Legislature(2017 - 2018)SENATE FINANCE 532

04/11/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 9:30 a.m. --
+= HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
<Bill Hearing Canceled>
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 121 OCC. HEALTH AND SAFETY CIVIL PENALTIES TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 4/12/18 at 9 a.m.>
+= HB 128 SHELLFISH ENHANCE. PROJECTS; HATCHERIES TELECONFERENCED
Moved HB 128 Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 11, 2018                                                                                            
                         9:44 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:44:50 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:44 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Dan  Ortiz,  Sponsor;  Mary  Hakala,  Staff,                                                                    
Representative  Dan  Ortiz;  Sam  Rabung,  Chief,  Statewide                                                                    
Aquaculture Planning and Permitting,  Department of Fish and                                                                    
Game;  Ginny  Eckert,  Professor College  of  Fisheries  and                                                                    
Ocean    Sciences,   University    of   Alaska    Fairbanks;                                                                    
Representative Sam  Kito, Sponsor; Deborah  Kelly, Director,                                                                    
Division of  Occupational Safety  and Health,  Department of                                                                    
Labor  and  Workforce  Development;  Caitlyn  Ellis,  Staff,                                                                    
Representative Sam Kito.                                                                                                        
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 121    OCC. HEALTH AND SAFETY CIVIL PENALTIES                                                                                
                                                                                                                                
          HB 121 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 128    SHELLFISH ENHANCE. PROJECTS; HATCHERIES                                                                               
                                                                                                                                
          HB 128  was REPORTED out  of committee with  a "do                                                                    
          pass"    recommendation   and    with   one    new                                                                    
          indeterminate fiscal  note from the  Department of                                                                    
          Fish and Game,  one new zero fiscal  note from the                                                                    
          Department  of Fish  and Game,  and  one new  zero                                                                    
          fiscal note from the Department of Revenue.                                                                           
HOUSE BILL NO. 128                                                                                                            
                                                                                                                                
     "An Act  relating to management  of enhanced  stocks of                                                                    
     shellfish; authorizing  certain nonprofit organizations                                                                    
     to engage  in shellfish enhancement  projects; relating                                                                    
     to application  fees for  salmon hatchery  permits; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
9:45:58 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  highlighted the  history of the  bill in                                                                    
committee.                                                                                                                      
                                                                                                                                
9:46:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE DAN ORTIZ, SPONSOR, introduced himself.                                                                          
                                                                                                                                
9:46:51 AM                                                                                                                    
                                                                                                                                
MARY  HAKALA, STAFF,  REPRESENTATIVE  DAN ORTIZ,  introduced                                                                    
herself.                                                                                                                        
                                                                                                                                
Representative  Ortiz  stated  that   the  bill  dealt  with                                                                    
shellfish enhancement  projects, and  set up  the regulatory                                                                    
framework for  the mariculture  industry. He  announced that                                                                    
the bill was a priority  for the Mariculture Task Force that                                                                    
had  worked  for two  years  to  present a  cohesive,  well-                                                                    
considered plan  to move mariculture  forward in  the state.                                                                    
He shared  that the bill  was an important component  of the                                                                    
plan,  and  was  excited about  the  economic  opportunities                                                                    
presented within  the bill. He  thanked Senator  Stevens for                                                                    
being  a cosponsor  of  the bill,  and  for carrying  mirror                                                                    
legislation in the Senate.                                                                                                      
                                                                                                                                
Senator   Olson  queried   any   opposition   to  the   fee.                                                                    
Representative  Ortiz stated  that the  increase in  the fee                                                                    
was due to  an unchanged fee in the past.  He stated that he                                                                    
had  not  heard concern  about  the  fee increase  from  the                                                                    
industry. He felt  that there would not be  a restriction in                                                                    
accessing the funds.                                                                                                            
                                                                                                                                
Senator von  Imhof wondered whether  the bill  addressed any                                                                    
for-profit organizations. Representative  Ortiz replied that                                                                    
the   enhancement   organizations  had   been   historically                                                                    
nonprofit  organizations.  He  asserted   that  he  was  not                                                                    
opposed to profit-based organizations in the industry.                                                                          
                                                                                                                                
9:50:42 AM                                                                                                                    
                                                                                                                                
Senator von Imhof wondered how  the nonprofit and for profit                                                                    
organizations  interact through  the cycle  of a  biological                                                                    
species. Ms. Hakala  stressed that the bill  related to only                                                                    
nonprofit   organizations,    and   mirrored    the   salmon                                                                    
enhancement statutes.                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon noted  that  there  were some  questions                                                                    
from Department  of Fish and  Game (DFG). She  remarked that                                                                    
there would be questions about  the cost recovery fishery in                                                                    
the bill.  She asked  for a  contemplation about  crabs. She                                                                    
noted that  there were  different creatures  that reproduced                                                                    
differently,   and   were    different   than   the   salmon                                                                    
enhancement.                                                                                                                    
                                                                                                                                
9:54:29 AM                                                                                                                    
                                                                                                                                
SAM  RABUNG,  CHIEF,   STATEWIDE  AQUACULTURE  PLANNING  AND                                                                    
PERMITTING,   DEPARTMENT  OF   FISH  AND   GAME,  introduced                                                                    
himself.                                                                                                                        
                                                                                                                                
Senator  von Imhof  remarked that  she  was concerned  about                                                                    
when it was appropriate for  the state to insert itself into                                                                    
a  commercially viable  profit cycle.  She noted  that there                                                                    
was a point in this  industry where there was not commercial                                                                    
viability,  so perhaps  a kickstart  was a  requirement. She                                                                    
wondered why  no commercial entity would  insert itself into                                                                    
the niche that the state  sought to fill. Mr. Rabung replied                                                                    
that  the   bill  was  modeled  after   the  salmon  fishery                                                                    
enhancement bill, which  had been law since  1974. The model                                                                    
was developed  because the fisheries resources  of the state                                                                    
were owned  by all the people  of the state. He  shared that                                                                    
allowing  enhancement  programs  be for  profit  allowed  an                                                                    
ownership aspect. He stated that  the for profit aspect came                                                                    
in  during  harvest,  therefore  anything  produced  by  the                                                                    
programs  were  available for  all  of  the common  property                                                                    
fisheries  of  the  state.  He   noted  that  the  nonprofit                                                                    
corporations  must pay  taxes, and  operated similarly  to a                                                                    
for  profit  with  the  exception  of  the  ability  to  pay                                                                    
dividends.                                                                                                                      
                                                                                                                                
Vice-Chair   Bishop    wondered   whether    the   nonprofit                                                                    
corporation  employed  an   Alaskan  workforce.  Mr.  Rabung                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
Senator  Micciche  noted  that  the bill  set  a  regulatory                                                                    
framework for  some species that  were either  challenged in                                                                    
production  or   were  new  commercially.  He   queried  the                                                                    
function  of the  bill.  Mr. Rabung  replied  that the  bill                                                                    
enabled several models of fisheries enhancement.                                                                                
                                                                                                                                
Senator  Micciche  asserted that  the  reason  for the  bill                                                                    
allowed for  the regulation of  the new species.  Mr. Rabung                                                                    
agreed.                                                                                                                         
                                                                                                                                
10:01:35 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:03:36 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:03:43 AM                                                                                                                   
                                                                                                                                
Senator Stevens  queried similarities in other  parts of the                                                                    
world. Mr. Rabung replied that  there were similar behaviors                                                                    
in other parts of the world,  but Alaska was very unique. He                                                                    
noted  that  Alaska  had  high   sideboards  in  the  salmon                                                                    
enhancement program.  Alaska was  restricted to  using local                                                                    
genetically  appropriate   stocks  for  each   projects.  He                                                                    
furthered  that  there was  no  breeding.  He remarked  that                                                                    
there  were   other  very  stringent  health   policies.  He                                                                    
stressed that  there was no  empirical evidence of  any harm                                                                    
to  natural production  to salmon  from  the salmon  fishery                                                                    
enhancement program.  He stressed that there  was an ability                                                                    
to maintain sustainability certifications.                                                                                      
                                                                                                                                
10:05:38 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  queried feedback about  invasive species                                                                    
in Alaskan waters.                                                                                                              
                                                                                                                                
Senator Micciche  asked about monitoring  of the  health and                                                                    
disease in the raising process  prior to release. Mr. Rabung                                                                    
replied that  there was a  stringent fish health  policy. He                                                                    
stated  that  it  specifically   dealt  with  practices  and                                                                    
disease  prevention, and  monitoring  for  all species.  The                                                                    
species must  be inspected and  approved before  release. He                                                                    
noted  that   there  were  pathology  labs   in  Juneau  and                                                                    
Anchorage that processed every sample.                                                                                          
                                                                                                                                
Co-Chair MacKinnon announced the  current discussion for the                                                                    
children in the audience.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon queried  the species who would  be in the                                                                    
enhancement project.                                                                                                            
                                                                                                                                
10:11:33 AM                                                                                                                   
                                                                                                                                
GINNY  ECKERT,  PROFESSOR  COLLEGE OF  FISHERIES  AND  OCEAN                                                                    
SCIENCES,  UNIVERSITY  OF  ALASKA FAIRBANKS,  (UAF)  replied                                                                    
that  the bill  applied to  shellfish. She  stated that  the                                                                    
definition  was  in the  bill  as  a species  of  crustacean                                                                    
mollusk  or other  invertebrate  in any  stage  of its  life                                                                    
cycle that was indigenous to  state waters, and excluded any                                                                    
invasive species.  She stated that  any species of  crab and                                                                    
clam would fall into that category.                                                                                             
                                                                                                                                
Co-Chair MacKinnon  asked how to prioritize  approval toward                                                                    
a  species that  might be  closed to  harvesting in  Alaskan                                                                    
waters.  Mr. Rabung  replied that  it was  designed to  be a                                                                    
user-driven project.  He stressed that the  department would                                                                    
not take  action until  there was  an application.  He noted                                                                    
that there  would be guidance  about the  appropriate review                                                                    
process, which was the same as salmon.                                                                                          
                                                                                                                                
Vice-Chair  Bishop  queried  the  work of  Ms.  Eckert.  Ms.                                                                    
Eckert   replied  that   she  worked   as  faculty   at  the                                                                    
university.  She  explained  that  faculty  taught  classes,                                                                    
conducted research,  and provided  service. She  shared that                                                                    
she had  done research  on king crab,  and their  early life                                                                    
history to determine rehabilitation.                                                                                            
                                                                                                                                
10:15:04 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  noted that there was  a predator problem                                                                    
on shellfish. She remarked that  there was an attempt to get                                                                    
national attention especially about  abalone. She noted that                                                                    
the  otters were  causing  an  unsustainability. Ms.  Eckert                                                                    
replied shared that she had  conducted research on sea otter                                                                    
diets,   and  the   complex  ecological   interactions.  She                                                                    
remarked that there had to be  an examination of where to do                                                                    
the enhancement.                                                                                                                
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether  the  review  process                                                                    
would include a geographic  location of the application. Mr.                                                                    
Rabung replied that each project  would be assessed locally.                                                                    
The projects  were intended to enhance  localized fisheries,                                                                    
and would be evaluated on a case by case basis.                                                                                 
                                                                                                                                
Senator Micciche noted that  there were public opportunities                                                                    
in  the process.  Mr.  Rabung responded  that  there was  no                                                                    
ownership of the resource until harvest.                                                                                        
                                                                                                                                
Senator  Micciche stressed  that it  was heartbreaking  when                                                                    
batches were required to be destroyed.                                                                                          
                                                                                                                                
Vice-Chair Bishop discussed the fiscal notes.                                                                                   
                                                                                                                                
10:23:33 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Bishop MOVED  to REPORT  HB  128 from  committee                                                                    
with  individual  recommendations  and  accompanying  fiscal                                                                    
notes. There being NO OBJECTION, it was so ordered.                                                                             
                                                                                                                                
HB  128 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation and  with one  new indeterminate  fiscal note                                                                    
from the  Department of Fish  and Game, one new  zero fiscal                                                                    
note from the Department of Fish  and Game, and one new zero                                                                    
fiscal note from the Department of Revenue.                                                                                     
                                                                                                                                
10:23:46 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:26:05 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 121                                                                                                            
                                                                                                                                
     "An Act relating to occupational safety and health                                                                         
     enforcement penalties; and providing for an effective                                                                      
     date."                                                                                                                     
                                                                                                                                
10:26:53 AM                                                                                                                   
                                                                                                                                
REPRESENTATIVE   SAM    KITO,   SPONSOR,    introduced   the                                                                    
legislation:                                                                                                                    
                                                                                                                                
     House Bill 121 brings  Alaska's Occupational Safety and                                                                    
     Health (AKOSH) state plan  into compliance with federal                                                                    
     requirements,   ensuring   continued  eligibility   for                                                                    
     federal  grant funds  and  helping  to protect  workers                                                                    
     from workplace injuries, illnesses, and fatalities.                                                                        
                                                                                                                                
     In 2015,  Congress passed  the Federal  Civil Penalties                                                                    
     Inflation  Adjustment Act  Improvements Act,  requiring                                                                    
     many   federal  agencies   to   adjust  penalties   for                                                                    
     inflation going back to  1990, and requiring subsequent                                                                    
     yearly   adjustments  according   to  changes   in  the                                                                    
     Consumer  Price Index.  Occupational Safety  and Health                                                                    
     Administration  complied  by  adjusting  their  maximum                                                                    
     penalties  in July  2016, including  a six-month  grace                                                                    
     period for  states to comply.  In order to  comply with                                                                    
     federal program requirements, AKOSH  must have at least                                                                    
     equivalent  maximum and  minimum penalties.  AKOSH fell                                                                    
     out of  compliance with this requirement  on January 1,                                                                    
     2017, when the six-month buffer period expired.                                                                            
                                                                                                                                
     Maximum  and   minimum  penalties  for   violations  of                                                                    
     Alaska's  occupational  safety   and  health  laws  are                                                                    
     specified  in AS  18.60.095, the  Penalties section  of                                                                    
     Prevention of  Accident and Health Hazards.  House Bill                                                                    
     121  allows  the  Department  of  Labor  and  Workforce                                                                    
     Development to  set penalty amounts by  regulation, and                                                                    
     limits the penalties  to corresponding federal maximums                                                                    
     for each  violation type.  This enables  the department                                                                    
     to adjust  to federally required changes  while placing                                                                    
     a cap on increases.                                                                                                        
                                                                                                                                
10:28:05 AM                                                                                                                   
                                                                                                                                
DEBORAH  KELLY, DIRECTOR,  DIVISION  OF OCCUPATIONAL  SAFETY                                                                    
AND HEALTH,  DEPARTMENT OF LABOR AND  WORKFORCE DEVELOPMENT,                                                                    
(DLWD) explained that in 2015  congress passed an inflation-                                                                    
adjustment act  that required many agencies  to adjust their                                                                    
penalties  for  inflation.  She  stated  that  in  2016  the                                                                    
Occupational   Safety  and   Health  Administration   (OSHA)                                                                    
adjusted their  maximum penalties, and required  state plans                                                                    
to  do the  same. She  stated  that Alaska  was required  to                                                                    
follow suit by January 1,  2017. She explained that the bill                                                                    
brought  the   state  into   compliance  by   requiring  the                                                                    
department to set the maximum  OSHA penalties by regulation,                                                                    
and  capped those  maximum  penalties  at the  corresponding                                                                    
federal  levels.  She stressed  that  the  bill allowed  the                                                                    
state to come into  compliance with federal requirement, and                                                                    
to stay  in compliance with the  yearly required adjustments                                                                    
by the CPI.                                                                                                                     
                                                                                                                                
Senator von  Imhof noted  the three  types of  violations on                                                                    
the fact sheet  for the current maximum penalty  and the new                                                                    
maximum penalty. She  asked whether it was  Alaska data, and                                                                    
whether there were additional issues  in the bill. Ms. Kelly                                                                    
replied that the fact sheet was  from the year prior, so the                                                                    
number was  adjusted in the  fiscal note. She  remarked that                                                                    
each bill section was a  different category. She stated that                                                                    
the  categories:  willful  and  repeat  violations,  serious                                                                    
violations,  other  than   serious  violations,  failure  to                                                                    
correct a violation, and posting requirement violations.                                                                        
                                                                                                                                
Senator  von  Imhof  requested   a  one-page  table  of  the                                                                    
categories, the fee penalties, and  the range of the state's                                                                    
noncompliance. She  noted that  there was an  assertion that                                                                    
the  state would  save $619  in state  funds. She  asked for                                                                    
more  information. Ms.  Kelly replied  that it  was $619,000                                                                    
yearly  that  the  state  would   lose  in  state  funds  by                                                                    
reverting the enforcement program to federal OSHA.                                                                              
                                                                                                                                
Senator von Imhof  wondered whether the net  loss meant that                                                                    
the  state was  not paying  the penalties  or was  the state                                                                    
receiving revenues. Ms. Kelly  replied that the cost savings                                                                    
would  be in  the  reduction of  the  personal services  and                                                                    
associated  costs. The  penalties  would go  to the  federal                                                                    
treasury  rather  than  the state  penalty.  Therefore,  the                                                                    
reference was to the state funds and not private business.                                                                      
                                                                                                                                
Senator  von Imhof  surmised that  the  reference was  about                                                                    
noncompliance  with   the  federal  government.   Ms.  Kelly                                                                    
replied, "broadly yes."                                                                                                         
                                                                                                                                
Senator Micciche  asserted that  moving jurisdiction  to the                                                                    
federal government would not  result in "noncompliance." Ms.                                                                    
Kelly replied  that the  decision to have  a state  plan was                                                                    
always up to the state.                                                                                                         
                                                                                                                                
Senator Micciche  wondered whether  the $1.31 million  was a                                                                    
constant, and whether it was  an average over ten years. Ms.                                                                    
Kelly replied  that she  believed that  it was  a three-year                                                                    
average. She  stated that there  was a calculation  based on                                                                    
the actuals for,  she believed, three years.  She noted that                                                                    
they  varied year  to year,  because one  case could  add or                                                                    
subtract $100,000 penalty amount for the year.                                                                                  
                                                                                                                                
10:35:10 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:36:03 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:36:05 AM                                                                                                                   
                                                                                                                                
Ms. Kelly  stated that the  numbers in the letter  were from                                                                    
the fiscal note from the  previous year, and the number used                                                                    
the  FY 16  actual penalties  collected. The  current year's                                                                    
fiscal noted  used a two-year  average of the  previous year                                                                    
and FY 16.                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon queried the  reason for the inconsistency                                                                    
in the number  of years. Ms. Kelly replied that  there was a                                                                    
desire to use as many  fiscal years as possible, but because                                                                    
of the  IRIS migration there  was a desire for  a consistent                                                                    
number; therefore, a maximum number  of years was used under                                                                    
the new financial accounting system.                                                                                            
                                                                                                                                
Vice-Chair Bishop remarked that  there was state control, so                                                                    
the  OSHA standards  must be  met  at a  minimum. The  state                                                                    
standards could be  higher than the OSHA  standards. He felt                                                                    
that the bill was a housekeeping issue.                                                                                         
                                                                                                                                
Co-Chair  MacKinnon   noted  that  the  state   was  not  in                                                                    
compliance, so queried the  federal government's reaction to                                                                    
the noncompliance.  She recalled that the  sponsor suggested                                                                    
a   consequence  of   inaction,  like   withholding  federal                                                                    
financial  support.  Ms.  Kelly  replied  that  the  out  of                                                                    
compliance date was January 1,  2017. The federal government                                                                    
noted  that the  state  was working  toward  a solution,  so                                                                    
there was understanding in the meantime.                                                                                        
                                                                                                                                
Co-Chair MacKinnon  wondered whether the  federal government                                                                    
required that it be in  regulation, rather than statute, for                                                                    
setting  a fine.  Ms.  Kelly replied  in  the negative.  She                                                                    
stated  that  the regulatory  avenue  seemed  like the  most                                                                    
practical way to make yearly adjustments.                                                                                       
                                                                                                                                
Co-Chair  MacKinnon  noted   that  there  was  consternation                                                                    
related  to determining  regulations  rather than  statutes.                                                                    
She queried the reason  for choosing regulations rather than                                                                    
a  statutory change.  Representative Kito  replied that  the                                                                    
federal government was requesting  that agencies tracked the                                                                    
consumer  price index  (CPI), and  adjust  the penalties  to                                                                    
adjust to modifications of the  CPI. He remarked that it was                                                                    
unknown whether  that examination would  be on an  annual or                                                                    
other  periodic basis.  He  stated  that setting  regulation                                                                    
allowed for streamlined adjustments.                                                                                            
                                                                                                                                
10:44:00 AM                                                                                                                   
                                                                                                                                
Co-Chair  MacKinnon  noted  that the  department  could  not                                                                    
exceed   the  minimum   set  by   the  federal   government.                                                                    
Representative Kito agreed.                                                                                                     
                                                                                                                                
Senator  Micciche  looked at  Section  6,  page 3,  lines  1                                                                    
through 3,  which did not  cover the minimum. He  noted that                                                                    
the   minimum  was   giving  under   the   purview  of   the                                                                    
commissioner. He  wondered why there  was not a  matching of                                                                    
the two.                                                                                                                        
                                                                                                                                
Co-Chair MacKinnon  agreed, and stated that  she had already                                                                    
asked that  question. She wondered  whether the  minimum was                                                                    
the maximum.                                                                                                                    
                                                                                                                                
Representative Kito deferred to Ms. Kelly.                                                                                      
                                                                                                                                
Ms. Kelly explained that the  minimum penalty in statute was                                                                    
the  only  minimum penalty.  She  stated  that most  of  the                                                                    
minimum penalties  were zero, except for  the single willful                                                                    
violation minimum penalty.                                                                                                      
                                                                                                                                
Co-Chair MacKinnon requested a sectional analysis.                                                                              
                                                                                                                                
10:47:06 AM                                                                                                                   
                                                                                                                                
CAITLYN  ELLIS, STAFF,  REPRESENTATIVE  SAM KITO,  presented                                                                    
the Sectional Analysis (copy on file):                                                                                          
                                                                                                                                
     Section 1                                                                                                                  
     Amends AS  18.60.095 (a) to establish  that the maximum                                                                    
     and  minimum  civil   penalties  the  commissioner  may                                                                    
     assess an  employer for a  willful or  repeat violation                                                                    
     of occupational  safety and health provisions  shall be                                                                    
     set  by regulation  under a  new section  (i) added  by                                                                    
     this bill.                                                                                                                 
                                                                                                                                
     Section 2                                                                                                                  
     Amends AS  18.60.095 (b) to establish  that the maximum                                                                    
     civil penalty  the commissioner may assess  an employer                                                                    
     for  a serious  violation  of  occupational safety  and                                                                    
     health provisions  shall be set  by regulation  under a                                                                    
     new section (i) added by this bill.                                                                                        
                                                                                                                                
     Section 3                                                                                                                  
     Amends AS  18.60.095 (c) to establish  that the maximum                                                                    
     civil penalty  the commissioner may assess  an employer                                                                    
     for  an other  than serious  violation of  occupational                                                                    
     safety   and  health   provisions  shall   be  set   by                                                                    
     regulation under a new section (i) added by this bill.                                                                     
                                                                                                                                
     Section 4                                                                                                                  
     Amends AS  18.60.095 (d) to establish  that the maximum                                                                    
     civil penalty  the commissioner may assess  an employer                                                                    
     who  fails  to  correct  a  violation  of  occupational                                                                    
     safety   and  health   provisions  shall   be  set   by                                                                    
     regulation under a new section (i) added by this bill.                                                                     
                                                                                                                                
     Section 5                                                                                                                  
     Amends AS  18.60.095 (g) to establish  that the maximum                                                                    
     civil penalty  the commissioner may assess  an employer                                                                    
     for violations of posting requirements  shall be set by                                                                    
     regulation under a new section (i) added by this bill.                                                                     
                                                                                                                                
     Section 6                                                                                                                  
     Amends  AS 18.60.095  by adding  a  new subsection  (i)                                                                    
     that   directs  the   commissioner   to  establish   by                                                                    
     regulation  the maximum  civil  penalty  amounts to  be                                                                    
     imposed under  (a)    (d) and (g)  of this  section and                                                                    
     the minimum  imposed under (a). It  stipulates that the                                                                    
     maximum  civil penalties  may not  be greater  than the                                                                    
     corresponding  federal   penalties  and   must  include                                                                    
     adjustments  to  correlate   with  inflation  rates  as                                                                    
     specified under  the Federal Civil  Penalties Inflation                                                                    
     Adjustment Act Improvements Act of 2015.                                                                                   
                                                                                                                                
     Section 7                                                                                                                  
     Establishes  that   this  Act  applies   to  violations                                                                    
     occurring on or after the effective date of this Act.                                                                      
                                                                                                                                
     Section 8                                                                                                                  
                                                                                                                                
     Allows  the department  to adopt  regulations necessary                                                                    
     to implement this Act.                                                                                                     
                                                                                                                                
Co-Chair MacKinnon  wondered whether the CPI  would affect a                                                                    
rate  increasing or  decreasing.  Ms. Ellis  replied in  the                                                                    
affirmative, stating that it would be adjusted on annual                                                                        
basis accordingly.                                                                                                              
                                                                                                                                
Co-Chair MacKinnon asked for agreement. Ms. Kelly replied                                                                       
in the affirmative.                                                                                                             
                                                                                                                                
Vice-Chair Bishop surmised that it could not exceed the                                                                         
federal maximum penalties. Ms. Kelly agreed.                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Co-Chair MacKinnon discussed committee business.                                                                                
                                                                                                                                
SB 121 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:51:03 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:51 a.m.                                                                                         

Document Name Date/Time Subjects
HB 121 - Additional Document - Sponsor's Reply to House Judiciary Committee Questions 3.10.17.pdf SFIN 4/11/2018 9:00:00 AM
HB 121
HB 121 - Sponsor Statement 3.6.17.pdf SFIN 4/11/2018 9:00:00 AM
HB 121
HB 121 - Sectional Analysis 3.6.17.pdf SFIN 4/11/2018 9:00:00 AM
HB 121
HB 121 - Support Document - Federal memo to state plans 02.23.17.pdf SFIN 4/11/2018 9:00:00 AM
HB 121
HB 121 - Supporting Document-OSHA Fact Sheet 3.6.17.pdf SFIN 4/11/2018 9:00:00 AM
HB 121
HB 121-DOLWD Response to SFIN 4.11.18.pdf SFIN 4/11/2018 9:00:00 AM
HB 121