Legislature(2015 - 2016)SENATE FINANCE 532

03/14/2016 09:00 AM Senate FINANCE

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Audio Topic
08:59:34 AM Start
09:00:44 AM SB56
09:16:05 AM SB1
09:38:28 AM Public Testimony
11:03:36 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 56 MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS TELECONFERENCED
Heard & Held
+ SB 1 REGULATION OF SMOKING TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      March 14, 2016                                                                                            
                         8:59 a.m.                                                                                              
                                                                                                                                
8:59:34 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 8:59 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Gene  Terriault, Deputy  Director, Alaska  Energy Authority,                                                                    
Juneau; Chuck  Kopp, Staff, Senator Peter  Micciche; Michael                                                                    
Patterson,  Self,  Juneau;  Angela  Cernich,  Self,  Juneau;                                                                    
Marquetta Andras,  Self, Juneau; Joan Cahill,  Self, Juneau;                                                                    
Edy Rodewald, Self, Juneau; Kristin Cox, Self, Juneau.                                                                          
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Zachary  Stockton,  Teens  Against  Tobacco,  Kenai;  Rachel                                                                    
Todd, Teens  Against Tobacco, Kenai; Jenny  Olendorff, Self,                                                                    
Soldotna;  Pamela  Howard,  Self,  Soldotna;  Carmen  Lunde,                                                                    
Kodiak  CHARR, Kodiak;  Terrence  Robbins, Self,  Ketchikan;                                                                    
Angela  Carroll, Smoke-Free  Alternative Trade  Association,                                                                    
Wasilla;  Alex McDonald,  Owner,  IceBox Vapory,  Fairbanks;                                                                    
Jessie  Walton,  Self,  Fairbanks;  Lincoln  Bean  Sr.,  All                                                                    
Healthcare,  Kake;  Robert  Urata,  Member,  American  Heart                                                                    
Association,   Juneau;  Diana   Redwood,  Self,   Anchorage;                                                                    
Maureen Narus, Self, Anchorage;  Bill Ross, Self, Anchorage;                                                                    
Dale Fox,  President, Alaska  CHARR, Anchorage;  K.T. McKee,                                                                    
American   Lung  Association   in  Alaska,   Mat-Su;  Ashley                                                                    
Peltier,   Self,  Mat-Su;   Robin   Minard,  Mat-Su   Health                                                                    
Foundation,  Mat-Su;   Terry  Snyder,  Self,   Matsu;  Karen                                                                    
Perdue,   Self,   Fairbanks;   Larry   Hackenmiller,   Self,                                                                    
Fairbanks; Steve Warren, Self,  Sitka; Tammi Meissner, Self,                                                                    
Wrangell;  Steve Mapes,  Self,  Kenai; Chrystal  Schoenrock,                                                                    
Secretary,  Kenai  Peninsula  CHARR, Nikiski;  Robin  Forsi,                                                                    
Self, Soldotna; Johna Beach, Self,  Kenai; Pete Burns, Self,                                                                    
Anchorage;   Stan  Selman,   Club   Paris,  Anchorage;   Ken                                                                    
Helander, American  Association of  Retired Persons  (AARP),                                                                    
Anchorage; Julie  Wrigley, Self, Anchorage;  Beverly Wooley,                                                                    
Self,  Mat-Su;   Gail  Schiemann,  Self,   Anchorage;  Katie                                                                    
Steffens,  Self,  Anchorage;  Wendie  MacNaughton,  American                                                                    
Heart Association, Fairbanks; Kristen Luby, Self,                                                                               
Anchorage;  Carolyn Clift,  Self,  Anchorage; Barbara  Doty,                                                                    
Alaska Academy  of Family Physicians, Wasilla;  Emily Nenon,                                                                    
American Cancer Society, Cancer Action Network, Juneau.                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 1      REGULATION OF SMOKING                                                                                                 
                                                                                                                                
          SB 1 was HEARD and HELD in committee for further                                                                      
          consideration.                                                                                                        
                                                                                                                                
SB 56     MUNI ENERGY IMPROVEMNT ASSESSMNTS/BONDS                                                                               
                                                                                                                                
          SB 56 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 56                                                                                                            
                                                                                                                                
     "An Act adopting the  Municipal Property Assessed Clean                                                                    
     Energy  Act;  authorizing municipalities  to  establish                                                                    
     programs to impose  assessments for energy improvements                                                                    
     in  regions  designated   by  municipalities;  imposing                                                                    
     fees; and providing for an effective date."                                                                                
                                                                                                                                
9:00:44 AM                                                                                                                    
                                                                                                                                
Co-Chair Kelly  MOVED to ADOPT the  committee substitute for                                                                    
SB 56, Work Draft 29-GS1021\H (Shutts, 4/15/15).                                                                                
                                                                                                                                
Co-Chair MacKinnon OBJECTED for DISCUSSION.                                                                                     
                                                                                                                                
GENE  TERRIAULT, DEPUTY  DIRECTOR, ALASKA  ENERGY AUTHORITY,                                                                    
JUNEAU,  explained the  committee substitute.  He noted  the                                                                    
addition  of  the  first  four  sections  in  the  committee                                                                    
substitute,  which add  the pace  mechanism outlined  in the                                                                    
bill  to the  list  of  powers for  first  and second  class                                                                    
municipalities. He explained that  it was determined that it                                                                    
was left out  of the original committee  substitute when the                                                                    
bill was heard in the other body.                                                                                               
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
OBJECTION, the committee substitute was adopted.                                                                                
                                                                                                                                
9:03:56 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:04:11 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon  noted  that   the  public  hearing  was                                                                    
closed.  She  looked  at the  previous  version,  which  may                                                                    
include  "extra-territorial jurisdiction."  She stated  that                                                                    
the new committee substitute held  that information, but did                                                                    
not  see   the  language.   She  queried   more  information                                                                    
regarding  that   issue.  She   noted  the   elimination  of                                                                    
"coterminous."  She  queried   a  definition  of  "reporting                                                                    
regarding assessment." She shared  that she had not reviewed                                                                    
the new committee  substitute. She wondered if  the types of                                                                    
qualified projects should be described  that were subject to                                                                    
the contractual  assessments. Mr.  Terriault looked  at page                                                                    
11,   line   8  for   the   definition   of  the   qualified                                                                    
improvements.                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon wondered  whether the  Fairbanks Natural                                                                    
Gas  Project qualify  for the  tax assessment  proposal. Mr.                                                                    
Terriault  responded  that,  should the  pace  mechanism  be                                                                    
allowed  for   local  governments  to  use,   the  Fairbanks                                                                    
Northstar  Borough was  most likely  the first  to implement                                                                    
and work with local lenders  in the state. He had identified                                                                    
federal fund  sources that  were targeted  energy efficiency                                                                    
improvements.  He  shared  that the  Energy  Efficiency  and                                                                    
Conservation Loan  Program. The federal funds  available for                                                                    
that program  were targeted  at approximately  $250 million.                                                                    
The money came  with a 2 percent interest rate,  so it was a                                                                    
low cost source  of capital. He shared  that the regulations                                                                    
for  the  program  specified  that  it  could  be  used  for                                                                    
replacement of  existing fuel  consuming equipment,  using a                                                                    
particular  fuel  with  a   more  efficient  fuel  consuming                                                                    
equipment that  used another fuel. He  stated that switching                                                                    
from fuel oil to natural gas would qualify.                                                                                     
                                                                                                                                
Co-Chair MacKinnon  shared that  there would  be discussions                                                                    
regarding how the municipality would  ask the general public                                                                    
to  assess   their  personal  property   to  pay   back  the                                                                    
expenditure. Mr. Terriault indicated in the affirmative.                                                                        
                                                                                                                                
Co-Chair  MacKinnon   asked  whether  revenue   bonds  would                                                                    
qualify.  Mr.  Terriault  replied  in  the  affirmative.  He                                                                    
stated that general obligation bonds were prohibited.                                                                           
                                                                                                                                
Senator Dunleavy wondered if the  bill was an enabling bill,                                                                    
as opposed  to a compulsory  bill. Mr. Terriault  replied in                                                                    
the affirmative. He  explained that bill allowed  a tool for                                                                    
local  government that  issued property  tax to  assist with                                                                    
energy efficiency financing.                                                                                                    
                                                                                                                                
Senator Olson  noted the efficiency of  switching to natural                                                                    
gas. He  wondered what  would occur  should the  natural gas                                                                    
price drastically  increase. He queried alternatives  to the                                                                    
program subscribers.  Mr. Terriault replied that  the person                                                                    
could  utilize funds,  should the  program  still exist.  He                                                                    
shared  that   the  tool  was   mostly  related   to  energy                                                                    
efficiency.  He remarked  that the  financing was  available                                                                    
for  any  energy  efficiency improvements  to  a  commercial                                                                    
building.                                                                                                                       
                                                                                                                                
9:10:54 AM                                                                                                                    
                                                                                                                                
Senator  Olson noted  that the  recipient  of the  financing                                                                    
would be "stuck" with the change,  even with a change in the                                                                    
commodity price.  Mr. Terriault replied in  the affirmative.                                                                    
He shared  that, once the  improvements were made,  the loan                                                                    
must be paid back.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon wondered if  the program would access the                                                                    
municipal bond  bank or other  areas of the state  with debt                                                                    
or obligation. Mr. Terriault replied  that, should the local                                                                    
governments  chose to  participate, they  would provide  low                                                                    
cost capital  to the local  commercial property  owners. The                                                                    
local  government could  choose  a revenue  bond, but  there                                                                    
were  other federal  sources available.  He did  not believe                                                                    
that the bond  would default to a general  obligation of the                                                                    
state.                                                                                                                          
                                                                                                                                
Co-Chair MacKinnon  stressed that she was  concerned whether                                                                    
the Municipal Bond Bank would  be used, and whether the debt                                                                    
would  be a  moral obligation  to the  state. Mr.  Terriault                                                                    
agreed to provide that information.                                                                                             
                                                                                                                                
Co-Chair  MacKinnon   remarked  that   she  was   trying  to                                                                    
understand the different types of debt in the state.                                                                            
                                                                                                                                
Senator Bishop  asserted that a  small business could  use a                                                                    
private  lender  to  utilize   the  program.  Mr.  Terriault                                                                    
agreed. He noted  that the bill allowed  for private lenders                                                                    
to bring  a source of money.  The repayment was done  by the                                                                    
additional  voluntary assessment  that would  attach to  the                                                                    
property. The local government would  collect the money, and                                                                    
was contractually  obligated to take  the money to  pay back                                                                    
the bank.                                                                                                                       
                                                                                                                                
SB  56  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SENATE BILL NO. 1                                                                                                             
                                                                                                                                
     "An Act prohibiting smoking in certain places;                                                                             
     relating to education on the smoking prohibition; and                                                                      
     providing for an effective date."                                                                                          
                                                                                                                                
9:16:05 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon introduced the legislation.                                                                                  
                                                                                                                                
Vice-Chair  Micciche  announced  that he  did  not  normally                                                                    
support  legislation  like SB  1.  He  felt that  government                                                                    
should be limited,  but felt that the  reduction of exposure                                                                    
to  second  hand  smoke  was  appropriate  for  governmental                                                                    
regulation. He stressed  that second hand smoke  was a major                                                                    
cause of  needless preventable death. He  stated that second                                                                    
hand  smoke  killed four  times  as  many people  that  were                                                                    
killed  annually  from  drunk   driving.  He  stressed  that                                                                    
approximately one-half of  Alaska's population was protected                                                                    
by the law; and the other  half did not have the capacity to                                                                    
create this  type of  law. He stressed  that the  bill would                                                                    
create a standard  that would provide a  level playing field                                                                    
for second  hand smoke  in Alaska. He  shared that  the last                                                                    
poll  in  2015  showed  that over  80  percent  of  Alaskans                                                                    
supported smoke  free laws  protecting workers.  He stressed                                                                    
that  it was  not  a "heavy  handed  enforcement issue."  He                                                                    
shared that  the same  law was in  place in  Anchorage since                                                                    
2007, and there were zero  citations issued in that time. He                                                                    
shared that  the bill would  reduce the cost of  Medicaid by                                                                    
millions  of dollars.  He  stated  that Medicaid  recipients                                                                    
were 2.5 times more likely  to smoke than non-recipients. He                                                                    
shared  that  with the  additives  in  vape juice  such  and                                                                    
cannabinoids and  synthetic cannabinoids, so  workers should                                                                    
not  be exposed  to  these substances.  He  shared that  the                                                                    
fiscal notes in the bill added  up to $14,000, which was for                                                                    
sign  replacement. He  shared that  there was  a sponsor  to                                                                    
cover  that  cost. He  stressed  that  there would  be  zero                                                                    
fiscal impact to the state.                                                                                                     
                                                                                                                                
9:19:11 AM                                                                                                                    
                                                                                                                                
CHUCK  KOPP, STAFF,  SENATOR PETER  MICCICHE, explained  the                                                                    
Sectional Analysis (copy on file):                                                                                              
                                                                                                                                
     Section 1 - AS 18.35 is amended by adding new sections                                                                     
     to read:                                                                                                                   
                                                                                                                                
     18.35.301 Prohibition of Smoking                                                                                           
                                                                                                                                
          Page 1,  lines 5  -14 and page  2, lines  1-2: (a)                                                                    
          prohibits  smoking  in  enclosed areas  in  public                                                                    
          places,   including    enclosed   areas    at   an                                                                    
          entertainment venue  or sports arena;  in vehicles                                                                    
          used   for   public  transportation;   at   public                                                                    
          transportation facilities and  depots; at a retail                                                                    
          store  or shopping  center;  at  places of  public                                                                    
          assembly on  property owned by the  state or other                                                                    
          unit of local government.                                                                                             
                                                                                                                                
          Page 2,  lines 3  - 16:  (b) prohibits  smoking in                                                                    
          certain enclosed areas:  office buildings, hotels,                                                                    
          motels,  restaurants,   bars,  retail   stores  or                                                                    
          common  areas  in  apartment and  multiple  family                                                                    
          dwellings, a  place of  employment, a  building or                                                                    
          residence  used  to  provide  paid  childcare,  at                                                                    
          healthcare  facilities, in  a  vehicle  that is  a                                                                    
          place  of  employment,  at  a  public  or  private                                                                    
          educational  facility; at  a residence  where paid                                                                    
          adult  care  is  provided;  at a  residence  in  a                                                                    
          healthcare  facility, hotel,  or motel;  and on  a                                                                    
          marine   vessel   operating   as   a   shore-based                                                                    
          fisheries business under AS 43.75.                                                                                    
                                                                                                                                
          Page  2,  lines 17  -  30:  (c) prohibits  smoking                                                                    
          outdoors in  certain areas:  at public  or private                                                                    
          schools;  state   or  municipal   parks  primarily                                                                    
          designated  as a  place for  children to  play; in                                                                    
          seating  areas for  outdoor  arenas, stadiums  and                                                                    
          amphitheaters; within 50 feet  of an entrance to a                                                                    
          healthcare facility, 20 feet  of an entrance, open                                                                    
          window,  or  heating  or  ventilation  system  air                                                                    
          intake   vent  at   a  place   where  smoking   is                                                                    
          prohibited  under   this  section;  or   within  a                                                                    
          reasonable distance  of an entrance,  open window,                                                                    
          or heating  or ventilation air intake  on a marine                                                                    
          vessel  as determined  by the  vessel operator  in                                                                    
          charge.                                                                                                               
                                                                                                                                
          Page 2, line  31 - p. 3, lines 1  - 23: (d) allows                                                                    
          smoking at  a retail tobacco or  e-cigarette store                                                                    
          unless  the owner  or operator  prohibits it,  and                                                                    
          defines "retail tobacco or e-cigarette store".                                                                        
                                                                                                                                
          Page  3,  lines  24-29: (e)  permits  an  enclosed                                                                    
          smoking  area  at   Alaska  International  Airport                                                                    
          System airports  for international  passengers who                                                                    
          are in-transit and restricted  by federal law from                                                                    
          leaving  the airport  and establishes  ventilation                                                                    
          requirements.                                                                                                         
                                                                                                                                
          Page 3,  lines 30-31  and Page  4, lines  1-4: (f)                                                                    
          allows smoking  in a  vehicle that  is a  place of                                                                    
          employment used exclusively by  one person; and on                                                                    
          a marine  vessel when it is  engaged in commercial                                                                    
          fishing or  sport charter fishing or  is otherwise                                                                    
          used as a place of employment.                                                                                        
                                                                                                                                
          Page  4,  lines  5-6:  (g)  allows  smoking  in  a                                                                    
          private  residence  that  is  not  used  for  paid                                                                    
          childcare,  adult   care,  and  as   a  healthcare                                                                    
          facility.                                                                                                             
                                                                                                                                
          Page 4, lines 7-14: (h)  makes it optional for the                                                                    
          department (DEC) to  adopt regulations authorizing                                                                    
          smoking in stand-alone shelters.                                                                                      
                                                                                                                                
9:25:21 AM                                                                                                                    
                                                                                                                                
Mr. Kopp continued to discuss the sectional analysis:                                                                           
                                                                                                                                
     18.35.306 Notice of Prohibition                                                                                            
                                                                                                                                
          Page 4, lines 15-28:  describes the obligations of                                                                    
          employers,  owners  and  operators of  places  and                                                                    
          vehicles where  smoking is prohibited to  post "no                                                                    
          smoking"  signs within  those  places or  vehicles                                                                    
          and at  or near the entrances;  and establishing a                                                                    
          Maximum  $50  fine  for failure  to  comply.  This                                                                    
          section   also   requires    the   Department   of                                                                    
          Environmental Conservation  to furnish  signs upon                                                                    
          request.                                                                                                              
                                                                                                                                
     18.35.311 Duty of employers and building managers                                                                          
                                                                                                                                
          Page 4,  lines 29-31  and Page 5,  line 1:  (a) an                                                                    
          employer may  not permit an employee,  customer or                                                                    
          other person  to smoke inside an  enclosed area at                                                                    
          a place of employment;                                                                                                
                                                                                                                                
          Page  5, lines  1-3:  (b) an  owner, operator,  or                                                                    
          manager  of  a  building   or  other  place  where                                                                    
          smoking is prohibited may  not provide ashtrays or                                                                    
          other   smoking  accessories   for  use   in  that                                                                    
          building or place.                                                                                                    
                                                                                                                                
     18.35.321 Public Education                                                                                                 
                                                                                                                                
          Page 5,  lines 4-13: requires the  commissioner of                                                                    
          environmental  conservation to  provide a  program                                                                    
          of  education regarding  AS 18.35.301  - 18.35.399                                                                    
          to employers,  other affected parties  and members                                                                    
          of  the  public;  and that  this  program  may  be                                                                    
          provided   in   combination   with   the   current                                                                    
          comprehensive     smoking    education     program                                                                    
          established in  Health and  Social Services  at AS                                                                    
          44.29.020(a)(14) which  seeks in part  to "prevent                                                                    
          youth   initiation   of   tobacco   use,   promote                                                                    
          cessation  among tobacco  users,  and educate  the                                                                    
          public  about the  lethal effects  of exposure  to                                                                    
          secondhand   smoke",   and   also   includes   "an                                                                    
          enforcement component" in AS 44.29.020(a)(14)(E).                                                                     
                                                                                                                                
     18.35.326 Nonretaliation                                                                                                   
                                                                                                                                
          Page  5,  lines  14-20: prohibits  employers  from                                                                    
          discriminating  against  an employee  because  the                                                                    
          employee cooperated with  or initiated enforcement                                                                    
          of  a requirement  in AS  18.35.301-18.35.399; and                                                                    
          similarly   prohibits  owners   or  operators   of                                                                    
          vehicles or  other places subject to  AS 18.35.301                                                                    
          - 18.35.399 from  retaliating against customers or                                                                    
          other  members   of  the   public  due   to  their                                                                    
          cooperation with  or initiation of  enforcement of                                                                    
          the requirements in AS 18.35.301-18.35.399.                                                                           
                                                                                                                                
     18.35.331 Conflicts with local requirements                                                                                
                                                                                                                                
          Page  5,  lines  21-26:   a  municipality  is  not                                                                    
          prohibited from adopting  and enforcing local laws                                                                    
          with   additional  prohibitions   on  smoking   or                                                                    
          additional    duties   for    employers,   owners,                                                                    
          operators,   and   other    persons   subject   to                                                                    
         requirements of 18.35.306 and 18.35.311.                                                                               
                                                                                                                                
     Section  2  -  Page  5,  lines 27  -  30:  Existing  AS                                                                    
     18.35.340(a) Civil complaints;  penalties is reinstated                                                                    
     and  amended   to  incorporate  the  new   language  of                                                                    
     18.35.301,  18.35.306,  18.35.311   and  18.35.326  and                                                                    
     requires    the     commissioner    of    environmental                                                                    
     conservation to  develop and  maintain a  procedure for                                                                    
     processing reports of violations.                                                                                          
                                                                                                                                
     Section  3  -  Page  6,   lines  1  -  9:  Existing  AS                                                                    
     18.35.340(b)  is  reinstated, adds  conforming  changes                                                                    
     and establishes  how the  commissioner or  his employee                                                                    
     designee may enforce the provisions of Section 1.                                                                          
                                                                                                                                
     Section  4  -  Page  6,   lines  10  -18:  Existing  AS                                                                    
     18.35.340(c)   is  reinstated,   and  adds   conforming                                                                    
     changes. This Section  establishes a fine of  $10 - $50                                                                    
     for violations of  18.35.301, 18.35.311, and 18.35.326,                                                                    
     and a fine of $20 - $300 for a violation of 18.35.306.                                                                     
                                                                                                                                
     Section  5  -  Page  6,  lines 19  -  23:  Existing  AS                                                                    
     18.35.341 (a) Citations;  penalties is reinstated, adds                                                                    
     conforming  changes,  and establishes  what  violations                                                                    
     must be committed in a  peace officer's presence before                                                                    
     the  peace  officer  may  issue  a  citation,  and  the                                                                    
     uniform  citation format  and  procedure  that must  be                                                                    
     used.                                                                                                                      
                                                                                                                                
9:30:22 AM                                                                                                                    
                                                                                                                                
Mr. Kopp continued to discuss the sectional analysis.                                                                           
                                                                                                                                
     Section 6  - Page 6, lines  24 - 31, and  Page 7, lines                                                                    
     1-2:  Existing  AS  18.35.341(b)  is  reinstated;  adds                                                                    
     conforming   changes;    establishes   how   designated                                                                    
     employees of DEC may issue  citations for violations of                                                                    
     Section  1; that  they will  be processed  in the  same                                                                    
     manner  as  citations  issued   by  peace  officers  in                                                                    
     18.35.341(a);  and  that an  employee  of  DEC may  not                                                                    
     arrest a person for a violation of Section 1.                                                                              
                                                                                                                                
     Section  7  -  Page  7,  lines  3  -  11:  Existing  AS                                                                    
     18.35.341(c)  is reinstated;  adds conforming  changes;                                                                    
     establishes  that violations  of 18.35.301,  18.35.306,                                                                    
     18.35.311  and  18.35.326  are  non-criminal  offenses;                                                                    
     sets fines for violations  of 18.35.301, 18.35.311, and                                                                    
     18.35.326 at $10 - $50, and a  fine of $20 - $300 for a                                                                    
     violation of  18.35.306; and establishes that  each day                                                                    
     a  violation of  18.35.306 continues  after a  citation                                                                    
     has been issued constitutes a separate violation.                                                                          
                                                                                                                                
     Section  8  -  Page  7,  lines 12  -  17:  Existing  AS                                                                    
     18.35.341(d)  is reinstated;  adds conforming  changes;                                                                    
     establishes  that the  supreme court  will establish  a                                                                    
     bail schedule  for violations of  18.35.301, 18.35.306,                                                                    
     18.35.311  and 18.35.326;  that  bail  amounts may  not                                                                    
     exceed those listed in 18.35.341(c);  and that the bail                                                                    
     amount must appear on the citation.                                                                                        
                                                                                                                                
     Section  9  -  Page  7,  lines 18  -  21:  Existing  AS                                                                    
     18.35.342 Multiple fines  prohibited is reinstated, and                                                                    
     adds conforming changes. Establishes  that a person may                                                                    
     not  be fined  more  than once  for  each violation  of                                                                    
     18.35.301, 18.35.306, 18.35.311 and 18.35.326.                                                                             
                                                                                                                                
     Section  10  - Page  7,  lines  22  - 25:  Existing  AS                                                                    
     18.35.343   Injunctions   is   reinstated,   and   adds                                                                    
     conforming   changes.   Establishes    that   the   DEC                                                                    
     commissioner  or any  affected party  may institute  an                                                                    
     action  in  the  superior   court  to  enjoin  repeated                                                                    
     violations  of  18.35.301,   18.35.306,  18.35.311  and                                                                    
     18.35.326.                                                                                                                 
                                                                                                                                
     Section  11  - Page  7,  lines  26  - 30:  Existing  AS                                                                    
     18.35.350  Enforcement  authority  is  reinstated,  and                                                                    
     adds  conforming  changes.  Establishes  that  the  DEC                                                                    
     commissioner or designee is  responsible to enforce the                                                                    
     provisions  of 18.35.301  -  18.35.399,  and that  this                                                                    
     section  does   not  limit   the  authority   of  peace                                                                    
     officers.                                                                                                                  
                                                                                                                                
     Section 12  - Page 7,  line 31, page  8, lines 1  - 31,                                                                    
     and  page  9,  lines  1 -13:  Adds  a  new  Definitions                                                                    
     section,    specifically   amending    definitions   of                                                                    
     "commissioner"  from  Health  and  Social  Services  to                                                                    
     Environmental   Conservation;  and   "department"  from                                                                    
     Health   and    Social   Services    to   Environmental                                                                    
     Conservation.                                                                                                              
                                                                                                                                
     Section  13  -  Page  9,   lines  14  -  15:  Repealing                                                                    
     language.                                                                                                                  
                                                                                                                                
     Section  14 -  Page  9, lines  16  - 23:  Applicability                                                                    
     clause.                                                                                                                    
                                                                                                                                
     Section  15 -  Page 9,  lines  24 -  29: Transition  of                                                                    
     regulations clause.                                                                                                        
                                                                                                                                
     Section 16 - Page 9,  line 30: Immediate effective date                                                                    
     for Section 15.                                                                                                            
                                                                                                                                
     Section 17  - Page 9,  line 31: Establishes  October 1,                                                                    
     2015 effective date, excluding Section 16.                                                                                 
                                                                                                                                
9:32:40 AM                                                                                                                    
                                                                                                                                
Mr. Kopp explained  that there was a  rigorous discussion in                                                                    
the  State Affairs  Committee.  He stressed  that  it was  a                                                                    
policy  call  to  determine  where  the  program  should  be                                                                    
housed. He shared that it  was preferred that the program be                                                                    
held  in  the  Department  of  Health  and  Social  Services                                                                    
(DHSS).                                                                                                                         
                                                                                                                                
Co-Chair  MacKinnon  announced   that  public  testimony  be                                                                    
limited to two minutes.                                                                                                         
                                                                                                                                
Senator Bishop asked for restatement  of a statistic related                                                                    
to DUI  and smoking.  Mr. Kopp replied  that the  Center for                                                                    
Disease Control,  in the 50th Anniversary  Report on Smoking                                                                    
in America  in 2010, identified  that between 2005  and 2009                                                                    
480,000 people per  year in America died  of smoking related                                                                    
deaths.  He  explained  that DUI  had  approximately  10,000                                                                    
deaths per year.                                                                                                                
                                                                                                                                
Senator  Dunleavy  wondered  how the  exceptions  in  closed                                                                    
commercial  fishing   vessels  were  determined.   Mr.  Kopp                                                                    
responded  that  the  sport  charter  boats  and  commercial                                                                    
fishing boats could be unsafe.  He remarked that people were                                                                    
outside 99 percent of the time.                                                                                                 
                                                                                                                                
9:36:36 AM                                                                                                                    
                                                                                                                                
Senator  Dunleavy remarked  that  there had  been a  similar                                                                    
discussion  the year  prior related  to marijuana.  Mr. Kopp                                                                    
responded that  the marijuana discussion  was not a  part of                                                                    
the creating of the legislation.                                                                                                
                                                                                                                                
^PUBLIC TESTIMONY                                                                                                             
                                                                                                                                
9:38:28 AM                                                                                                                    
                                                                                                                                
ZACHARY   STOCKTON,  TEENS   AGAINST  TOBACCO,   KENAI  (via                                                                    
teleconference),  testified in  support of  SB 1.  He shared                                                                    
that  future generations  should  not be  required to  worry                                                                    
about this  issue. He  stressed that  second hand  smoke had                                                                    
proved to cause heart disease and cancer.                                                                                       
                                                                                                                                
9:39:59 AM                                                                                                                    
                                                                                                                                
RACHEL   TODD,    TEENS   AGAINST   TOBACCO,    KENAI   (via                                                                    
teleconference), spoke in support of SB 1.                                                                                      
                                                                                                                                
9:40:53 AM                                                                                                                    
                                                                                                                                
JENNY  OLENDORFF,   SELF,  SOLDOTNA   (via  teleconference),                                                                    
testified in  support of SB  1. She stressed  that employees                                                                    
and business owners  did not have the right  to expose their                                                                    
employees to toxic chemicals.                                                                                                   
                                                                                                                                
9:42:11 AM                                                                                                                    
                                                                                                                                
PAMELA   HOWARD,   SELF,  SOLDOTNA   (via   teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
9:43:44 AM                                                                                                                    
                                                                                                                                
CARMEN  LUNDE, KODIAK  CHARR,  KODIAK (via  teleconference),                                                                    
spoke against  SB 1. She  felt that business owners  had the                                                                    
right to  determine what occurred  in their  businesses. She                                                                    
felt that punishing smokers for  their own good went against                                                                    
their  rights.  She  remarked  that  smoking  bans  violated                                                                    
private  property  laws.  She stated  that  Kodiak  had  six                                                                    
smoke-free bars, and six smoking bars.                                                                                          
                                                                                                                                
9:45:48 AM                                                                                                                    
                                                                                                                                
TERRENCE  ROBBINS,  SELF,  KETCHIKAN  (via  teleconference),                                                                    
testified in  support of SB  1. He  shared that he  had seen                                                                    
his  grandfather  and  aunts   die  from  cancer  caused  by                                                                    
smoking.  He stressed  that  protecting  Alaska from  second                                                                    
hand smoke would enhance public health.                                                                                         
                                                                                                                                
9:47:00 AM                                                                                                                    
                                                                                                                                
ANGELA  CARROLL, SMOKE-FREE  ALTERNATIVE TRADE  ASSOCIATION,                                                                    
WASILLA (via  teleconference), spoke against SB  1. She felt                                                                    
that  the  legislation  would  hurt  the  vape  industry  in                                                                    
Alaska.                                                                                                                         
                                                                                                                                
9:48:19 AM                                                                                                                    
                                                                                                                                
ALEX   MCDONALD,  OWNER,   ICEBOX  VAPORY,   FAIRBANKS  (via                                                                    
teleconference), testified  against SB 1.  He felt  that the                                                                    
legislation would limit the  personal rights of individuals,                                                                    
privacy, and freedom of choice.                                                                                                 
                                                                                                                                
9:52:00 AM                                                                                                                    
                                                                                                                                
JESSIE   WALTON,  SELF,   FAIRBANKS  (via   teleconference),                                                                    
opposed SB 1.                                                                                                                   
                                                                                                                                
9:53:45 AM                                                                                                                    
                                                                                                                                
LINCOLN    BEAN    SR.,    ALL   HEALTHCARE,    KAKE    (via                                                                    
teleconference), spoke in support of SB 1.                                                                                      
                                                                                                                                
9:55:28 AM                                                                                                                    
                                                                                                                                
ROBERT  URATA, MEMBER,  AMERICAN  HEART ASSOCIATION,  JUNEAU                                                                    
(via teleconference), testified in support of SB 1.                                                                             
                                                                                                                                
9:57:16 AM                                                                                                                    
                                                                                                                                
DIANA   REDWOOD,  SELF,   ANCHORAGE  (via   teleconference),                                                                    
testified  in support  of  SB  1. She  stated  that she  had                                                                    
frequented bars  that allowed smoking  in her  twenties. She                                                                    
was grateful  that Anchorage was smoke-free,  and pitied the                                                                    
communities that did not have a ban.                                                                                            
                                                                                                                                
9:58:15 AM                                                                                                                    
                                                                                                                                
MAUREEN NARUS,  SELF, ANCHORAGE (via  teleconference), spoke                                                                    
in support of SB 1.                                                                                                             
                                                                                                                                
9:59:44 AM                                                                                                                    
                                                                                                                                
BILL ROSS,  SELF, ANCHORAGE (via  teleconference), testified                                                                    
in support of  SB 1. He stated  that his wife had  died as a                                                                    
result of the effects of second hand smoke.                                                                                     
                                                                                                                                
10:01:44 AM                                                                                                                   
                                                                                                                                
DALE   FOX,   PRESIDENT,   ALASKA  CHARR,   ANCHORAGE   (via                                                                    
teleconference),  testified against  SB  1.  He shared  that                                                                    
Alaska CHARR believed in the right of freedom of choice.                                                                        
                                                                                                                                
10:04:07 AM                                                                                                                   
                                                                                                                                
MICHAEL PATTERSON, SELF, JUNEAU, testified in support SB 1.                                                                     
                                                                                                                                
10:06:41 AM                                                                                                                   
                                                                                                                                
ANGELA CERNICH, SELF, JUNEAU, spoke  in support of SB 1. She                                                                    
shared that  she had a  disease as  a result of  second hand                                                                    
smoke.                                                                                                                          
                                                                                                                                
10:09:02 AM                                                                                                                   
                                                                                                                                
MARQUETTA ANDRAS,  SELF, JUNEAU, spoke  in support of  SB 1.                                                                    
She  explained  that her  father  was  a heavy  smoker.  She                                                                    
stated that she almost died at  2 weeks old, because she had                                                                    
pneumonia as a result of second hand smoke.                                                                                     
                                                                                                                                
10:11:35 AM                                                                                                                   
                                                                                                                                
JOAN CAHILL,  SELF, JUNEAU,  spoke in support  of SB  1. She                                                                    
stated that  she had grown  up in  a home exposed  to second                                                                    
hand smoke.                                                                                                                     
                                                                                                                                
10:14:20 AM                                                                                                                   
                                                                                                                                
K.T.  MCKEE, AMERICAN  LUNG  ASSOCIATION  IN ALASKA,  MAT-SU                                                                    
(via  teleconference), testified  in  support of  SB 1.  She                                                                    
stressed  that second  hand smoke  was the  major source  of                                                                    
preventable  disease.  She  shared  that the  bill  had  the                                                                    
support of nearly 1000 Alaska businesses.                                                                                       
                                                                                                                                
10:16:28 AM                                                                                                                   
                                                                                                                                
ASHLEY PELTIER, SELF, MAT-SU  (via teleconference), spoke in                                                                    
support of  SB 1. She  felt that  everyone had the  right to                                                                    
breathe clean air.  She also encouraged the  inclusion of e-                                                                    
cigarettes.                                                                                                                     
                                                                                                                                
10:17:14 AM                                                                                                                   
                                                                                                                                
ROBIN   MINARD,  MAT-SU   HEALTH  FOUNDATION,   MAT-SU  (via                                                                    
teleconference), testified  in support  of SB 1.  She stated                                                                    
that Mat-Su  did not have  the capability to create  its own                                                                    
smoke-free work place regulations.                                                                                              
                                                                                                                                
10:18:09 AM                                                                                                                   
                                                                                                                                
TERRY  SNYDER, SELF,  MATSU (via  teleconference), testified                                                                    
in  support of  SB 1.  She stressed  that the  supporters of                                                                    
smoke-free   workplace   regulations   had   not   financial                                                                    
incentives   behind   their    personal   support   of   the                                                                    
legislation. She stressed that  clean safe work environments                                                                    
were a right for all Alaskans.                                                                                                  
                                                                                                                                
10:20:18 AM                                                                                                                   
                                                                                                                                
KAREN  PERDUE, SELF,  FAIRBANKS (via  teleconference), spoke                                                                    
in support  of SB 1. She  stated that she had  been involved                                                                    
in tobacco regulations.                                                                                                         
                                                                                                                                
10:22:07 AM                                                                                                                   
                                                                                                                                
LARRY  HACKENMILLER, SELF,  FAIRBANKS (via  teleconference),                                                                    
spoke against SB  1. He felt that second hand  smoke did not                                                                    
cause a hazardous work place.                                                                                                   
                                                                                                                                
10:24:45 AM                                                                                                                   
                                                                                                                                
STEVE  WARREN, SELF,  SITKA (via  teleconference), spoke  in                                                                    
support of SB 1.                                                                                                                
                                                                                                                                
10:25:58 AM                                                                                                                   
                                                                                                                                
TAMMI   MEISSNER,  SELF,   WRANGELL  (via   teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:27:24 AM                                                                                                                   
                                                                                                                                
STEVE  MAPES, SELF,  KENAI  (via  teleconference), spoke  in                                                                    
opposition of  SB 1. He stated  that his father had  died of                                                                    
lung  cancer as  a result  of  smoking. He  stated that  his                                                                    
mother had also  died of lung cancer. He shared  that he had                                                                    
been able  to quit smoking as  a result of e  cigarettes. He                                                                    
stressed that vaping was not smoking.                                                                                           
                                                                                                                                
10:29:40 AM                                                                                                                   
                                                                                                                                
CHRYSTAL  SCHOENROCK,  SECRETARY,   KENAI  PENINSULA  CHARR,                                                                    
NIKISKI (via teleconference), spoke in opposition to SB 1.                                                                      
                                                                                                                                
10:32:10 AM                                                                                                                   
                                                                                                                                
ROBIN FORSI, SELF,  SOLDOTNA (via teleconference), testified                                                                    
in support of SB 1. She  shared some comments from a student                                                                    
from  Soldotna,  Jackson  Blackwell.  She  read  a  prepared                                                                    
statement from Mr. Blackwell.                                                                                                   
                                                                                                                                
10:34:57 AM                                                                                                                   
                                                                                                                                
JOHNA BEACH, SELF, KENAI  (via teleconference), testified in                                                                    
support  of SB  1. She  remarked that  she had  worked as  a                                                                    
waitress in a  nonsmoking restaurant with a  smoking room in                                                                    
the establishment.  She stressed that the  bill was directed                                                                    
at employee safety.                                                                                                             
                                                                                                                                
10:37:02 AM                                                                                                                   
                                                                                                                                
PETE BURNS, SELF,  ANCHORAGE (via teleconference), testified                                                                    
in support of SB 1.                                                                                                             
                                                                                                                                
10:39:04 AM                                                                                                                   
                                                                                                                                
STAN  SELMAN, CLUB  PARIS,  ANCHORAGE (via  teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:40:30 AM                                                                                                                   
                                                                                                                                
KEN HELANDER,  AMERICAN   ASSOCIATION  OF   RETIRED  PERSONS                                                                    
(AARP),   ANCHORAGE  (via   teleconference),  testified   in                                                                    
support  of SB  1.  He stressed  that  healthy young  people                                                                    
would become healthy adults.                                                                                                    
                                                                                                                                
10:41:28 AM                                                                                                                   
                                                                                                                                
JULIE   WRIGLEY,  SELF,   ANCHORAGE  (via   teleconference),                                                                    
testified in support  of SB 1. She stated  that her children                                                                    
were Alaska's  future work force.  She stressed  that second                                                                    
hand smoke contributed  to many cancer risks.  She felt that                                                                    
everyone had the right to breathe smoke-free air.                                                                               
                                                                                                                                
10:43:05 AM                                                                                                                   
                                                                                                                                
BEVERLY   WOOLEY,   SELF,   MAT-SU   (via   teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:46:13 AM                                                                                                                   
                                                                                                                                
GAIL  SCHIEMANN,   SELF,  ANCHORAGE   (via  teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:47:04 AM                                                                                                                   
                                                                                                                                
KATIE  STEFFENS,   SELF,  ANCHORAGE   (via  teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:49:02 AM                                                                                                                   
                                                                                                                                
WENDIE  MACNAUGHTON, AMERICAN  HEART ASSOCIATION,  FAIRBANKS                                                                    
(via teleconference), testified in support of SB 1.                                                                             
                                                                                                                                
10:49:56 AM                                                                                                                   
                                                                                                                                
KRISTEN LUBY,  SELF,    ANCHORAGE   (via    teleconference),                                                                    
testified in support of SB 1.                                                                                                   
                                                                                                                                
10:50:32 AM                                                                                                                   
                                                                                                                                
EDY RODEWALD, SELF, JUNEAU, testified in support of SB 1.                                                                       
                                                                                                                                
10:52:23 AM                                                                                                                   
                                                                                                                                
KRISTIN COX, SELF, JUNEAU, testified in support of SB 1.                                                                        
                                                                                                                                
10:54:55 AM                                                                                                                   
                                                                                                                                
CAROLYN CLIFT,  SELF, ANCHORAGE (via  teleconference), spoke                                                                    
against SB 1.                                                                                                                   
                                                                                                                                
10:56:59 AM                                                                                                                   
                                                                                                                                
BARBARA DOTY, ALASKA ACADEMY OF FAMILY PHYSICIANS, WASILLA                                                                      
(via teleconference), testified in support of SB 1.                                                                             
                                                                                                                                
10:59:26 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:59:50 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
11:00:25 AM                                                                                                                   
                                                                                                                                
EMILY NENON, AMERICAN CANCER SOCIETY, CANCER ACTION                                                                             
NETWORK, JUNEAU (via teleconference), testified in support                                                                      
of SB 1.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
SB 1 was HEARD and HELD in committee for further                                                                                
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
11:03:36 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 11:03 a.m.                                                                                         

Document Name Date/Time Subjects
4 CS SSSB 1(STA) Explanation of Changes.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
3 CS SSSB 1(STA) Sectional Analysis.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
6 CDC Testimony on Secondhand Smoke and ENDS Aerosol Alaska February 2015.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
7 Research & Source Docs.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
7.1 E-Cigarettes 2015.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
8 Legal Opinions.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
7.2 E-Cigarettes 2016.PDF SFIN 3/14/2016 9:00:00 AM
SB 1
9 AS 44.29.020 Lethal effects of SHS.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
10 SoA Impacts.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
11 AK 2012 Public Opinion.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
11.1 AK 2015 Public Opinion.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
11.2 ACS CAN Alaska - Opinion Survey Results - Jan 29 2016.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
12 News Coverage.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
13 Smoke-Free Indoor Workplaces Supporters.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
14 CS SSSB 1 Support - Bristol Bay Native Corp..pdf SFIN 3/14/2016 9:00:00 AM
SB 1
1 CS SSSB 1(STA) SFIN Sponsor.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Support Letter Emery.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Electronic_Nicotine_Delivery_Systems_Key_Facts_Infographic_CDC.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 CS SSSB 1(STA) PPT Presentation 031416.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Support Letter Rick Davis LTE (4).pdf SFIN 3/14/2016 9:00:00 AM
SB 4
SB 56 CS SB 56(FIN) version H.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 56 AK Home Building Assoc PACE resolution.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 56 - Sec Analysis Proposed CS SB56 Fin version H.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 56 AML resolution of support for PACE legislation.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 56 Demystifying PACE.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 56 CS SB 56(FIN) version H.pdf SFIN 3/14/2016 9:00:00 AM
SB 56
SB 1 Letter of Support - Eva Loken.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Hannah Brice Smith - Written Support Testimony.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Powers Smoke Free Workplace Support Letter to Sen Micciche.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Letter of Support Kulas.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 American Heart Association Support Letter.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Letters of Opposition Packet 1.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 1 Letters of Support Packet 1.pdf SFIN 3/14/2016 9:00:00 AM
SB 1
SB 196 APA letter.pdf SFIN 3/14/2016 9:00:00 AM
SB 196
SB 196 ANTHC support.pdf SFIN 3/14/2016 9:00:00 AM
SB 196