Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/21/2019 01:30 PM Senate LABOR & COMMERCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearing(s): | |
| SB65 | |
| SB66 | |
| SB69 | |
| Confirmation Hearing(s) | |
| SJR8 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| *+ | SB 69 | TELECONFERENCED | |
| *+ | SJR 8 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 65 | TELECONFERENCED | |
| += | SB 66 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 21, 2019
1:30 p.m.
MEMBERS PRESENT
Senator Lora Reinbold, Chair
Senator Mia Costello, Vice Chair
Senator Click Bishop
Senator Chris Birch
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING:
Board of Physical Therapy
Dr. Enlow Walker - North Pole
CONFIRMATION ADVANCED
SENATE BILL NO. 65
"An Act relating to the duties of the Department of Labor and
Workforce Development; and providing for an effective date."
- MOVED SB 65 OUT OF COMMITTEE
SENATE BILL NO. 66
"An Act relating to the division of labor standards and safety;
relating to the division of workers' compensation; establishing
the division of workers' safety and compensation; and providing
for an effective date."
- MOVED SB 66 OUT OF COMMITTEE
SENATE BILL NO. 69
"An Act establishing an exception from permit and fee
requirements for certain charitable gaming activities; relating
to fees for applicants for a charitable gaming permit; amending
the definition of 'permittee'; and providing for an effective
date."
- HEARD & HELD
CONFIRMATION HEARING:
Workers' Compensation Board
Chuck Collins - Juneau
Sarah LeFebvre - Fairbanks
CONFIRMATIONS ADVANCED
SENATE JOINT RESOLUTION NO. 8
Supporting the ratification of the United States-Mexico-Canada
Agreement on trade; encouraging the federal Administration to
remove the steel and aluminum tariffs on imports from Canada and
Mexico; and urging the United States Congress and the federal
Administration to call on Canada and Mexico to remove
retaliatory tariffs on all goods and services exported from the
United States.
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 65
SHORT TITLE: DEPT. OF LABOR: TECHNICAL ED. PROGRAMS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) L&C, FIN
03/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/19/19 (S) Heard & Held
03/19/19 (S) MINUTE(L&C)
03/21/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 66
SHORT TITLE: LABOR STANDARDS/SAFETY; WORKER COMP.
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/20/19 (S) READ THE FIRST TIME - REFERRALS
02/20/19 (S) L&C, FIN
03/19/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/19/19 (S) Heard & Held
03/19/19 (S) MINUTE(L&C)
03/21/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 69
SHORT TITLE: EXEMPT CHARITABLE GAMING FROM PERMIT/FEES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/22/19 (S) READ THE FIRST TIME - REFERRALS
02/22/19 (S) L&C, FIN
03/21/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SJR 8
SHORT TITLE: U.S.-MEXICO-CANADA AGREEMENT ON TRADE
SPONSOR(s): SENATOR(s) COSTELLO
03/01/19 (S) READ THE FIRST TIME - REFERRALS
03/01/19 (S) L&C
03/21/19 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
ENLOW WALKER, M.D., Appointee
Board of Physical Therapy
Division of Corporations, Business & Professional Licensing
Department of Commerce, Community and Economic Development
Fairbanks, Alaska
POSITION STATEMENT: Testified as appointee to the Board of
Physical Therapy.
TAMIKA LEDBETTER, Ph.D., Commissioner Designee
Department of Labor and Workforce Development (DOLWD)
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of SB 65.
GREY MITCHELL, Director
Division of Workers' Compensation
Central office
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions during the discussion of
SB 66.
BRUCE TANGEMAN, Commissioner Designee
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Testified on behalf of the administration on
SB 69.
COLLEEN GLOVER, Director
Tax Division
Department of Revenue
Anchorage, Alaska
POSITION STATEMENT: Presented a sectional analysis for SB 69.
SARAH OATES, President
Alaska Cabaret, Hotel, Restaurant and Retail Association
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 69.
STEVEN BORCHERDING, Manager
Gold Cache Bingo
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to SB 69.
KATRINA MITCHELL, Gaming Group Manager
Tax Division
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Answered questions during the discussion of
SB 69.
CHUCK COLLINS, JR., Appointee
Workers' Compensation Board
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Testified as appointee to the Workers'
Compensation Board,
SARAH LEFEBVRE, Appointee
Workers' Compensation Board
Department of Labor and Workforce Development (DOLWD)
Fairbanks, Alaska
POSITION STATEMENT: Testified as appointee to the Workers'
Compensation Board.
ERIN MCLAUGHLIN, Intern
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the sponsor of SJR 8,
Senator Mia Costello.
MATTHEW MORRISON, Chief Executive Officer (CEO)
Pacific NorthWest Economic Region (PNWER)
Seattle, Alaska
POSITION STATEMENT: Testified in support of SJR 8.
ACTION NARRATIVE
1:30:10 PM
CHAIR LORA REINBOLD called the Senate Labor and Commerce
Standing Committee meeting to order at 1:30 p.m. Present at the
call to order were Senators Costello, Gray-Jackson, Birch,
Bishop, and Chair Reinbold.
^CONFIRMATION HEARING(S):
CONFIRMATION HEARING(S):
Board of Physical Therapy
1:31:58 PM
CHAIR REINBOLD announced that the first order of business would
be confirmation hearings for the Board of Physical Therapy.
1:32:23 PM
ENLOW WALKER, M.D., Appointee, Board of Physical Therapy,
Division of Corporations, Business & Professional Licensing,
Department of Commerce, Community and Economic Development
(DCCED), North Pole, said he has been serving on the Board of
Physical Therapy since July 2018. He retired from active medical
practice in 2016. He still fills in at the Fairbanks Clinic for
his previous partners. He served on active duty as a family
practice physician in the U.S. Air Force for seven years, with
five years at Eielson Air Force Base (EAFB). He also served four
years in the Alaska Air National Guard. He then practiced
medicine at the Fairbanks Clinic for 30 years. Since 2011 he has
served as the physician member on the Advisory Board on
Alcoholism and Drug Abuse, and as chair in 2018. He also serves
as a member of the Fairbanks North Star Borough Commission on
Health and Social Services, and the Golden Valley Electric
Association Member Advisory Committee.
He said he used physical therapists for several months after his
knee replacement surgery and as a physician he referred patients
to physical and occupational therapy. Several of his
grandchildren have received extensive occupational therapy, he
said. He expressed interest in serving on the board to give back
to his community and the state.
1:35:04 PM
SENATOR BISHOP said that Dr. Walker's resume is impressive, and
he appreciates his willingness to serve. He remarked that with
his distinguished career he will be an asset to the State of
Alaska.
CHAIR REINBOLD said that she was impressed that he has served on
the Advisory Board on Alcoholism and Drug Abuse since 2011.
Alaska currently faces a crisis in drug and alcohol abuse, she
said. She thanked Dr. Walker for making Alaska a better place.
1:35:52 PM
CHAIR REINBOLD opened public testimony, and after ascertaining
no one wished to testify, closed public testimony on the
confirmation hearing for Enlow Walker, M.D., appointee to the
Board of Physical Therapy.
SB 65-DEPT. OF LABOR: TECHNICAL ED. PROGRAMS
1:36:15 PM
CHAIR REINBOLD announced that the next order of business would
be SENATE BILL NO. 65, "An Act relating to the duties of the
Department of Labor and Workforce Development; and providing for
an effective date."
1:37:09 PM
TAMIKA LEDBETTER, Ph.D., Commissioner Designee, Department of
Labor and Workforce Development (DOLWD), Anchorage, said she is
very excited about the process and interested in leading and
monitoring the career and technical education (CTE) programs in
Alaska. She expressed interest in the opportunity to partner
with the Department of Education and Early Development (DEED)
and the University of Alaska in this effort.
1:38:41 PM
SENATOR BISHOP reviewed the Department of Labor & Workforce
Development fiscal note for an appropriation of $140,100 in FY
2020 to the Commissioner and Administrative Services. The
allocation is the Workforce Investment Board, and the OMB
component is 2659. There is no fiscal impact to the department
as a result of this legislation, because this does not
significantly change the department's programs. This legislation
simply formalizes the department's role in the coordination of
the state's CTE programs.
SENATOR BISHOP reviewed the Department of Education and Early
Development (DEED), zero fiscal note. The allocation is Student
and School Achievement and the OMB component is 2796. This
legislation amends AS 44.31.020, requiring the Department of
Labor and Workforce Development to coordinate and monitor state
career and technical education programs by cooperating with the
Department of Education and Early Development, the University of
Alaska, and any other entities that provide or fund these
programs. This legislation would become effective immediately.
There is no fiscal impact to the department.
1:40:54 PM
SENATOR COSTELLO moved to report SB 65, work order 31-GS1139\A,
from committee with individual recommendations and attached
fiscal note(s). There being no objection, SB 65 was reported
from the Senate Labor and Commerce Standing Committee.
SB 66-LABOR STANDARDS/SAFETY; WORKER COMP.
1:41:35 PM
CHAIR REINBOLD announced that the next order of business would
be SENATE BILL NO. 66, "An Act relating to the division of labor
standards and safety; relating to the division of workers'
compensation; establishing the division of workers' safety and
compensation; and providing for an effective date."
1:42:35 PM
GREY MITCHELL, Director, Division of Workers' Compensation,
Central Office, Department of Labor and Workforce Development
(DOLWD), Juneau, briefly reviewed SB 66. As stated during the
previous hearing, SB 66 would combine the Division of Labor
Standards and Safety (DLSS) with the Division of Workers'
Compensation. The department does not intend to change any of
the programs, but to create opportunities for efficiencies and
remove silos between the two divisions. The department hopes to
capture some immediate savings by flattening the management
structure in the Occupational Safety and Health component and
taking advantage of a vacancy in an administrative position in
Fairbanks. The department would combine the administrative
functions in the two divisions. One provision in the fiscal note
is related to reclassification of the director's position to a
deputy director, who would work in tandem with the director of
the Division of Workers' Compensation in the newly formed
Division of Worker Safety and Compensation. The administrative
officer II position that is currently in DLSS would be
reclassified to an administrative officer I position. This
position would be part of the team for the combined division to
more effectively manage the administrative operations. It would
help create a safety net and career pathway within the division.
Currently, when one position becomes vacant, it means the
department must train a new person. This would help ensure that
someone is trained and ready to step in at the same time it
would create efficiencies and better overall management.
1:44:16 PM
SENATOR BISHOP reviewed the zero-fiscal note for the Department
of Labor and Workforce, Workers' Compensation. The appropriation
and allocation are both Workers' Compensation and the OMB
component is 344. He read the fiscal note commentary: This
merger will not result in an immediate cost savings within
Workers' Compensation. Potential future year cost savings will
have to be determined as position responsibilities and lease
space needs are evaluated moving forward.
SENATOR BISHOP said the second fiscal note for the Department of
Labor & Workforce Development shows the potential savings. The
appropriation is Labor Standards and Safety, the allocation is
Occupational Safety and Health, and the OMB component is 970. He
said there would be a general fund reduction of $71,400 and
designated general fund savings of $211,600 for a total savings
of $283,000. He read the following fiscal note analysis:
This legislation merges the Division of Labor
Standards and Safety and the Division of Workers'
Compensation into the Division of Workers' Safety and
Compensation. The new division would administer the
same programs as are currently administered by the two
separate divisions. The department's regulations need
to be updated to reflect the division name change.
This merger would result in immediate administrative
efficiencies resulting in position reductions and
personal services savings. The estimated cost savings
is based on the reclassification of the Labor
Standards and Safety Director (range 27) to a Deputy
Director (range 25) position, the elimination of the
Occupational Safety and Health Chief (range 23)
position with those duties assumed by the Deputy
Director, the elimination of a vacant office assistant
II (range 10) position, and the reclassification of a
vacant Administrative Officer II (range 19) position
to an Administrative Officer I (range 17) position.
1:46:45 PM
CHAIR REINBOLD expressed appreciation for the fiscal note
analysis.
1:47:06 PM
SENATOR BISHOP removed his objection. He said that he has
workload concerns about the director position and he would offer
an amendment in the Senate Finance Committee. He said he has
previously held discussions with Mr. Mitchell. During his tenure
as commissioner of the Department of Labor and Workforce
Development (DOLWD), he considered collapsing the division. He
said he would err on the side of worker safety for working
people. He expressed concern that the director would suffer
burnout.
1:48:34 PM
SENATOR COSTELLO moved to report SB 66, work order 31-GS1049\A,
from committee with individual recommendations and attached
fiscal note(s). There being no objection, SB 66 was reported
from the Senate Labor and Commerce Standing Committee.
1:48:54 PM
At-ease.
SB 69-EXEMPT CHARITABLE GAMING FROM PERMIT/FEES
1:53:44 PM
CHAIR REINBOLD reconvened the meeting and announced that the
next order of business would be SENATE BILL NO. 69, "An Act
establishing an exception from permit and fee requirements for
certain charitable gaming activities; relating to fees for
applicants for a charitable gaming permit; amending the
definition of 'permittee'; and providing for an effective date."
1:54:00 PM
BRUCE TANGEMAN, Commissioner Designee, Department of Revenue,
Anchorage, stated that the Department of Revenue issues
charitable gaming permits and licenses and collects fees and
taxes. Municipalities and qualified organizations that hold a
permit are authorized to conduct gaming activities. The annual
permit is based on a tiered fee structure. The department would
charge a $20 fee for an applicant with gross receipts of less
than $20,000, a $50 fee for an applicant with gross receipts
greater than $20,000 but less than $100,000, and a $100 fee for
an applicant with gross receipts greater than $100,000.
He said that SB 69 would eliminate the permit and fee
requirement for small charitable organizations with annual gross
receipts of less than $20,000. The bill would reduce costs and
workload for small charitable organizations to conduct these
activities. This reduction of regulation on small charitable
organizations is part of the governor's pledge to reduce
regulations, he said.
COMMISSIONER DESIGNEE TANGEMAN said this would result in the
lack of regulation for small charitable organizations, but the
department requires an annual certification of these
organizations that would serve as a quality check. Only those
that qualify for regulatory relief would benefit. He reported
that in 2017, of the 1,071 reports that were filed by
permitholders, 403 or approximately 38 percent reported gross
receipts of less than $20,000. He reported that of the $61,400
in permit fees, $8,000 was from those organizations with less
than $20,000 in gross receipts.
He summarized that SB 69 would provide an exemption from annual
permits and fees for qualified organizations with less than
$20,000 in annual gross receipts. Exempt organizations must file
an annual certification, under penalty of perjury, to certify
that the organization qualifies for the exemption. The bill
would take effect January 2020, so it would not have any effect
in calendar year 2019.
1:57:26 PM
COLLEEN GLOVER, Director, Tax Division, Department of Revenue,
Anchorage, reviewed the sectional analysis for SB 69. She read
Sections 1-4.
Section 1: Amends AS 05.15 to add a new section, AS
05.15.055, to allow a municipality or qualified
organization to conduct charitable gaming activity
without a permit and without paying a fee, if the
annual gross receipts from charitable gaming activity
are less than $20,000. Provides that a municipality or
qualified organization conducting limited charitable
gaming does not need to file a report or apply for
registration but must file an annual certification of
compliance. (Page 1, beginning on line 5)
Section 2: Amends AS 05.15.115(a) to use the words "a
permittee" rather than "a municipality or qualified
organization holding a permit to conduct an activity
under this chapter." (Page 2, beginning on line 3)
Section 3: Amends AS 05.15.185 to use the words "a
permittee" rather than "a municipality or qualified
organization holding a permit to conduct an activity
under this chapter." (Page 2, lines 9-18)
Section 4: Amends the definition of "permittee" in AS
05.15.690(35) to include a municipality or qualified
organization conducting limited charitable gaming
activity without a permit and without paying a fee.
(Page 2, lines 19-23)
1:59:12 PM
MS. GLOVER read Sections 5-8:
Section 5: This section repeals AS 05.15.020(c)(1) and
05.15.020(c)(2). (Page 2, line 24)
Section 6: Allows the Department of Revenue to adopt
transition regulations. (Page 2, lines 25-30)
Section 7: Provides an immediate effective date for
Section 6. (Page 2, line 31)
Section 8: Provides for an effective date of January
1, 2020, for Sections 1-5. (Page 3, line 1)
1:59:44 PM
MS. GLOVER said that the bill would replace the terms
"municipality or qualified organization holding a permit" with
the term "permittee" since smaller organizations would not hold
a permit. It also would define "permittee."
2:00:17 PM
SENATOR GRAY-JACKSON asked whether the fees were the same for
every organization.
MS. GLOVER answered that the fees were tiered based on the
amount of gross receipts.
SENATOR GRAY-JACKSON asked whether some organizations bring in
less than $20,000.
COMMISSIONER DESIGNEE TANGEMAN answered that the total fees for
all permittees was $61,400 and $8,000 of that was derived from
those organizations with gross receipts of less than $20,000.
2:01:37 PM
SENATOR GRAY-JACKSON asked for confirmation that the total was
$8,000.
COMMISSIONER DESIGNEE TANGEMAN answered yes.
2:01:47 PM
SENATOR BIRCH remarked that hockey teams from all over the state
are likely rejoicing that they do not have to dive into the
regulatory morass for modest fundraising for their kids. He
expressed gratitude for the bill.
2:02:09 PM
SENATOR BISHOP asked whether the organizations would be totally
unregulated.
COMMISSIONER DESIGNEE TANGEMAN answered that they would provide
a year-end report to prove they qualify for the exemption.
SENATOR BISHOP said he wanted to avoid fraud.
2:02:50 PM
SENATOR COSTELLO said she appreciates the comment about the
hockey organizations. She referred to an email that voiced
concern that it might be confusing to the public as to who would
need a permit. She asked how that would be addressed.
COMMISSIONER DESIGNEE TANGEMAN deferred to Ms. Glover.
MS. GLOVER answered that the division was currently discussing
this. She said that it would be part of the regulation packet.
She assured members that the department wants people to be
informed.
2:03:57 PM
SENATOR COSTELLO related another concern about criminal activity
such as altering pull tabs to resemble winning tickets. She
asked whether the department considered that the bill might
potentially increase illegal activity or if the department could
provide assurances that this will not happen.
MS. GLOVER answered that this bill does not affect pull tab
regulations. This bill only affects charitable organizations
that need a permit.
SENATOR COSTELLO requested the answer in writing for clarity.
MS. GLOVER agreed to provide a written answer to the committee.
2:06:12 PM
CHAIR REINBOLD opened public testimony on SB 69.
2:06:45 PM
SARAH OATES, President and CEO, Alaska Cabaret, Hotel,
Restaurant and Retail Association (CHARR), Anchorage, stated her
opposition to SB 69. She expressed concern that it would create
a massive loophole with no means of enforcement. Although CHARR
would not currently qualify for an exemption, nothing would
prevent them from creating new corporations that individually
would gross less than $20,000 per year. She said that the
department would not know whether an organization exceeded
$20,000 since it would only file a simple affidavit. If a
violation did occur, there would not be any means to impose a
civil penalty, suspend, or revoke a permit. She asked whether an
entity would have to retroactively file a report if they
exceeded the threshold or how the department would know about
new entities who anticipated they would gross less than $20,000
per year. She offered her belief that the $50 cost and supposed
regulatory burden was minimal at best. She urged members to
oppose the bill.
2:08:59 PM
STEVEN BORCHERDING, Manager, Gold Cache Bingo, Wasilla, stated
he has bingo operations in Wasilla and Anchorage. He reviewed
his background to show that he had considerable experience in
the industry and as a distributor. He said he has also served on
task force and regulatory committees.
He stated his opposition to SB 69. He said that the bingo and
pull tab industries are highly regulated ones. They require
substantial oversight similar to alcohol, tobacco, and
marijuana, he said. SB 69 would remove this oversight for the
smaller groups that likely need it because they probably lack
the knowledge and experience in the industry. He expressed
concern that this lack of knowledge would lead to problems. In
fact, it has already led to problems with smaller groups, he
said. The permit process ensures a certain level of oversight
and a basic knowledge of statutes and regulations, he said.
Members in charge and gaming managers must take a test to
receive a permit.
MR. BORCHERDING said that the permit and regulatory process
currently requires businesses to provide proof of insurance,
payroll submissions, tax documentation, manager contracts, and
various other requirements. The state oversees these operations
through the permitting process and applicants prove legitimacy,
in part, by providing a physical address where gaming operations
will occur. The state can revoke permits, but without a permit,
these businesses would have no reason to comply. For example,
the bill does not have any reporting requirements, even though
previous testimony indicated an annual report would be required.
He said that he has taught several courses at AFN {Alaska
Federation of Natives] conventions on gaming. Just because an
operation is a small one does not mean that it should not be
regulated in this highly regulated industry. He urged members
not to pass the bill.
2:13:22 PM
CHAIR REINBOLD asked him to submit written testimony to
senate.labor.and.commerce@akleg.gov.
2:14:03 PM
SENATOR BIRCH asked what percentage of net revenues from bingo
are given to charities. He recalled that it was substantial.
MR. BORCHERDING answered that it was over $20 million. This year
Gold Cache Bingo donated about $2.2 million to charities. He
offered his belief that the gross revenue for charitable gaming
was about $300 million.
CHAIR REINBOLD asked Commissioner Designee Tangeman to respond
to Mr. Borcherding's testimony.
2:15:29 PM
COMMISSIONER DESIGNEE TANGEMAN deferred to Ms. Glover.
2:15:44 PM
MS. GLOVER responded that the bill would require an annual
certification for small charitable organizations that would be
exempt from the permit application process and fees. They would
not be required to submit an annual report of revenues, but they
must certify their gross revenues, she said.
She explained this permit process would apply to charitable
organizations with less than $20,000 in gross receipts that
often contract with operators, such as a bingo parlor or pull
tab operators. Bingo and pull tab entities would not be affected
by this bill. Regulations for pull tab operators, manufacturers,
or distributors would not change.
MS. GLOVER said the division was still considering how to handle
retroactive permits for entities who exceeded the $20,000 gross
receipts limit but had not applied for a permit. The department
planned to address the issue of identifying small organizations
by regulation, likely by requiring an initial certification at
the beginning of the year rather than the end of the year.
2:18:41 PM
SENATOR BISHOP asked whether the 38 percent of organizations in
the category of small organizations would fall under the realm
of raffle tickets.
MS. GLOVER said she did not have that information.
2:19:23 PM
KATRINA MITCHELL, Gaming Group Manager, Tax Division, Department
of Revenue, Juneau, said she thought that the primary
organizations with $20,000 or less in gross receipts would
conduct raffles. She said that organizations involved in bingo
or pull tabs would easily and quickly surpass the $20,000
threshold.
2:20:01 PM
SENATOR BIRCH recalled earlier testimony with concern that an
unscrupulous operator might try to keep the operation's gross
receipts under $20,000. He asked her to address the concern.
MS. GLOVER replied that the question related to operators, but
they will not be impacted by this bill. This bill would only
affect small charitable organizations or municipalities. She
said she did not see any risk.
2:21:18 PM
SENATOR COSTELLO asked for the difference between a permit and a
certification, whether a permit must be displayed publicly,
whether operators are regulated, and if operators are required
to pay corporate income tax to the state.
MS. GLOVER answered that when an organization applies for a
permit, the division would approve or disapprove the permit. The
required annual certification includes a report, under penalty
of perjury, on the gross annual receipts. She deferred the next
three questions to Ms. Mitchell.
MS. MITCHELL confirmed that the gaming permit must be publicly
displayed where the activity occurs. The operators are
regulated. They must obtain a license, post a bond depending on
the number of permittees they game for, and file quarterly and
annual reports with the division. In response to whether
operators must pay state corporate income tax, she explained
that an applicant must be a natural person in order to obtain an
operator's license. She did not think that operators would be
required to pay state corporate taxes unless they have a
subsidiary.
2:24:33 PM
SENATOR COSTELLO asked what purpose is the statute requiring the
applicant to be "a natural person" as opposed to a business or
corporation.
MS. MITCHELL answered that she was unsure of the reason.
CHAIR REINBOLD stated that she would hold SB 69 in committee.
^CONFIRMATION HEARING(S)
CONFIRMATION HEARING(S):
Workers' Compensation Board
2:25:32 PM
CHAIR REINBOLD returned to the confirmation hearings for the
Workers' Compensation Board.
2:26:09 PM
CHUCK COLLINS, JR., Appointee, Workers' Compensation Board,
Department of Labor and Workforce Development (DOLWD), Juneau,
said that he has served on the Workers' Compensation Board for a
number of years and currently serves in an industry seat. He
said that he was initially appointed when he was self-employed
and owned a few stores. Although he sold his stores, he
currently operates a small business. In 2010, the NFIB [National
Federation of Independent Businesses] asked him to serve as an
industry representative on the Worker's Compensation Board.
MR. COLLINS said that he takes the role of representing small
businesses seriously. The last few administrations have made
significant changes related to labor, such as workers'
compensation and labor safety issues. He said that he has tried
to hold the line for small businesses in Alaska.
2:27:53 PM
SENATOR BISHOP asked how he values the worker.
MR. COLLINS said he works right alongside his workers and would
not ask them to do anything he would not do. He provided an
anecdote to illustrate his family-friendly style of management.
He said he currently runs a hotel in Juneau and hires Alaskans.
He said he attended Kansas State University and moved to Juneau
30 years ago. He said that Alaskans are willing to adapt and
overcome obstacles.
2:30:14 PM
CHAIR REINBOLD said she was glad he represented small businesses
on the Workers' Compensation Board. She said it was important to
do something for small businesses.
2:30:56 PM
MR. COLLINS said he does not have a view on SB 66 yet, but he
would be watching it very closely. He echoed Senator Bishop's
concerns related to potential director burnout.
2:31:39 PM
SENATOR COSTELLO asked the record to reflect that board
appointees were not appointed based on their support or non-
support of legislation. Instead, appointees to boards and
commissions were appointed based on their qualifications. She
said that the process is clear that the legislature handles
legislation.
2:32:43 PM
MR. COLLINS thanked members for serving the state.
CHAIR REINBOLD offered her belief that board members should be
aware of legislation since the laws and subsequent regulations
would affect them. She echoed Senator Costello's remarks.
2:33:38 PM
SARAH LEFEBVRE, Appointee, Workers' Compensation Board,
Department of Labor and Workforce Development (DOLWD),
Fairbanks, said she has served on this board for five or six
years. She said that she has participated in workers'
compensation claims from the employer's perspective for about 20
years. One strength and focus she brings to the board is to keep
the pendulum in the middle with no big swings to the employer or
the employee. The state cannot be fair and impartial at the
extreme ends, she said. She said she finds it gratifying to help
injured workers and to work as part of a team to ensure good
outcomes for everyone involved, including employers, providers,
and employees.
2:35:10 PM
SENATOR BISHOP thanked her for her willingness to continue to
serve on the board. He said he appreciated her comments,
especially coming from the owner's perspective. He said that she
brings a fair and balanced approach to the process and he would
hate to see her experience lost.
2:35:40 PM
CHAIR REINBOLD opened public testimony and after determining no
one wished to testify, closed public testimony on the
confirmation hearing for Chuck Collins, Jr. and Sarah LeFebvre,
appointees to the Workers' Compensation Board.
MS. LEFEBRVE said that she appreciates the process the
legislature uses to ensure that the board is balanced and she
appreciates the opportunity to serve.
2:36:32 PM
CHAIR REINBOLD stated that in accordance with AS 39.05.080, the
Senate Labor and Commerce Standing Committee reviewed the
following and recommends the appointments be forwarded to a
joint session for consideration:
Board of Physical Therapy
Enlow Walker, M.D. - North Pole
Workers' Compensation Board
Sarah LeFebvre - Fairbanks
Chuck Collins - Juneau
Signing the reports regarding appointments to boards and
commissions in no way reflects individual members' approval or
disapproval of the appointees; the nominations are merely
forwarded to the full legislature for confirmation or rejection.
2:37:07 PM
At-ease.
SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE
2:39:06 PM
CHAIR REINBOLD reconvened the meeting. She announced that the
final order of business would be SJR 8-U.S.-MEXICO-CANADA
AGREEMENT ON TRADE.
2:39:36 PM
ERIN MCLAUGHLIN, Intern, Senator Mia Costello, Alaska State
Legislature, Juneau, said that she is an intern in the Senator
Ted Stevens Legislative Internship Program working for Senator
Costello. She introduced SJR 8 speaking to the following
prepared statement.
• Thank you, Madam Chair and Labor and Commerce
Committee members
• For the record name
• I am here today to present Senator Costello's Senate
Joint Resolution No. 8
• Two goals to the resolution
1. to encourage the federal gov. to ratify the New North
American Free Trade Agreement, New NAFTA, or the
United States Mexico Canada Agreement, USMCA. For the
purpose of this hearing I will refer to the agreement
as the New NAFTA.
2. While the resolution does support the New NAFTA, it is
against the 25 percent tariffs on steel and 10 percent
tariff on aluminum
2:40:30 PM
MS. MCLAUGHLIN continued.
• In November after more than a year of negotiations,
the United States, Canada and Mexico reached an
agreement to update the North American Free Trade
Agreement
• which governs more than $1.2 trillion worth of trade
among the three nations
• The new deal won't go into effect right away. Most of
the key provisions don't start until 2020
• This is because leaders from the three countries have
to sign it
• then Congress and the legislatures in Canada and
Mexico have to approve it, a process that is expected
to take months.
2:41:03 PM
MS. MCLAUGHLIN emphasized that the agreement was not yet
ratified. She continued:
• Madam Chair let me illustrate the vital importance of
Senator Costello's Joint Resolution today
• The New NAFTA would play an important role on a
growing part of Alaska's economy
• While there are numerous provisions to the 1994 NAFTA
there is one area of the New NAFTA that supports a
growing sector in Alaska
o Intellectual property
• Senate Joint Resolution No. 8 supports the New NAFTA
since it brings the trade agreement into the modern
era
o It brings protections for patents and trademarks,
which includes biotech, financial services and even
domain names
• Alaska hosts a variety of programs and institutions that
enable the growth of innovation and entrepreneurship, which
positions the state to compete in the global economy.
• One of those institutions is the Office of
Intellectual Property and Commercialization which is
one of the University of Alaska Research Centers.
o dedicated to the development and commercialization of
intellectual property, research and development,
ability to conduct sponsored research
2:42:26 PM
MS. MCLAUGHLIN continued:
• Madam Chair while the resolution does support the New
NAFTA it is against the tariffs on steel and aluminum
• On March 1, 2018 the federal administration announced
that the US would be imposing 25 percent tariff on
steel and a 10 percent tariff on aluminum, which
Mexico and Canada would be granted waivers for
•
o However, they were later imposed on Canada and Mexico
• This resulted in retaliatory tariffs, which would be
lifted as soon as the US removes their imposed tariffs
•
2:43:19 PM
MS. MCLAUGHLIN continued.
• The United States relationship with Canada is vital to
the Alaskan economy
• According to a study commissioned by the Embassy of Canada,
21,300 Alaskan jobs depend on trade and investment with
Canada
• In 2017, Alaska exported $707 million dollars to Canada,
$331 million of which was metal, according to the office of
United States Trade Representative
• The trade Representative also reports that Canada imports
$16 million in Iron and steel tubes, pipes, and sheets from
Alaska.
• The tariffs on steel and aluminum harm the industry and
workers on both sides of the Canada- US border by
disrupting supply chains
• Senator Costello has reached out to the Alaskan
Congressional Delegation. U.S. Senator Sullivan said that
he supports the ratification of the New NAFTA and he also
is against the tariffs on steel and aluminum.
• Once again Madam Chair thank you for the opportunity to
present Senator Costello's Senate Joint Resolution No. 8 to
the Labor and Commerce Committee
2:44:35 PM
SENATOR BISHOP complimented her on the excellent delivery. He
said he was proud of her.
SENATOR GRAY-JACKSON echoed Senator Bishop's comments.
2:45:38 PM
CHAIR REINBOLD opened public testimony on SJR 8.
CHAIR REINBOLD reviewed committee announcements.
2:46:59 PM
MATTHEW MORRISON, Chief Executive Officer (CEO), Pacific
NorthWest Economic Region, Seattle, stated that Senator
Murkowski estimated that the aluminum and steel tariffs would
increase the proposed natural gas pipeline by $500 million. He
urged members to support SJR 8. He commended Ms. McLaughlin's
testimony.
2:47:51 PM
SENATOR COSTELLO commended Ms. McLaughlin's presentation. She
said her performance is a testament to the value of the intern
program, in which university students have the opportunity to
serve as full-fledged staffers in the legislature. She said she
strongly supports the program.
CHAIR REINBOLD held SJR 8 in committee with public testimony
open.
2:48:45 PM
There being no further business to come before the committee,
Chair Reinbold adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:48 p.m.