Legislature(2017 - 2018)BARNES 124

03/30/2018 03:15 PM LABOR & COMMERCE

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

Document Name Date/Time Subjects
SB015 Letter of Support 3.30.18.pdf HL&C 3/30/2018 3:15:00 PM
SB 15
HB230 Supporting Document ACLU.pdf HL&C 3/30/2018 3:15:00 PM
HB 230
HB384 Supporting Document FCC Commissioner Pai Alaska Plan Dissent 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Supporting Document FCC Commissioner Rosenworcel on New National Broadband Map 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Supporting Document NCSL List of State Broadband Statutes.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Supporting Document RCA Enabling Statutes 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Ver A.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Fiscal Note DCCED RCA 3.23.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Legal Memo 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Sponsor Statement 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
SB045 Opposition Document - Zoning, Land-use Planning, and Housing Affordability.pdf HL&C 3/30/2018 3:15:00 PM
SB 45
HB384 Supporting Document Restoring Internet Freedom Jurisdictional Excerpt 3.28.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384
HB384 Opposition Letters 3.30.18.pdf HL&C 3/30/2018 3:15:00 PM
HB 384