04/03/2024 06:00 PM House WAYS & MEANS
| Audio | Topic |
|---|---|
| Start | |
| HB109 | |
| HB277 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 277 | TELECONFERENCED | |
| *+ | HB 381 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 109 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON WAYS AND MEANS
April 3, 2024
6:04 p.m.
DRAFT
MEMBERS PRESENT
Representative Ben Carpenter, Chair
Representative Jamie Allard
Representative Tom McKay
Representative Kevin McCabe
Representative Cathy Tilton
Representative Andrew Gray
Representative Cliff Groh
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 109
"An Act reducing the corporate net income tax rate; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 277
"An Act relating to occupational licensing; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 109
SHORT TITLE: REDUCE CORP. NET INCOME TAX RATE
SPONSOR(s): REPRESENTATIVE(s) CARPENTER
03/13/23 (H) READ THE FIRST TIME - REFERRALS
03/13/23 (H) W&M, FIN
03/22/23 (H) W&M AT 6:00 PM DAVIS 106
03/22/23 (H) Scheduled but Not Heard
03/27/23 (H) W&M AT 6:00 PM DAVIS 106
03/27/23 (H) Heard & Held
03/27/23 (H) MINUTE(W&M)
04/12/23 (H) W&M AT 6:00 PM DAVIS 106
04/12/23 (H) Heard & Held
04/12/23 (H) MINUTE(W&M)
04/25/23 (H) W&M AT 6:00 PM DAVIS 106
04/25/23 (H) Heard & Held
04/25/23 (H) MINUTE(W&M)
04/26/23 (H) W&M AT 6:00 PM DAVIS 106
04/26/23 (H) <Bill Hearing Canceled>
05/12/23 (H) W&M AT 6:00 PM DAVIS 106
05/12/23 (H) Scheduled but Not Heard
02/26/24 (H) W&M AT 6:00 PM DAVIS 106
02/26/24 (H) Scheduled but Not Heard
04/03/24 (H) W&M AT 6:00 PM DAVIS 106
BILL: HB 277
SHORT TITLE: LICENSING RECIPROCITY; FEES
SPONSOR(s): WAYS & MEANS
01/18/24 (H) READ THE FIRST TIME - REFERRALS
01/18/24 (H) W&M, L&C, FIN
03/20/24 (H) W&M AT 6:00 PM DAVIS 106
03/20/24 (H) -- MEETING CANCELED --
03/27/24 (H) W&M AT 6:00 PM DAVIS 106
03/27/24 (H) <Bill Hearing Canceled>
04/03/24 (H) W&M AT 6:00 PM DAVIS 106
WITNESS REGISTER
DONNA ARDUIN, Staff
Representative Ben Carpenter
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Carpenter,
prime sponsor, gave a sectional analysis on HB 277.
SYLVAN ROBB, Director
Division of Corporation Business Professional Licensing
Juneau, Alaska
POSITION STATEMENT: Answered Committee Member's questions
during hearing on HB 277.
ACTION NARRATIVE
6:04:29 PM
CHAIR BEN CARPENTER called the House Special Committee on Ways
and Means meeting to order at 6:04 p.m. Representatives Groh,
Allard, Gray, Tilton, McCabe, McKay, and Carpenter were present
at the call to order.
HB 109-REDUCE CORP. NET INCOME TAX RATE
6:05:09 PM
CHAIR CARPENTER announced that the first order of business would
be HOUSE BILL NO. 109 "An Act reducing the corporate net income
tax rate; and providing for an effective date." [Before the
committee, adopted as a working document on 4/12/23, was the
proposed committee substitute (CS) for HB 109, Version 33-
LS0376\B, Nauman, 4/12/23.]
6:05:52 PM
REPRESENTATIVE MCCABE moved to adopt the original bill version
for HB 109. There being no objection, once again before the
committee was HB 109.
CHAIR CARPENTER announced that HB 109 was held over.
HB 277-LICENSING RECIPROCITY; FEES
6:06:26 PM
CHAIR CARPENTER announced that the final order of business would
be HOUSE BILL NO. 277 "An Act relating to occupational
licensing; and providing for an effective date."
6:07:05 PM
REPRESENTATIVE MCCABE moved to adopt the proposed committee
substitute (CS), for HB 277, Version 33-LS0905\B, Gunther,
3/7/24, as a working document. There being no objection, Version
B was before the committee.
6:08:06 PM
CHAIR CARPENTER, as prime sponsor, gave a few opening remarks,
saying that HB 277 Version B would require housing licenses to
cost no more in Alaska than in other states and would create
universal licensing reciprocity with other states. He said the
cost of a housing license is higher than other occupations in
other states. He said HB 277 would eliminate licensing
requirements for certain professions. He said it would be
beneficial for out-of-state licensed workers coming to Alaska.
He said that the state is currently keeping workers from working
through a burden of licensing, and that HB 277 Version B is the
first step towards remedying that.
6:09:56 PM
DONNA ARDUIN, Staff, Representative Ben Carpenter, Alaska State
Legislature, on behalf of Representative Carpenter, prime
sponsor, gave a sectional analysis on HB 277 Version B. She
began her sectional analysis on Section 2, Which would affect
the centralized licensing statute currently governing licensing
in Alaska. She said there are a few exceptions to universal
reciprocity, those being federal licenses. She moved to section
9 of the Sectional analysis of CSHB 277, which said that it
would remove the licensing requirements for construction and
carpenter's jobs. She continued to section 13, which removed
collection agencies from statute. She touched on section 29 and
38, which removed optometrists licensing and the taxidermy
licensing. She continued section 52, which said that a person
holding a license under current reciprocity credentials would be
allowed to retain that license under a given date by the bill.
She said the rest of the bill is conforming language.
6:14:29 PM
The committee took an at-ease from 6:14 p.m. to 6:14 p.m.
6:14:57 PM
MS. ARDUIN began a PowerPoint presentation [hardcopy included in
the committee packet.]. The first two slides explain that
reducing state level licensure may be among the lines of easiest
fixes to bring more workers to Alaska. She said that it would
take a multi- faceted approach to recruit and retain workers in
the state of Alaska. She said that currently, there are a
particular amount of lower income and entry level jobs that
require licensing which deters workers. She said that HB 190 is
a good pair to HB 277 because it would immediately remove the
cost and time burden of licensing.
6:19:02 PM
REPRESENTATIVE GROH asked if there was a fiscal note associated
with HB 277 Version B.
CHAIR CARPENTER directed the question to Sylvan Robb.
6:19:38 PM
SYLVAN ROBB, Director, Division of Corporation Business
Professional Licensing (DCBPL), Department of Commerce,
Community, and Economic Development (DCCED), in response to
Representative Groh, explained that there is a fiscal note
posted for the original version of the bill, but there is not
one for the CS that was adopted in committee today. She said the
original fiscal note was not conclusive.
6:20:42 PM
REPRESENTATIVE TILTON asked how many licensures are in the state
of Alaska currently and how many would be removed by this
legislation. She further inquired whether the backlogs on
licenses are up to date, and if the high costs of investigation
are included in HB 277 Version B.
6:22:09 PM
MS. ROBB responded that currently the division only licenses
professions as allowed under current statute, and that it does
not license certain professions that would be covered under HB
277 Version B.
6:23:22 PM
CHAIR CARPENTER asked Ms. Robb to explain the difference between
a professional license and an occupational license.
MS. ROBB explained that though the terms are used
interchangeably, they are not the same. She added that
occupational licenses include trades.
CHAIR CARPENTER, in response to Representative Tilton's previous
question about how many occupations would be affected by HB 277,
asked Ms. Robb if she'd had a chance to make an assessment on
that.
MS. ROBB said that a few occupations would be affected, but some
are in a bit of a gray area with what would happen to their
licensing.
6:25:16 PM
REPRESENTATIVE TILTON reiterated her question about the backlog
of renewal of licensures and whether those backlogs have been
brought up to date.
MS. ROBB replied that DCBPL is doing much better with the
licensure backlog, and that the pandemic greatly impacted its
ability to review and issue licenses. She said that wait times
have greatly improved since then.
CHAIR CARPENTER asked if there is still a backlog of applicants.
MS. ROBB said that the question is hard to answer because
licenses take some time to process. The division runs 45
different licensing programs that each have their own
denominations and tiers of licensing and professions.
6:28:51 PM
CHAIR CARPENTER asked how many of the current licensees are able
to work during their license's adjudication process.
MS. ROBB answered that the majority of professions that require
licensure aren't able to work until they are licensed. She said
some professions, such as nursing, allow for a temporary license
to work while their permanent license is being processed and
they are working to meet full requirements.
6:30:42 PM
CHAIR CARPENTER asked what the number of temporary licenses in
Alaska currently is.
MS. ROBB replied that there are only temporary license options
for professions where the time to process and obtain a license
is longer than standard.
6:31:50 PM
REPRESENTATIVE TILTON asked if the professions with high costs
of investigations were to be eliminated, how much money would be
saved.
MS. ROBB answered that DCBPL can get Representative Tilton that
figure in the future. She added that usually, a higher cost of
licensing is directly related to the high cost of investigation.
6:34:22 PM
REPRESENTATIVE ALLARD asked if there was a waiting list on
military spouses' licenses.
MS. ROBB said in the previous legislature, a bill was passed
that created temporary military licenses for a multitude of
professions. She said in January 2023, the Federal Government
passed a law about military spouses, and that the language in
federal statue is contained in the governor's bill. She said in
the meantime there is a place on DCBPL's website to reach out to
the division directly to get a license processed on an expedited
basis.
6:37:10 PM
REPRESENTATIVE ALLARD asked if there is a waiting list for any
military spouse waiting to be licensed.
MS. ROBB answered that there are currently no military spouses
on the waiting list.
REPRESENTATIVE ALLARD asked if the license would take less than
30 days to get.
MS. ROBB confirmed that is correct and emphasized that there is
no one currently waiting for a military spouse's license.
6:38:41 PM
REPRESENTATIVE MCCABE asked how many people would investigate
complaints and issues with a license holder and who would
enforce the license holder's compliance.
MS. ROBB said that the DCCED and Department of Labor and
Workforce Development (DLWD) partner together, but their
investigation unit works on a complaint basis with regards to
unlicensed practices.
6:40:23 PM
REPRESENTATIVE MCCABE asked how many people are currently
working in the investigation unit [of DCCED or DLWD].
MS. ROBB said there are currently 21 certified investigators,
and 5 additional paralegals employed by the investigation unit
[of DCCED or DLWD].
6:41:03 PM
REPRESENTATIVE GRAY asked why the state wouldn't want to license
collection agents if the current application and process to get
licensed as a collection agent is fair and understandable.
MS. ARDUIN referenced the sectional analysis and said that
collection agencies were chosen to be removed on the bill
because 20 other states don't have a licensing requirement for
it.
CHAIR CARPENTER pondered what value it is for the state to ask
the same question that a business owner should ask.
REPRESENTATIVE GRAY said that the employer must also assert
their moral character to become a collection agent, and asked if
it would be the intent to move the responsibility from the state
to municipalities and boroughs.
6:46:10 PM
CHAIR CARPENTER said the intention of the bill is not to shift
the costs to municipalities, but if the state no longer provides
the service of licensure, then municipalities should pay for the
service if they want it.
6:46:31 PM
REPRESENTATIVE TILTON asked how many entities a person would
have to go through to be able to go into business.
CHAIR CARPENTER deflected the question to Ms. Robb.
MS. ROBB said that she doesn't know how many different
municipalities require a business license, but a business
license is required in the state of Alaska per statute.
6:47:58 PM
REPRESENTATIVE TILTON remarked that there are an excessive
number of hoops to jump through.
6:48:55 PM
REPRESENTATIVE ALLARD commented that she is concerned about the
type of licensing that would be axed by the bill. She asked more
frankly if debt collectors will have to be licensed.
6:49:32 PM
MS. ARDUIN responded that any licensing requirements being
removed do not remove or affect any regulatory requirements, and
that the bill only addresses occupational licenses.
6:51:23 PM
REPRESENTATIVE GRAY asked what agency would make sure that a
hypothetical applicant to become a debt collector is not a
criminal if the license is eliminated.
MS. ARDUIN gave the question to Ms. Robb.
MS. ROBB said that because the DCBPL is funded by the fees of
licensees, it would deem those cases non jurisdictional and be
deferred to the Department of Law.
6:53:42 PM
REPRESENTATIVE TILTON thanked Ms. Arduin for her clarification
on the question of occupational licensing.
6:54:12 PM
REPRESENTATIVE ALLARD said she appreciates the clarification,
but she disagrees with removing the licensing requirement for
collection agencies.
6:55:32 PM
REPRESENTATIVE MCCABE said he thinks there should be a process
for vetting those who are already licensed.
REPRESENTATIVE ALLARD said her point is that someone could have
the ability to ask who someone is and vet them, and reiterated
concern over the proposed removal of he licensure.
MS. ARDUIN said that the bill raises the issue of what the value
of the license itself is.
6:57:46 PM
REPRESENTATIVE MCKAY asked about Section 25 of the sectional
analysis and offered to meet off the record about that part of
the bill.
MS. ARDUIN said that there would be a lot of language removed
under HB 277 Version B, because The universal reciprocity
statute would allow for universal reciprocity in certain
professions already defined in statute. She said HB 277 Version
B would add a universal reciprocity section to Title 8.
MS. ARDUIN, in response to Representative McKay, that any place
in statute where professions listed in the bill have some kind
of reciprocity is being eliminated and replaced by a universal
reciprocity section in HB 277 Version B.
7:01:01 PM
REPRESENTATIVE MCKAY said that it is especially difficult to
register as an engineer in Alaska. He highlighted that while an
Alaska engineer might have more steps to take, someone from out
of state could begin work in Alaska immediately because of
reciprocity. He also spoke on Section 51 of HB 277 Version B,
relating to hairstylists and barbers. He said that the costs of
the licenses and related education/training could be saved if
this licensure were to be eliminated by HB 277 Version B.
7:03:59 PM
REPRESENTATIVE GRAY said he supports removing unnecessary burden
on workers but he is concerned about the issue of collection
agents not being licensed.
CHAIR CARPENTER set an amendment deadline of April 8.
7:05:51 PM
REPRESENTATIVE GRAY asked if the following committee meeting
date was cancelled.
7:06:12 PM
The committee took an at-ease from 7:06 p.m. to 7:06 p.m.
7:06:33 PM
CHAIR CARPENTER clarified that the following committee meeting
was cancelled.
7:06:53 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Ways and Means meeting was adjourned at
7:06 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 277 Ver A.PDF |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| CS HB 277 Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Sectional Analysis Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Sponsor Statement Ver B.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB 277 Presentation.pdf |
HW&M 3/20/2024 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 277 |
| HB0109A.PDF |
HW&M 3/27/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM |
HB 109 |
| HB 109 Sectional analysis.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 109 Bill Sponsor Statement.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |
| HB 109 Presentation.pdf |
HW&M 3/22/2023 6:00:00 PM HW&M 4/3/2024 6:00:00 PM HW&M 4/15/2024 6:00:00 PM |
HB 109 |