Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/17/2021 02:00 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 125 MILITARY AND FAMILY EMPLOYMENT PREFERENCE TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 36 MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE TELECONFERENCED
Moved SCS HB 36(L&C) Out of Committee
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                          May 17, 2021                                                                                          
                           1:58 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Joshua Revak, Vice Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Gary Stevens                                                                                                            
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 125(L&C)                                                                                
"An  Act relating  to employment  preferences for  active service                                                               
members, veterans,  and spouses and dependent  children of active                                                               
service members and veterans;  relating to employment preferences                                                               
for surviving  spouses of deceased service  members and veterans;                                                               
and relating to employment preferences  for disabled veterans and                                                               
former prisoners of war."                                                                                                       
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 36                                                                                                               
"An Act relating to an application  for a license to operate as a                                                               
dealer  in  motor  vehicles;  and requiring  a  dealer  in  motor                                                               
vehicles to maintain liability and property insurance."                                                                         
                                                                                                                                
     - MOVED SCS HB 36(L&C) OUT OF COMMITTEE                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 125                                                                                                                  
SHORT TITLE: MILITARY AND FAMILY EMPLOYMENT PREFERENCE                                                                          
SPONSOR(s): REPRESENTATIVE(s) NELSON                                                                                            
                                                                                                                                
03/05/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/05/21       (H)       MLV, L&C                                                                                               
03/16/21       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
03/16/21       (H)       Heard & Held                                                                                           
03/16/21       (H)       MINUTE(MLV)                                                                                            
03/18/21       (H)       MLV AT 1:00 PM GRUENBERG 120                                                                           
03/18/21       (H)       Moved HB 125 Out of Committee                                                                          
03/18/21       (H)       MINUTE(MLV)                                                                                            
03/20/21       (H)       MLV RPT 6DP                                                                                            
03/20/21       (H)       DP:   CLAMAN,    TARR,   SHAW,   NELSON,                                                               
                         RAUSCHER, TUCK                                                                                         
04/16/21       (H)       L&C AT 8:00 AM GRUENBERG 120                                                                           
04/16/21       (H)       Heard & Held                                                                                           
04/16/21       (H)       MINUTE(L&C)                                                                                            
04/23/21       (H)       L&C AT 8:00 AM GRUENBERG 120                                                                           
04/23/21       (H)       Moved CSHB 125(L&C) Out of Committee                                                                   
04/23/21       (H)       MINUTE(L&C)                                                                                            
04/26/21       (H)       L&C RPT CS(L&C) NT 6DP 1NR                                                                             
04/26/21       (H)       DP: SCHRAGE, MCCARTY, SNYDER, NELSON,                                                                  
                         FIELDS, SPOHNHOLZ                                                                                      
04/26/21       (H)       NR: KAUFMAN                                                                                            
05/07/21       (H)       TRANSMITTED TO (S)                                                                                     
05/07/21       (H)       VERSION: CSHB 125(L&C)                                                                                 
05/10/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/10/21       (S)       L&C                                                                                                    
05/17/21       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  36                                                                                                                  
SHORT TITLE: MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                          
SPONSOR(s): REPRESENTATIVE(s) CLAMAN                                                                                            
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       L&C, FIN                                                                                               
03/03/21       (H)       FIN REFERRAL REMOVED                                                                                   
03/03/21       (H)       L&C AT 5:45 PM BARNES 124                                                                              
03/03/21       (H)       Heard & Held                                                                                           
03/03/21       (H)       MINUTE(L&C)                                                                                            
03/12/21       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/12/21       (H)       Moved HB 36 Out of Committee                                                                           
03/12/21       (H)       MINUTE(L&C)                                                                                            
03/15/21       (H)       L&C RPT 6DP                                                                                            
03/15/21       (H)       DP: SNYDER, NELSON, MCCARTY, SCHRAGE,                                                                  
                         KAUFMAN, SPOHNHOLZ                                                                                     
03/25/21       (H)       BEFORE HOUSE IN THIRD READING                                                                          
03/25/21       (H)       TRANSMITTED TO (S)                                                                                     
03/25/21       (H)       VERSION: HB 36                                                                                         
03/26/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/26/21       (S)       TRA, L&C                                                                                               
04/09/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/09/21       (S)       -- MEETING CANCELED --                                                                                 
04/13/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/13/21       (S)       Heard & Held                                                                                           
04/13/21       (S)       MINUTE(TRA)                                                                                            
04/15/21       (S)       TRA AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/15/21       (S)       Moved SCS HB 36(TRA) Out of Committee                                                                  
04/15/21       (S)       MINUTE(TRA)                                                                                            
04/16/21       (S)       TRA RPT SCS  3NR 1AM SAME TITLE                                                                        
04/16/21       (S)       NR: MYERS, SHOWER, MICCICHE                                                                            
04/16/21       (S)       AM: KIEHL                                                                                              
04/28/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/28/21       (S)       -- MEETING CANCELED --                                                                                 
04/30/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/30/21       (S)       Heard & Held                                                                                           
04/30/21       (S)       MINUTE(L&C)                                                                                            
05/17/21       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE DAVID NELSON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 125                                                                                         
                                                                                                                                
VERDIE BOWEN, Director                                                                                                          
Office of Veterans Affairs                                                                                                      
Department of Military and Veterans Affairs                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions and provided information                                                               
during the hearing on HB 125.                                                                                                   
                                                                                                                                
KIM SKIPPER, Staff                                                                                                              
Representative David Nelson                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the sectional analysis for HB 125.                                                              
                                                                                                                                
KATE SHEEHAN, Director                                                                                                          
Division of Personnel and Labor Relations                                                                                       
Department of Administration                                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during the hearing on HB
125.                                                                                                                            
                                                                                                                                
TAMMIE PERRAULT, Northwest Regional Liaison                                                                                     
Defense-State Liaison Office                                                                                                    
U.S. Department of Defense                                                                                                      
Olympia, Washington                                                                                                             
POSITION STATEMENT: Testified on HB 125 by invitation.                                                                        
                                                                                                                                
DAN WAYNE, Legal Counsel                                                                                                        
Legislative Legal Services                                                                                                      
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions about the  drafting of HB
125.                                                                                                                            
                                                                                                                                
MELODIE WILTERDINK, Staff                                                                                                       
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Summarized HB 36 and  explained the proposed                                                             
amendment.                                                                                                                      
                                                                                                                                
SOPHIE JONAS, Staff                                                                                                             
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  Answered questions  related  to  HB 36  and                                                             
stated that the sponsor supported the amendment.                                                                                
                                                                                                                                
MARTEN MARTENSEN, owner                                                                                                         
Contented Auto Group; and board member                                                                                          
Alaska Auto Dealers Association                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 36.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
                                                                                                                                
1:58:33 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:58  p.m. Present at the  call to                                                               
order were  Senators Gray-Jackson,  Stevens, and  Chair Costello.                                                               
Senators Revak and Micciche arrived thereafter.                                                                                 
                                                                                                                                
        HB 125-MILITARY AND FAMILY EMPLOYMENT PREFERENCE                                                                    
                                                                                                                                
1:59:09 PM                                                                                                                    
CHAIR COSTELLO announced  the consideration of CS  FOR HOUSE BILL                                                               
NO.  125(L&C)  "An Act  relating  to  employment preferences  for                                                               
active  service  members,  veterans, and  spouses  and  dependent                                                               
children  of active  service members  and  veterans; relating  to                                                               
employment preferences for surviving spouses of deceased service                                                                
members and veterans; and relating to employment preferences for                                                                
disabled veterans and former prisoners of war."                                                                                 
                                                                                                                                
She noted that this was the first hearing.                                                                                      
                                                                                                                                
2:00:08 PM                                                                                                                    
REPRESENTATIVE DAVID NELSON, Alaska State Legislature, Juneau,                                                                  
Alaska, sponsor of HB 125, read the sponsor statement into the                                                                  
record. [Original punctuation provided.]                                                                                        
                                                                                                                                
     HB 125 seeks  to extend the current  private sector and                                                                    
     state   employment  hiring   preferences  to   military                                                                    
     spouses.    In  addition, seeks  to  extend  employment                                                                    
     preferences  to  the  dependent  children  of  military                                                                    
     service members who died in the line of duty.                                                                              
                                                                                                                                
     Military spouses  are among the highest  unemployed and                                                                    
     underemployed  group.   They  are  highly educated  and                                                                    
     qualified  for  a  range  of  careers  but  because  of                                                                    
     frequent  moves the  unemployment  rate among  military                                                                    
     spouses is 24% and there is  a 26% wage gap compared to                                                                    
     civilian counterparts.                                                                                                     
                                                                                                                                
                                                                                                                                
2:00:51 PM                                                                                                                    
REPRESENTATIVE NELSON continued:                                                                                                
                                                                                                                                
     In  2019   the  Blue  Star  Families   Military  Family                                                                    
     Lifestyle  Survey found  that 49%  of military  spouses                                                                    
     indicated that  financial issues were the  top stressor                                                                    
     for  military families,  and 48%  were concerned  about                                                                    
     employment.   Of  employed military  spouses 75  % were                                                                    
     considered  underemployed.   HB  125  can provide  some                                                                    
     help to reduce these  concerns for military families by                                                                    
     providing a hiring preference.                                                                                             
                                                                                                                                
                                                                                                                                
2:01:21 PM                                                                                                                    
REPRESENTATIVE NELSON continued:                                                                                                
     A Covid-19  Military Support Initiative created  by the                                                                    
     Blue  Star  Families  and the  Association  of  Defense                                                                    
     Communities found  that an  additional 17%  of military                                                                    
     spouses lost their  jobs during the pandemic  on top of                                                                    
     the 24% unemployment before the pandemic.                                                                                  
                                                                                                                                
     Currently  35  states  and  the  District  of  Columbia                                                                    
     provide  hiring preferences  to active-duty  spouses or                                                                    
     surviving  spouses.  HB 125  will  add  Alaska to  this                                                                    
     growing  list  of  states  that  support  our  military                                                                    
     community and honor the  sacrifices these families make                                                                    
     in service to our country.                                                                                                 
                                                                                                                                
2:02:06 PM                                                                                                                    
SENATOR REVAK joined the meeting.                                                                                               
                                                                                                                                
2:02:19 PM                                                                                                                    
SENATOR STEVENS asked  how the bill changes what  is currently in                                                               
statute to provide an advantage to military spouses.                                                                            
                                                                                                                                
REPRESENTATIVE NELSON  replied there  is a hiring  preference for                                                               
military personnel in statute and  HB 125 extends that preference                                                               
to military spouses and dependents.                                                                                             
                                                                                                                                
SENATOR STEVENS  expressed support  for the  concept and  said he                                                               
looked forward to hearing from the experts.                                                                                     
                                                                                                                                
CHAIR  COSTELLO  asked Verdi  Bowen  to  answer Senator  Stevens'                                                               
question about how HB 125 deviates from current statute.                                                                        
                                                                                                                                
2:03:51 PM                                                                                                                    
VERDIE BOWEN,  Director, Office  of Veterans  Affairs, Department                                                               
of Military and Veterans Affairs,  Anchorage, Alaska, stated that                                                               
veterans receive  a point  preference but  that does  not include                                                               
military spouses  or dependents. HB  125 would fix that  gap help                                                               
spouses  to more  readily find  gainful employment.  He described                                                               
the  bill as  a good  gesture to  join the  other 35  states that                                                               
provide hiring preferences to active-duty spouses.                                                                              
                                                                                                                                
SENATOR STEVENS asked what it means to have a point preference.                                                                 
                                                                                                                                
MR. BOWEN  explained that  the points  provide a  hand up  when a                                                               
veteran   applies  for   a  job.   Veterans  with   a  disability                                                               
automatically receive an interview.                                                                                             
                                                                                                                                
SENATOR  STEVENS  asked if  that  is  only  for veterans  with  a                                                               
disability, and how that affects a spouse.                                                                                      
                                                                                                                                
MR.  BOWEN replied  that private  industry can  provide a  hiring                                                               
preference  to a  spouse but  under existing  statute, the  state                                                               
does not extend hiring preferences to military spouses.                                                                         
                                                                                                                                
2:06:23 PM                                                                                                                    
SENATOR  STEVENS  asked  if  there was  a  reporting  system  for                                                               
somebody who feels they did not receive the advantage.                                                                          
                                                                                                                                
MR. BOWEN  said private companies  have veteran  hiring standards                                                               
and their  hiring reports  would go  through the  human resources                                                               
offices and  on to  the regional offices.  He offered  his belief                                                               
that those companies  would follow the same  process for military                                                               
spouses.                                                                                                                        
                                                                                                                                
2:07:25 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:07:49 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and advised that she asked                                                               
Representative  Nelson's  staff  to   walk  through  a  sectional                                                               
analysis. She expressed particular interest in Sections 2 and 3.                                                                
                                                                                                                                
2:08:12 PM                                                                                                                    
KIM  SKIPPER, Staff,  Representative David  Nelson, Alaska  State                                                               
Legislature,  Juneau, Alaska,  presented  the sectional  analysis                                                               
for HB 125.                                                                                                                     
                                                                                                                                
     Section 1. AS 18.80.200(c)                                                                                               
     This section does not prohibit  a private employer from                                                                    
     having  hiring  preferences  for persons  described  in                                                                    
     Section 2 of this bill.                                                                                                    
                                                                                                                                
     Section 2. AS 23.88.010                                                                                                  
     This section  repeals and reenacts the  current statute                                                                    
     by  adding  definitions  removed  from  Section  1  for                                                                    
     clarity.  This  section  does not  prohibit  a  private                                                                    
     employer  from  having  hiring preferences  to  active-                                                                    
     military,  veterans  and  families. This  section  adds                                                                    
     language to  include spouses and dependent  children of                                                                    
     deceased service members to the list.                                                                                      
                                                                                                                                
CHAIR COSTELLO  asked her to read  the language on page  2, lines                                                               
17-22 that talks  about the people for whom  private industry may                                                               
provide  a hiring  preference. She  said  she reads  the bill  to                                                               
include a  spouse or dependent  child of an  active-duty military                                                               
member in addition  to a spouse or dependent child  of a deceased                                                               
military member.                                                                                                                
                                                                                                                                
MS.   SKIPPER   suggested   the  drafter   could   also   provide                                                               
clarification.  She  offered  her understanding  that  the  House                                                               
Labor  and  Commerce Committee  amended  the  bill to  include  a                                                               
preference for a surviving child of  a Gold Star member. A hiring                                                               
preference for  the spouse of  an active duty or  deceased member                                                               
of the military was included in both versions of the bill.                                                                      
                                                                                                                                
2:10:07 PM                                                                                                                    
CHAIR COSTELLO read the language  on page 2, paragraph (2), lines                                                               
23-24,  and noted  that paragraph  (1)  is the  list of  military                                                               
service entities. Paragraph (2) read as follows:                                                                                
                                                                                                                                
         (2) the spouse or dependent child of a person                                                                          
     described in (1) of this subsection; and                                                                                   
                                                                                                                                
MS.  SKIPPER  recognized  that  she was  speaking  to  the  wrong                                                               
version of the bill.                                                                                                            
                                                                                                                                
2:10:27 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:11:34 PM                                                                                                                    
CHAIR COSTELLO  reconvened the meeting  and asked Ms.  Skipper to                                                               
proceed.                                                                                                                        
                                                                                                                                
MS. SKIPPER interpreted  the changes made in the  House Labor and                                                               
Commerce  Committee  as  eliminating a  private  industry  hiring                                                               
preference for a  dependent child of a member killed  in the line                                                               
of duty.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO pointed out that  the language in paragraph (2) on                                                               
page 2, lines 23-24 says, "or  dependent child." She asked if the                                                               
drafter was available.                                                                                                          
                                                                                                                                
SENATOR STEVENS  asked the  reason for the  changes in  the House                                                               
Labor and Commerce Committee.                                                                                                   
                                                                                                                                
2:12:58 PM                                                                                                                    
REPRESENTATIVE  NELSON   explained  that  the  House   Labor  and                                                               
Commerce Committee  narrowed the  focus to  members of  Gold Star                                                               
Families.                                                                                                                       
                                                                                                                                
2:13:28 PM                                                                                                                    
SENATOR STEVENS asked if that change was a good idea.                                                                           
                                                                                                                                
REPRESENTATIVE NELSON  answered that  he wanted  to see  the bill                                                               
pass and he believes it was  meaningful to maintain the Gold Star                                                               
Family section.                                                                                                                 
                                                                                                                                
2:14:05 PM                                                                                                                    
CHAIR COSTELLO pointed out that the  change on page 6 removed the                                                               
hiring preference for state employment  but on page 2, the hiring                                                               
preference  for  a dependent  child  was  maintained for  private                                                               
employment. She questioned whether that was the intention.                                                                      
                                                                                                                                
2:14:37 PM                                                                                                                    
MS.  SKIPPER  advised  that  the  preference  in  private  sector                                                               
employment  is   optional  whereas   the  preference   for  state                                                               
employment is mandatory.  She offered her view  that the previous                                                               
committee wanted to limit the  preference for state employment to                                                               
just dependents of Gold Star Families.                                                                                          
                                                                                                                                
CHAIR  COSTELLO recapped  that the  language on  page 2  provides                                                               
that  the  private employer  may  grant  a hiring  preference  to                                                               
active and  former military members  and the spouse  or dependent                                                               
child of those individuals.                                                                                                     
                                                                                                                                
MS. SKIPPER agreed.                                                                                                             
                                                                                                                                
2:15:21 PM                                                                                                                    
SENATOR REVAK said the narrow  definition of "dependent child" on                                                               
pages 2 and 3 gives him comfort. The definition read as follows:                                                                
                                                                                                                                
        (b) In this section, "dependent child" means a                                                                          
     natural child, stepchild, or adopted child who is                                                                          
               (1) permanently disabled; or                                                                                     
               (2) under                                                                                                        
                    (A) 19 years of age; or                                                                                     
                    (B) 23 years of age and registered at                                                                       
        and attending on a full time basis an accredited                                                                        
     educational or technical institution recognized by the                                                                     
     Department of Education and Early Development.                                                                             
                                                                                                                                
CHAIR COSTELLO invited Kate Sheehan to add to the discussion.                                                                   
                                                                                                                                
2:16:32 PM                                                                                                                    
KATE  SHEEHAN,   Director,  Division   of  Personnel   and  Labor                                                               
Relations, Department of  Administration, Juneau, Alaska, advised                                                               
that the existing state policy is  to offer an interview to every                                                               
5-point  and  10-point veteran.  If  the  bill  were to  pass,  a                                                               
qualified   dependent   or   spouse  would   receive   the   same                                                               
consideration.                                                                                                                  
                                                                                                                                
2:17:07 PM                                                                                                                    
CHAIR  COSTELLO pointed  to the  language  on page  6 that  says,                                                               
"points equal to  five percent of the points  available ... shall                                                               
be  added ..."  She  asked  Ms. Sheehan  if  she  was saying  the                                                               
preference would be to offer an interview to the spouse.                                                                        
                                                                                                                                
2:17:21 PM                                                                                                                    
MS. SHEEHAN  answered that the  state generally does not  use the                                                               
old rating  system any longer.  The current policy  requires that                                                               
every  10-point  veteran  who meets  the  minimum  qualifications                                                               
advance to  the interview stage. However,  the division currently                                                               
offers  an  interview  to both  5-point  and  10-point  veterans.                                                               
Applications  from a  dependent or  a  spouse receive  a more  in                                                               
depth review,  but the current  policy is to allow  the interview                                                               
if the applicant meets the minimum qualifications.                                                                              
                                                                                                                                
CHAIR COSTELLO asked if that was in regulation.                                                                                 
                                                                                                                                
MS.  SHEEHAN replied  an  interview is  required  for a  10-point                                                               
veteran who  meets the minimum qualifications  but the division's                                                               
policy is to offer an  interview to qualified 5-point veterans as                                                               
well.                                                                                                                           
                                                                                                                                
CHAIR COSTELLO asked if that was in regulation.                                                                                 
                                                                                                                                
MS. SHEEHAN said yes.                                                                                                           
                                                                                                                                
2:18:37 PM                                                                                                                    
SENATOR STEVENS asked for further  explanation of the 5-point and                                                               
10-point preference.  He also asked  how many points were  in the                                                               
system.                                                                                                                         
                                                                                                                                
MS. SHEEHAN acknowledged that the  language was confusing because                                                               
it  refers  to a  rating  system  that  is  no longer  used.  She                                                               
reiterated  that under  current statute,  a 10-point  veteran who                                                               
meets  minimum qualifications  will receive  an interview.  Since                                                               
she  has  been the  director,  she  has  had  the policy  that  a                                                               
qualified 5-point  veteran also receives an  interview. Should HB
125  pass, dependents  and spouses  would receive  the preference                                                               
too.                                                                                                                            
                                                                                                                                
CHAIR  COSTELLO  asked if  it  presents  a  problem to  have  the                                                               
statute refer to a point system that is not used.                                                                               
                                                                                                                                
MS. SHEEHAN answered that it did not present a problem.                                                                         
                                                                                                                                
CHAIR COSTELLO asked Tammie Perrault to provide her testimony.                                                                  
                                                                                                                                
2:20:54 PM                                                                                                                    
TAMMIE  PERRAULT,   Northwest  Regional   Liaison,  Defense-State                                                               
Liaison Office, U.S. Department  of Defense, Olympia, Washington,                                                               
Joint Base  Lewis McCord, Washington,  stated support for  HB 125                                                               
to   expand  the   protection   of   private  sector   employment                                                               
preferences  and to  establish  state  employment preferences  to                                                               
spouses, dependents, and surviving  spouses. She said the mission                                                               
of her office is to be a resource for state policy makers.                                                                      
                                                                                                                                
2:21:28 PM                                                                                                                    
MS.  PERRAULT  referenced  a February  2020  letter  to  Governor                                                               
Dunleavy  in which  the undersecretary  of defense  for personnel                                                               
and readiness  highlighted the need to  support military spouses.                                                               
She read the following excerpt:                                                                                                 
                                                                                                                                
   Military spouse  employment and  the associated  financial and                                                               
   personal wellbeing is  an important component of  retention of                                                               
   service members. More  than half  of all  active-duty military                                                               
   personnel are  married, and  88 percent  of employed  military                                                               
   spouses indicate they wanted, or needed, to work. Not only are                                                               
   military  spouses highly  influential  in  general,  regarding                                                               
   their service  members'  decision to  remain  in service,  but                                                               
   over  28  percent  of  service  members  reported  that  their                                                               
   decision to leave the military would  largely or moderately be                                                               
   affected by their spouses' career prospects.                                                                                 
                                                                                                                                
MS.  PERRAULT highlighted  that  Alaska  has approximately  8,000                                                               
active-duty military and 3,250 National  Guard Reserve spouses so                                                               
they are an important part of  the workforce. She noted that this                                                               
group  is also  among the  highest unemployed,  and underemployed                                                               
group in the nation. These  spouses report significant challenges                                                               
obtaining employment due to frequent  moves, which adds stress to                                                               
family finances.                                                                                                                
                                                                                                                                
MS. PERRAULT stated that the  U.S. Department of Defense supports                                                               
the  policy in  HB  125 and  asks the  committee  to forward  the                                                               
legislation.                                                                                                                    
                                                                                                                                
2:23:10 PM                                                                                                                    
SENATOR STEVENS said he agrees  with supporting military spouses,                                                               
but wonders about the statutory  reference to a point system that                                                               
is no longer used.  He asked if it was common  in other states to                                                               
use a point system.                                                                                                             
                                                                                                                                
MS. PERRAULT replied that the use  of a point system in prevalent                                                               
nationwide,  but there  is  significant  variability in  practice                                                               
among the 35 states that have passed this type of legislation.                                                                  
                                                                                                                                
2:24:15 PM                                                                                                                    
CHAIR  COSTELLO  asked  the drafter  to  explain  the  difference                                                               
between the hiring preferences for  dependent children in Section                                                               
2 on page 2 and in Section 4  on page 6. She also asked how these                                                               
provisions deviate from current statute.                                                                                        
                                                                                                                                
2:25:14 PM                                                                                                                    
DAN   WAYNE,   Legal   Counsel,   Legislative   Legal   Services,                                                               
Legislative  Affairs Agency,  Alaska  State Legislature,  Juneau,                                                               
Alaska, advised  that the "may" in  Section 2 and the  "shall" in                                                               
Section 4  is an important  factor. He  said the language  in the                                                               
two sections  regarding the benefits  for dependent  children was                                                               
more similar  before the bill  was amended. He believes  that for                                                               
policy reasons,  the members  in the  previous committee  felt it                                                               
was important  to narrow the  scope of the benefit  for dependent                                                               
children  in Section  4 to  just the  dependent children  of Gold                                                               
Star members.                                                                                                                   
                                                                                                                                
CHAIR COSTELLO observed that for  both work in the private sector                                                               
and  state employment,  the definition  of  "dependent child"  is                                                               
somebody who is under 19 years of  age or 23 years of age if they                                                               
are   registered   and   attending  an   accredited   educational                                                               
institution on a full-time basis.                                                                                               
                                                                                                                                
                                                                                                                                
MR. WAYNE agreed that both  definitions of "dependent child" have                                                               
the two ages. He advised that  in statutes relating to a benefit,                                                               
it is  common to extend the  qualifying age beyond age  19 if the                                                               
dependent is  attending an accredited  school full time.  He said                                                               
he could not comment on the policy reasons for the ages.                                                                        
                                                                                                                                
CHAIR COSTELLO said she assumes  the rationale was to allow those                                                               
who  have  chosen   to  go  to  college  to   still  receive  the                                                               
preference.                                                                                                                     
                                                                                                                                
MR. WAYNE  said that perhaps  the assumption is that  the parents                                                               
in the military  will be providing support while the  child is in                                                               
in college.                                                                                                                     
                                                                                                                                
2:29:59 PM                                                                                                                    
CHAIR COSTELLO opened  public testimony on HB  125; finding none,                                                               
she closed public testimony. She asked  the sponsor if he had any                                                               
closing comments related to the discussion.                                                                                     
                                                                                                                                
REPRESENTATIVE  NELSON advised  that a  representative from  NCSL                                                               
was  available to  talk about  the  hiring benefit  the other  35                                                               
states provide  on a point  basis. He noted that  the information                                                               
was also in the packets. He  reiterated that the bill provides an                                                               
option for  private employers to  extend this benefit; it  is not                                                               
mandatory.                                                                                                                      
                                                                                                                                
2:31:35 PM                                                                                                                    
CHAIR   COSTELLO   held  HB   125   in   committee  for   further                                                               
consideration.                                                                                                                  
                                                                                                                                
2:31:43 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        HB 36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                     
                                                                                                                                
2:33:08 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of  HOUSE BILL  NO.  36  "An  Act relating  to  an                                                               
application  for  a license  to  operate  as  a dealer  in  motor                                                               
vehicles; and  requiring a dealer  in motor vehicles  to maintain                                                               
liability and property insurance."                                                                                              
                                                                                                                                
She  noted that  this was  the second  hearing and  there was  an                                                               
amendment  for   the  committee   to  consider.  She   asked  Ms.                                                               
Wilterdink to summarize the bill and explain the amendment.                                                                     
                                                                                                                                
2:33:45 PM                                                                                                                    
MELODIE  WILTERDINK, Staff,  Senator Mia  Costello, Alaska  State                                                               
Legislature,  Juneau, Alaska,  explained  that  the bill  creates                                                               
stricter  insurance  requirements   for  licensed  motor  vehicle                                                               
dealers  and increases  their bonding  requirement. According  to                                                               
the  sponsor,  this  better  aligns  Alaska  with  the  insurance                                                               
requirements in other states. Alaskans  will be covered when they                                                               
test  drive  a  car  and the  bonding  requirement  will  provide                                                               
recourse   for  buyers   who  purchase   used   cars  that   were                                                               
fraudulently represented.                                                                                                       
                                                                                                                                
SENATOR MICCICHE joined the committee.                                                                                          
                                                                                                                                
2:34:44 PM                                                                                                                    
CHAIR COSTELLO moved Amendment [1], work order 32-LS0271\B.2.                                                                   
                                                                                                                                
                                                 32-LS0271\B.2                                                                  
                                                       Fisher                                                                   
                                                      5/14/21                                                                   
                                                                                                                                
                                                                                                                                
                         AMENDMENT [1]                                                                                      
                                                                                                                                
                                                                                                                                
    OFFERED IN THE SENATE               BY SENATOR COSTELLO                                                                     
          TO:  SCS HB 36(TRA)                                                                                                   
                                                                                                                                
                                                                                                                                
     Page 1, line 1, following "vehicles;":                                                                                   
          Insert "relating to the duties of a motor vehicle                                                                   
     dealer;"                                                                                                                 
                                                                                                                                
     Page 2, following line 17:                                                                                                 
          Insert a new bill section to read:                                                                                    
       "* Sec. 2. AS 08.66.040 is amended to read:                                                                          
               Sec.    08.66.040.    Filing    application    for                                                             
          registration;    identification    of    dealer.    The                                                           
          application shall  be filed  with the  department. Upon                                                               
          receipt  of  the   application,  the  department  shall                                                               
          examine  it  and  may  make  an  investigation  of  the                                                               
          information in it. If the  department is satisfied that                                                               
          the dealer  is entitled  to registration, and  the fees                                                               
          have been paid  and a bond filed,  the department shall                                                               
          assign a distinctive registration  number to the dealer                                                               
          and  file   the  dealer's  application  and   index  it                                                               
          alphabetically and numerically.  A dealer is registered                                                               
          when the  department assigns  a registration  number. A                                                           
          dealer  shall  inform  each   person  who  purchases  a                                                           
          vehicle from  the dealer that the  dealer is registered                                                           
          under   this   chapter   and   provide   the   dealer's                                                           
          registration number."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
2:34:54 PM                                                                                                                    
SENATOR STEVENS objected for discussion purposes.                                                                               
                                                                                                                                
2:35:03 PM                                                                                                                    
MS.  WILTERDINK explained  that the  proposed amendment  seeks to                                                               
resolve the issue of registered  vehicle dealers who go to closed                                                               
auctions, which  are only  open to  registered dealers,  and they                                                               
buy cars  that are meant  to be used for  parts and sell  them on                                                               
sites like Craigslist, posing as  an individual not a dealer. The                                                               
buyers are  unsuspecting and only  later find out these  cars are                                                               
not meant to  be on the road. Amendment [1]  requires a dealer to                                                               
identify to  identify himself  as a dealer  whenever they  sell a                                                               
car. The buyer would know they  purchased a vehicle from a dealer                                                               
and that they have the avenues of recourse that HB 36 provides.                                                                 
                                                                                                                                
2:36:21 PM                                                                                                                    
SENATOR STEVENS asked what stakeholders she had talked to.                                                                      
                                                                                                                                
MS. WILTERDINK answered  that she spoke to large  and small motor                                                               
vehicle  dealers and  some victims,  most of  whom are  young and                                                               
have just made the largest purchase in their life.                                                                              
                                                                                                                                
2:37:06 PM                                                                                                                    
SENATOR STEVENS removed his objection.                                                                                          
                                                                                                                                
CHAIR  COSTELLO  found no  further  objection  and Amendment  [1]                                                               
passed.                                                                                                                         
                                                                                                                                
She asked the bill sponsor's  staff for the sponsor's position on                                                               
the amendment.                                                                                                                  
                                                                                                                                
2:37:46 PM                                                                                                                    
SOPHIE  JONAS, Staff,  Representative Matt  Claman, Alaska  State                                                               
Legislature,  Juneau, Alaska,  stated that  the sponsor  supports                                                               
Amendment 1.                                                                                                                    
                                                                                                                                
CHAIR COSTELLO offered her belief  that the amendment strengthens                                                               
the  consumer protection  portion  of  the bill  as  well as  the                                                               
intent of the legislation.                                                                                                      
                                                                                                                                
2:38:19 PM                                                                                                                    
SENATOR STEVENS offered his  understanding that dealers currently                                                               
are not  required to  identify themselves as  a dealer  when they                                                               
sell  a  used car.  HB  36  requires  the  dealer to  inform  the                                                               
purchaser and guarantee the vehicle.                                                                                            
                                                                                                                                
MS JONAS answered yes and  deferred further comment to the dealer                                                               
who was available online to speak to the bill.                                                                                  
                                                                                                                                
2:39:11 PM                                                                                                                    
SENATOR MICCICHE  asked the record  to reflect that he  heard the                                                               
explanation of  the amendment  and he supports  it. He  asked how                                                               
the  bill proposes  to differentiate  between  an individual  who                                                               
frequently buys  and sells their  personal vehicles and  a dealer                                                               
who  buys vehicles  at auction  and poses  as an  individual when                                                               
they sell the vehicle to an unsuspecting consumer.                                                                              
                                                                                                                                
MS. JONAS answered that the  existing statute has an annual five-                                                               
vehicle  threshold  above  which  an individual  is  required  to                                                               
obtain   a   motor   vehicle   dealer   license.   However,   her                                                               
understanding is that the requirement is not enforced.                                                                          
                                                                                                                                
2:40:44 PM                                                                                                                    
SENATOR STEVENS asked to hear from a dealer.                                                                                    
                                                                                                                                
CHAIR COSTELLO  recognized that Martin Martensen  with the Alaska                                                               
Auto  Dealers Association  was available  to provide  comment and                                                               
answer questions.                                                                                                               
                                                                                                                                
2:41:04 PM                                                                                                                    
MARTEN MARTENSEN,  owner, Continental  Auto Group;  board member,                                                               
Alaska  Auto  Dealers   Association,  Anchorage,  Alaska,  stated                                                               
support for  the amendment the  chair brought forward  to require                                                               
dealers to  disclose that  they are a  dealer and  that consumers                                                               
have recourse.  He highlighted that  the bill also  requires [the                                                               
application for  dealer registration]  to include a  phone number                                                               
for the business so the consumer  has recourse if the vehicle was                                                               
misrepresented.                                                                                                                 
                                                                                                                                
SENATOR STEVENS asked  if this is a large  concern for legitimate                                                               
dealers.                                                                                                                        
                                                                                                                                
MR.  MARTENSEN  answered  yes;  it  has become  a  big  issue  in                                                               
Anchorage  and  throughout  Southcentral. He  noted  that  dealer                                                               
fraud on vehicles was one of  the most frequent complaints to the                                                               
Consumer Protection Unit when former  Attorney General Ed Sniffen                                                               
was head of the unit.                                                                                                           
                                                                                                                                
CHAIR  COSTELLO,  finding  no   further  questions,  solicited  a                                                               
motion.                                                                                                                         
                                                                                                                                
2:43:04 PM                                                                                                                    
SENATOR REVAK moved  to report SCS HB 36,  work order 32-LS0271\B                                                               
as amended,  from committee  with individual  recommendations and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR  COSTELLO stated  that without  objection,  SCS HB  36(L&C)                                                               
passed from the Senate Labor and Commerce Standing Committee.                                                                   
                                                                                                                                
2:44:01 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:44 p.m.                                                                                                  

Document Name Date/Time Subjects
HB 125 Sectional Analysis Version B 4.23.21.pdf SL&C 5/17/2021 2:00:00 PM
HB 125
HB 36 Additional Letters of Support 5.17.21.pdf SL&C 5/17/2021 2:00:00 PM
HB 36
HB 36 Amendment B.2.pdf SL&C 5/17/2021 2:00:00 PM
HB 36