04/08/2025 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
| Audio | Topic |
|---|---|
| Start | |
| HJR5 | |
| SB129 | |
| SB111 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 5 | TELECONFERENCED | |
| += | SB 129 | TELECONFERENCED | |
| += | SB 111 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE COMMUNITY AND REGIONAL AFFAIRS STANDING COMMITTEE
April 8, 2025
1:30 p.m.
MEMBERS PRESENT
Senator Kelly Merrick, Chair
Senator Forrest Dunbar, Vice Chair
Senator Elvi Gray-Jackson
Senator Robert Yundt
MEMBERS ABSENT
Senator Donald Olson
COMMITTEE CALENDAR
HOUSE JOINT RESOLUTION NO. 5
Urging the United States Congress and the President of the
United States to reinstate the Secure Rural Schools and
Community Self-Determination Act of 2000 and make the funding
mechanism in the Act permanent.
- MOVED HJR 5 OUT OF COMMITTEE
SENATE BILL NO. 129
"An Act establishing a 30-day deadline for the payment of
contracts under the State Procurement Code; establishing
deadlines for the payment of grants, contracts, and
reimbursement agreements to nonprofit organizations,
municipalities, and Alaska Native organizations; relating to
payment of grants to named recipients that are not
municipalities; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 111
"An Act relating to the diagnosis, maintenance, and repair of
products that use digital electronics to operate; adding an
unlawful act to the Alaska Unfair Trade Practices and Consumer
Protection Act; and providing for an effective date."
- MOVED CSSB 111(CRA) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HJR 5
SHORT TITLE: SECURE RURAL SCHOOLS PROGRAM
SPONSOR(s): REPRESENTATIVE(s) BYNUM
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) EDC
02/05/25 (H) EDC AT 8:00 AM DAVIS 106
02/05/25 (H) Heard & Held
02/05/25 (H) MINUTE(EDC)
02/12/25 (H) EDC AT 8:00 AM DAVIS 106
02/12/25 (H) Heard & Held
02/12/25 (H) MINUTE(EDC)
02/17/25 (H) EDC RPT 4DP
02/17/25 (H) DP: EISCHEID, ELAM, STORY, HIMSCHOOT
02/17/25 (H) EDC AT 8:00 AM DAVIS 106
02/17/25 (H) Moved HJR 5 Out of Committee
02/17/25 (H) MINUTE(EDC)
03/17/25 (H) TRANSMITTED TO (S)
03/17/25 (H) VERSION: HJR 5
03/18/25 (S) READ THE FIRST TIME - REFERRALS
03/18/25 (S) CRA
04/01/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
04/01/25 (S) Heard & Held
04/01/25 (S) MINUTE(CRA)
04/08/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 129
SHORT TITLE: PAYMENT OF CONTRACTS
SPONSOR(s): SENATOR(s) KAWASAKI
03/12/25 (S) READ THE FIRST TIME - REFERRALS
03/12/25 (S) CRA, L&C
04/01/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
04/01/25 (S) Heard & Held
04/01/25 (S) MINUTE(CRA)
04/08/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 111
SHORT TITLE: DIGITAL PRODUCT REPAIR
SPONSOR(s): SENATOR(s) DUNBAR
02/26/25 (S) READ THE FIRST TIME - REFERRALS
02/26/25 (S) CRA, L&C
03/11/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/11/25 (S) Heard & Held
03/11/25 (S) MINUTE(CRA)
03/25/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
03/25/25 (S) Heard & Held
03/25/25 (S) MINUTE(CRA)
04/08/25 (S) CRA AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
TREVOR SHAW, Staff
Representative Jeremy Bynum
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a brief overview of HJR 5.
ANJI GALLANOS, Superintendent
Kake City School District
Kake, Alaska
POSITION STATEMENT: Testified in support of HJR 5.
SENATOR SCOTT KAWASAKI, District P
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave a brief re-introduction to SB 129.
PAT BRANSON, representing self
Kodiak, Alaska
POSITION STATEMENT: Testified in support of SB 129.
MICHELE GIRAULT, Executive Director, Hope Community Resources
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 129.
DAVID WILSON, Director, Public Policy, Mat-Su Health Foundation
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 129.
SUSAN ANDERSON, Chief Executive Officer
Boys and Girls Clubs of Southcentral Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 129.
DEEPIKA RAMESH PERUMAL, Executive Director, Alaska Literacy
Program
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 129.
JEN GRIFFIS, Vice President
Policy and Advocacy
Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 129.
LAURIE MEAD, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 129.
TOM HIRATSUKA, Chief Financial Officer
Hope Community Resources
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 129.
SARAH HOLLISTER, Executive Director
United Way of the Tanana Valley
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 129.
ELIA PETERSON, Operations Director
Open Arms Child Development Center
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 129.
HAHLEN BEHNKEN, Intern
Senator Forrest Dunbar
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained proposed amendments to SB 111.
ACTION NARRATIVE
1:30:45 PM
Chair Merrick called the Senate Community and Regional Affairs
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Yundt, Dunbar, Gray-Jackson, and
Chair Merrick.
HJR 5-SECURE RURAL SCHOOLS PROGRAM
1:31:42 PM
CHAIR MERRICK announced the consideration of HOUSE JOINT
RESOLUTION NO. 5 Urging the United States Congress and the
President of the United States to reinstate the Secure Rural
Schools and Community Self-Determination Act of 2000 and make
the funding mechanism in the Act permanent.
1:32:03 PM
TREVOR SHAW, Staff, Representative Jeremy Bynum, Alaska State
Legislature, Juneau, Alaska, provided an overview of HJR 5,
which urges Congress and the President of the United States to
reauthorize the Secure Rural Schools and Community Self-
Determination Act of 2000. This program was in place from 2000 -
2023 and provided $12.6 million to Alaskan communities in FY
2023. The program went through 8 reauthorizations prior to its
expiration. He explained that the program requires congressional
reauthorization and presidential approval.
1:33:10 PM
CHAIR MERRICK opened public testimony on HJR 5.
1:33:31 PM
ANJI GALLANOS, Superintendent, Kake City School District, Kake,
Alaska, testified in support of HJR 5. She explained that Kake
receives approximately $200,000 annually through the SRS
program. This funding provides a critical portion of the State's
required local contribution for education; the loss of SRS
funding would significantly impact students and staff. She
emphasized that SRS funding is essential in Kake (and in other
small communities in Southeast Alaska). She explained that Kake
is surrounded by federal land and has little to no local tax
base. SRS funding offsets this imbalance and allows the school
district to meet its obligations to students without sacrificing
services. In addition, it enables the school district to provide
educational stability and consistent staffing, programs and
services for students. She stated that, in small rural
communities, minor funding shifts can have major consequences.
The SRS funding allows for greater budget predictability, which
creates the stability needed for responsible planning. She
reiterated that losing SRS funding would create substantial
difficulties that would impact students and staff.
1:35:27 PM
CHAIR MERRICK closed public testimony on HJR 5.
1:35:36 PM
CHAIR MERRICK solicited the will of the committee.
1:35:40 PM
SENATOR DUNBAR moved to report [HJR 5], work order 34-LS0420\A,
from committee with individual recommendations and attached zero
fiscal note(s) and authorize Legislative Legal Services to make
conforming changes.
1:35:59 PM
CHAIR MERRICK found no objection and HJR 5 was reported from the
Senate Community and Regional Affairs Standing Committee.
1:36:06 PM
At ease.
SB 129-PAYMENT OF CONTRACTS
1:38:24 PM
CHAIR MERRICK reconvened the meeting and announced the
consideration of SENATE BILL NO. 129 "An Act establishing a 30-
day deadline for the payment of contracts under the State
Procurement Code; establishing deadlines for the payment of
grants, contracts, and reimbursement agreements to nonprofit
organizations, municipalities, and Alaska Native organizations;
relating to payment of grants to named recipients that are not
municipalities; and providing for an effective date."
1:38:44 PM
SENATOR SCOTT KAWASAKI, District P, Alaska State Legislature,
Juneau, Alaska, gave a brief re-introduction to SB 129, which
would ensure that non-profit organizations, municipalities, and
Alaska Native organizations receive prompt payment parity with
other businesses (e.g. construction companies) that have
contractual agreements with the State of Alaska.
1:39:52 PM
CHAIR MERRICK opened public testimony on SB 129.
1:40:15 PM
PAT BRANSON, representing self, Kodiak, Alaska, testified in
support of SB 129. She provided a hypothetical situation to
illustrate the need for the State of Alaska to make timely
payments to non-profit organizations (non-profits). She
emphasized that some non-profits provide vital services to
Alaskans and cannot pause those services due to lack of payment.
She pointed out that the State of Alaska is required to make
timely payments to for-profit businesses; however, this
requirement does not extend to non-profits. She emphasized that
this is highly problematic and causes many difficulties for non-
profits. She stated that outstanding bills may be up to $100,000
for operations and over $200,000 for capital projects. She said
there is no state law requiring the State of Alaska to make
timely payments to non-profits. SB 129 would fix this problem.
1:42:26 PM
MICHELE GIRAULT, Executive Director, Hope Community Resources,
Anchorage, Alaska, testified in support of SB 129. She stated
that it is unfortunate that timely bill payment requires
legislation. She emphasized that this is a critical need for
non-profits that rely on state grants in order to provide
services. She briefly described the grant process, noting that
grant recipients must often wait up to 90 days to receive
payment for services previously provided. SB 129 would correct
this error. She shared that late payments have impacted Hope
Community Resources (requiring the organization to shift money
in order to pay staff) and have significantly disrupted smaller,
sister organizations.
1:43:47 PM
DAVID WILSON, Director, Public Policy, Mat-Su Health Foundation,
Wasilla, Alaska, testified in support of SB 129. He paraphrased
from the following written testimony:
[Original punctuation provided.]
The MSHF is deeply invested and dedicated to
supporting the health and well-being of our community,
and we recognize the critical importance of timely
payments for services rendered. SB 129 addresses a
significant issue that affects many nonprofit
organizations, municipalities, and Alaska Native
organizations, including those we fund and collaborate
with. The establishment of a payment deadline will
ensure that these entities receive the funds they need
to continue their vital work without unnecessary
delays.
Timely payments are essential for the financial
stability of nonprofit organizations. Delays in
payment can disrupt operations, hinder project
progress, and create financial strain. SB 129 will
help provide a reliable payment schedule, allowing
these entities to plan and execute their programs
effectively.
Our organization has witnessed firsthand the
challenges faced by nonprofit organizations,
municipalities, and Alaska Native organizations due to
delayed payments. Through our partnerships and
initiatives, we have worked tirelessly to support
these entities in their efforts to provide critical
services to our communities. The passage of SB 129
will provide much-needed support and resources to
amplify these efforts and create lasting, positive
change.
We believe that SB 129 is a necessary and beneficial
measure that will greatly improve the efficiency and
effectiveness of nonprofit organizations,
municipalities, and Alaska Native organizations. We
urge the legislature to pass this bill and support the
timely payment of contracts and grants.
Thank you for considering our perspective and for your
commitment to improving the financial stability and
operational efficiency of organizations that serve our
community.
1:45:59 PM
SUSAN ANDERSON, Chief Executive Officer, Boys and Girls Clubs of
Southcentral Alaska, Anchorage, Alaska, testified in support of
SB 129. While payments from the State of Alaska are currently
averaging 65 days, the Boys and Girls Club of Southcentral
Alaska has experienced payment delays of up to 150 days. She
said the shorter payment delay is the result of calling and
emailing to follow-up on payments. She emphasized that delayed
payments disrupt essential services for children, families, and
caregivers. She explained that late payments create severe
hardships, and the Boys and Girls Club of Southcentral Alaska
has been forced to take on debt. In addition, late payments
negatively affect planning and vendor payments. She emphasized
the importance of SB 129, which would ensure that organizations
providing vital services do not take on unnecessary financial
instability due to slow reimbursement from state agencies. She
stated that the Boys and Girls Club of Alaska is a grant-funded
non-profit and cannot pause services or commitments to staff and
vendors while waiting to receive payments from the State of
Alaska; however, this may be necessary if the delayed payments
continue.
1:48:34 PM
DEEPIKA RAMESH PERUMAL, Executive Director, Alaska Literacy
Program, Anchorage, Alaska, testified in support of SB 129. She
said the Alaska Literacy Program (ALP) relies on state funding
to keep classes running and to maintain support services. She
briefly discussed the impact of late payments, emphasizing that
ALP must stretch already limited resources. She explained that
ALP has chosen to forgo certain grants (for which the
organization is eligible) because of the financial strain late
payments cause. She stated that non-profits deserve timely
payments. She emphasized the importance of prompt, timely
payments, which create greater stability for non-profits across
the state.
1:50:55 PM
JEN GRIFFIS, Vice President, Policy and Advocacy, Alaska
Children's Trust, Anchorage, Alaska, testified in support of SB
129. She said this would strengthen Alaska's communities and
families by ensuring both state and federal funds are promptly
dispersed to non-profits, local governments, and tribal
organizations. She emphasized the many challenges that long
delays in payment cause and stated that timely payments are
essential for these organizations to execute state policy in an
efficient manner. This includes policies that protect and
support Alaska's children, youth, and families. She briefly
discussed the number of families who depend on public assistance
in Alaska, which is equal to 21 percent of Alaska's families
with children. She surmised that those families likely also
depend on services provided by non-profit, municipal, and tribal
organizations across the state. She listed the many programs
that have been negatively impacted by delayed payments,
including child care and domestic violence services, among
others. She emphasized the importance of these programs, which
play an important role in preventing child abuse and neglect.
She said SB 129 would support the organizations that provide
these services to Alaska's families.
1:52:58 PM
LAURIE MEAD, representing self, Kenai, Alaska, testified in
support of SB 129. She said she has been a licensed childcare
provider for 40 years. She said she has experienced 60-90 day
delayed payments. She emphasized that delayed payments mean she
is unable to pay staff and/or utility bills. She shared a
personal anecdote to illustrate how delayed payments have
impacted her business. She stated that timely payments for
completed work are necessary to keep Alaska running.
1:55:09 PM
TOM HIRATSUKA, Chief Financial Officer, Hope Community
Resources, Anchorage, Alaska, testified in support of SB 129. He
said Hope Community Resources (HCR) receives three operating
grants from the State of Alaska. During the previous fiscal year
(FY), while the grants started July 1, HCR did not receive
payment until October. During that time, HCR had to redistribute
funds (over $100,000) in order to pay staff and program costs.
He noted potential threats to future funding and reiterated
support for SB 129.
1:56:10 PM
SARAH HOLLISTER, Executive Director, United Way of the Tanana
Valley, Fairbanks, Alaska, testified in support of SB 129. She
said that United Way of the Tanana Valley manages a suicide
prevention and drug misuse grant for Fairbanks Wellness
Coalition. She stated that, in the first year of the grant, they
didn't receive payment until after the first quarter. This was
after reports were due and meant that the Fairbanks Wellness
Coalition (FWC) was not able to provide services for the first
quarter. She explained that because the FWC did not receive
payment for the first quarter, the grant amount was cut by the
amount they should have received during that time. She opined
that SB 129 is common sense and emphasized that small
organizations that do not have internal funding sources are
negatively impacted by delayed payments.
1:57:51 PM
ELIA PETERSON, Operations Director, Open Arms Child Development
Center, Fairbanks, Alaska, testified in support of SB 129. She
emphasized the importance of timely payments, which enable
businesses to cover financial responsibilities. She stated that
currently, 25 children who attend her facility receive child
care assistance. Delayed payments result in late fees and an
unpredictable budget.
1:59:34 PM
CHAIR MERRICK closed public testimony on SB 129.
2:00:00 PM
SENATOR KAWASAKI made closing comments pertaining to fiscal
notes. He directed attention to the fiscal note from the
Department of Health, [OMB Component Number 2665], which
estimates a cost of $150,000 to create a new position that would
ensure timely payments. This cost is based on prior contracts
and grants. He expressed hope that the Senate Finance Committee
would scrub excessive costs from the fiscal notes that accompany
SB 129. He then directed attention to the fiscal note from the
Department of Labor and Workforce Development, OMB Component
Number 340, which indicates that the department would make every
effort to change program processes to ensure prompt payments and
avoid any interest. He opined that this is ideal.
2:01:38 PM
[CHAIR MERRICK held SB 129 in committee.]
At ease.
SB 111-DIGITAL PRODUCT REPAIR
2:02:47 PM
CHAIR MERRICK reconvened the meeting and announced the
consideration of SENATE BILL NO. 111 "An Act relating to the
diagnosis, maintenance, and repair of products that use digital
electronics to operate; adding an unlawful act to the Alaska
Unfair Trade Practices and Consumer Protection Act; and
providing for an effective date."
2:03:05 PM
SENATOR DUNBAR, speaking as sponsor, said SB 111 allows Alaskans
to fix products that contain digital electronics. He noted
feedback from various industries and said some of that feedback
has been incorporated into amendments.
2:03:47 PM
CHAIR MERRICK solicited a motion.
2:03:48 PM
SENATOR DUNBAR moved to adopt Amendment 1, work order 34-
LS0560\N.2.
34-LS0560\N.2
Bullard
3/26/25
A M E N D M E N T 1
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 111
Page 1, line 11:
Delete "AS 45.45.800 - 45.45.890"
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Insert a new section to read:
"Sec. 45.45.890. Exemptions. (a) The
provisions of AS 45.45.800 - 45.45.899 do not
apply to
(1) a digital product that is a
medical device intended for use in the diagnosis
of disease or other conditions, or in the cure,
mitigation, treatment, or prevention of disease,
in humans or animals;
(2) the diagnosis, maintenance, or
repair of a digital product that is a motor
vehicle or a part for a motor vehicle.
(b) In this section, "medical device" has
the meaning given to "device" in 21 U.S.C.
321(h)(1)."
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2:03:59 PM
CHAIR MERRICK objected for purposes of discussion.
2:04:04 PM
SENATOR DUBAR deferred to his staff to explain Amendment 1.
2:04:22 PM
HAHLEN BEHNKEN, Intern, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, said that [Amendment 1] creates an
exemption for medical devices. This exemption was requested by
the medical device industry. He explained that there is no
demand for the general public and/or independent service
providers to repair medical devices such as pacemakers and other
complex medical devices. He noted their sensitive nature and the
complex regulations around these devices and opined that there
is no reason to provide a right to repair them.
2:05:12 PM
CHAIR MERRICK removed her objection. She found no further
objection and Amendment 1 was adopted.
2:05:18 PM
CHAIR MERRICK solicited a motion.
2:05:21 PM
SENATOR DUNBAR moved to adopt Amendment 2, work order 34-
LS0560\N.5.
34-LS0560\N.5
Bullard
4/4/25
A M E N D M E N T 2
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 111
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Insert "AS 45.45.800 - 45.45.899"
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"Sec. 45.45.820. Parts pairing prohibited.
(a) A digital product manufacturer may not use
parts pairing software or another technology that
(1) prevents or inhibits an
independent service provider or owner of a
digital product from installing and enabling a
functional replacement part or component that the
digital product manufacturer has not approved;
and
(2) if a functional replacement part
or component for a digital product that has not
been approved by the digital product manufacturer
is installed or otherwise enabled,
(A) reduces the functionality or
performance of the product; or
(B) causes the product to display
misleading alerts or warnings that the owner
cannot immediately dismiss.
(b) Nothing in this section requires a
digital product manufacturer to make available to
a person special documentation, tools, parts,
electronic programs, or other devices that
disable or override anti-theft or privacy
security measures that are activated, installed,
or otherwise enabled by an owner of a digital
product."
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2:05:24 PM
CHAIR MERRICK objected for purposes of discussion.
2:05:29 PM
MR. BEHNKEN explained that Amendment 2 prohibits parts pairing -
a practice in which digital product manufacturers will use
software tools to bind certain parts together. Parts pairing
requires the use of specific parts to ensure full functionality.
He offered an example to illustrate this. He explained that this
practice prevents anyone except the manufacturer from making
repairs to the device. He stated that banning this practice
creates more avenues for quality repair.
2:06:30 PM
SENATOR DUNBAR added that SB 111 is complex and involved
discussions with national advocacy organizations and
manufacturers. He commented that Amendment 2 is the least
controversial part of SB 111, as most of the manufacturers he
spoke to were in support of this change.
2:07:06 PM
MR. BEHNKEN replied that this is correct.
2:07:09 PM
CHAIR MERRICK removed her objection. She found no further
objection and Amendment 2 was adopted.
2:07:16 PM
CHAIR MERRICK solicited a motion.
2:07:17 PM
SENATOR DUNBAR moved to adopt Amendment 3, work order 34-
LS0560\N.6.
34-LS0560\N.6
Bullard
4/8/25
A M E N D M E N T 3
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 111
Page 3, line 8, following "equipment":
Insert "or powersports equipment"
Page 5, following line 16:
Insert a new paragraph to read:
"(10) "powersports equipment"
(A) includes an all-terrain vehicle,
a personal watercraft, snowmobile, or similar
vehicle or craft, and attachments and repair
parts for powersports equipment;
(B) does not include a motor vehicle
required to be registered under AS 28.10;"
Renumber the following paragraph accordingly.
2:07:23 PM
CHAIR MERRICK objected for purposes of discussion.
2:07:25 PM
MR. BEHNKEN said that [Amendment 3] adds a provision protecting
dealers and authorized service providers of powersports
equipment. He said SB 111 includes a provision protecting farm
equipment dealers and authorized service providers. Amendment 3
extends the same provision to powersports equipment. He said
there is a commonality between these industries, in both the
products they provide and their business model. He explained
that in these industries, nearly all business is conducted
through a network of dealers (rather than manufacturer to
consumer). He noted feedback from dealers (and the largest
feedback from Alaskans) related to supplying parts to equipment
owners and independent service providers at wholesale prices.
This would require dealers to provide services and stock parts
without making any profit. Amendment 3 allows dealers and
authorized service providers to create terms and charge prices
(above wholesale) that are reasonable.
2:08:44 PM
CHAIR MERRICK removed her objection.
2:08:48 PM
SENATOR DUNBAR expounded on why the provision in Amendment 3 was
offered. He emphasized that residents in rural areas would still
be able to fix their own equipment. He noted push back from all-
terrain vehicle (ATV), personal watercraft, and snowmobile
dealers regarding wholesale pricing. He clarified that this is
not an exemption from SB 111; rather, Amendment 3 adds
powersports equipment dealers to the existing farm equipment
provision. He opined that this is a good balance that allows
dealers to set a price above wholesale and does not artificially
set prices for those products and services. He surmised that
most individuals would continue to seek out an authorized dealer
for repairs.
2:10:39 PM
CHAIR MERRICK found no further objection and Amendment 3 was
adopted.
2:10:54 PM
SENATOR YUNDT asked the sponsor to restate the concerns
addressed by Amendments 1-3.
2:11:17 PM
SENATOR DUNBAR acknowledged that there are many manufacturing
organizations that do not support SB 111. While those
organizations are not based in Alaska, they have fought right to
repair legislation across the country. He said that the central
core of SB 111 is the same and would allow Alaskans to repair
their own equipment. He indicated that the amendments were in
response to feedback from various industries and manufacturers.
He explained that the medical industry received a blanket
exemption. He briefly discussed conversations he had with other
manufacturers, stating that in some cases, manufacturers raised
false points. In other instances, no amendment was necessary. He
stated that the majority of feedback was related to the
powersports industry and adding powersports to the existing farm
equipment provision addressed those concerns. He indicated a
willingness to work with the powersports industry on additional
adjustments, if needed. He noted that additional amendments
could be added in Senate Labor and Commerce Standing Committee,
which is the next committee of referral. He explained that SB
111 is partially based on what other states have done. He noted
that there is a blanket exemption for automobiles. He
acknowledged that SB 111 does not go as far as some advocates
would like; however, he opined that it is an important first
step toward the right to repair. He pointed out that right to
repair legislation is being considered nationwide. He commented
that SB 111 is conservative in that it is a return to a more
traditional way of fixing personal property that does not rely
solely on manufacturers that are sometimes located in another
state. He offered examples to illustrate this. He stated that
the advent of software and digital devices has allowed for
monopolistic and oligopolistic behaviors that are inherently
anticompetitive. He opined that SB 111 is a good compromise. He
added that he offered the amendments to address feedback from
Alaskans.
2:14:41 PM
CHAIR MERRICK commented that all Senate Community and Regional
Affairs Standing Committee members are also members of the
Senate Labor and Commerce Standing Committee.
2:14:47 PM
SENATOR YUNDT indicated his understanding and thanked Senator
Dunbar for his explanation.
2:14:53 PM
CHAIR MERRICK solicited the will of the committee.
2:14:56 PM
SENATOR DUNBAR moved to report SB 111, work order 34-LS0560\N,
as amended, from committee with individual recommendations and
attached fiscal note(s) and authorize Legislative Legal Services
to make conforming changes.
2:15:14 PM
CHAIR MERRICK found no objection and CSSB 111(CRA) was reported
from the Senate Community and Regional Affairs Standing
Committee.
2:15:45 PM
There being no further business to come before the committee,
Chair Merrick adjourned the Senate Community and Regional
Affairs Standing Committee meeting at 2:15 p.m.