03/04/2024 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB289 | |
| SB89 | |
| HB285 | |
| HB203 | |
| HB290 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 203 | TELECONFERENCED | |
| + | SB 89 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 290 | TELECONFERENCED | |
| += | HB 289 | TELECONFERENCED | |
| *+ | HB 285 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 4, 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 Ashley Carrick
Representative Zack Fields
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 289
"An Act relating to business license fees; and providing for an
effective date."
- MOVED CSHB 289(L&C) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 89(FIN)
"An Act relating to tobacco, tobacco products, electronic
smoking products, nicotine, and products containing nicotine;
raising the minimum age to purchase, exchange, or possess
tobacco, a product containing nicotine, or an electronic smoking
product; relating to the tobacco use education and cessation
fund; relating to the taxation of electronic smoking products
and vapor products; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 285
"An Act relating to insurance; relating to mammograms; and
providing for an effective date."
- HEARD AND HELD
HOUSE BILL NO. 203
"An Act relating to wage payments."
- HEARD & HELD
HOUSE BILL NO. 290
"An Act relating to the issuance of certificates of fitness for
plumbers and electricians; relating to fees for certificates of
fitness for plumbers and electricians; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
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
02/05/24 (H) Heard & Held
02/05/24 (H) MINUTE(L&C)
02/12/24 (H) L&C AT 3:15 PM BARNES 124
02/12/24 (H) Heard & Held
02/12/24 (H) MINUTE(L&C)
02/26/24 (H) L&C AT 3:15 PM BARNES 124
02/26/24 (H) Scheduled but Not Heard
02/28/24 (H) L&C AT 3:15 PM BARNES 124
02/28/24 (H) -- MEETING CANCELED --
03/04/24 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 89
SHORT TITLE: AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
SPONSOR(s): STEVENS
WITNESS REGISTER
SENATOR GARY STEVENS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented CSSB 89(L&C).
TIM LAMKIN, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on CSSB
89(L&C) on behalf of Senator Stevens, prime sponsor.
APRIL SCOTT, Administrator
West Valley High School
Salcha, Alaska
POSITION STATEMENT: Gave invited testimony on CSSB 89(L&C).
LENA EDAIS, Student
Diamond High School
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony on CSSB 89(L&C).
LEON BRIDGES, General
National Guard Bureau
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony on CSSB 89(L&C).
NANCY MEADE, General Counsel
Office of the Administrative Director
Alaska Court System
POSITION STATEMENT: Answered questions during the hearing on
CSSB 89(L&C).
COURTNEY OWENS, Staff
Representative Zack Fields
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for HB 285
on behalf of Representative Fields, prime sponsor.
KRISTEN SMITH, Regional State Policy & Advocacy Manager,
Northwest
Susan G. Komen Breast Cancer Foundation
Seattle, Washington
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 285.
LORI WING-HEIER, Director
Division of Insurance
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
285.
CLARK BICKFORD, Staff, Representative Jesse Sumner
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 203 on behalf of
Representative Sumner, prime sponsor.
DAN LEWIS, Vice President
Compliance Programs and Government Affairs
ADP
Caldwell, New Jersey
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 203.
ACTION NARRATIVE
3:17:13 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:17 p.m. Representatives
Ruffridge, Prax, Carrick, Fields, and Sumner were present at the
call to order. Representative Wright and Saddler arrived as the
meeting was in progress.
HB 289-BUSINESS LICENSE FEES
3:17:54 PM
CHAIR SUMNER announced that the first order of business would be
HOUSE BILL NO. 289, "An Act relating to business license fees;
and providing for an effective date."
3:17:58 PM
REPRESENTATIVE FIELDS moved to adopt Amendment 1 to HB 289,
labeled 33-GH2319\A.1, Klein/Gunther, 2/8/24, which read as
follows:
Page 1, line 1, following "Act":
Insert "relating to regulating occupations;"
Page 1, following line 2:
Insert new bill sections to read:
"* Section 1. AS 08.01.065(c) is amended to read:
(c) Except as provided in (f) - (l) [(f) - (k)]
of this section, the department shall establish fee
levels under (a) of this section so that the total
amount of fees collected for an occupation
approximately equals the actual regulatory costs for
the occupation. The department shall annually review
each fee level to determine whether the regulatory
costs of each occupation are approximately equal to
fee collections related to that occupation. If the
review indicates that an occupation's fee collections
and regulatory costs are not approximately equal, the
department shall calculate fee adjustments and adopt
regulations under (a) of this section to implement the
adjustments. In January of each year, the department
shall report on all fee levels and revisions for the
previous year under this subsection to the office of
management and budget. If a board regulates an
occupation covered by this chapter, the department
shall consider the board's recommendations concerning
the occupation's fee levels and regulatory costs
before revising fee schedules to comply with this
subsection. In this subsection, "regulatory costs"
means costs of the department that are attributable to
regulation of an occupation plus
(1) all expenses of the board that
regulates the occupation if the board regulates only
one occupation;
(2) the expenses of a board that are
attributable to the occupation if the board regulates
more than one occupation.
* Sec. 2. AS 08.01.065 is amended by adding a new
subsection to read:
(l) Notwithstanding (c) of this section, the
department may adjust fee levels established under (a)
of this section so that money appropriated under
AS 43.70.080 offsets fees for occupations regulated
under this chapter. When adjusting fee levels under
this subsection, the department may consider the
relationship between the regulatory cost of an
occupation and income levels in that occupation."
Page 1, line 3:
Delete "Section 1"
Insert "Sec. 3"
Renumber the following bill sections accordingly.
CHAIR SUMNER announced that there being no objection, Amendment
1 was adopted.
3:18:15 PM
REPRESENTATIVE CARRICK moved to adopt Amendment 2 to HB 289,
labeled 33-GH2319\A.2, Gunther, 2/15/24, which read:
Page 1, lines 3 - 9:
Delete all material and insert:
"* Section 1. AS 43.70.030(a) is amended to read:
(a) The fee for each business license is $100
[$50] a year, except that
(1) the fee is $50 [$25] if the business is
a sole proprietorship and the sole proprietor is
(i) [(1)] 65 years of age or older when the
sole proprietor applies for the license or will reach
65 years of age at any time during the year for which
the license is issued; or
(ii) [(2)] a disabled veteran; and
(2) the fee is waived for the first year
the initial business license is issued if the person
holding the business license has not previously been
issued a business license."
REPRESENTATIVE WRIGHT objected.
REPRESENTATIVE CARRICK explained that Amendment 2 would reduce a
barrier to entry for small businesses by waving the business
license fee for first time applicants.
3:18:53 PM
The committee took a brief at-ease at 3:18 p.m.
3:19:13 PM
A roll call vote was taken. Representatives Ruffridge and
Carrick voted in favor of Amendment 2. Representatives Prax,
Wright, Fields, Saddler, and Sumner voted against it.
Therefore, Amendment 2 failed to be adopted by a vote of 2-5.
3:20:38 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 289, as amended, out
of committee with individual recommendations and the
accompanying zero fiscal note. There being no objection, CSHB
289(L&C) was reported out of the House Labor and Commerce
Standing Committee.
SB 89-AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
3:21:10 PM
CHAIR SUMNER announced that the next order of business would be
CS FOR SENATE BILL NO. 89(FIN), "An Act relating to tobacco,
tobacco products, electronic smoking products, nicotine, and
products containing nicotine; raising the minimum age to
purchase, exchange, or possess tobacco, a product containing
nicotine, or an electronic smoking product; relating to the
tobacco use education and cessation fund; relating to the
taxation of electronic smoking products and vapor products; and
providing for an effective date."
3:23:46 PM
SENATOR GARY STEVENS, Alaska State Legislature, as prime
sponsor, presented CSSB 89(L&C). He paraphrase the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
Senate Bill 89 proposes two key policies: 1) to align
state law with federal law in raising the minimum age
to buy, sell or possess tobacco and electronic smoking
products (ESP's) from age 19 to 21; and 2) to
establish a sales tax for ESP's.
In December 2019, Congress passed and the President
signed into law a provision raising the age of sale
for all tobacco, nicotine and ESP products to age 21
nationally *with no exceptions*.
Preventing illegal vendor sales is a critical part of
the overall effort to prevent and reduce youth
smoking. Alaska has an active underage sales
enforcement program which has been effective in
reducing sales of smoking products to minors. Updating
Alaska statutes from 19 to 21 to mirror the federal
minimum age of sale of these products will allow our
state enforcement program to be effective.
The latest "Tobacco Facts 2022 Update" issued by the
Alaska Dept. of Health, Division of Public Health
shows an increasing trend among young Alaskans in high
school, indicating 26% of the statewide population as
active users of ESPs in 2019 alone, and 46% of
students having "tried" ESPs. Those statewide figures,
along with national ones, are projected to have grown
substantially since then.
Despite claims that e-cigarettes help adults quit
smoking, or offer adults a "safe" alternative to
smoking tobacco, ESPs are under-regulated and have not
been found by the Food and Drug Administration (FDA)
to be effective in helping smokers actually quit, let
alone to be legitimately "safe." Nearly all e-
cigarettes contain some amount of nicotine, and some
contain as much or more nicotine as a pack of
cigarettes. It is not yet known with any certainty
what other compounds these vapor products are
delivering into users' airways, let alone the long-
term effect these products have on human health.
Meanwhile, taxes have been proven to reduce youth
tobacco use, resulting in fewer kids becoming life-
long smokers, and thus ultimately reducing healthcare
costs. In addition to deterring kids from beginning to
use these products, taxes help adults who actually
want to quit, do so.
Thank you for your consideration of this important
piece of legislation.
3:27:03 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, gave a PowerPoint presentation, entitled "Senate
Bill 89 Restricting Youth Access To Tobacco and E-Cigarettes,"
on behalf of Senator Stevens, prime sponsor. He began on slide
2, which featured prominent e-cigarette marketing that
predominantly targets youth. He noted that to date, e-cigarette
marketing has gone unregulated. Slide 3 displayed examples of
e-cigarette marketing on social media sites like Instagram and
YouTube. Slide 4 showed photos of e-cigarette confiscations
from Alaska schools. School administrators have reported that
the problem is increasing and pervasive. He said smoking is
happening in bathrooms, school buses, and even classrooms
themselves due to the discrete nature of the devices. Slide 5
featured examples of various disposable vaping products and
pricing. He concluded on slide 6, which showed a photo of the
infamous "Waxman Hearings" in which CEOs of the major U.S.
cigarette manufacturers appeared before Congress and swore under
oath that their products were neither addictive nor harmful to
human health.
3:33:11 PM
The committee took a brief at-ease at 3:33 a.m.
3:34:27 PM
CHAIR SUMNER opened invited testimony on CSSB 89(L&C).
3:35:25 PM
APRIL SCOTT, Administrator, West Valley High School, gave
invited testimony on CSSB 89(L&C). She emphasized the
pervasiveness of e-cigarettes and characterized the ease at
which students can obtain these devices as embarrassing and
scary. She expressed concern about the addictive nature of e-
cigarettes and pointed out the nicotine devices are
interchangeable with tetrahydrocannabinol (THC) liquid. She
added that kids would be expelled if progressive discipline
tactics were implemented because of the frequency of use. She
implored the committee to help fix this issue even if it's not
with SB 89.
3:40:49 PM
LENA EDAIS, Student, Diamond High School, gave invited testimony
on CSSB 89(L&C). She shared a personal anecdote about her
experience at Diamond High School and how it has been affected
by peer e-cigarette use. She noted the addictive nature and
accessibility of these devices. She said raising the age limit
and adding a tax would lower the accessibility of these products
resulting in fewer kids becoming addicted to e-cigarettes. She
said she's seen e-cigarettes be a gateway to other substances
and asked the committee members to do their part.
3:46:24 PM
LEON BRIDGES, General, National Guard Bureau, gave invited
testimony on CSSB 89(L&C). He said he supports the bill to keep
the U.S. military in Alaska from working in contrary to federal
requirements and prohibiting members from procuring tobacco
products on military bases under the age of 21. He highlighted
the health and societal concerns that are directly linked to
smoking and reiterated his support for the bill.
3:48:00 PM
NANCY MEADE, General Counsel, Office of the Administrative
Director, Alaska Court System (ACS), informed the committee that
she was available for questions pertaining to enforcement.
3:48:41 PM
REPRESENTATIVE SADDLER asked Ms. Meade how important it is for
the Department of Law (DOL) to enforce tobacco age limits.
MS. MEADE reported that the number of cases pertaining to
tobacco possession by minors ranges from 30-80 per year, which
does not have a significant impact on the court's caseload.
REPRESENTATIVE SADDLER asked whether law enforcement would
tackle [tobacco and e-cigarettes] similar to other illegal
substances by going after suppliers.
MS. MEADE clarified that the court system is the "end of the
road." She said the bill includes provisions that allow the
issuance of citations to those who negligently sell nicotine or
vape products to minors.
TIM LAMKIN added that the bill would apply existing law on
tobacco and cigarettes to e-cigarettes as well.
3:51:24 PM
CHAIR SUMNER announced that CSSB 89(L&C) would be held over.
HB 285-MAMMOGRAMS: INSURANCE COVERAGE
3:53:17 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 285 "An Act relating to insurance; relating to
mammograms; and providing for an effective date."
3:53:38 PM
REPRESENTATIVE FIELDS, as prime sponsor, presented HB 285. He
said the bill would eliminate financial barriers necessary for
diagnostic breast imaging to detect and treat early-stage breast
cancer. He defined "screening mammograms" as routinely
performed to detect breast cancer in patients without symptoms
and designed to be unform throughout the country for consistent
standards of treatment. He paraphrased the sponsor statement
[included in the committee packet], which read as follows
[original punctuation provided]:
Breast cancer is both the most frequently diagnosed
and the second deadliest cancer among women in Alaska.
One in eight women will be diagnosed with breast
cancer in their lifetime, but when detected early,
breast cancer can be successfully treated. Screening
mammograms are covered under the Affordable Care Act
(ACA) as a preventative procedure, but diagnostic
imaging to help diagnose cancer is subject to cost
sharing (co-pay and deductible), costing patients
hundreds to thousands of dollars.
A study published by the Radiology Society of North
America found that these costs excluded some 21% of
patients who need supplemental testing following an
abnormal mammogram. Excluding patients from testing
increases the likelihood that cancers are not treated
early, risking harm to Alaskans, at higher costs for
employer-sponsored plans. This cost sharing
requirement exacerbates healthcare access disparities
in lower- and middle-income patients, who may be
insured, but are unable to afford additional testing.
Early detection of breast cancer is crucial for
survivability. This legislation would provide greater
access to care, ensure prompt diagnosis of breast
cancer, and reduce the overall cost to the patient and
the health care system.
3:56:51 PM
COURTNEY OWENS, Staff, Representative Zack Fields, Alaska State
Legislature, on behalf of Representative Fields, prime sponsor,
presented the sectional analysis for HB 285 [included in the
committee packet], which read as follows [original punctuation
provided]:
Section 1: Amends AS 21.42.375(e) to define
"diagnostic breast examination" and "supplemental
breast examination" and offers guidelines for the
basis of additional testing.
Section 2: Adds a new subsection to AS 21.42.375
guaranteeing that mammography screening, diagnostic
breast examinations, and supplemental breast
examinations are covered by applicable insurance
plans, with the exception of high deductible health
plans that are eligible for a health savings account
tax deduction.
Section 3: Amends the law of the State of Alaska by
applying Sec. 1 and Sec. 2 to an insurance policy or
contract on or after the effective date of the law.
Section 4: Amends the law of the State of Alaska to
allow the Division of Insurance to adopt regulations
necessary to implement this act under AS 44.62.
Section 5: Section 4 take effect immediately under AS
01.10.070(c).
Section 6: This Act takes effect January 1, 2025.
3:58:15 PM
REPRESENTATIVE SUMNER opened invited testimony on HB 285.
3:58:28 PM
KRISTEN SMITH, Regional State Policy & Advocacy Manager,
Northwest, Susan G. Komen Breast Cancer Foundation, gave invited
testimony in support of HB 285 and explained how the bill would
interact with the state's current healthcare system. She said
HB 285 would impact people with commercial health insurance
regulated by the state. It would not require coverage but
prohibits cost sharing for existing coverage. She explained
that women and men skip diagnostic tests for breast cancer
because they can't afford them even with insurance. She
reported that late diagnoses lead to higher costs and worse
health outcomes. Breast cancer diagnosed at stage 1 has a 99
percent survivability rate, whereas stage 4 breast cancer can be
treated, but is almost always eventually terminal. Getting
patients diagnosed earlier would bridge the gap, she said.
Today, who survives breast cancer too often depends on a
person's income, location, and race. HB 285 posits that all
patients should benefit from testing and early diagnosis. She
acknowledged that the bill would raise premiums; however, she
shared her belief that mammograms save more in long-term
healthcare costs than they cost in the short term.
4:02:47 PM
REPRESENTATIVE PRAX asked why the insurance companies are not
engaging in this voluntarily.
4:03:20 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Revenue (DOR), said under current statutes, insurers must cover
entry mammograms; however, further testing is not included
without copays.
REPRESENTATIVE FIELDS estimated that roughly 1,500 individuals
are unable to get diagnostic screenings due to the cost
prohibitive nature of mammograms.
REPRESENTATIVE PRAX said he does not dispute the statistics;
however, maintained his confusion as to why the state has to
enforce this if it's a known cost saving measure in the long
run.
REPRESENTATIVE FIELDs said he did not know the answer.
4:05:38 PM
REPRESENTATIVE SADDLER sought to confirm that currently, private
insurers must cover mammography and the patient is responsible
for the copay.
MS. WING-HEIER answered yes. In response to a series of
questions from Representative Saddler, she confirmed that the
state does not require insurance companies to provide coverage
for supplemental exams. She defined "other factors" that may
increase the risk of breast cancer as lifestyle aspects, such as
smoking, and genetic traits.
REPRESENTATIVE SADDLER suggested scoping the bill more finely to
define "other factors."
MS. SMITH said "other factors" is not defined. Generally,
"supplemental" is composed of three factors: first degree
relative with breast cancer; genetic tie to breast cancer; or a
previous breast cancer survivor.
4:09:13 PM
REPRESENTATIVE PRAX restated his question, asking why insurance
companies haven't done this voluntarily if it would save costs
in the long term.
MS. SMITH said insurance companies don't dispute that this
treatment would help with diagnosis and treatment; however, they
have concerns about the "slippery slope" that may arise if they
are asked to repeat this process for other diseases.
4:10:23 PM
REPRESENTATIVE SADDLER asked how many Alaskans are covered by
private insurance versus public.
MS. WING-HEIER estimated that no more than 15 percent of
Alaska's population are covered by private insurance.
REPRESENTATIVE SADDLER asked whether public insurance programs
cover the supplemental and diagnostic breast examinations as
defined in HB 285.
MS. WING-HEIER shared her understanding that the bill does not
extend beyond the regulated plans under Title 21.
REPRESENTATIVE SADDLER sought to confirm that the bill excludes
85 percent of Alaskans.
REPRESENTATIVE FIELDS said he would welcome bringing in Emily
Ricci to discuss the state plan.
4:12:35 PM
CHAIR SUMNER announced that HB 285 would be held over.
HB 203-PAYMENT OF WAGES; PAYROLL CARD ACCOUNT
4:12:37 PM
CHAIR SUMNER HOUSE announced that the next order of business
would be HOUSE BILL NO. 203, "An Act relating to wage payments."
4:13:04 PM
CLARK BICKFORD, Staff, Representative Jesse Sumner, Alaska State
Legislature, on behalf of Representative Sumner, prime sponsor,
presented HB 203. He paraphrased the bill's sponsor statement
[included in the committee packet], which read as follows
[original punctuation provided]:
Prior to the modern era, all payroll in private sector
employment was conducted by traditional means, that is
paying employees either in actual currency or with a
paper paycheck delivered or mailed to an individual
employee on payday. With time and modern technology
advancements, many private employers and government
entities have moved to electronic deposit, or
electronic funds transfer, for paying their employees.
In Alaska, current law does not permit an employer to
select an electronic payroll deposit system unless and
until every employee specifically elects to be paid
electronically. In other words, an employer who wishes
to move the company to electronic wage payment may not
be permitted to do so. Any given employer may have
very good business reasons to switch the company's
payroll system, including, business efficiency, cost-
savings, environmental concerns about excess paper
usage, or security of wage payment transactions.
Those employers in the private sector who elect to
move to an electronic payment system should be
entitled to do so. That decision rests with the
employer, as with any of the many work-related
conditions of employment (choice of uniform; work
hours and scheduling; conduct on the job; job duties
and goals; leave time; vacation allowances; etc.
etc.). The choice for an employer to pay employees via
electronic means is no different, and should be
permitted, if the employer so chooses.
Note that nothing in the proposed legislation would
require an employer to switch to electronic payment of
wages. It would simply authorize that decision, if the
employer elects to do so. Any employer who wishes to
continue paying employees with traditional paper
paycheck methods may still do so.
Should an employee either not have a bank account or
prefer an alternative to electronic funds transfer,
that employee could elect to be paid via payroll card
instead. That payroll card would be issued under a
Visa or Mastercard partner, and would operate just
like an ATM card, now accepted in lieu of cash almost
universally. The payroll card is FDIC-insured, and
secure for the employee receiving payments in this
way.
4:15:21 PM
MR. BICKFORD began a sectional analysis of HB 203 [included in
the committee packet], which read as follows [original
punctuation provided]:
Section 1. This section amends AS 23.10.040(a) to
require employers to pay wages or other compensation
with lawful money of the United States or with
negotiable checks, drafts, or orders payable upon
presentation without discount by a bank or depository
inside the state.
Section 2. This section adds a new section to AS 23.10
to allow employers to pay wages by credit to a payroll
card account if the employee has voluntarily
authorized the credit or has not authorized deposit of
the employee's wages under AS 23.10.043. The section
also requires employers to notify employees of their
wage payment options, the payroll card terms and
conditions, and the fees associated with using a
payroll card account. Additionally, the section
requires payroll card accounts to provide employees
with at least one cost-free withdrawal each week or
pay period, and an unlimited cost-free mechanism to
check the payroll card account balance. Finally, the
section prohibits employers from offering payroll card
accounts that charge fees for certain activities and
requires that wages credited to payroll card accounts
be insured on a pass-through basis to the employee.
4:16:38 PM
CHAIR SUMNER said the committee would hear invited testimony
from Dan Lewis.
4:16:49 PM
DAN LEWIS, Vice President, Compliance Programs and Government
Affairs, ADP, gave testimony in support of HB 203. He said the
bill would benefit employers from a payroll management and
expense perspective, while also providing significant benefits
to employees. To be clear, he said, nothing in the bill would
prevent employees from continuing to receive pay from direct
deposit, and employers could offer paper paychecks. Further,
the bill would protect the right to collective bargaining
arrangements and would not impact regulation for payment of
wages to state employees. He explained that advances in
technology have improved how employees can be paid more timely,
consistently, and securely. He elaborated on the benefits of
electronic payment.
4:20:38 PM
REPRESENTATIVE SADDLER asked what ADP is and what the company
does.
MR. LEWIS said Automatic Data Processing (ADP) is a human
capital management company that specializes in payroll.
4:21:27 PM
REPRESENTATIVE FIELDS asked about the basic logistics of payroll
cards and whether the deposits are insured by the Federal
Deposit Insurance Company (FDIC).
MR. LEWIS said that the cards operate similar to any other debit
or Visa card and are independent from the employee's bank
account. The cards are directly funded with the full amount of
pay, which can then be transferred to a bank account or used to
pay off a credit card. He noted that the payroll cards can be
used anywhere that accepts debit or credit cards and there are
no transaction fees. He assured Representative Fields that the
cards are FDIC insured.
REPRESENTATIVE FIELDS questioned the percentage of employees
that use payroll cards versus direct deposit in other states.
MR. LEWIS said he did not have those statistics.
4:23:20 PM
REPRESENTATIVE SADDLER asked whether the payroll card would
allow employees to view how much of their pay has been withheld
for various purposes and other deductions.
MR. LEWIS said yes, employees can access an electronic portal
that provides access to the same information that's available on
a paper paycheck.
4:24:37 PM
CHAIR SUMNER announced that HB 203 would be held over.
HB 290-CERT. OF FITNESS: PLUMBERS/ELECTRICIANS
4:24:49 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 290, "An Act relating to the issuance of
certificates of fitness for plumbers and electricians; relating
to fees for certificates of fitness for plumbers and
electricians; and providing for an effective date."
4:25:02 PM
CHAIR SUMNER opened public testimony on HB 290. After
ascertaining that there was no one who wished to testify, he
closed public testimony.
CHAIR SUMNER announced that HB 290 would be held over.
4:25:50 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:25 p.m.