02/05/2024 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Executive Order 135 - Eliminating the Alaska Safety Advisory Council | |
| HB251 | |
| HB237 | |
| HB289 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | HB 289 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 251 | TELECONFERENCED | |
| *+ | HB 237 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 5, 2024
3:17 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Zack Fields
MEMBERS ABSENT
Representative Ashley Carrick
COMMITTEE CALENDAR
EXECUTIVE ORDER 135 - ELIMINATING THE ALASKA SAFETY ADVISORY
COUNCIL
- HEARD AND HELD
HOUSE BILL NO. 251
"An Act exempting certain foods and drinks prepared in a
person's uninspected home kitchen from state labeling,
licensing, packaging, permitting, and inspection requirements;
and permitting a person to acquire meat from a producer by way
of an ownership share in an animal if certain conditions are
met."
- HEARD & HELD
HOUSE BILL NO. 237
"An Act relating to temporary permits for nurses with lapsed
licenses."
- HEARD & HELD
HOUSE BILL NO. 289
"An Act relating to business license fees; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 251
SHORT TITLE: EXEMPTIONS FOR HOMEMADE FOODS
SPONSOR(s): REPRESENTATIVE(s) RAUSCHER
01/16/24 (H) PREFILE RELEASED 1/12/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) L&C, RES
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) <Bill Hearing Rescheduled to 02/05/24>
02/05/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 237
SHORT TITLE: TEMPORARY PERMIT FOR LAPSED NURSE LICENSE
SPONSOR(s): REPRESENTATIVE(s) PRAX
01/16/24 (H) PREFILE RELEASED 1/8/24
01/16/24 (H) READ THE FIRST TIME - REFERRALS
01/16/24 (H) L&C
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) <Bill Hearing Rescheduled to 02/05/24>
02/05/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 289
SHORT TITLE: BUSINESS LICENSE FEES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/24/24 (H) READ THE FIRST TIME - REFERRALS
01/24/24 (H) L&C, FIN
02/05/24 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ELAINE BANDA, Chief of Consultation and Training
Division of Labor Standards and Safety
Department of Labor and Workforce Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of Executive Order
135.
REPRESENTATIVE GEORGE RAUSCHER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented HB 251.
RYAN MCKEE, Staff
Representative George Rauscher
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 251 on behalf of
Representative Rauscher, prime sponsor.
CHRISTINA CARPENTER, Director
Division of Environmental Health
Department of Environmental Conservation
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
289.
JULIE SANDE, Commissioner
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Co-offered a presentation on HB 289.
SYLVAN ROBB, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Co-offered a presentation on HB 289.
CONRAN GUNTHER, Attorney
Legislative Legal Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
289.
ACTION NARRATIVE
3:17:06 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 2:46 p.m. Representatives Wright,
Saddler, Fields, Prax, Ruffridge, and Sumner were present at the
call to order.
^EXECUTIVE ORDER 135 - ELIMINATING THE ALASKA SAFETY ADVISORY
COUNCIL
EXECUTIVE ORDER 135 - ELIMINATING THE ALASKA SAFETY ADVISORY
COUNCIL
3:17:31 PM
CHAIR SUMNER announced that the first order of business would be
Executive Order 135, Eliminating the Alaska Safety Advisory
Council.
3:17:40 PM
CHAIR SUMNER opened public testimony on Executive Order 135.
3:18:10 PM
ELAINE BANDA, Chief of Consultation and Training, Division of
Labor Standards and Safety, Department of Labor and Workforce
Development (DLWD), explained that EO 135 would transfer duties
of the Alaska Safety Advisory Council (ASAC) to DLWD. She
informed members that the state does not have a safety and
health plan, and that ASAC duties have gone unfulfilled for many
years. She said the transition to the state will ensure that an
entity is held responsible for the health and safety of
Alaskans.
3:19:36 PM
REPRESENTATIVE FIELDS asked Ms. Banda how many companies and
individuals were involved in planning the ASAC Governor Safety
Conference the last few years.
MS. BANDA shared that she has been a member of the Governor
Safety and Health Committee since 2012 and was later appointed
to ASAC in 2020. She said the conference has a few volunteers
with some help from the state. She stressed that the conference
is one of the council's 16 duties, and that the 15 other duties
have not been fulfilled for years. In response to a request for
more information, she continued that a conference is going to be
held April 2 and 3, 2024. She explained that the conference
highlights safety activities from different industries and
businesses, with recognition of employers who go above and
beyond in keeping employees safe. She said several aspects of
safety are examined, like how many people don't get hurt on the
job, as injuries or illnesses are recorded or reported; there
are some businesses that have few recordable or reportable
injuries. She stated that there is no entity that tracks that
information, and that the transfer of duties outlined in EO 135
would allow an entity to keep records.
REPRESENTATIVE FIELDS asked whether, if the legislature did not
overturn EO 135, the functions of the safety conference would
continue.
MS. BANDA responded, "It's still being worked out." She said it
is not guaranteed that it'll go through the consultation and
training. She said ASAC is housed under the Division of Labor
Standards and Safety; when duties are transferred, they may not
go to the division but will still be under the department. She
explained that two positions are envisioned, as well as
continued volunteer support. She stated that there would still
be a safety conference, but work would be done to fulfill the
previously unfulfilled duties.
3:24:40 PM
REPRESENTATIVE SADDLER sought confirmation that the two
positions would be needed to move ASAC to the department.
MS. BANDA answered yes, and there would still be volunteer
support. To a follow-up question, she explained that one
position would be a liaison with a range of 21 to 22 and the
other would be a project coordinator at a range 16 to 18; the
total cost would be about $263,000. She added that additional
costs are travel expenses, service expenses, technology, and
commodities.
3:27:21 PM
REPRESENTATIVE PRAX asked how the program interfaces with the
Division of Workers' Compensation.
MS. BANDA answered that her division has no affiliation with the
workers' compensation program. To a follow-up question about
the possibility of educating businesses on the cost-saving of
reducing accidents, stated that her program is 90 percent funded
by the federal government, and its responsibilities are in
alignment with decreasing worker accidents. She noted that the
funding limits the division's work to small businesses, and the
goal is to prevent accidents, thereby reducing compensation
claims.
3:30:31 PM
CHAIR SUMNER, after ascertaining that no one further wished to
testify, closed public testimony on EO 135.
3:30:41 PM
CHAIR SUMNER announced that EO 135 would be held over for
further consideration.
HB 251-EXEMPTIONS FOR HOMEMADE FOODS
3:30:50 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 251, "An Act exempting certain foods and drinks
prepared in a person's uninspected home kitchen from state
labeling, licensing, packaging, permitting, and inspection
requirements; and permitting a person to acquire meat from a
producer by way of an ownership share in an animal if certain
conditions are met."
3:31:05 PM
The committee took an at-ease from 3:31 p.m. to 3:33 p.m.
3:33:44 PM
REPRESENTATIVE GEORGE RAUSCHER, Alaska State Legislature, as
prime sponsor, read the sponsor statement [included in committee
packet], which read as follows [original punctuation provided]:
House Bill 251 will help promote food security in
Alaska. Alaska's food supply is fragile, with the
overwhelming majority having to be imported from out
of State. Currently there is a huge lack of homegrown
food industries which creates a strain on local
communities across the State.
HB 251 would allow a producer to sell homegrown and/or
farmed local food products to an informed end consumer
and allow consumers to purchase meat if it complies
with the animal share agreements, directly from
ranchers.
Passing HB 251 will help put food on the tables of
Alaskans and help increase our food security here in
Alaska.
3:35:14 PM
RYAN MCKEE, Staff, Representative Rauscher, Alaska State
Legislature, on behalf of Representative Rauscher, prime
sponsor, read the sectional analysis [included in committee
packet], which read as follows [original punctuation provided]:
Section 1 amends AS 17.20 to create a new article
titled "Homemade Food; Animal Shares" consisting of
four new sections:
AS 17.20.332 (exemption statute): This section creates
an exemption for the purchase and sale of homemade
food products for home consumption and provides
applicable restrictions or limitations on transaction
requirements, food ingredients, and labeling or
signage requirements.
AS 17.20.334 (animal shares): This section establishes
conditions and requirements of animal share operations
in statute, which would allow the sharing of meat and
meat products by individuals participating in a herd
share arrangement.
AS 17.20.336 (relationship to other laws): This
section contains clarifications to the bill, including
that the Department retains its investigative and
regulatory powers, and the bill does not change state
requirements for brand or animal health inspection,
that state agencies may provide assistance,
consultation or guidance at the request of the
producer, that the bill shall not be construed as more
restrictive than applicable federal requirements, and
the bill does not affect any federal or local laws.
AS 17.20.338 (definitions): This section contains
definitions applicable to 17.20.332-17.20.338.
3:36:54 PM
REPRESENTATIVE FIELDS asked whether the sponsor looked at
examples of local food regulations from other states.
REPRESENTATIVE RAUSCHER answered that he was looking only at
Alaska.
REPRESENTATIVE FIELDS asked for more details about the proposed
regulations on meat.
REPRESENTATIVE RAUSCHER stressed the importance of the food
supply chain to Alaska.
REPRESENTATIVE FIELDS inquired as to whether the bill would
limit Alaska to a herd share.
REPRESENTATIVE RAUSCHER answered that the bill proposes herd
share.
3:39:35 PM
REPRESENTATIVE PRAX asked about page 4, line 24, which read as
follows:
(a) The Department of Environmental Conservation may,
as authorized under this chapter,
(1) conduct inspections necessary to investigate
reports
REPRESENTATIVE RAUSCHER deferred the question to the invited
testifiers.
3:41:07 PM
CHRISTINA CARPENTER, Director, Division of Environmental Health,
Department of Environmental Conservation (DEC), answered that
the language does limit the inspection authority of DEC to
conduct investigations of unsafe sanitary practices, foodborne
illnesses, and foodborne illness outbreaks.
REPRESENTATIVE PRAX asked for confirmation that the bill
language would not authorize DEC to start an investigation
without a report.
MS. CARPENTER confirmed that that is her understanding of the
bill language.
3:42:11 PM
CHAIR SUMNER inquired as to whether the department would be
allowed to self-generate a report and then begin the
investigation.
MS. CARPENTER answered that it is likely DEC wouldn't have
reason to investigate without a report.
3:42:44 PM
REPRESENTATIVE SADDLER said the bill, in Section 1, proposes
that production and sale of homemade food is exempt from
labelling, and that the sale of such food may not involve the
sale of meat or meat products. He offered that the purpose of
the bill is to allow the sale of meat products.
3:43:58 PM
MS. CARPENTER explained that Section 1 of the bill deals with
homemade food products that are offered for sale to the public;
a different section deals with meat in an animal share program.
3:44:43 PM
CHAIR SUMNER announced that HB 251 was held over.
HB 237-TEMPORARY PERMIT FOR LAPSED NURSE LICENSE
3:44:58 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 237, "An Act relating to temporary permits for
nurses with lapsed licenses."
3:45:17 PM
REPRESENTATIVE PRAX, as prime sponsor, read the sponsor
statement for HB 237 [included in committee packet], which read
as follows [original punctuation provided]:
The problem this bill is addressing is that,
currently, a nurse seeking license reinstatement in
Alaska is not allowed to be issued a nonrenewable
temporary permit. Conversely, a nurse seeking a
license for the first time in Alaska can be issued a
temporary permit. It would make sense to allow both
new and returning nurses the opportunity for a
temporary permit. The passage of House Bill 237 would
help nurses get back to work much faster.
3:47:14 PM
REPRESENTATIVE SADDLER asked whether the bill should be passed
as soon as possible.
REPRESENTATIVE PRAX answered yes.
3:47:34 PM
CHAIR SUMNER announced that HB 237 was held over.
HB 289-BUSINESS LICENSE FEES
3:47:45 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 289, "An Act relating to business license fees;
and providing for an effective date."
3:48:36 PM
JULIE SANDE, Commissioner, Department of Commerce, Community,
and Economic Development (DCCED), began the PowerPoint
presentation, titled "Business License Fees" [hardcopy included
in committee packet], on slide 1. She explained that the bill
proposes to return business license fees to the amount they were
in 2008. She shared that she serves on the Alaska Tourism
Industry Board as well as the Alaska Seafood Marketing Institute
(ASMI) Board, and she highlighted the marketing work that both
organizations do. She shared that the governor has an interest
in reaching out to business owners to learn more about what they
need in order to conduct business in Alaska. She said that the
needs included workforce, housing, childcare, and energy costs;
the prevailing need is determining how to "tell our story
better." She said she is not interested in building government
just to build government; therefore, effort was made to fund
costs within the department.
3:53:13 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community, and
Economic Development, moved to and read slide 2 of the
presentation, which read as follows [original punctuation
provided]:
What Does HB 289 Do?
Increases regular business license fees from $50 to
$100 per year
Increases business license fees for sole
proprietorships owned by a disabled veteran or
individual who is 65 years of age or older from $25 to
$50 per year
Increases tobacco endorsement fees from $100 to $200
per renewal
MS. ROBB transitioned to and summarized slide 3, which read as
follows [original punctuation provided]:
Why Increase These Fees?
All funds received each fiscal year in excess of
what's required to run the business licensing program
are deposited into UGF
Increasing business licensing fees is a way to
generate additional revenue for the State of Alaska
without heavily impacting one profession or industry
over another
3:55:04 PM
MS. ROBB moved to slide 4 and summarized the slide, which read
as follows [original punctuation provided]:
When is a Business License or Tobacco Endorsement
Required?
A business license is required for the privilege of
engaging in a business in the State of Alaska (AS
43.70.020(a))
"Business" means a for-profit or non-profit entity
engaging or offering to engage in a trade, a service,
a profession, or an activity with the goal of
receiving a financial benefit in exchange for the
provision of services, or goods, or other property.
(AS 43.70.110(1))
A person who sells cigarettes, cigars, products
containing tobacco, electronic smoking products, or
products containing nicotine as a retailer must have a
business license and a [tobacco] endorsement. (AS
43.70.105(b))
MS. ROBB advanced to and read slide 4, which read as follows
[original punctuation provided]:
When is a Business License Not Required?
Business license exemptions (AS 43.70.105):
Fisheries business
Sale of liquor under a license issued under AS 04.11
Insurance business
Mining business
Supplying services as an employee
Furnishing goods or services by a person who does not
represent to be regularly engaged in furnishing goods
or services
Activities of an investment club as defined in AS
43.70.105(7)
Bank organized under AS 06.05 or the laws of another
state
National bank chartered by the U.S.
Credit union organized under AS 06.45 or the laws of
another state
Credit union regulated by the National Credit Union
Administration
Mutual savings bank chartered under AS 06.15 or
organized under the laws of another state
3:56:53 PM
MS. ROBB moved to slide 6 to present a graph depicting the
number of business licenses and pointed out that the licenses
continued to increase. She advised that the 2023 figure of
22,623 business licenses is the number of people who purchased a
business license that, not the total number of licenses in
Alaska, which is 100,000. She moved to slide 7 to show a graph
of the number of businesses. She advanced to slide 8 to present
a graph that shows the number of businesses licenses that hold
endorsements. Ms. Robb transitioned to slide 9 to showcase a
graph of business license revenue. She concluded on slide 10
with the resources used in the PowerPoint.
3:59:46 PM
REPRESENTATIVE FIELDS asked, if all $2.7 million were put toward
additional staff, how many staff that would support and whether
it would speed up current backlogs.
MS. ROBB explained that current professional licensing statutes
are separate from business license revenue. She said the
division is required to charge an amount for the professional
licensing fees that is about equal to the cost to run the
program. She noted that the legislature granted the division 12
additional positions.
REPRESENTATIVE FIELDS asked if the bill could be tweaked to
provide more help and augment the fees.
4:01:19 PM
CHAIR SUMNER commented that Representative Fields is describing
a fee, whereas this is a tax.
4:01:28 PM
REPRESENTATIVE SADDLER asked about Commissioner Sande's comment
that the bill would restore business license fees to pre-COVID
levels.
COMMISSIONER SANDE reiterated that the bill would restore the
fees to 2008 levels.
REPRESENTATIVE SADDLER sought clarification that the fee went
from $100 to $50 in 2008 and is now being proposed to be
returned to $100. He further asked if a higher fee was
considered to account for inflation.
COMMISSIONER SANDE responded that, as a business owner, the
change from $50 to $100 isn't going to cause her to decide not
to go into business. She said the division is comfortable with
$100 and may consider $150 in the future.
REPRESENTATIVE SADDLER pointed out that the fiscal note assumes
no growth in the number of licenses.
4:04:09 PM
MS. ROBB explained that fiscal notes do not account for
inflation. She said it would be challenging to project the
increase in business licensing that the division anticipates in
the future. In response to a follow-up question, she explained
that business license fees were waived during the COVID
pandemic; that may have artificially influenced the number of
businesses licenses that were given out. She said there has
been an increase in business licenses over the past few years.
CHAIR SUMNER advised members that Mr. Gunther was present to
explain the difference between a tax and a fee.
4:06:50 PM
CONRAN GUNTHER, Attorney, Legislative Legal Services,
Legislative Affairs Agency, said he is not aware of any Alaska
cases that distinguish between a fee and a tax. He explained
that a tax is a levy of funds to raise revenue for general
government purposes, while a fee is a voluntarily incurred
change to obtain a government benefit with fees that relate to
the cost of the benefit.
CHAIR SUMNER asked, if a proposal were made to double the fee
with all the additional revenue going to the general fund,
whether that would be a tax.
MR. GUNTHER explained that under Article IX, Section 7, of the
Constitution of the State of Alaska, any proceeds of a state tax
or license can be dedicated and go to the general fund. He
shared that there may be other examples around whether a fee is
excessive.
4:08:50 PM
REPRESENTATIVE PRAX asked if the licensing fee is like the
driver's license fee.
MS. ROBB explained that the fees are referred to as business
license fees since that is how they are outlined in statute.
She added that the legislature spoke to the fact that the money
collected by the department under AS 43.70.080 should be
deposited into the general fund; this indicates that additional
funds would be generated beyond the costs required to run the
program.
4:10:12 PM
REPRESENTATIVE RUFFRIDGE asked about the fee increase not having
a detrimental affect on the number of licenses issued. He
commented that the fee waving during COVID might have caused
more licenses to be issued. He asked what licensing fee figure
would discourage someone from starting a business.
MS. ROBB answered that the fee increase does not impact one
industry.
4:11:52 PM
REPRESENTATIVE SADDLER pointed to and read slide 3, regarding
the increase of business licensing fees as a source of revenue.
He asked for an explanation of how the licensing fee is a fee
and not a tax.
MS. ROBB answered that the department has referred to business
licensing as a fee, as does state statute. She highlighted
again that there is statute directing that excess funds
generated return to the general fund.
4:13:51 PM
CHAIR SUMNER announced that HB 289 was held over.
4:13:57 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:14 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 289 Transmittal Letter 1.22.24.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 289 |
| HB 289 Presentation for HL&C (Version A).pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 289 |
| HB 289 ver A.PDF |
HL&C 2/5/2024 3:15:00 PM |
HB 289 |
| HB 289 Sectional Analysis ver A.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 289 |
| HB 251 Sponsor Statement.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 251 |
| HB 251 Sectional Analysis.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 251 |
| HB0251A.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 251 |
| HB 237 Sponsor Statement.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 237 |
| HB 237 Version B.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 237 |
| HB 237 Dawn Hughes Letter of Support.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 237 |
| HB 237 Fscl Nt - DCC&ED.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 237 |
| Fiscal Note HB0289-1-2-012424-CED-Y.pdf |
HL&C 2/5/2024 3:15:00 PM |
HB 289 |