakeholder  groups                                                               
were comfortable  [with the  language], at  least one  week prior                                                               
[to this hearing].                                                                                                              
                                                                                                                                
4:09:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP related  there may be "a whole  new group of                                                               
stakeholders  out there  this  week."   He  advised  he does  not                                                               
particularly care  for Secs. 8 and  9, and asked why  "we want to                                                               
take them away from the board  and leave them with the division,"                                                               
and why this is a better process.                                                                                               
                                                                                                                                
MS.  MARX  offered  her  belief  that  Representative  Knopp  was                                                               
referring  to the  division's  investigations  where an  employer                                                               
does not  have insurance.   Currently, she advised,  the division                                                               
investigates,  and  if  it  finds  on  a  substantial  basis  the                                                               
employer should have insurance but  does not, it files a petition                                                               
before the  Alaska Workers' Compensation  Board.  The  board then                                                               
holds a  formal due process hearing  and issues a decision  as to                                                               
whether or  not the employer  should have had insurance,  and the                                                               
penalty  amount.   The division  has found  that those  penalties                                                               
assessed by the board are  astronomically high, and the penalties                                                               
have not  withstood review on  appeal.  Recently,  she explained,                                                               
the department  was ordered  to pay a  huge attorneys'  fees bill                                                               
when an  employer appealed the  board's assessment of  a penalty,                                                               
and  on appeal,  the department  was  ordered to  pay some  money                                                               
because the employer did not  have insurance.  Except, the amount                                                               
was dropped  down for  various reasons,  the employer  was deemed                                                               
the   prevailing  party,   and   the   department  was   assessed                                                               
approximately $50,000 in  attorneys' fees.  She  pointed out that                                                               
the  process is  long  with  intense litigation,  and  it is  not                                                               
efficient; and CSHB  79 would change it to a  process wherein the                                                               
department's investigators  will investigate  as they  always do,                                                               
and assess a  penalty based upon statute and regulation.   In the                                                               
event an  employer disputes  the assessment,  they can  request a                                                               
hearing before the  board, but the penalties will  be reduced, in                                                               
most cases, under the new  calculation.  The division anticipates                                                               
that  fewer  assessments  will  go  to  board  hearings,  thereby                                                               
reducing attorneys' fee and litigation costs, she noted.                                                                        
                                                                                                                                
4:11:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP commented  that his  dislike for  Secs. 8-9                                                               
stems   from  prior   conversations   regarding  OCC   licensing,                                                               
investigative costs, and  spreading those costs out.   He related                                                               
his belief  that they are better  managed by the boards  that can                                                               
determine the depth of an  investigation, and he would not second                                                               
guess  Ms. Marx  if  she believes  this is  more  efficient.   He                                                               
referred to Ms.  Marx statement that the  department would assess                                                               
fees within  the statute.   He asked  whether the board  does not                                                               
assess fees  currently, whether there  are statutes  defining the                                                               
limitations of  the fees  and exceeding them,  and why  there are                                                               
"astronomically high assessments."                                                                                              
                                                                                                                                
MS. MARX responded that currently,  the maximum penalty is $1,000                                                               
per employee, per workday, which  leads to high penalties because                                                               
an employer  can have  many employees and  be uninsured  for many                                                               
days.   Governor  Bill  Walker's bill  would  change the  penalty                                                               
calculation and  instead would tie  it to  the risk of  the work,                                                               
size  of the  employer, the  employer's financial  gain from  not                                                               
having  workers' compensation  insurance,  and set  a maximum  of                                                               
three times  the premium  the employer would  have paid  had they                                                               
had insurance.                                                                                                                  
                                                                                                                                
4:13:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP commented  that if  the issue  is excessive                                                               
fees,  why not  just  leave it  with  the board  if  the new  fee                                                               
schedule is put in place.                                                                                                       
                                                                                                                                
MS. MARX  likened the fines  to a  traffic ticket: she  said that                                                               
when  an officer  issues a  citation, there  is a  simple process                                                               
wherein the person can agree with  the citation and pay it, or go                                                               
to court.  For efficiency  purposes, the division's investigators                                                               
investigate  [the case],  which  is a  current  process, and  the                                                               
investigators  petition  the board  with  the  amount.   In  most                                                               
cases,  she explained,  the employer  can just  pay the  assessed                                                               
penalty  if they  prefer,  or  in the  event  of  an appeal,  the                                                               
employer  can  go  to  a  formal  board  hearing  which  involves                                                               
litigation  and attorneys'  fees.   She reiterated  that CSHB  79                                                               
would just simplify and make the process more efficient.                                                                        
                                                                                                                                
4:15:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  moved  to adopt  Conceptual  Amendment  1,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
     Eliminate Section 28(11) beginning on page 15 line 29                                                                      
     through page 17 line 13.                                                                                                   
                                                                                                                                
       (For definition refer to AS 23.20.525 - Employment                                                                       
     Defined)                                                                                                                   
                                                                                                                                
CHAIR KITO objected for purposes of discussion.                                                                                 
                                                                                                                                
4:15:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP explained  that he has heard  concern from a                                                               
number of industries around  defining independent contractors and                                                               
the  unintentional consequences  of  this legislation.   He  said                                                               
there  are   "a  whole  bunch  of   definitions"  of  independent                                                               
contractor found in  many state statutes and this  bill would add                                                               
another definition.                                                                                                             
                                                                                                                                
                                                                                                                                
He referred  to Amendment  1 and noted  that the  amendment would                                                               
use  the definition  of independent  contractor in  AS 23.20.525,                                                               
the Alaska  Employment Security Act  and not under  AS 23.30.230.                                                               
He said  the conceptual amendment  would give the  legislature an                                                               
opportunity to  address the independent contractor  definition in                                                               
a separate  bill consistent with  unemployment insurance  and the                                                               
workers'  compensation  provision because  he  does  not want  to                                                               
start creating definitions in every statute in the book.                                                                        
                                                                                                                                
MS.  MARX  asked  whether Representative  Knopp  had  a  specific                                                               
question for her, or was asking for her thoughts.                                                                               
                                                                                                                                
REPRESENTATIVE  KNOPP   stated  that  the  issue   had  not  been                                                               
addressed well  enough and he was  not willing to move  this bill                                                               
out of  the committee, "not  that I'd be  on the winning  side of                                                               
that argument," until this issue  is resolved.  More importantly,                                                               
he  said, is  addressing  it through  the workers'  compensation,                                                               
unemployment  insurance  and  fair   labor  standards,  which  is                                                               
everything  that  defines   it  now.    He   reiterated  that  if                                                               
necessary, a  bill could  be brought  forward that  would discuss                                                               
independent  contractors under  the current  statute "that  it is                                                               
defined in."                                                                                                                    
                                                                                                                                
CHAIR KITO suggested  that the question to Ms. Marx  could be for                                                               
her  to  explain  the  process   in  developing  the  independent                                                               
contractor language and, what if  anything, "you are aware of" in                                                               
relation  to  the definition  for  independent  contractor in  AS                                                               
23.20.525.                                                                                                                      
                                                                                                                                
4:18:51 PM                                                                                                                    
                                                                                                                                
MS.  MARX  commented  that  there are  two  important  issues  to                                                               
consider  with the  definition of  independent  contractor.   The                                                               
first  is that  it  is needed,  misclassification  is an  ongoing                                                               
nationwide issue especially  over the last 1-2  years that states                                                               
are addressing.  This state  is not unique, and misclassification                                                               
needs to be addressed.  The  second issue is that this discussion                                                               
began approximately  one year ago  when the  misclassification of                                                               
independent  contractor  was  raised   in  a  bill  sponsored  by                                                               
Representative  Gabrielle LeDoux,  which  did  not move  forward.                                                               
The definition  of independent  contractor has  been a  long time                                                               
coming   and,   she   advised,   the   definition   proposed   in                                                               
Representative   LeDoux's   bill    was   different   than   this                                                               
legislation.   The  department took  the comments  it then  began                                                               
receiving,  especially  from   the  Alaska  Trucking  Association                                                               
(ATA),  about issues  that  may arise  from  that definition  and                                                               
incorporated  it  into  HB  79.    The  language  arose  from  an                                                               
evaluation  of not  only the  Division of  Workers' Compensation,                                                               
but many  stakeholder groups,  and different  agencies in  all 50                                                               
states involved  in misclassification issues.   She remarked that                                                               
the division  has read the  laws of all  50 states over  and over                                                               
again, as  to specific  provisions, weighing  the benefit  of one                                                               
language use  and the wording  versus another, and  initially put                                                               
together  a good  starting point  when the  bill was  introduced.                                                               
Since  that time,  she offered,  the division  met with  numerous                                                               
stakeholder groups,  including ATA, which have  expressed support                                                               
in principle  for the ideas  here because most employers  want to                                                               
operate  on  a  level  playing field  with  other  employers  and                                                               
support an  independent contractor  definition.  She  agreed that                                                               
concerns were  expressed, and over  the last two months  they all                                                               
have worked hard  to get to a  version that is good.   That said,                                                               
she  acknowledged that  some stakeholder  groups still  have some                                                               
issues to  be addressed and the  division is always open  to that                                                               
process.                                                                                                                        
                                                                                                                                
4:21:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  offered that the groups  just mentioned are                                                               
in the  room because they are  still not good with  the language,                                                               
and  he does  not see  the need  to draft  another definition  of                                                               
independent  contractor  when  the definition  under  "the  other                                                               
title" is where  it needs to be and where  it exists.  Conceptual                                                               
Amendment  1 requests  more time  to  work on  the definition  of                                                               
independent  contractor,   and  in  the  event   this  conceptual                                                               
amendment  fails,  Conceptual  Amendment  2 is  larger  and  more                                                               
detailed, he said.                                                                                                              
                                                                                                                                
4:23:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  agreed with  Representative Knopp  and said                                                               
he  has  a stack  of  letters  from  the National  Federation  of                                                               
Independent  Businesses (NFIB)  and their  concerns have  not yet                                                               
been accommodated; the  concerns regard real people  trying to do                                                               
a job and maintain  a lifestyle.  In the event  the bill needs to                                                               
be  moved  forward, he  suggested  applying  a carve-out  of  the                                                               
definition  or  utilizing  a  different  definition.    He  asked                                                               
whether Ms. Marx had recently spoken with the NFIB.                                                                             
                                                                                                                                
MS.  MARX,  in  response  to  Representative  Knopp's  statements                                                               
regarding the  ATA, answered  that roughly one  week ago  ATA was                                                               
comfortable with the  bill.  She noted she had  received an email                                                               
advising that  "with this  one change  that the  department would                                                               
make," involving changing  a mandatory item to  an optional item,                                                               
ATA would support  the bill.  The issues were  addressed, and the                                                               
statement was made  that ATA would be supportive  with the issues                                                               
they worked  out.  While  she understands that people  can change                                                               
their minds  as part of  the process, she  said she wanted  to be                                                               
certain  the  impression  was  not  that  the  division  was  not                                                               
listening or that there are major issues with this bill.                                                                        
                                                                                                                                
MS. MARX,  in response to  Representative Birch's  NFIB question,                                                               
responded that she met with  Dennis DeWitt, NFIB, and opined that                                                               
his comments  were "the  current bill  as written  -- he  -- they                                                               
could  meet that.   They  actually could  meet this  definition."                                                               
She expressed  that there  seems to be  the feeling  that perhaps                                                               
NFIB should  not have to meet  the definition and whether  or not                                                               
to have an  independent contractor definition at all  is a policy                                                               
call.  She remarked that a comment  made to her was that the NFIB                                                               
could go  out and advertise  but did not  feel the need,  or NFIB                                                               
could have a  bank account in the business name  but did not want                                                               
to.   That is  a different argument  and different  position than                                                               
saying the test  in CSHB 79 does not work,  and she remarked that                                                               
this  test works  for  NFIB.   Whether  NFIB  wants  to meet  the                                                               
qualifications is a different issue,  and she said she was unsure                                                               
whether that could be addressed in this legislation.                                                                            
                                                                                                                                
4:27:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE    STUTES   noted    that   within    [Sec.   28],                                                               
Representative Knopp  would like  to eliminate the  definition of                                                               
independent  contractor, and  yet  the definition  Representative                                                               
Knopp referred to  is a definition of employment.   She commented                                                               
there  may  be a  difference  there,  and  she  did not  see  the                                                               
definition in the statute for independent contractor.                                                                           
                                                                                                                                
REPRESENTATIVE  KNOPP [audio  difficulties]  it  should be  right                                                               
there under AS 23.25. [audio difficulties] ...                                                                                  
                                                                                                                                
4:27:57 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:27 p.m. to 4:30 p.m.                                                                       
                                                                                                                                
4:30:35 PM                                                                                                                    
                                                                                                                                
MS. MARX advised  that Amendment 1 refers to  AS 23.20.525, which                                                               
is not  a statute  in the Alaska  Workers' Compensation  Act, the                                                               
Alaska Workers' Compensation  Act is AS 23.30, and so  forth.  To                                                               
be  clear, she  explained, the  Alaska Workers'  Compensation Act                                                               
applies its  statutes, it does  not use statutory  definitions or                                                               
regulations  of  other  agencies,  such   as  wage  and  hour  or                                                               
unemployment  insurance.     The  statutes  and  interpretational                                                               
statutes are developed under the Workers' Compensation case law.                                                                
                                                                                                                                
REPRESENTATIVE  KNOPP acknowledged  that he  did not  realize the                                                               
distinction because  he thought  definitions in statute  would be                                                               
applicable  across  the  board,  yet  the  Division  of  Workers'                                                               
Compensation operates under its statutes.                                                                                       
                                                                                                                                
MS. MARX responded that Representative Knopp was correct.                                                                       
                                                                                                                                
4:31:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP withdrew Conceptual Amendment 1.                                                                           
                                                                                                                                
4:32:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  moved to adopt  Conceptual Amendment  2, as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Section 28                                                                                                                 
                                                                                                                                
         Page 16, line 4, following "results", delete,                                                                          
     "completion schedule, or range of work hours ..."                                                                          
                                                                                                                                
     Page 16, line 6, following "or", add, "to comply with"                                                                     
                                                                                                                                
        Page 16, line 7, following "incurs" add, "or is                                                                         
     ultimately responsible for"                                                                                                
                                                                                                                                
         Page 16, line 17, insert before "follows" "is                                                                          
     responsible pursuant to contract to"                                                                                       
                                                                                                                                
     Page 16, line 17, change "follows" to "follow"                                                                             
                                                                                                                                
     Page  17,   line  1,  delete,  "maintains   a  business                                                                    
     location separate  from the location of  the individual                                                                    
     for whom the entity for the services are performed"                                                                        
                                                                                                                                
     Page 17,  line 1, insert before,  "the person", "except                                                                    
     for  an  agreement  with  other  individual  or  entity                                                                    
     relating to  the completion schedule  or range  of work                                                                    
     hours," insert,  after "the person", "has  control over                                                                    
     the time the work is performed"                                                                                            
                                                                                                                                
     Page  17,   line  4,   delete,  "engages   in  business                                                                    
     advertising, solicitation,  or other  marketing efforts                                                                    
     reasonably  calculated   to  obtain  new   contract  to                                                                    
     provide  similar   service;"  insert   following,  "the                                                                    
     person", "is  not required to  work exclusively  for on                                                                    
     principal unless:                                                                                                          
          (a) a law, regulation, regulation, or ordinance                                                                       
     prohibits the person form providing service to    more                                                                     
     than on principal; or                                                                                                      
          (b) The person has entered into a written                                                                             
     contract to provide services to  only one principal for                                                                    
     a limited period;                                                                                                          
                                                                                                                                
CHAIR KITO objected for discussion purposes.                                                                                    
                                                                                                                                
4:32:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  explained   that  Conceptual  Amendment  2                                                               
addresses  recommendations from  the Alaska  Trucking Association                                                               
(ATA)  by deleting  the completion  schedule  and arrangement  of                                                               
work hours,  which means complying  with federal "stuff,  but you                                                               
can't mandate they  go over the federal hours."   For example, he                                                               
said,  should a  customer advise  an item  must arrive  by Monday                                                               
morning, it is the customer's  request and is not "our direction"                                                               
so it  alleviates that "type of  stuff" in contracting.   He said                                                               
that   when   the   discussion  is   under   the   direction   of                                                               
employer/employee  type relationship,  that  is  not an  employer                                                               
mandate.  He explained that "It was  -- it was just some words in                                                               
there that  -- 'add or  ultimately responsible for' that  type of                                                               
language  that kinda  clears up  some of  the grey  areas in  the                                                               
proposed  area  there.    'That  maintains  a  business  location                                                               
separate  from  location  individual  whom  the  entity  for  the                                                               
services are performed' delete that line."                                                                                      
                                                                                                                                
4:34:23 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  ask Representative Knopp  to read the  Version number                                                               
of the amendment for the record.                                                                                                
                                                                                                                                
REPRESENTATIVE  KNOPP responded  Conceptual Amendment  2, Version                                                               
30-GH1789\O.                                                                                                                    
                                                                                                                                
CHAIR KITO asked whether there  were other substantive components                                                               
of the conceptual amendment he would like to present.                                                                           
                                                                                                                                
REPRESENTATIVE KNOPP  advised that  representatives from  ATA are                                                               
available to  speak to the  conceptual amendment because  most of                                                               
it is  ATA's language.   He referred  to the changes  proposed in                                                               
Conceptual  Amendment 2  on  [page  16, CSHB  79,  lines 1-6]  AS                                                               
23.30.205(a)(11)(B) direction  and control, and read  as follows:                                                               
"Is  free from  direction  over the  means  and manner  providing                                                               
services subject only to the right  of the individual for who, or                                                               
entity  for which,  the services  are provided  to specify."   He                                                               
explained  that deleting  the  language  "completion schedule  or                                                               
arrange  of   work  hours,"  is   simply  to  clarify   that  the                                                               
independent  contractor/owner operator  is free  to direct  their                                                               
own work  subject to the desired  results, or to comply  with the                                                               
contract plans, or comply with governmental laws.                                                                               
                                                                                                                                
REPRESENTATIVE   KNOPP  turned   to  the   changes  proposed   in                                                               
Conceptual Amendment  2, on  page 16  of SCHB  79, lines  7-9] AS                                                               
23.30.205(a)(11)(C),  which  would  add  "ultimately  responsible                                                               
for, incurs  (indisc.) ultimately responsible for  after incurs."                                                               
The second  amendment would apply  when someone or an  entity may                                                               
incur  the initial  expense, such  as a  bank, truck,  dealer, or                                                               
equipment supplier,  in a loan  or other  financing arrangements,                                                               
he said.                                                                                                                        
                                                                                                                                
REPRESENTATIVE KNOPP  turned to [CSHB  79, page 16,  lines 14-16]                                                               
AS 23.30.205(a)(11)(F), and said subparagraph (F) was good.                                                                     
                                                                                                                                
4:36:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD  [and Representative  Knopp spoke                                                               
over themselves and the conversation was undecipherable].                                                                       
                                                                                                                                
REPRESENTATIVE  KNOPP   referred  to  the  changes   proposed  in                                                               
Conceptual Amendment  2, which would clarify  that an independent                                                               
contractor/owner  operator is  not  required by  the contract  to                                                               
have a license not required by law.                                                                                             
                                                                                                                                
REPRESENTATIVE KNOPP stated  that paragraph (G) on  CSHB 79, page                                                               
16,  lines 17-27  "is  responsible pursuant  to  the contract  to                                                               
follow, and  that limits responsibilities  of the parties  to the                                                               
contract at hand."                                                                                                              
                                                                                                                                
REPRESENTATIVE   KNOPP  turned   to  the   changes  proposed   in                                                               
Conceptual Amendment 2  [page 16, lines 28-31 and  page 17, lines                                                               
1-13]  AS 23.30.205(a)(11)(H)  regarding business  locations, and                                                               
he  said,  "Except for  an  agreement  with other  individual  or                                                               
entity  relating to  the  completion schedule  or  range of  work                                                               
hours, delete  the rest of that."   He said, "What  constitutes a                                                               
business location  is in question.   Is a truck sufficient,  is a                                                               
dedicated home  office needed?   So, it clarifies  that language.                                                               
Any  mobile vendor  who provides  onsite services,  mobile carpet                                                               
cleaning, van  or even a  Snap-On tool vendor will  have concerns                                                               
with  this section.   Particularly  if an  independent contractor                                                               
provides regular  frequent services  to the  same customer."   An                                                               
independent contractor  may also share  space with the  person or                                                               
entity  with  whom  they are  contracted  while  still  providing                                                               
purely independent contractor services.                                                                                         
                                                                                                                                
4:38:16 PM                                                                                                                    
                                                                                                                                
MS.  MARX responded  to Chair  Kito  that she  did have  comments                                                               
regarding proposed  Conceptual Amendment 2, and  advised that the                                                               
conceptual amendment  contains changes  raised in a  recent email                                                               
sent to  the committee  and the department,  and the  changes are                                                               
mainly grammatical  issues.   Version O,  she explained,  is more                                                               
flexible  than Conceptual  Amendment 2,  meets the  same purpose,                                                               
the existing  language should remain,  and ultimately, it  is the                                                               
committee's   decision.      Conceptual   Amendment   2   contain                                                               
grammatical  issues,  such  as "ultimately  responsible  for"  is                                                               
ambiguous and would  open the door to litigation and  it does not                                                               
add  value to  the language  in Version  O, she  explained.   She                                                               
advised  that "maintain  a separate  business location,  separate                                                               
from the location  of the individual," is  a mandatory provision.                                                               
She said, after noting some  concern from stakeholder groups, the                                                               
provision was moved  from an 11 or 12 factor  mandatory test to a                                                               
test with  optional factors, recognizing that  possibly some true                                                               
independent contractors  could not meet  a factor.   The language                                                               
in  Version O  would  require a  person meet  three  of the  five                                                               
optional  factors,  such  as  advertise,   bank  account  in  the                                                               
business name,  some insurance  on a  truck or  office equipment,                                                               
some sort  of an insurance  policy.  The factor  besides business                                                               
location is,  "not work as part  in the same trade  or occupation                                                               
as the contractor."  She related  that that was the answer to the                                                               
business location  prong not being applicable  to all independent                                                               
contractors, which is why it is an optional item.                                                                               
                                                                                                                                
4:41:27 PM                                                                                                                    
                                                                                                                                
CHAIR KITO maintained his objection.                                                                                            
                                                                                                                                
4:41:31 PM                                                                                                                    
                                                                                                                                
A roll  call vote was  taken.  Representatives Birch,  Knopp, and                                                               
Sullivan-Leonard  voted in  favor of  the adoption  of Conceptual                                                               
Amendment 2.   Representatives Wool, Stutes,  Josephson, and Kito                                                               
voted against it.  Therefore,  Conceptual Amendment 2 failed by a                                                               
vote of 3-4.                                                                                                                    
                                                                                                                                
4:42:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SULLIVAN-LEONARD  asked  Ms. Marx  to  present  a                                                               
comparison  of the  statute prior  to  Version O,  Sec. 28,  with                                                               
regard to  independent contractor.  Secondly,  she asked, whether                                                               
the "second  version" assists  in the goal  of bringing  down the                                                               
premium costs.                                                                                                                  
                                                                                                                                
MS.  MARX explained  that  currently there  is  no definition  of                                                               
independent  contractor in  statute.   The Workers'  Compensation                                                               
Board has,  in regulation, a balancing  test wherein it is  up to                                                               
the board,  on a  case-by-case basis,  to review  the facts  of a                                                               
case and  decide a test  of employee status, except,  states have                                                               
found that balancing  tests do not work.  Thus,  over the past 10                                                               
years   there  has   been  a   movement  to   define  independent                                                               
contractor, as  in this  legislation.  In  the event  an employer                                                               
has  an  insurance  policy  covering some  workers  but  not  all                                                               
workers,  and  an  injured  worker  is  found  to  have  been  an                                                               
employee,  the insurance  company will  raise its  rates for  all                                                               
policyholders,   causing    fewer   people    purchase   workers'                                                               
compensation insurance.   The fact  that insurance  companies are                                                               
covering   unanticipated   uninsured   losses   causes   workers'                                                               
compensation  costs to  be high,  especially in  Alaska, and  the                                                               
average medical cost  on a time loss claim is  $66,000.  Defining                                                               
independent contractor is part of  the overall comprehensive plan                                                               
to  lower  Alaska's  high  workers'  compensation  premiums,  she                                                               
explained.                                                                                                                      
                                                                                                                                
4:44:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  surmised  that  an  insurance  company                                                               
cannot argue it  was not advised that Jim Smith  should have been                                                               
classified  as  an  employee.    Therefore,  it  must  rely  upon                                                               
arguments  as  to  whether  Jim Smith  really  should  have  been                                                               
classified as  an employee according  to common law  and statute.                                                               
He  asked whether  that was  what Ms.  Marx was  saying, that  an                                                               
insurance company cannot rely on the employer's opinion.                                                                        
                                                                                                                                
MS.  MARX stated  that  Representative  Josephson was  absolutely                                                               
correct, ultimately  employee status is determined  by the Alaska                                                               
Workers' Compensation Board.   In the event it is  found that the                                                               
injured  worker was  an  employee under  the  Act, the  insurance                                                               
company must cover that loss if  there was an insurance policy in                                                               
place, she said.                                                                                                                
                                                                                                                                
4:44:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  commented that  if he was  an insurance                                                               
company,  that   would  be  his  greatest   concern  because  the                                                               
insurance  company has  no control  and  does not  even know  the                                                               
facts  or who  is  at the  job  site, which  is  an argument  for                                                               
insurance  companies  to get  behind  this  bill.   Suddenly  the                                                               
numbers are 30 percent greater  because the insurance company did                                                               
not know these people existed, he noted.                                                                                        
                                                                                                                                
MS. MARX agreed that that was  absolutely what she is saying, and                                                               
she stressed  that there  are letters  of support,  including one                                                               
letter signed by three insurance  companies.  She reiterated that                                                               
there are  many letters of support  here, and that she  wanted to                                                               
bring this  to the  committee's attention  because the  focus has                                                               
been on the independent contractor's  definition and refining it.                                                               
There is absolute  support by employers who want  a level playing                                                               
field, insurance  companies for Representative  Josephson's exact                                                               
reason,  and injured  workers who  want  their injuries  covered,                                                               
there is broad support for this legislation.                                                                                    
                                                                                                                                
4:47:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  referred to [AS 23.30.230(a)(11)]  page 15,                                                               
lines 29-30, which read as follows:                                                                                             
                                                                                                                                
            (11) a person employed as an independent                                                                        
     contractor; a person is an independent contractor for                                                                  
     the purposes of this chapter only if the person                                                                        
                                                                                                                                
REPRESENTATIVE  KNOPP  then   referred  to  [AS  23.30.230(a)(11)                                                               
(H)(v)] page 17, lines 10-13, which read as follows:                                                                            
                                                                                                                                
               (v) the person engages in a trade,                                                                           
     occupation,   profession,   or  business   to   provide                                                                
     services that are outside the  usual course of business                                                                
     for the individual  for whom, or the  entity for which,                                                                
     the services are performed.                                                                                            
                                                                                                                                
                                                                                                                                
4:48:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KNOPP  opined that in  order to be  an independent                                                               
contractor,  the  person  must   be  performing  services.    For                                                               
example, he  said, if  an employer  is Home  Depot" and  needs an                                                               
electrician,  the employer  would hire  an electrician  and would                                                               
have an independent contractor.                                                                                                 
                                                                                                                                
MS.  MARX  responded that  if  the  employer  is the  Home  Depot                                                               
business and wants electrical work  performed on his/her business                                                               
location without  electricians on staff,  this is where  a person                                                               
meets three  of the five  optional factors.  She  reiterated that                                                               
it  is optional  because there  are some  cases where  legitimate                                                               
true independent  contractors may  work for  a contractor  in the                                                               
same line of business.                                                                                                          
                                                                                                                                
4:49:54 PM                                                                                                                    
                                                                                                                                
AVES  THOMPSON, Executive  Director, Alaska  Trucking Association                                                               
(ATA), reiterated his testimony from  the 3/20/17 hearing on CSHB                                                               
79,  and  related  that the  Alaska  Trucking  Association  (ATA)                                                               
believes this  bill in principal  is good,  although difficulties                                                               
lay in  the definition  of independent contractor.   The  ATA has                                                               
been working  with the department  and he, again,  apologized for                                                               
the miscommunication  with the department.   He then  referred to                                                               
his  previous testimony  and  listed six  items  of concern,  and                                                               
advised that  four concerns are merely  grammatic clarifications.                                                               
Two concerns  deal with  advertising and  marketing and  ATA does                                                               
not believe it is necessary in an  ATA type of business.  The ATA                                                               
owner/operators simply  use word of  mouth when looking  for work                                                               
and soon have a job.   Therefore, advertising or marketing is not                                                               
a necessary component to be  an independent contractor. Secondly,                                                               
as to  the business  location, ATA  wants to be  sure there  is a                                                               
clarification that defines what is  a business location; he asked                                                               
whether  a business  location is  a  truck.   The department  has                                                               
advised that a  truck can qualify as a  business location, except                                                               
it does  not say that anywhere.   He related that  there needs to                                                               
be clarification on the issue  of business location, and ATA will                                                               
continue to meet with the department to sort out these issues.                                                                  
                                                                                                                                
4:53:40 PM                                                                                                                    
                                                                                                                                
CHAIR  KITO commented  that Mr.  Thompson would  understand Chair                                                               
Kito's frustration.   He referred to  an email sent to  his staff                                                               
on March  9, 2017,  suggesting two  changes to  paragraph (11)(F)                                                               
and (11)(H), and  that "ATA supports CSHB 79 with  the changes we                                                               
have  suggested," and  yet, between  March 9th  and Monday,  more                                                               
changes were recommended.   He expressed that  the department has                                                               
done  an  admirable  job  of   putting  together  and  trying  to                                                               
accommodate the  situation with the  independent contractor.   He                                                               
said  that "efforts  to  try to  delay the  bill  really are  not                                                               
appreciated."    Chair  Kito  encouraged  Mr.  Thompson  to  work                                                               
constructively  and productively,  and  "provide statements  that                                                               
don't misstate  the position  of the  truckers, because  on March                                                               
9th, it seemed to be everything was okay, now it's not."                                                                        
                                                                                                                                
4:55:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  BIRCH referred  to the  concerns of  the National                                                               
Federation of  Independent Business  (NFIB) with  the independent                                                               
contractor "program,"  and opined that  its concerns are  not yet                                                               
satiated.                                                                                                                       
                                                                                                                                
CHAIR KITO answered that the  department has made every effort to                                                               
try to  work with  industry, as well  as protecting  the workers,                                                               
and its work is admirable.                                                                                                      
                                                                                                                                
4:55:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD offered that  she has issues with                                                               
the bill and asked to hold the bill until Friday.                                                                               
                                                                                                                                
CHAIR KITO  explained that there  are opportunities  for comments                                                               
and changes  in the  House Judiciary  Standing Committee  and the                                                               
House   Finance   Committee,   the   floor  of   the   House   of                                                               
Representatives,  as well  as  getting through  the  Senate.   He                                                               
reminded  the  committee  that  his is  the  first  committee  of                                                               
referral for the bill.                                                                                                          
                                                                                                                                
REPRESENTATIVE SULLIVAN-LEONARD  interjected that  she is  not on                                                               
those  other committees  and House  Labor  and Commerce  Standing                                                               
Committee  is the  committee to  hammer out  a majority  of those                                                               
particular issues.                                                                                                              
                                                                                                                                
CHAIR  KITO answered  that he  is interested  in moving  the bill                                                               
today.                                                                                                                          
                                                                                                                                
4:56:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BIRCH  commented that  he does not  support moving                                                               
the bill because the independent  contractor questions need to be                                                               
addressed, and requested  that the committee make  the bill right                                                               
before moving it from committee.                                                                                                
                                                                                                                                
REPRESENTATIVE STUTES offered that  she appreciates the concerns,                                                               
although she has  only been a legislator for three  years and has                                                               
yet to see the perfect bill.                                                                                                    
                                                                                                                                
CHAIR KITO closed public testimony on HB 79.                                                                                    
                                                                                                                                
4:57:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to report CSHB 79, Version 30-                                                                        
GH1789\O, out  of committee  with individual  recommendations and                                                               
the accompanying fiscal notes.                                                                                                  
                                                                                                                                
REPRESENTATIVE BIRCH objected.                                                                                                  
                                                                                                                                
4:57:56 PM                                                                                                                    
                                                                                                                                
A  roll  call vote  was  taken.   Representatives  Wool,  Stutes,                                                               
Josephson,  and Kito  voted in  favor of  moving CSHB  79 out  of                                                               
committee.   Representatives  Birch, Knopp,  and Sullivan-Leonard                                                               
voted against  it.  Therefore,  CSHB 79(L&C) was reported  out of                                                               
the House Labor  and Commerce Standing Committee by a  vote of 4-                                                               
3.                                                                                                                              
4:58:20 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:58 p.m. to 5:02 p.m.                                                                       
                                                                                                                                
            HB 132-TRANSPORTATION NETWORK COMPANIES                                                                         
                                                                                                                                
5:02:05 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  announced that the  final order of business  would be                                                               
HOUSE BILL  NO. 132, "An  Act relating to  transportation network                                                               
companies and transportation network company drivers."                                                                          
                                                                                                                                
5:02:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WOOL moved to adopt  CSHB 132, Version 30-LS0522\R                                                               
as the working document.                                                                                                        
                                                                                                                                
CHAIR KITO objected for purposes of discussion.                                                                                 
                                                                                                                                
5:03:03 PM                                                                                                                    
                                                                                                                                
LAURA  STIDOLPH, Staff,  Representative Adam  Wool, Alaska  State                                                               
Legislature,   advised  that   Version  R   takes  into   account                                                               
discussions  during  the  last  two  committee  hearings.    This                                                               
version  provides   a  statewide  framework   for  transportation                                                               
network  companies (TNC)  across  Alaska to  provide the  service                                                               
Alaskans desire rather than a  multitude of regulations hindering                                                               
current  "for-hire  transportation  options,"  thereby  providing                                                               
Alaskans   with   the   seamless   and   relatively   inexpensive                                                               
transportation deserved.   This bill allows for a  free market by                                                               
providing an  extra income to  constituents during  this unsteady                                                               
state's  fiscal  outlook.   The  Department  of Transportation  &                                                               
Public Facilities  (DOTPF) presented a  change having to  do with                                                               
the regulation  of TNCs  at airports.   She  referred to  Sec. 6,                                                               
page  5, lines  14-18, which  added subsection  (b), and  read as                                                               
follows:                                                                                                                        
                                                                                                                                
          (b) The Department of Transportation and Public                                                                       
     Facilities may,  under AS 02.15, adopt  a regulation or                                                                    
     enter  into a  contract,  lease,  or other  arrangement                                                                    
     with  a transportation  network company  or driver  for                                                                    
     use of  an international  airport owned or  operated by                                                                    
     the state.  A regulation  or arrangement under AS 02.15                                                                    
     must be consistent with this chapter.                                                                                      
                                                                                                                                
MS. STIDOLPH explained  that it allows for the  DOTPF to regulate                                                               
use of  a TNC at an  international airport owned and  operated by                                                               
the state.                                                                                                                      
                                                                                                                                
5:04:55 PM                                                                                                                    
                                                                                                                                
MS.  STIDOLPH noted  that after  hearing concerns  from committee                                                               
members  regarding  the  ability  for  local  control  and  local                                                               
taxation, the sponsor  believes it is fair  for municipalities to                                                               
impose  a sales  tax on  the TNC  driver in  accordance with  how                                                               
similar services  are taxed  in a  municipality, and  makes clear                                                               
that TNCs must follow local  traffic ordinances.  She referred to                                                               
Sec. 8, page 12, lines 3-7, which read as follows:                                                                              
                                                                                                                                
     (b) The prohibition on regulation under (a) of this section                                                                
does not include                                                                                                                
          (1) imposition of a municipal sales tax on a                                                                          
transportation  network   company  driver   that  taxes   a  trip                                                               
originating in  the municipality  in the  same manner  that other                                                               
services are taxed in the municipality;                                                                                         
          (2) a municipal traffic ordinance.                                                                                    
                                                                                                                                
MS. STIDOLPH  explained THAT the provision  allows municipalities                                                               
to  impose  a  sales  tax  and  ensures  that  municipal  traffic                                                               
ordinances must be followed.                                                                                                    
                                                                                                                                
5:06:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON commented  that he  had heard  the TNCs                                                               
say  "that  there was  no  jurisdiction  where  a sales  tax  was                                                               
allowed in the United States."                                                                                                  
                                                                                                                                
MS. STIDOLPH  answered that this  was the  first time one  of the                                                               
TNCs has had sales tax mentioned in statewide legislation.                                                                      
                                                                                                                                
5:06:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE STUTES asked  how sales tax would  be collected or                                                               
tracked to know that it needed to collect sales tax.                                                                            
                                                                                                                                
MS.  STIDOLPH  replied  that  sales tax  will  be  collected  and                                                               
remitted with an operational decision  between the driver and the                                                               
TNC.   The tax  will come  from the rider,  the payment,  and not                                                               
from the driver, she said.                                                                                                      
                                                                                                                                
5:07:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  asked how  that  scenario  would work  out                                                               
since it deals in credit cards and not cash.                                                                                    
                                                                                                                                
MS. STIDOLPH  referred to  the third  party collecting  the money                                                               
between  the TNC  and  the  driver, and  said  that  tax will  be                                                               
included on  top of the fare.   The operational decision  has not                                                               
yet been made and will be  worked out between the policymakers of                                                               
the companies and the municipalities.                                                                                           
                                                                                                                                
REPRESENTATIVE  KNOPP referred  to  CSHB 132,  Sec. 6,  beginning                                                               
page 5,  line 5,  wherein Ms. Stidolph  testified that  the DOTPF                                                               
may  adopt   regulations  in  its   contract,  lease,   or  other                                                               
arrangements, and  suggested he was unsure  "that really provides                                                               
anything."     He  asked  why the  TNCs  would  be interested  in                                                               
leasing from the state if there  is no requirement to do so, with                                                               
no municipal input.  He said  this simply authorizes the DOTPF to                                                               
lease to  a TNC, but  there is nothing  that says they  will even                                                               
have the conversation.                                                                                                          
                                                                                                                                
5:09:02 PM                                                                                                                    
                                                                                                                                
JOHN  BINDER,  Deputy  Commissioner of  Aviation,  Commissioner's                                                               
Office,  Department   of  Transportation  &   Public  Facilities,                                                               
responded that  the issue comes  down to the ability  to regulate                                                               
primarily where the Uber drivers pick  up and drop off related to                                                               
the airport operations.   Airports around the country  have had a                                                               
significant   challenge  with   this   issue   prior  to   having                                                               
regulations in place  by causing traffic jams and  such, he said.                                                               
The  original  language  left  some  ambiguities  as  to  whether                                                               
airports  would  be  allowed  to stipulate  where  some  of  that                                                               
activity may take place, he explained.                                                                                          
                                                                                                                                
5:09:41 PM                                                                                                                    
                                                                                                                                
MR. BINDER agreed  with Representative Knopp that  the state does                                                               
not own all of the airports.                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP  surmised that  the  state  would not  have                                                               
authority  over some  of the  airports.   Except when  discussing                                                               
authority,  "all this  is given,  adopt,  right to  enter into  a                                                               
contract, lease,  or other  arrangement," but  it does  not offer                                                               
enforcement power to  mandate that the drivers  utilize a certain                                                               
spot, it has to be in cooperation.                                                                                              
                                                                                                                                
MR.  BINDER  responded  that   under  current  policies,  certain                                                               
regulation  related   to  taxi  service,  for   instance,  allows                                                               
requiring  permits   and  dictating  the  drop-off   and  pick-up                                                               
locations, rates,  and those sorts  of things.  This  is intended                                                               
to  at  least  provide  the  framework  for  a  similar  type  of                                                               
arrangement  with  TNCs.    Obviously, he  said,  many  of  those                                                               
details  will  be  worked  out  as the  TNC  comes  on  board  or                                                               
expresses  interest.    In  the absence  of  this,  the  original                                                               
language appeared to preclude the  airport from having any say in                                                               
how its operations took place on the airport, he explained.                                                                     
                                                                                                                                
5:11:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KNOPP referred  to city-owned  airports, such  as                                                               
Juneau or Kenai,  and said they were not given  any local control                                                               
and  "we  wouldn't  have  any  input to  what  happens  at  those                                                               
airports."                                                                                                                      
                                                                                                                                
MR. BINDER answered in the affirmative.                                                                                         
                                                                                                                                
5:11:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  referred to the sales  tax question and                                                               
offered a  scenario of  taking a  TNC from  this building  to the                                                               
airport at a  cost of $14.00, and asked whether  he would be told                                                               
the cost was $14.89 due to a sales tax, and how that would work.                                                                
                                                                                                                                
MS. STIDOLPH  explained that the  manner in which TNCs  work, the                                                               
passenger would  know the exact  cost before accepting  the ride,                                                               
which would include the tax.                                                                                                    
                                                                                                                                
5:12:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SULLIVAN-LEONARD referred  to  the  sale tax  and                                                               
asked whether it was applicable  that a business license would be                                                               
purchased  in  each  city  in   order  to  have  that  sales  tax                                                               
transaction.                                                                                                                    
                                                                                                                                
MS. STIDOLPH  answered in the  affirmative, and explained  that a                                                               
person  purchases a  local business  license and  files quarterly                                                               
sales tax.                                                                                                                      
                                                                                                                                
5:12:58 PM                                                                                                                    
                                                                                                                                
CHAIR KITO  removed his  objection to Version  R, which  put CSHB                                                               
Version R before the committee.                                                                                                 
                                                                                                                                
REPRESENTATIVE  BIRCH   commented  that  he  does   not  have  an                                                               
objection, due  to the discussion  and numerous  testimonies from                                                               
the various TNCs  as to the legislation being  workable for their                                                               
companies, he asked whether this legislation was still workable.                                                                
                                                                                                                                
5:13:48 PM                                                                                                                    
                                                                                                                                
MITCHELL MATTHEWS,  Representative, Uber  Technologies, responded                                                               
that Version R is workable from Uber's perspective.                                                                             
                                                                                                                                
[HB 132 was held over.]                                                                                                         
                                                                                                                                
5:14:05 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:14 p.m.                                                                                                                       

Document Name Date/Time Subjects
CS HB132 ver R Work Draft 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
CS HB132 ver R Work Draft Sectional Analysis 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
CS HB132 ver R Work Draft Explanation of Changes 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HJR014 Fiscal Note-HLAC 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HJR 14
HB132 Supporting Documents - Letters of Opposition 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Supporting Documents Index 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Supporting Documents - Letters of Support 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB144 Legislative Audit 3.14.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB144 Sponsor Statement 3.14.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB144 Fiscal Note DCCED-DCBPL 3.17.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 144
HB086 Supporting Document - ACPE Loan Default Consequences 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Supporting Document - NPR Article-States Review 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Supporting Document - Letter of Support ANA 3.21.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Fiscal Note DEED-APEC 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB086 Sponsor Statement 3.2.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 86
HB079 Sectional Analysis Version O 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 79
HB132 Version J Amendment 1 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 1 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 2 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 3 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132
HB132 Version R Amendment 4 3.22.17.pdf HL&C 3/22/2017 3:15:00 PM
HB 132