Legislature(2021 - 2022)BELTZ 105 (TSBldg)

05/11/2022 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 363 BROADBAND: OFFICE, GRANTS, PARITY TELECONFERENCED
Moved SCS CSHB 363(L&C) Out of Committee
+= SB 181 IDENTIFICATION OF CONTRACTOR IN ADS TELECONFERENCED
Moved CSSB 181(CRA) Out of Committee
*+ SB 237 AMBULATORY SURGICAL EMPLOYEES: OVERTIME TELECONFERENCED
Moved SB 237 Out of Committee
+= SB 232 INTELLECTUAL PROPERTY OF EMPLOYEES TELECONFERENCED
Scheduled but Not Heard
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                          May 11, 2022                                                                                          
                           1:44 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Peter Micciche                                                                                                          
Senator Gary Stevens                                                                                                            
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Joshua Revak, Vice Chair                                                                                                
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 363(FIN)                                                                                
"An Act establishing the office of broadband; creating the                                                                      
broadband  parity  adjustment  fund; establishing  the  Statewide                                                               
Broadband Advisory Board; and providing for an effective date."                                                                 
                                                                                                                                
     - MOVED SCS CSHB 363(L&C) OUT OF COMMITTEE                                                                                 
                                                                                                                                
SENATE BILL NO. 181                                                                                                             
"An   Act    relating   to   identification    requirements   for                                                               
contractors."                                                                                                                   
                                                                                                                                
     - MOVED CSSB 181(CRA) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 237                                                                                                             
"An Act exempting certain ambulatory surgical center employees                                                                  
from overtime pay requirements; and providing for an effective                                                                  
date."                                                                                                                          
                                                                                                                                
     - MOVED SB 237 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 232                                                                                                             
"An Act relating to employee intellectual property."                                                                            
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 363                                                                                                                  
SHORT TITLE: BROADBAND: OFFICE, GRANTS, PARITY                                                                                  
SPONSOR(s): REPRESENTATIVE(s) EDGMON                                                                                            
                                                                                                                                
02/22/22       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/22       (H)       L&C, FIN                                                                                               
03/09/22       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/09/22       (H)       Heard & Held                                                                                           
03/09/22       (H)       MINUTE(L&C)                                                                                            
03/16/22       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/16/22       (H)       Moved CSHB 363(L&C) Out of Committee                                                                   
03/16/22       (H)       MINUTE(L&C)                                                                                            
03/18/22       (H)       L&C RPT CS(L&C) 4DP 2NR 1AM                                                                            
03/18/22       (H)       DP: SCHRAGE, SNYDER, FIELDS, SPOHNHOLZ                                                                 
03/18/22       (H)       NR: MCCARTY, NELSON                                                                                    
03/18/22       (H)       AM: KAUFMAN                                                                                            
03/24/22       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
03/24/22       (H)       <Bill Hearing Canceled>                                                                                
03/30/22       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
03/30/22       (H)       Heard & Held                                                                                           
03/30/22       (H)       MINUTE(FIN)                                                                                            
04/15/22       (H)       FIN AT 1:30 PM ADAMS 519                                                                               
04/15/22       (H)       Moved CSHB 363(FIN) Out of Committee                                                                   
04/15/22       (H)       MINUTE(FIN)                                                                                            
04/20/22       (H)       FIN RPT CS(FIN) 6DP 1AM                                                                                
04/20/22       (H)       DP: ORTIZ, EDGMON, LEBON, JOHNSON,                                                                     
                         JOSEPHSON, MERRICK                                                                                     
04/20/22       (H)       AM: CARPENTER                                                                                          
04/29/22       (H)       FIN CS ADOPTED Y36 N2 E1 A1                                                                            
05/03/22       (H)       RETURNED TRANSMITTAL OF 5/2                                                                            
05/03/22       (H)       VERSION: CSHB 363(FIN)                                                                                 
05/05/22       (H)       TRANSMITTED TO (S)                                                                                     
05/05/22       (H)       VERSION: CSHB 363(FIN)                                                                                 
05/05/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/05/22       (S)       L&C, FIN                                                                                               
05/09/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
05/09/22       (S)       -- Invited & Public Testimony --                                                                       
05/11/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 181                                                                                                                  
SHORT TITLE: IDENTIFICATION  OF CONTRACTOR IN ADS                                                                               
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
02/04/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/04/22       (S)       CRA, L&C                                                                                               
02/15/22       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
02/15/22       (S)       Heard & Held                                                                                           
02/15/22       (S)       MINUTE(CRA)                                                                                            
02/22/22       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
02/22/22       (S)       Moved CSSB 181(CRA) Out of Committee                                                                   
02/22/22       (S)       MINUTE(CRA)                                                                                            
02/23/22       (S)       CRA RPT CS  2DP 2NR  NEW TITLE                                                                         
02/23/22       (S)       DP: HUGHES, GRAY-JACKSON                                                                               
02/23/22       (S)       NR: MYERS, WILSON                                                                                      
05/10/22       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
05/10/22       (S)       Scheduled but Not Heard                                                                                
05/11/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 237                                                                                                                  
SHORT TITLE: AMBULATORY SURGICAL EMPLOYEES: OVERTIME                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/23/22       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/22       (S)       L&C                                                                                                    
04/25/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/25/22       (S)       -- Invited & Public Testimony --                                                                       
05/06/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
05/06/22       (S)       -- Invited & Public Testimony --                                                                       
05/11/22       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE BRYCE EDGMON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 363.                                                                                        
                                                                                                                                
KATIE MCCALL, Staff                                                                                                             
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the changes from version W to                                                                   
version D of HB 363.                                                                                                            
                                                                                                                                
CHAD RUPE, Broadband Program Manager                                                                                            
State of Montana                                                                                                                
POSITION STATEMENT: Testified in support of HB 363.                                                                           
                                                                                                                                
MARK GOLDSTEIN, President                                                                                                       
International Research Center (IRC)                                                                                             
Phoenix, Arizona                                                                                                                
POSITION STATEMENT: Testified by invitation on HB 363.                                                                        
                                                                                                                                
MARK SPRINGER, representing self                                                                                                
Bethel, Alaska                                                                                                                  
POSITION STATEMENT: Commented on and offered suggestions to HB
363.                                                                                                                            
                                                                                                                                
SHAWN WILLIAMS, Vice President of Government Affairs and                                                                        
Strategy                                                                                                                        
Pacific Dataport                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of the Senate committee                                                              
substitute for HB 363.                                                                                                          
                                                                                                                                
LESIL MCGUIRE, Consultant                                                                                                       
OneWeb                                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 363.                                                                           
                                                                                                                                
BRITTANY WOODS-ORRISON, Broadband Specialist                                                                                    
Alaska Public Interest Research Group and Native Movement                                                                       
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 363.                                                                           
                                                                                                                                
SENATOR SHELLEY HUGHES                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 181.                                                                                        
                                                                                                                                
DANIEL PHELPS, Staff                                                                                                            
Senator Shelley Hughes                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the sectional analysis for SB 181                                                               
on behalf of the sponsor.                                                                                                       
                                                                                                                                
GLENN HOSKINSON, Deputy Director                                                                                                
Division of Corporations Business and Professional Licensing                                                                    
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during the hearing on SB
181.                                                                                                                            
                                                                                                                                
CATHY MUNOZ, Deputy Commissioner                                                                                                
Department of Labor and Workforce Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 237 on behalf of the                                                                        
administration.                                                                                                                 
                                                                                                                                
ALECIA RATHLIN, Investigator                                                                                                    
Wage and Hour Office                                                                                                            
Division of Labor Standards and Safety                                                                                          
Department of Labor and Workforce Development (DOLWD)                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the  hearing on SB
237.                                                                                                                            
                                                                                                                                
PAM VENGEN, Executive Director                                                                                                  
Alaska State Medical Association (ASMA)                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Stated support for SB 237.                                                                                
                                                                                                                                
KEVIN BARRY, CEO                                                                                                                
Alaska Surgery Center (ASC)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT: Testified  in  support of  SB  237 to  allow                                                             
employees more flexibility.                                                                                                     
                                                                                                                                
BRUCE JAYNE, CEO and Administrator                                                                                              
Surgery Center of Anchorage                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 237.                                                                           
                                                                                                                                
MARY HOPKIN, representing self                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 237.                                                                           
                                                                                                                                
BRIAN BERG, Leadership Team                                                                                                     
Alpine Surgery Center                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT Testified in support of SB 237.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:44:48 PM 46                                                                                                                 
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting to  order at 1:44 p.m.  Present  at the call to                                                               
order were  Senators Gray-Jackson, Micciche, and  Chair Costello.                                                               
Senator Stevens arrived during the course of the meeting.                                                                       
                                                                                                                                
            HB 363-BROADBAND: OFFICE, GRANTS, PARITY                                                                        
                                                                                                                                
1:45:13 PM                                                                                                                    
CHAIR COSTELLO announced  the consideration of CS  FOR HOUSE BILL                                                               
NO.  363(FIN)  "An  Act establishing  the  office  of  broadband;                                                               
creating the  broadband parity adjustment fund;  establishing the                                                               
Statewide  Broadband   Advisory  Board;  and  providing   for  an                                                               
effective date."                                                                                                                
                                                                                                                                
She advised  the listening public  that this  committee sponsored                                                               
and considered  a version  of this legislation  this year  so the                                                               
topic was familiar. She asked  the sponsor to introduce the bill,                                                               
after  which  the committee  would  consider  a Senate  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
1:46:06 PM                                                                                                                    
REPRESENTATIVE  BRYCE EDGMON,  Alaska State  Legislature, Juneau,                                                               
Alaska, sponsor  of HB  363, stated that  he introduced  the bill                                                               
because the  state is on  the cusp of receiving  an unprecedented                                                               
amount of federal  money for broadband due to the  passage of the                                                               
federal Infrastructure  Act in November  2021. Because  there are                                                               
no  Alaska statutes  addressing broadband,  the bill  follows the                                                               
recommendations  from  the  Governor's Broadband  Taskforce  that                                                               
convened  from May  to November  2021. Both  the House  Labor and                                                               
Commerce and  Finance committees made  slight changes as  it went                                                               
through  the committee  process. He  continued to  paraphrase the                                                               
following sponsor statement:                                                                                                    
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       Sponsor Statement:                                                                                     
        CSHB 363(FIN) Broadband: Office, Grants, Parity                                                                         
                                                                                                                                
     "An Act establishing the office of broadband; creating                                                                     
     the broadband parity adjustment fund; establishing the                                                                     
     Statewide Broadband Advisory Board; and providing for                                                                      
                      an effective date."                                                                                       
                                                                                                                                
     Last  May, Gov.  Dunleavy  issued Administrative  Order                                                                    
     No. 322,  establishing the Task  Force on  Broadband to                                                                    
     develop  policy  objectives   and  steps  necessary  to                                                                    
     prepare Alaska for a massive  infusion of federal money                                                                    
     through  the  federal Infrastructure,  Investment,  and                                                                    
     Jobs   Act  (IIJA)   The  goal   of   the  task   force                                                                    
     recommendations  and IIJA  is to  move Alaska  into the                                                                    
     21st century  for broadband, and provide  for essential                                                                    
     services  by creating  the opportunity  for communities                                                                    
     to do  things like routine two-way  video conferencing,                                                                    
     advanced  telemedicine  and educational  opportunities,                                                                    
     public safety improvements, and economic development.                                                                      
                                                                                                                                
     House Bill 363 is written  directly from the task force                                                                    
     recommendations and as  enabling legislation does three                                                                    
     things:  creates  a  broadband  office,  establishes  a                                                                    
     Broadband   Parity  Adjustment   Fund,   and  forms   a                                                                    
     Statewide Broadband Advisory Board.                                                                                        
                                                                                                                                
     To  be eligible  for  federal funding  each state  must                                                                    
     establish a broadband office.  In consultation with the                                                                    
     administration, it  was decided  that the  office would                                                                    
     be  housed in  the  Commerce,  Community, and  Economic                                                                    
     Development  (DCCED). It  will initially  contain three                                                                    
     staff and will focus during  the first year on planning                                                                    
     activities  and working  with the  FCC to  complete the                                                                    
     mapping process for the state.  In alignment with IIJA,                                                                    
     as times goes on,  the office will prioritize broadband                                                                    
     service  expansion  in  the following  priority  order:                                                                    
     unserved   areas,   underserved   areas,   and   anchor                                                                  
     institutions.                                                                                                            
                                                                                                                                
     The  Broadband Parity  Adjustment  Fund  is a  separate                                                                    
     fund  in  the state  treasury  to  be a  repository  of                                                                    
     federal  funds  for  the  purposes  of  deploying  high                                                                    
     quality,  affordable broadband  across the  Alaska. The                                                                    
     Office may  develop a program  in the Fund  to directly                                                                    
     offset the costs of broadband for eligible consumers.                                                                      
                                                                                                                                
     Finally,  HB   363  creates  the   Statewide  Broadband                                                                    
     Advisory Board  advise to the  Office of  Broadband and                                                                    
     to  facilitate  statewide stakeholder  engagement.  The                                                                    
     Board is  composed of nine public  members appointed by                                                                    
     the Governor,  two ex-officio legislative  members, and                                                                    
     the Commissioners  of DCCED and the  Dept. of Education                                                                    
     & Early  Development (DEED). The  Board shall  create a                                                                    
     technical working  group to provide  recommendations to                                                                    
     the Board  comprised of members  who have  expertise in                                                                    
     the  different  technologies   that  provide  broadband                                                                    
     service and  who manage and deliver  broadband projects                                                                    
     in Alaska.                                                                                                                 
                                                                                                                                
REPRESENTATIVE EDGMON said  it's important to note  that the bill                                                               
references "technology  neutral" and  "tribes" several  times. He                                                               
conveyed that  as much as  Alaska is reacting to  this once-in-a-                                                               
lifetime  opportunity, federal  agencies are  similarly reactive.                                                               
The plan currently is for at  least one federal employee to be in                                                               
the state to work with the broadband office and stakeholders.                                                                   
                                                                                                                                
REPRESENTATIVE EDGMON said he looked at the draft Senate CS                                                                     
briefly and it appeared to have some very good changes. He                                                                      
looked forward to working with the committee.                                                                                   
                                                                                                                                
1:50:39 PM                                                                                                                    
CHAIR  COSTELLO  said  she appreciates  his  commitment  to  this                                                               
topic. She agreed  with his statement that this  was a once-in-a-                                                               
lifetime opportunity  that will  make a tremendous  difference in                                                               
the quality of life for many Alaskans.                                                                                          
                                                                                                                                
CHAIR COSTELLO solicited  a motion to adopt  the Senate committee                                                               
substitute.                                                                                                                     
                                                                                                                                
1:51:22 PM                                                                                                                    
SENATOR MICCICHE moved  to adopt the CS for House  Bill 363, work                                                               
order 32-LS1527\D, as the working document.                                                                                     
                                                                                                                                
1:51:42 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:51:51 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the  meeting  and recognized  Senator                                                               
Micciche.                                                                                                                       
                                                                                                                                
SENATOR  MICCICHE restated  the  motion. He  moved  to adopt  the                                                               
Senate CS  for CSHB 363,  work order 32-LS1527\D, as  the working                                                               
document.                                                                                                                       
                                                                                                                                
1:52:09 PM                                                                                                                    
CHAIR COSTELLO objected for a description of the changes.                                                                       
                                                                                                                                
1:52:18 PM                                                                                                                    
KATIE  MCCALL,   Staff,  Senator   Mia  Costello,   Alaska  State                                                               
Legislature,  Juneau,  Alaska,  presented the  following  changes                                                               
from version W to version D for HB 363:                                                                                         
                                                                                                                                
     Page 1, Lines 1-4                                                                                                      
     Amends the  title of  the bill to  "An Act  relating to                                                                    
     broadband;  establishing   the  office   of  broadband;                                                                    
     providing  for  a  broadband grant  and  loan  program;                                                                    
     establishing  the Statewide  Broadband Advisory  Board;                                                                    
     establishing  community  engagement  task  forces;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
     Sec. 1  Page 1, Lines 6-14 & Page 2, Lines 1-31                                                                        
     Adds  legislative  findings   and  intent  language  to                                                                    
     convey  the critical  need for  broadband, particularly                                                                    
     in unserved  and underserved areas  of the  state. This                                                                    
     section also highlights the importance of:                                                                                 
        • affordable and quality broadband service  in the                                                                      
          state                                                                                                                 
        • designing policies that ensure robust competition                                                                     
          and  maximize  consumer welfare,  innovation,  and                                                                    
          investment                                                                                                            
        • deploying broadband  in   high-cost  areas   and                                                                      
          ensuring  that low-income  individuals can  afford                                                                    
          broadband                                                                                                             
        •                                                                                                                       
     The  language  in  this section  also  notes  that  the                                                                    
     purpose of  this Act is  to establish a grant  and loan                                                                    
     program that  will support  the extension  of broadband                                                                    
     infrastructure in  unserved and underserved  areas, and                                                                    
     outlines  the legislature's  intent that  any grant  or                                                                    
     loan  to a  private  entity will  be  conditioned on  a                                                                    
     guarantee  that the  infrastructure  will be  developed                                                                    
     and  maintained for  public  use for  a  minimum of  30                                                                    
     years.                                                                                                                     
                                                                                                                                
1:56:28 PM                                                                                                                    
     Sec. 2    AS  44.33.910 Page  3, Lines  1-31 &  Page 4,                                                                
     Lines 1-13                                                                                                             
     Amends  the   powers  and  duties  of   the  office  of                                                                    
     broadband, established  in the Department  of Commerce,                                                                    
     Community, and Economic  Development, by outlining that                                                                    
     the  office serves  as the  central  planning body  for                                                                    
     broadband in the state and has the power and duty to:                                                                      
        • coordinate with local governments, tribes, public                                                                     
          and  private  entities,  nonprofit  organizations,                                                                    
          and  consumer-owned  and investor-owned  utilities                                                                    
          on broadband deployment and access plans                                                                              
        • review existing broadband initiatives, policies,                                                                      
          and public and private investments                                                                                    
        • develop a statewide   plan  to  encourage  cost-                                                                      
          effective broadband access,  particularly in rural                                                                    
          and other unserved and underserved areas                                                                              
        • update broadband  goals   and  definitions   for                                                                      
          broadband  service  in  unserved  and  underserved                                                                    
          areas   as   technology   advances,   though   the                                                                    
          definition  for broadband  service must  be actual                                                                    
          speeds  of   at  least  25  Megabits   per  second                                                                    
         download and three Megabits per second upload                                                                          
        • encourage public-private partnerships to increase                                                                     
          deployment                                                                                                            
        • review and consider the  recommendations of  the                                                                      
          Statewide  Broadband  Advisory  Board  established                                                                    
          under AS 44.33.920                                                                                                    
     This section also states that  when developing plans or                                                                    
     strategies  for broadband  deployment, the  office must                                                                    
     consider the following:                                                                                                    
        • partnerships  between    communities,    tribes,                                                                      
          nonprofit   organizations,    local   governments,                                                                    
          consumer-owned  and investor-owned  utilities, and                                                                    
          public and private entities                                                                                           
        • funding opportunities  that   provide  for   the                                                                      
          coordination  of   public,  private,   state,  and                                                                    
          federal   funds  for   the   purposes  of   making                                                                    
          broadband  available to  unserved and  underserved                                                                    
          areas                                                                                                                 
        • barriers to deployment,  adoption,  and  use  of                                                                      
          broadband,  including  affordability  and  project                                                                    
          logistics                                                                                                             
        • requiring the minimum  broadband service  of  25                                                                      
          Megabits  per second  download and  three Megabits                                                                    
          per second upload                                                                                                     
     This section also states that the office:                                                                                  
        • may assist applicants  for the  grant  and  loan                                                                      
          program  established  in   this  bill  in  seeking                                                                    
          federal  funding  or  matching  grants  and  other                                                                    
          grant opportunities for deploying broadband                                                                           
        • may take all appropriate steps to seek and apply                                                                      
          for federal  funds or grants for  which the office                                                                    
          is eligible, and may accept donations                                                                                 
        • shall adopt regulations under AS 44.62  to carry                                                                      
          out its duties                                                                                                        
                                                                                                                                
1:59:54 PM                                                                                                                    
     Sec. 44.33.915 Page 4, Lines 14-28                                                                                     
     Removes the  parity adjustment fund found  in Version W                                                                    
     of the  bill and creates  the broadband grant  and loan                                                                    
     program in  the office  of broadband. The  program will                                                                    
     award funding  to eligible applicants to  expand access                                                                    
     to  broadband  service   in  unserved  and  underserved                                                                    
     areas. This  section stipulates  that the  office shall                                                                    
     work  in  collaboration  with the  Statewide  Broadband                                                                    
     Advisory  Board   to  review  applications   and  award                                                                    
     grants.                                                                                                                    
     Additionally:                                                                                                              
        • grants and loans may be awarded to assist in                                                                          
          funding     acquisition,     installation,     and                                                                    
          construction   of  middle   mile  and   last  mile                                                                    
          infrastructure,   and   to   assist   in   funding                                                                    
          strategic  planning  for  deploying  broadband  in                                                                    
          unserved and underserved areas                                                                                      
     The office:                                                                                                                
        • may fund all or part of an application                                                                              
        • shall award funds to qualified applicants in all                                                                      
          regions of the state                                                                                                
        • shall consider affordability and quality of                                                                           
          service    in   making   determinations    on   an                                                                    
          application                                                                                                           
                                                                                                                                
2:01:13 PM                                                                                                                    
     Sec. 44.33.920 Page  4, Lines 29-31 & Page  5, Lines 1-                                                                
     20                                                                                                                     
     Amends  the  membership   of  the  Statewide  Broadband                                                                    
     Advisory Board  and stipulates that the  advisory board                                                                    
     shall work  with the  community engagement  task forces                                                                    
     established  in this  version of  bill to  consider the                                                                    
     challenges  and   opportunities  related   to  regional                                                                    
     connectivity.   The   following   eight   members   are                                                                    
     appointed by the governor to  serve three-year terms on                                                                    
     the advisory board:                                                                                                        
        • a mechanical engineer                                                                                                 
        • a civil engineer                                                                                                      
        • an aerospace engineer                                                                                                 
      • one member with expertise in telecommunications                                                                         
        • one member with expertise in fiber optics                                                                             
        • one member with expertise in satellite technology                                                                     
        • one member with expertise in microwave technology                                                                     
        • a technology neutral consultant                                                                                       
     This  section  provides  that  the  technology  neutral                                                                    
     consultant receives a Range 27  salary, while all other                                                                    
     members of the advisory board  receive $307 a day while                                                                    
     attending   meetings  and   are   entitled  to   travel                                                                    
     expenses.                                                                                                                  
                                                                                                                                
2:03:00 PM                                                                                                                    
     Sec. 44.33.930 Page  5, Lines 21-31 & Page  6, Lines 1-                                                                
     16                                                                                                                     
     Establishes  community  engagement   task  forces.  The                                                                    
     director  of  the  office of  broadband  shall  appoint                                                                    
     state residents  to serve as needed,  and shall include                                                                    
     members representing:                                                                                                      
        • a tribe                                                                                                               
        • a broadband user                                                                                                      
        • a heath care provider                                                                                                 
        • a member of the Alaska Search and Rescue                                                                              
          Association or an operational member organization                                                                     
        • the social services sector                                                                                            
        • a tribal or state governmental employee with                                                                          
          access to judicial records                                                                                            
        • the transportation industry                                                                                           
        • a member of a regional development organization                                                                       
        • a local government public servant                                                                                     
        • a state government public servant                                                                                     
     This  section  provides  that members  of  a  community                                                                    
     engagement  task   force  receive  $307  a   day  while                                                                    
     attending   meetings  and   are   entitled  to   travel                                                                    
     expenses.                                                                                                                  
                                                                                                                                
     Sec. 44.33.940 Page 6, Lines 17-25                                                                                     
     Provides definitions for:                                                                                                  
         • office                                                                                                               
         • underserved area                                                                                                     
         • unserved area                                                                                                        
                                                                                                                                
     Sec. 3 Page 6, Lines 26-27                                                                                             
     Lists sections repealed on June 30,2030                                                                                    
                                                                                                                                
     Sec. 4 Page 6, Line 28                                                                                                 
     Has an immediate effective date                                                                                            
                                                                                                                                
2:05:14 PM                                                                                                                    
CHAIR COSTELLO removed her objection; finding no further                                                                        
objection, the Senate CS for HB 363, version D, was adopted.                                                                    
                                                                                                                                
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
2:05:36 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 363.                                                                               
                                                                                                                                
2:05:55 PM                                                                                                                    
CHAD  RUPE,   Broadband  Program   Manager,  State   of  Montana,                                                               
described  his experience  standing up  and working  on broadband                                                               
programs at  both the  state and local  levels. Most  recently he                                                               
completed  the application  for the  Connect Montana  program for                                                               
the American Rescue  Plan Act (ARPA) section 602  State and Local                                                               
Fiscal Recovery Funds.                                                                                                          
                                                                                                                                
MR. RUPE offered the following suggestions and observations                                                                     
based on what he had learned through the Montana process                                                                        
                                                                                                                                
   • Work to ensure that the state legislation does not                                                                         
     overprescribe  because  it  can create  more  problems  than                                                               
     solutions.                                                                                                                 
   • Align  state    law     with    the    federal    National                                                                 
     Telecommunications  and  Information  Administration  (NTIA)                                                               
     requirements  for  deployment of  Infrastructure  Investment                                                               
     and Jobs Act (IIJA) funds.                                                                                                 
   • Creating a definition for "underserved" and including low                                                                  
     latency in the model are very important                                                                                    
   • Ensure the state is able to appropriately fund the                                                                         
     deployment  of  broadband  and fund  contractors  to  enable                                                               
     monitoring throughout the life cycle                                                                                       
        • Flex the different contractors for different purposes                                                                 
        • Montana chose to focus exclusively on a grant program                                                                 
          to pay for monitoring because the burden of a loan                                                                    
          program is much higher                                                                                                
        • Ensure there is a robust location-level statewide                                                                     
          broadband mapping system, such as Montana has                                                                         
          established                                                                                                           
          • Readily identify areas as "served," "unserved,"                                                                     
             "under-served" and "frontier"                                                                                      
          • Think through decisions before disbursing funds                                                                     
          • Ensure special funding is available to address fraud                                                                
          • Ensure compliance with NTIA for eligibility for                                                                     
             funding                                                                                                            
     • Develop a small but effective staff to deploy the funds                                                                  
     • Have an independent consultant  with experience  working                                                                 
        with the different agencies at the state and federal                                                                    
        level who will understand the technical, financial, and                                                                 
        managerial components of sustainability                                                                                 
     • Reduce the guaranteed term for  providing service  to an                                                                 
        area from 30 years to 15 years                                                                                          
        • This would match the lifecycle of the hard assets                                                                     
          deployed with the grant funding                                                                                       
   • Ensure the advisory board has someone who has been a                                                                       
     provider                                                                                                                   
     • They will be uniquely qualified to identify issues                                                                       
   • Include language to streamline permitting                                                                                  
     •  Coordination between state  and  federal agencies  will                                                                 
        facilitate getting to the construction phase                                                                            
     • Coordinate with Native villages                                                                                          
                                                                                                                                
CHAIR  COSTELLO expressed  appreciation  for the  review and  his                                                               
experience.                                                                                                                     
                                                                                                                                
2:15:21 PM                                                                                                                    
MARK GOLDSTEIN,  President, International Research  Center (IRC),                                                               
Phoenix, Arizona, advised that IRC  is a 30-year-old company that                                                               
works  in the  areas  of broadband,  and  smart technologies  for                                                               
homebuilding   and  cities   and  things   that  intersect   with                                                               
broadband. He  recounted his professional credentials  related to                                                               
broadband.                                                                                                                      
                                                                                                                                
[Mr.  Goldstein's  testimony  was interrupted  due  to  technical                                                               
difficulties.]                                                                                                                  
                                                                                                                                
2:16:45 PM                                                                                                                    
MR. GOLDSTEIN recounted his Alaska-focused  client work with both                                                               
Quintillion Networks and through a  firm that writes grants for a                                                               
number of Alaska Native tribes.                                                                                                 
                                                                                                                                
MR. GOLDSTEIN  echoed Mr. Rupe's  comments about the  efforts the                                                               
Alaska broadband office  will need to undertake and  how to staff                                                               
for those efforts.  He agreed that adequate  staffing is critical                                                               
to ensure compliance  between the state and the  grantees and the                                                               
state  and  the  federal  government.  He  also  highlighted  the                                                               
importance  of  using  technical resources  to  inform  strategic                                                               
processes  and   evaluate  the   technical  viability   of  grant                                                               
applications. He  voiced support  for the  paid position  for the                                                               
technologist and dedicating substantial bandwidth to the effort.                                                                
                                                                                                                                
2:18:43 PM                                                                                                                    
MR. GOLDSTEIN  turned his attention  to the issue of  mapping. He                                                               
questioned  having   a  mechanical  engineer  on   the  technical                                                               
advisory committee and  emphasized the need for  the committee to                                                               
have expertise  in mapping and socioeconomic  analysis. He agreed                                                               
that  the  amount  of  money  Alaska  is  slated  to  receive  is                                                               
unprecedented, but  pointed out that  it will not bring  fiber to                                                               
all areas of the state. Some  areas will be oversubscribed in the                                                               
grants received  and some will be  left out. The idea  of mapping                                                               
and  a socioeconomic  analysis  is to  ensure  a methodology  for                                                               
allocating  spending  for  both  fiber and  wireless.  He  voiced                                                               
support for the technology agnosticism in that regard.                                                                          
                                                                                                                                
MR. GOLDSTEIN highlighted that Alaska  is unique among all states                                                               
in  the number  of  Native villages  and  entities interested  in                                                               
Educational Broadband  Service (EBS) frequencies. He  opined that                                                               
the Commerce authority was the right track.                                                                                     
                                                                                                                                
MR.  GOLDSTEIN  provided  specific  recommendations  on  the  363                                                               
language. Under the  powers to make grants and  loans he strongly                                                               
suggested:                                                                                                                      
                                                                                                                                
   • In addition to unserved and under-served communities, add                                                                  
     the  term "community  anchor  institutions."  Both the  U.S.                                                               
     Treasury   and  IIJA   allow  grant   programs  and   grants                                                               
     specifically to schools, libraries  and higher education. In                                                               
     some  circumstances health  care  is also  allowed. He  said                                                               
     that category is  in statute for both of the  large pools of                                                               
     money,  so   it  makes  sense  to   recognize  the  granting                                                               
     authority for those kinds of institutions directly.                                                                        
   • In addition to the focus on infrastructure deployment, he                                                                  
     suggested  mentioning the  power  and scope  to develop  and                                                               
     manage digital equity initiatives  and grant programs in the                                                               
     digital  equity  space. For  example,  $3  billion in  block                                                               
     grants  and $15  billion for  consumer monthly  subsidies is                                                               
     moving to  the state.  Digital equity  that is  not consumer                                                               
     subsidies  is usually  for things  like giving  away devices                                                               
     and services and paying for community centers.                                                                             
                                                                                                                                
CHAIR   COSTELLO  thank   him  for   the  review   and  expressed                                                               
appreciation for his expertise.                                                                                                 
                                                                                                                                
2:23:50 PM                                                                                                                    
MARK SPRINGER, representing self,  Bethel, Alaska, stated that he                                                               
is a  private consultant who  currently is working in  the tribal                                                               
broadband arena. He  mentioned Ms. McCall's review  of the latest                                                               
version  and said  he  was  pleased that  the  provision for  the                                                               
parity adjustment  fund was removed. There  is no need for  it if                                                               
the  extension  of   fiber  to  rural  areas   results  in  costs                                                               
comparable  to what  Anchorage  is paying.  He  commented on  and                                                               
provided suggestions in the following areas:                                                                                    
                                                                                                                                
   • It will be a huge job for the broadband office to write                                                                    
     regulations,   particularly  in   the   area  of   applicant                                                               
     qualifications for the loans.                                                                                              
   • He suggested the advisory board specifically have a                                                                        
     telecommunications  representative   and  a  community-based                                                               
     taskforce                                                                                                                  
   • He urged including capacity for Alaska Public Broadcasting                                                                 
     and  the   Public  Broadcasting  System  (PBS)   to  improve                                                               
     programming into rural Alaska.                                                                                             
   • He mentioned the authority of the broadband office and                                                                     
     urged respect for the inherent  sovereignty of Alaska Native                                                               
     tribes  to  develop  and  carry   out  their  own  broadband                                                               
     planning for the federal funding  they receive. There should                                                               
     be no concern that a state  plan may override a tribe's plan                                                               
     to provide service.                                                                                                        
     • Regardless of the system a village has, the Middle Mile                                                                  
        will be reaching back to connect to all the other                                                                       
        networks in Alaska and the country so that shouldn't be                                                                 
        an issue.                                                                                                               
                                                                                                                                
2:27:38 PM                                                                                                                    
MR. SPRINGER concluded  his comments saying his wish  is that the                                                               
final  bill  does  not  contain  the  provision  for  the  parity                                                               
adjustment fund and  that it does maintain the  neutrality of the                                                               
advisory board.                                                                                                                 
                                                                                                                                
CHAIR COSTELLO thanked him for his testimony.                                                                                   
                                                                                                                                
2:28:30 PM                                                                                                                    
SHAWN WILLIAMS, Vice President of Government Affairs and                                                                        
Strategy, Pacific Dataport, Anchorage, Alaska, provided the                                                                     
following prepared testimony on HB 363:                                                                                         
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     We   are  the   locally-owned  satellite   middle  mile                                                                    
     provider     located  in   Anchorage     launching  two                                                                    
     satellites  over 100%  of  Alaska  and connecting  more                                                                    
     than 110,000  rural Alaskans with broadband.  Our first                                                                    
     of two satellites will launch  in August and the second                                                                    
     will launch in 2024.                                                                                                       
                                                                                                                                
     I'm going  to keep my  testimony short and  simple. The                                                                    
     committee substitute  (CS) version that  Chair Costello                                                                    
     is  bringing   forward  today   is  supported   by  the                                                                    
     stakeholders who previously had  concerns about HB 363.                                                                    
     It  takes into  consideration  what  other states  have                                                                    
     actually  done   to  simply  establish  an   office  of                                                                    
     broadband.  This  CS  has   several  changes  that  are                                                                    
     important to us:                                                                                                           
                                                                                                                                
         •  Removes the non-sensical parity fund                                                                                
         •  Adjusts for better provider representation and                                                                      
           community engagement                                                                                                 
         •  Includes all the IIJA requirements known to date                                                                    
         •  Promotes competition                                                                                                
         •  Does not deprioritize the tribes in the award                                                                       
           consideration process                                                                                                
         •  Includes all technologies possible and                                                                              
         •  Establishes a broadband office with the goal of                                                                     
           serving every household in Alaska                                                                                    
                                                                                                                                
     Finally, Chair Costello's CS has  the changes we needed                                                                    
     and  wanted.   We  appreciate  that  this   CS  version                                                                    
     prioritizes   the  unserved   and  works   to  organize                                                                    
     Alaska's broadband funding. We  encourage the spirit of                                                                    
     competition  and   anything  that   promotes  broadband                                                                    
     expansion,  efficiency, lower  prices, better  service,                                                                    
     competition, and a free market    we believe the new CS                                                                    
     version does this.                                                                                                         
                                                                                                                                
     I  would like  to  thank this  committee  and our  bill                                                                    
     sponsor  for  addressing  such a  major  challenge  for                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
2:30:35 PM                                                                                                                    
LESIL  MCGUIRE,  Consultant,  OneWeb, Anchorage,  Alaska,  stated                                                               
that OneWeb  was the  first company  to build  a low  earth orbit                                                               
(LEO) constellation  for more  powerful connections  for Alaskans                                                               
and others. She noted that she  was also testifying as a lifelong                                                               
Alaskan  who  cares  deeply  about  the  policies  that  will  be                                                               
established for broadband. She advised  that she joined OneWeb in                                                               
the  belief that  having capacity  from the  first LEO  satellite                                                               
constellation is  one of the  many solutions needed to  close the                                                               
digital divide.                                                                                                                 
                                                                                                                                
To  date,   she  said  OneWeb   has  successfully   launched  423                                                               
satellites so  it now  fully covers Alaska  and the  Arctic. They                                                               
also have four meaningful partnerships  with Alaska companies and                                                               
tribes. She  invited the  members to the  Anchorage office  for a                                                               
demonstration.                                                                                                                  
                                                                                                                                
She  provided  the following  comments  on  the Senate  committee                                                               
substitute for HB 363:                                                                                                          
                                                                                                                                
   • Carefully consider the composition of the broadband office                                                                 
     and Broadband Advisory Board to ensure a subjective                                                                        
     outlook.                                                                                                                   
   • She liked the way the SCS interweaves a strong broadband                                                                   
     office mission in the findings section.                                                                                    
   • An advisory board that is scientifically oriented will make                                                                
     objective decision making more likely.                                                                                     
   • Ensure the grant process is overseen by people with the                                                                    
     expertise to understand the difficulties associated with                                                                   
     building broadband projects.                                                                                               
     • Ensure sufficient capital and technology underpinnings to                                                                
        move to fruition                                                                                                        
   • She voiced support for the community-engagement taskforce                                                                  
     pulling in a myriad of stakeholders.                                                                                       
   • Importantly, the SCS provides a strong framework and a good                                                                
     interweaving of legislative objectives with flexibility in                                                                 
     the IIJA regulation process.                                                                                               
   • She voiced   support    for   the   definitions   section,                                                                 
    particularly for "underserved area" and "unserved area."                                                                    
   • She liked the adherence to the Administrative Procedures                                                                   
     Act because it gives the public the opportunity to see the                                                                 
     proposed regulations throughout the process.                                                                               
                                                                                                                                
MS. MCGUIRE  expressed appreciation for the  open-minded, curious                                                               
technology approach  of the Senate  CS for HB 363  and emphasized                                                               
the importance  of laying the  right foundation for  awarding the                                                               
grants.                                                                                                                         
                                                                                                                                
CHAIR COSTELLO  thanked her for her  service to the state  in her                                                               
current capacity and also as a former member of the Senate.                                                                     
                                                                                                                                
SENATOR STEVENS  said he was  pleased to  hear her voice  and her                                                               
presence as a member of the Senate was missed.                                                                                  
                                                                                                                                
MS. MCGUIRE thanked him for the warm comments.                                                                                  
                                                                                                                                
SENATOR MICCICHE said he too appreciated hearing her voice.                                                                     
                                                                                                                                
CHAIR   COSTELLO  listed   the  individuals   online  to   answer                                                               
questions.                                                                                                                      
                                                                                                                                
2:39:25 PM                                                                                                                    
BRITTANY  WOODS-ORRISON,  Broadband   Specialist,  Alaska  Public                                                               
Interest Research  Group and Native Movement,  Fairbanks, Alaska,                                                               
stated that  her position was  created recently to  educate users                                                               
on  broadband  issues  and  create  a  network  of  advocates  to                                                               
overcome the digital  divide. She described Alaska as  one of the                                                               
most  disconnected states  in  the nation  and  pointed out  that                                                               
indigenous  communities  are   disproportionately  affected.  She                                                               
conveyed  her belief  that the  2.5  gigahertz spectrum  licenses                                                               
that  the FCC  has  awarded  to Alaska  tribes  were  the key  to                                                               
helping  tribes  employ  their  own  people,  control  their  own                                                               
networks,  and  resolve their  own  issues.  She highlighted  the                                                               
importance of  knowing the geography  of an area  to successfully                                                               
build out  broadband and  pointed out that  the people  living in                                                               
these indigenous communities already possess that knowledge.                                                                    
                                                                                                                                
2:41:40 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on HB 363.                                                                               
                                                                                                                                
2:41:47 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:45:45 PM                                                                                                                    
CHAIR COSTELLO reconvened  the meeting and stated  she would hold                                                               
HB 363 in  committee to allow the members to  review the SCS. She                                                               
noted that she  would not adjourn the meeting until  later in the                                                               
day.                                                                                                                            
                                                                                                                                
            SB 181-IDENTIFICATION OF CONTRACTOR IN ADS                                                                      
                                                                                                                                
2:46:11 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of SENATE  BILL NO.                                                               
181  "An   Act  relating   to  identification   requirements  for                                                               
contractors."                                                                                                                   
                                                                                                                                
She noted that  this was the first hearing and  the intention was                                                               
to  hear  the introduction,  take  public  testimony, respond  to                                                               
questions, and look to the will of the committee.                                                                               
                                                                                                                                
2:46:40 PM                                                                                                                    
SENATOR  SHELLEY   HUGHES,  Alaska  State   Legislature,  Juneau,                                                               
Alaska,  sponsor of  SB 181,  paraphrased  the following  sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Since  1968, contractors  and  home  inspectors in  the                                                                    
     State of Alaska have  been statutorily required to list                                                                    
     their  name, mailing  address, and  registration number                                                                    
     in all advertising.  Additionally, contractors have had                                                                    
     a fourth  requirement of listing their  principal place                                                                    
     of  business in  any  advertisements. This  requirement                                                                    
     can incur  great expense for  contractors, particularly                                                                    
     those  looking   to  advertise  in  print,   radio,  or                                                                    
     television   where  each   additional   word  or   line                                                                    
     increases the  cost. Furthermore, contractors  and home                                                                    
     inspectors  in   Alaska  may  operate  more   than  one                                                                    
     registered  business  which  are  advertised  together.                                                                    
     This  may  require  the  contractor  to  list  multiple                                                                    
     registration numbers within the same advertisement.                                                                        
                                                                                                                                
     Senate  Bill 181  amends the  current statute  by allow                                                                    
     contractors  and home  inspectors  to substitute  their                                                                    
     internet   website    or   landing   page    in   their                                                                    
     advertisements which contains  the statutorily required                                                                    
     identifying  information  rather   that  list  all  the                                                                    
     required     information     directly    within     the                                                                    
     advertisement.   Additionally,   this   bill   requires                                                                    
     contractors  to specify  that the  internet website  or                                                                    
     landing   page   provided  contains   the   information                                                                    
     required under  statute for the  benefit of  the viewer                                                                    
     of the ad.                                                                                                                 
                                                                                                                                
     These amendments  are proposed in order  to spare costs                                                                    
     and   streamline   the    advertisement   process   for                                                                    
     contractors and home inspectors.                                                                                           
                                                                                                                                
2:48:48 PM                                                                                                                    
DANIEL PHELPS, Staff, Senator Shelley Hughes, Alaska State                                                                      
Legislature, Juneau, Alaska, presented the sectional analysis                                                                   
for SB 181 on behalf of the sponsor:                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
          SB 181: IDENTIFICATION OF CONTRACTOR IN ADS                                                                         
                           Version G                                                                                          
     "An  Act relating  to  identification requirements  for                                                                    
     contractors."                                                                                                              
                                                                                                                                
                  Sectional Analysis Version B                                                                                
                                                                                                                                
     Section 1    AS 08.18.051 (b)   Page 1,  Line 3 through                                                                  
     Page 1, Line 12                                                                                                          
     Amends    AS    08.18.051   regarding    identification                                                                    
     requirements  for  contractors in  advertisements.  The                                                                    
     new  language specifies  that  a contractor's  internet                                                                    
     website  or  landing  page satisfies  the  contractor's                                                                    
     identification requirements  in advertisements  so long                                                                    
     as  it  contains  the  identifiers  required  under  AS                                                                    
     08.18.051  and   the  advertisement  states   that  the                                                                    
     required information  is contained on  the contractor's                                                                    
     Internet website or landing page.                                                                                          
                                                                                                                                
     Section 2   AS 08.18.053 (b)    Page 1, Line 13 through                                                                  
     Page 2, Line 6                                                                                                           
     Amends    AS    08.18.053   regarding    identification                                                                    
     requirements  for  home inspectors  in  advertisements.                                                                    
     The  new language  specifies  that  a home  inspector's                                                                    
     internet  website or  landing page  satisfies the  home                                                                    
     inspector's     identification      requirements     in                                                                    
     advertisements so  long as it contains  the identifiers                                                                    
     required  under  AS  08.18.051  and  the  advertisement                                                                    
     states that  the required  information is  contained on                                                                    
     the home inspector's Internet website or landing page.                                                                     
                                                                                                                                
     Section 3   AS 08.18.171    Page 2, Line 7 through Page                                                                  
     2, Line 10                                                                                                               
     Amends AS 08.18.171 by adding  a definition of "landing                                                                    
     page"  to the  definitions for  Alaska Statute  Title 8                                                                    
     Chapter 18.                                                                                                                
                                                                                                                                
CHAIR COSTELLO asked if other  states had similar legislation and                                                               
if  the original  notice requirements  apply in  communities that                                                               
don't have internet access.                                                                                                     
                                                                                                                                
MR. PHELPS replied  that this provides an  option for contractors                                                               
to use  the internet.  The original  language remains  in statute                                                               
and   the  required   information   is  the   same  whether   the                                                               
advertisement is online or not.                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  asked  if  there was  any  specific  support  or                                                               
opposition to the legislation.                                                                                                  
                                                                                                                                
SENATOR HUGHES  said her  office had heard  no opposition  to the                                                               
bill and the industry was  supportive. She deferred to Mr. Phelps                                                               
to discuss the support.                                                                                                         
                                                                                                                                
2:51:25 PM                                                                                                                    
MR.  PHELPS advised  that the  bill had  received verbal  support                                                               
from  ADT  and  the  Division   of  Corporations,  Business,  and                                                               
Professional Licensing  and the companion House  bill had written                                                               
support  from  the  Alaska General  Contractors  Association.  He                                                               
offered to provide a copy of that letter.                                                                                       
                                                                                                                                
CHAIR  COSTELLO  asked  if there  were  any  consumer  protection                                                               
concerns the committee  should be aware of, and if  an agency was                                                               
charged with  checking that the contractor's  internet website or                                                               
landing page for the required information actually existed.                                                                     
                                                                                                                                
SENATOR HUGHES  said it would  have to  come to the  attention of                                                               
the Department  of Commerce,  Community and  Economic Development                                                               
(DCCED) and she believes the  department is open to such reports.                                                               
To the question about a business  that advertises in an area that                                                               
has  no  internet, she  said  she  believes  a business  in  that                                                               
situation  would make  sure their  information  was available  as                                                               
required under the current statute.                                                                                             
                                                                                                                                
SENATOR MICCICHE asked if someone  who advertises on a website or                                                               
Facebook page would fall under  the definition of "contractor" if                                                               
this legislation were to pass.                                                                                                  
                                                                                                                                
2:54:32 PM                                                                                                                    
GLENN  HOSKINSON,  Deputy   Director,  Division  of  Corporations                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community and Economic Development,  Juneau, Alaska, advised that                                                               
anyone who is advertising, offering,  or performing services that                                                               
fall under  the definition of  "construction contractor"  must be                                                               
licensed  and  this legislation  doesn't  change  that. The  only                                                               
change  SB  181 makes  is  to  allow  contractors to  show  their                                                               
website address  in lieu of  listing the required  information on                                                               
the advertisement.                                                                                                              
                                                                                                                                
2:55:22 PM                                                                                                                    
CHAIR COSTELLO opened  public testimony on SB  181; finding none,                                                               
she closed public testimony on the bill.                                                                                        
                                                                                                                                
She stated she would hold the bill for future consideration.                                                                    
                                                                                                                                
2:55:52 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:56:09 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
2:56:12 PM                                                                                                                    
SENATOR MICCICHE  moved to report  CSSB 181(CRA), work  order 32-                                                               
LS1404\G,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO found no objection  and CSSB 181(CRA) was reported                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
         SB 237-AMBULATORY SURGICAL EMPLOYEES: OVERTIME                                                                     
                                                                                                                                
2:56:38 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of SENATE  BILL NO.                                                               
237  "An   Act  exempting  certain  ambulatory   surgical  center                                                               
employees from  overtime pay requirements;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
She  noted   that  this   was  the   first  hearing   and  Deputy                                                               
Commissioner Munoz would provide the introduction.                                                                              
                                                                                                                                
2:57:18 PM                                                                                                                    
CATHY  MUNOZ,  Deputy  Commissioner,   Department  of  Labor  and                                                               
Workforce Development, Juneau, Alaska,  thanked the committee for                                                               
hearing  SB 237  that  would exempt  certain ambulatory  surgical                                                               
centers employees from the requirements of overtime pay.                                                                        
                                                                                                                                
She explained that  federal and state laws govern  the payment of                                                               
overtime. For  purposes of paying  overtime, federal  law defines                                                               
the threshold  as more  than a  40-hour work  week and  state law                                                               
further defines the  threshold as greater than 40  hours per week                                                               
or  eight  hours  per  day.   AS  23.10.060  lists  a  number  of                                                               
professions  that are  exempt from  the eight-hour  threshold for                                                               
calculating overtime.  This list includes hospital  employees who                                                               
work in the direct provision of medical services.                                                                               
                                                                                                                                
SB 237 adds employees working  in ambulatory surgical centers who                                                               
provide direct medical  care to the list  of professions exempted                                                               
from  the eight  hour daily  threshold for  purposes of  overtime                                                               
calculation.   Importantly,  the   federal   40-hour  work   week                                                               
threshold  would still  apply,  just  as it  applies  to all  the                                                               
exempted professions in state law.                                                                                              
                                                                                                                                
MS. MUNOZ  said this change provides  parity. Ambulatory surgical                                                               
centers would  be able to  offer the same flexible  scheduling to                                                               
employees that provide direct medical  care as hospital employees                                                               
in similar positions.                                                                                                           
                                                                                                                                
She noted that  Alecia Rathlin was available  to answer questions                                                               
about the wage and hour law.                                                                                                    
                                                                                                                                
2:59:43 PM                                                                                                                    
SENATOR STEVENS asked if this  means that someone who has already                                                               
worked  an eight-hour  day  could  be taking  care  of a  surgery                                                               
patient such as himself.                                                                                                        
                                                                                                                                
MS. MUNOZ  responded that current  law allows hospitals  to offer                                                               
flexible scheduling  within the  40-hour work  week such  as four                                                               
10-hour days  or three  12 hour  days. SB  237 would  provide the                                                               
same option to ambulatory surgical centers.                                                                                     
                                                                                                                                
SENATOR STEVENS expressed dismay.                                                                                               
                                                                                                                                
MS.  MUNOZ replied  it  isn't a  requirement.  It's a  scheduling                                                               
option that hospitals are able  to offer these certain employees,                                                               
and  employees from  ambulatory surgical  centers have  requested                                                               
the  same   scheduling  flexibility.   She  described  it   as  a                                                               
recruitment tool.                                                                                                               
                                                                                                                                
CHAIR  COSTELLO asked  Senator Stevens  if he  would like  Alecia                                                               
Rathlin to respond to his concern.                                                                                              
                                                                                                                                
SENATOR  STEVENS  said   yes;  he  asked  Ms.   Rathlin  for  her                                                               
perspective of the bill.                                                                                                        
                                                                                                                                
3:01:15 PM                                                                                                                    
ALECIA RATHLIN,  Investigator, Wage and Hour  Office, Division of                                                               
Labor  Standards and  Safety, Department  of Labor  and Workforce                                                               
Development  (DOLWD), Anchorage,  Alaska,  explained that  Alaska                                                               
wage and hour  law does not prohibit employees  from working more                                                               
than eight  hours a day, but  they must be paid  overtime for the                                                               
time they work over that  threshold. SB 237 provides an exemption                                                               
for that overtime pay.                                                                                                          
                                                                                                                                
SENATOR  STEVENS  summarized  his  understanding  that  the  bill                                                               
doesn't change the  work day or week; it's just  about doing away                                                               
with overtime pay.                                                                                                              
                                                                                                                                
MS. RATHLIN agreed.                                                                                                             
                                                                                                                                
3:02:07 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 237.                                                                               
                                                                                                                                
3:02:21 PM                                                                                                                    
PAM VENGEN, Executive Director,  Alaska State Medical Association                                                               
(ASMA),   Anchorage,   Alaska,   stated  that   ASMA   represents                                                               
physicians throughout Alaska  and she was speaking  in support of                                                               
SB  237,  which would  make  it  easier  for surgery  centers  to                                                               
schedule employees. Nurses  and other surgical staff  who work in                                                               
hospitals have  the option of  working a longer shift  than eight                                                               
hours. A  typical schedule for  these employees is to  work three                                                               
12-hour  days and  have four  days off  in a  week. SB  237 would                                                               
allow  ambulatory  surgery  centers  to  offer  similar  flexible                                                               
schedules to their surgical employees,  which would place them on                                                               
equal footing  with hospitals and  make it easier to  attract and                                                               
retain surgery  staff. She clarified  that the schedule  would be                                                               
an  option   for  employees,  not  a   requirement.  The  medical                                                               
association supports this bill.                                                                                                 
                                                                                                                                
SENATOR  STEVENS asked  if she  thought this  would lead  to more                                                               
people working more than eight hours a day.                                                                                     
                                                                                                                                
MS. VENGEN replied that the number  of people working more than 8                                                               
hours a day  might increase, but the bill does  not change the 40                                                               
hour per  week threshold  for paying  overtime. Anyone  who works                                                               
more  than  40  hours  per  week  would  be  paid  overtime.  She                                                               
reiterated that the  bill simply allows surgery  centers the same                                                               
flexible scheduling that hospitals offer.                                                                                       
                                                                                                                                
SENATOR STEVENS asked if this was a money saving effort.                                                                        
                                                                                                                                
MS.  VENGEN  replied it  would  save  some  money by  not  paying                                                               
overtime,  but these  employees  currently have  no option  other                                                               
than to work  five days a week. Employees who  might want to work                                                               
three 12-hour shifts each week  currently do not have that option                                                               
if they  work for a  surgery center.  Only hospitals are  able to                                                               
offer these schedules.                                                                                                          
                                                                                                                                
SENATOR STEVENS said  it didn't make sense that  somebody who had                                                               
worked a 12 hour day might be doing surgery.                                                                                    
                                                                                                                                
MS. VENGEN  clarified that the  bill does not apply  to surgeons;                                                               
it's about medical support staff.                                                                                               
                                                                                                                                
SENATOR STEVENS maintained his position.                                                                                        
                                                                                                                                
MS. VENGEN  pointed out that  hospital employees who work  in the                                                               
direct provision  of medical services  currently have  the option                                                               
and do work those shifts.                                                                                                       
                                                                                                                                
3:06:03 PM                                                                                                                    
SENATOR  GRAY-JACKSON  offered  her  understanding  that  SB  237                                                               
allows flex time.                                                                                                               
                                                                                                                                
MS.  VENGEN answered  yes, and  noted  that representatives  from                                                               
surgery centers were online to answer questions.                                                                                
                                                                                                                                
3:06:31 PM                                                                                                                    
SENATOR  MICCICHE   asked  if  she  was   saying  that  hospitals                                                               
currently are able to offer  this scheduling. He also asked where                                                               
in statute health  care centers that are  hospitals are separated                                                               
from health care centers that are ambulatory surgery centers.                                                                   
                                                                                                                                
MS.  VENGEN  replied that  current  statute  allows hospitals  to                                                               
offer  flex time,  but  surgery centers  are  not mentioned.  She                                                               
deferred further comment to Ms. Munoz.                                                                                          
                                                                                                                                
MS. MUNOZ  directed attention to the  provision regarding payment                                                               
of overtime in AS 23.10.060(d)(12).                                                                                             
                                                                                                                                
     (d) This section does not apply to                                                                                         
                                                                                                                                
           (12) an employee of a hospital whose employment                                                                      
     includes the provision of medical services;                                                                                
                                                                                                                                
SENATOR  MICCICHE observed  that this  places ambulatory  surgery                                                               
centers on  an equal footing  with hospitals. He said  he assumes                                                               
that overtime  would be paid  to employees in both  hospitals and                                                               
ambulatory  surgery centers  who work  more  than 40  hours in  a                                                               
week.                                                                                                                           
                                                                                                                                
MS. MUNOZ answered that the 40  hour threshold is federal law and                                                               
that  doesn't change.  The bill  exempts the  eight hour  per day                                                               
threshold.                                                                                                                      
                                                                                                                                
3:08:19 PM                                                                                                                    
CHAIR  COSTELLO questioned  whether  this might  result in  fewer                                                               
people volunteering to work overtime.                                                                                           
                                                                                                                                
MS. MUNOZ deferred the question  to representatives from surgical                                                               
centers,  but  pointed  out that  representatives  and  employees                                                               
brought the idea forward.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked Ms. Vengen for her perspective.                                                                            
                                                                                                                                
MS. VENGEN replied the employee  would have the choice of working                                                               
five eight-hour  days with  an opportunity  for some  overtime or                                                               
three 12-hour days without any overtime.                                                                                        
                                                                                                                                
SENATOR STEVENS  maintained his position  that someone  who works                                                               
more than eight hours in a day should be paid overtime.                                                                         
                                                                                                                                
SENATOR GRAY-JACKSON  relayed that the Municipality  of Anchorage                                                               
offers employees  nine 80s, which  is to work  80 hours in  a two                                                               
week period in  nine days. She asked if that  would be an option,                                                               
should the bill pass                                                                                                            
                                                                                                                                
3:10:19 PM                                                                                                                    
MS.  RATHIN   said  she  believes   the  two   separate  overtime                                                               
exemptions are  being conflated. The overtime  exemption for flex                                                               
plans requires the employee to  agree to participate voluntarily.                                                               
The  exemption proposed  in  SB 237  does  not require  voluntary                                                               
participation by the employee.                                                                                                  
                                                                                                                                
SENATOR  GRAY-JACKSON clarified  that she  was just  providing an                                                               
example.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO turned to public testimony.                                                                                      
                                                                                                                                
3:11:22 PM                                                                                                                    
KEVIN  BARRY,  CEO,  Alaska   Surgery  Center  (ASC),  Anchorage,                                                               
Alaska,  stated strong  support  for SB  237  to give  ambulatory                                                               
surgery centers  the option of  offering current  and prospective                                                               
surgical staff the option of a flexible work schedule.                                                                          
                                                                                                                                
MR. BARRY  pointed out  that working people  place more  value on                                                               
family time now  and they're choosing work options  that are more                                                               
flexible.  Current  state  law  restricts  surgery  centers  from                                                               
offering flex  schedules even though hospitals  have this option,                                                               
which is a distinct disadvantage.                                                                                               
                                                                                                                                
MR.   BARRY  said   Alaska  has   a  shortage   of  health   care                                                               
professionals and the center's recent  interviews have shown that                                                               
nurses in particular  want the option of working  12 hour shifts.                                                               
When  candidates  have asked  about  working  12-hour shifts  the                                                               
center has  had to explain  that surgery centers are  not allowed                                                               
to offer  that option.  Many of  the nurses  stated that  was the                                                               
only reason they turned down the  job offer. They view this as an                                                               
important option for their personal and family life.                                                                            
                                                                                                                                
SB  237 would  allow  surgery  centers to  offer  the same  shift                                                               
options to medical staff that  hospitals enjoy. It has nothing to                                                               
do with taking  away overtime. Shifts that  are overtime eligible                                                               
after eight  hours will  still be available.  SB 237  simply puts                                                               
surgery centers on equal footing with hospitals.                                                                                
                                                                                                                                
3:14:20 PM                                                                                                                    
SENATOR  STEVENS asked  if  the idea  was to  save  money by  not                                                               
paying overtime.                                                                                                                
                                                                                                                                
MR. BARRY replied  this would be an option.  Employees may choose                                                               
to stay on an eight-hour five days a week shift.                                                                                
                                                                                                                                
SENATOR STEVENS  asked if it would  save the center money  by not                                                               
paying overtime.                                                                                                                
                                                                                                                                
MR. BARRY  replied it  would save the  center some  overtime pay,                                                               
but the  employee would have four  days off each week  and that's                                                               
what they're asking for.                                                                                                        
                                                                                                                                
SENATOR STEVENS pointed  out that the center  could offer 12-hour                                                               
shifts  and pay  overtime after  eight hours.  He maintained  his                                                               
view that this was avoiding paying overtime.                                                                                    
                                                                                                                                
MR.  BARRY said  the center  only schedules  employees for  eight                                                               
hours and if they work more  than that they're paid overtime. But                                                               
if the  goal is to  work just three days  a week and  be employed                                                               
full time,  it would be an  advantage for the surgery  center and                                                               
the employee if this option were available.                                                                                     
                                                                                                                                
SENATOR  STEVENS offered  his understanding  that the  center was                                                               
still saving money by not paying overtime.                                                                                      
                                                                                                                                
MR. BARRY  agreed, [should  SB 237 pass,]  that the  center would                                                               
not pay  overtime for  those employees that  chose the  option to                                                               
work just three days a week and be employed full time.                                                                          
                                                                                                                                
CHAIR  COSTELLO asked  Mr.  Jayne to  provide  his testimony  and                                                               
respond to any questions that have come up.                                                                                     
                                                                                                                                
3:16:09 PM                                                                                                                    
BRUCE  JAYNE,  CEO/Administrator,  Surgery  Center  of  Anchorage                                                               
(SCA), Anchorage,  Alaska, stated strong  support for SB  237. He                                                               
said he's worked  in health care for 39 years,  both in hospitals                                                               
and ambulatory  surgery centers. He  related that one  thing that                                                               
appeals to  people starting  a nursing career  is the  ability to                                                               
work the shifts  they choose. Nurses are in  demand and hospitals                                                               
are able to  offer three 12-hour shifts in a  week if that's what                                                               
the nurse wants.  Many like the option of a  four-day weekend. He                                                               
agreed with Mr. Barry that nurses  are asking for this option but                                                               
it's not an option for ambulatory surgery centers at this time.                                                                 
                                                                                                                                
In response  to Senator  Steven's concern, he  said SCA  does not                                                               
run  its  operating rooms  for  12  hours,  but it  does  provide                                                               
extended patient  care. He agreed  that, should SB 237  pass, SCA                                                               
wouldn't pay overtime to medical staff who opt to work three 12-                                                                
hour  shifts per  week,  but that's  generally  what nurses  were                                                               
asking for.                                                                                                                     
                                                                                                                                
MR.  JAYNE said  many hospital  medical staff  are accustomed  to                                                               
working 12-hour shifts and like  the lifestyle it affords. That's                                                               
still  what they're  looking for  when they  decide they  want to                                                               
change  to  a different  type  of  facility.  Not being  able  to                                                               
accommodate such requests inhibits  a surgery center's ability to                                                               
recruit in this market, he said.                                                                                                
                                                                                                                                
SENATOR STEVENS  said he  agrees that  employees should  have the                                                               
choice, but  it seems that the  advantage of passing the  bill is                                                               
that surgery centers  wouldn't have to pay  overtime to employees                                                               
who work 12 hours. He asked if that was true.                                                                                   
                                                                                                                                
MR. JAYNE  replied that  would be  part of  the outcome,  but the                                                               
goal  of the  legislation  is  to put  surgery  centers on  equal                                                               
footing with hospitals for the purposes of recruiting staff.                                                                    
                                                                                                                                
3:20:03 PM                                                                                                                    
SENATOR  MICCICHE said  he didn't  have a  problem with  the bill                                                               
since  hospitals already  have this  option, but  he was  curious                                                               
about the three  letters of opposition. He  expressed interest in                                                               
hearing that perspective.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked if the surgery center offers this schedule.                                                                
                                                                                                                                
MR.  JAYNE said  there are  two nurses  who work  flex 10s;  they                                                               
wanted the shift specifically for their home life.                                                                              
                                                                                                                                
3:22:04 PM                                                                                                                    
MARY HOPKIN,  representing self,  Anchorage, Alaska,  stated that                                                               
she  is a  nurse  who  manages an  operating  room  in a  surgery                                                               
center,  and she  requested  this legislation.  In  the past  the                                                               
state  Board of  Nursing has  denied a  12-hour shift  to surgery                                                               
centers and they want this  option. The center currently offers 8                                                               
and 10 hour shifts and  any work beyond those predetermined times                                                               
is considered overtime.  She expressed the desire to  be on equal                                                               
footing with  the hospital in  hiring staff. People  want 12-hour                                                               
shifts because it  works for their personal and  family life, but                                                               
the only places that offers that currently are hospitals.                                                                       
                                                                                                                                
CHAIR COSTELLO  asked her to  talk about  a 12-hour shift  and if                                                               
there is  any downtime or  a diminution of  energy at the  end of                                                               
the shift.                                                                                                                      
                                                                                                                                
MS. HOPKINS  said someone  who is working  a 12-hour  shift isn't                                                               
necessarily going to be working at  high acuity for all 12 hours.                                                               
They're doing other things to help run the surgery center.                                                                      
                                                                                                                                
3:24:35 PM                                                                                                                    
SENATOR GRAY-JACKSON asked,  if SB 237 passes,  would an employee                                                               
who works  a regular  eight hour shift  receive overtime  if they                                                               
worked more than eight hours.                                                                                                   
                                                                                                                                
MS.  HOPKINS  said  her  understanding   is  they  would  receive                                                               
overtime. In  the surgery center  people are  hired for 5  8s, 4,                                                               
10s, or  3 12s and any  work beyond that predetermined  number of                                                               
hours is considered overtime.                                                                                                   
                                                                                                                                
SENATOR  GRAY-JACKSON said  she  asked the  question  to get  the                                                               
answer on the record.                                                                                                           
                                                                                                                                
3:25:42 PM                                                                                                                    
BRIAN  BERG,  Leadership  Team,   Alpine  Surgery  Center  (ASC),                                                               
Anchorage,  Alaska, stated  that working  shifts that  are longer                                                               
than eight  hours is  an option  that is  available to  nurses in                                                               
certain  settings,   but  these  shifts  are   not  eligible  for                                                               
overtime. Whether or  not to choose a longer shift  is a personal                                                               
choice. It is not a mandate or a  way to restrict pay or a way to                                                               
prevent  a nurse  from receiving  the overtime  benefit. It  is a                                                               
quality of life  choice some nurses are looking for.  A nurse who                                                               
chooses a 12  hour shift has appropriate breaks,  lunch time, and                                                               
down time  to ensure safe  and quality standards of  patient care                                                               
are maintained.                                                                                                                 
                                                                                                                                
SB 237 proposes to extend the  ability to offer longer than eight                                                               
hour  shifts to  ambulatory  surgery centers  so  they can  offer                                                               
nurses the same schedules that hospitals are able to offer.                                                                     
                                                                                                                                
3:27:36 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on SB 237.                                                                               
                                                                                                                                
3:27:41 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:31:14 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
SENATOR MICCICHE  asked where  in statute  it says  hospitals can                                                               
offer 12-hour shifts.                                                                                                           
                                                                                                                                
MS. MUNOZ answered that the  exemption is in the overtime section                                                               
that  she read  into  the  record earlier.  She  deferred to  Ms.                                                               
Rathlin to  discuss the law that  specifically addresses overtime                                                               
for nurses.                                                                                                                     
                                                                                                                                
3:32:20 PM                                                                                                                    
MS.  RATHLIN explained  that there  are two  separate exemptions.                                                               
The first  exempts hospitals from  the overtime  requirement, and                                                               
it  is this  statute that  SB 237  proposes to  amend to  include                                                               
ambulatory surgery centers.  The second exemption is  found in AS                                                               
23.10.060(d)(14)  pertaining   to  flex  plans.   Employers  must                                                               
specifically apply to the Wage and  Hour Office for approval of a                                                               
flex plan  and the  statute limits  those to up  to 10  hours per                                                               
day. This  statute would  prevent the Wage  and Hour  Office from                                                               
approving an employer request for of a 3 12s schedule.                                                                          
                                                                                                                                
CHAIR COSTELLO  asked if another  approach would be to  amend the                                                               
flex plan statute by extending the 10 hour limit to 12 hours.                                                                   
                                                                                                                                
MS. RATHLIN agreed that would work.                                                                                             
                                                                                                                                
SENATOR GRAY-JACKSON said she'd like to see the statute.                                                                        
                                                                                                                                
3:34:34 PM                                                                                                                    
CHAIR COSTELLO explained  her reasoning was to  amend the section                                                               
of law pertaining  to flex plans and extend the  10 hour limit to                                                               
12 hours.                                                                                                                       
                                                                                                                                
SENATOR  MICCICHE   pointed  out  that  AS   23.10.060(d)(12)  is                                                               
specific to hospitals  and if the statute relating  to flex plans                                                               
were  amended  it   would  apply  to  all   employers,  not  just                                                               
ambulatory surgery centers that made the specific request.                                                                      
                                                                                                                                
He  observed that  AS 23.10.060(d)(12)  doesn't specifically  say                                                               
that someone hired  for an eight hour per day  five days per week                                                               
schedule would  be paid overtime  if they worked more  than eight                                                               
hours in a day.                                                                                                                 
                                                                                                                                
3:36:51 PM                                                                                                                    
MS. MUNOZ  said federal  law requires  employers to  pay overtime                                                               
for work  in excess of 40  hours per week. The  specific addition                                                               
of  ambulatory   surgery  centers  under  the   exemption  in  AS                                                               
23.10.060(d)(12)  allows  for the  exemption  of  the eight  hour                                                               
threshold.  She  agreed that  amending  the  flex plan  exemption                                                               
would be  a broader umbrella.  She suggested Ms.  Rathlin clarify                                                               
that for the record.                                                                                                            
                                                                                                                                
3:37:31 PM                                                                                                                    
MS. RATHLIN confirmed that was accurate.                                                                                        
                                                                                                                                
CHAIR COSTELLO  commented on  the health  and safety  reasons for                                                               
limiting work  hours for certain  professions and noted  that the                                                               
bill extends  what hospitals  are already  able to  offer certain                                                               
employees  to ambulatory  surgical  centers. She  opined that  it                                                               
comes down to how comfortable the committee is with that idea.                                                                  
                                                                                                                                
SENATOR MICCICHE  posed a hypothetical  situation of  an employee                                                               
with a 4 10s schedule who works  12 hours the first three days of                                                               
the week.  He said  his concern  is that  an employer  might send                                                               
that employee home  after they work four hours  on Thursday, even                                                               
if they're  needed, to avoid  the federal  40/hour/week threshold                                                               
for paying  overtime. He  restated his wish  to hear  from people                                                               
who opposed the legislation to  understand whether that was their                                                               
concern.                                                                                                                        
                                                                                                                                
3:40:57 PM                                                                                                                    
SENATOR GRAY-JACKSON said  it's a good point  because some people                                                               
really want overtime.                                                                                                           
                                                                                                                                
CHAIR  COSTELLO advised  that three  letters  of opposition  have                                                               
been mentioned,  but one individual  wrote two of  those letters;                                                               
one to her as chair and another letter to the committee.                                                                        
                                                                                                                                
She  asked Mr.  Barry  to  address the  concerns  that have  been                                                               
articulated during the hearing.                                                                                                 
                                                                                                                                
MR. BARRY stated that the bill  is not intended to take advantage                                                               
of anybody or  game the system. Should the  bill pass, ambulatory                                                               
surgery centers would still offer  eight and ten hour shifts. The                                                               
bill would  simply allow these  centers to offer 12  hour shifts.                                                               
Nurses  primarily are  asking for  this option  and it's  already                                                               
available if they  work in a hospital.  Prospective employees are                                                               
turning down work  in surgery centers because they  can't get the                                                               
longer shifts that they want or have become accustomed to.                                                                      
                                                                                                                                
3:43:30 PM                                                                                                                    
CHAIR COSTELLO  said she believes  that the individual  who wrote                                                               
one of  the letters  of opposition  misunderstands the  effect of                                                               
the bill. She read the following excerpt:                                                                                       
                                                                                                                                
     Singling out  the medical field  on this bill  is wrong                                                                    
     and unfair. Often  times we are asked to  stay past our                                                                    
     8  hour shift  to complete  ELECTIVE surgeries.  Taking                                                                    
     away  overtime  pay  for  8   hour  shifts  will  breed                                                                    
     reluctance  to   stay  and  work  later.   This  is  an                                                                    
     incentive to stay, and taking it away is wrong.                                                                            
                                                                                                                                
CHAIR  COSTELLO asked  Mr. Barry  to  confirm that  a person  who                                                               
signs up  for an eight-hour  shift will receive overtime  if they                                                               
work longer than eight hours in a day.                                                                                          
                                                                                                                                
MR. BARRY said that's correct and  the same is true for a 10-hour                                                               
shift. He  also noted that  the federal threshold  always applies                                                               
so someone who works 4 10s and comes  to work on day five will be                                                               
paid overtime  on that  day. He clarified  that a  surgery center                                                               
can't operate  with all  employees on a  12-hour shift,  but they                                                               
want to  be able to  make that  offer. He restated  that everyone                                                               
who  works  overtime  is  paid   overtime  and  SB  237  wouldn't                                                               
eliminate that.                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO summarized  that ambulatory  surgery centers  are                                                               
only able to  offer eight- and ten-hour  shifts, although current                                                               
and prospective employees are asking for the option to work 12-                                                                 
hour shifts. Only hospitals are  able to offer 12-hour shifts and                                                               
surgery centers may lose prospective employees as a result.                                                                     
                                                                                                                                
MR. BARRY  said that's correct but  it's not that they  may go to                                                               
hospitals; that's  already happening. Some people  are accustomed                                                               
to a 12-hour shift and like the lifestyle it affords.                                                                           
                                                                                                                                
SENATOR MICCICHE  said he  didn't object to  moving the  bill. He                                                               
believes  that  ambulatory surgery  centers  should  be on  equal                                                               
footing  with hospitals  in this  regard. He  commented that  the                                                               
individual  who  objected  to  the  bill  may  not  realize  that                                                               
hospitals already have this ability.                                                                                            
                                                                                                                                
CHAIR COSTELLO  offered her belief  that the [title]  caused some                                                               
of the confusion. She asked Mr. Barry  if someone who is on a 12-                                                               
hour shift ever works overtime.                                                                                                 
                                                                                                                                
MR. BARRY  said it hasn't  happened at the Alaska  Surgery Center                                                               
and he couldn't  see that it would,  but if it did  they would be                                                               
paid overtime.                                                                                                                  
                                                                                                                                
MS. MUNOZ  pointed out that  there is  a shortage of  health care                                                               
workers and COVID has made people  aware of the benefit of having                                                               
more  flexibility in  their work  schedules. Anything  that makes                                                               
employment   in   this   industry  more   attractive   is   worth                                                               
considering.                                                                                                                    
                                                                                                                                
3:47:56 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:48:35 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting and solicited a motion.                                                                   
                                                                                                                                
3:48:40 PM                                                                                                                    
SENATOR MICCICHE moved to report  SB 237, work order 32-GS2117\A,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR COSTELLO  found no objection  and SB 237 was  reported from                                                               
the Senate Labor and Commerce Standing Committee.                                                                               
                                                                                                                                
3:49:18 PM                                                                                                                    
CHAIR COSTELLO recessed the meeting to a call of the chair.                                                                     
                                                                                                                                
6:54:46 PM                                                                                                                    
CHAIR COSTELLO  reconvened the  meeting. Present  at the  call to                                                               
order were Senators Gray-Jackson, Micciche, and Chair Costello.                                                                 
                                                                                                                                
                                                                                                                                
            HB 363-BROADBAND: OFFICE, GRANTS, PARITY                                                                        
                                                                                                                                
6:54:58 PM                                                                                                                    
CHAIR COSTELLO announced  the consideration of CS  FOR HOUSE BILL                                                               
NO.  363(FIN)  "An  Act establishing  the  office  of  broadband;                                                               
creating the  broadband parity adjustment fund;  establishing the                                                               
Statewide  Broadband   Advisory  Board;  and  providing   for  an                                                               
effective date."                                                                                                                
                                                                                                                                
She solicited a motion to adopt Amendment 1.                                                                                    
                                                                                                                                
6:55:13 PM                                                                                                                    
SENATOR MICCICHE moved Amendment 1 to HB 363.                                                                                   
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     HB 363                                                                                                                     
     Version D                                                                                                                  
                                                                                                                                
     Page 2, line 31:                                                                                                           
         Remove "30"                                                                                                            
         Insert "15"                                                                                                            
                                                                                                                                
6:55:30 PM                                                                                                                    
CHAIR COSTELLO  objected for  discussion purposes.  She explained                                                               
that   the   amendment  reduces   the   time   to  maintain   the                                                               
infrastructure  for  a broadband  project  from  30 years  to  15                                                               
years. Earlier in the meeting  the committee heard testimony that                                                               
the lifecycle of  broadband infrastructure is about  15 years and                                                               
that 30 years didn't align with the federal legislation.                                                                        
                                                                                                                                
CHAIR  COSTELLO   removed  her  objection;  finding   no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
6:56:29 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
6:56:49 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and voiced support for the                                                               
bill.                                                                                                                           
                                                                                                                                
SENATOR  MICCICHE  commented that  the  federal  money to  extend                                                               
broadband throughout the  state was unprecedented and  HB 363 was                                                               
an important piece to make it happen.                                                                                           
                                                                                                                                
SENATOR  GRAY-JACKSON said  she was  excited about  the bill  and                                                               
what  it   will  mean  to   citizens  in  rural   communities  in                                                               
particular.                                                                                                                     
                                                                                                                                
6:57:55 PM                                                                                                                    
SENATOR  MICCICHE   moved  to   report  the   [Senate]  committee                                                               
substitute for HB  363, work order 32-LS1527\D,  as amended, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
6:58:11 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection and  SCS  CSHB 363(L&C)  was                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
6:58:22 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 5:58 p.m.                                                                                                  

Document Name Date/Time Subjects
HB 363 v. W.PDF SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Sectional Analysis v. W.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Explanation of Changes.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Fiscal Note 3379 - DCCED.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 State of Alaska NTIA Comment 02.04.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Written Testimony received by 5.5.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
SB 181 v. G.PDF SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Sectional Analysis v. G.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Explanation of Changes v. B to v. G.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 181 Fiscal Note 2360 - DCCED.pdf SL&C 5/11/2022 1:30:00 PM
SB 181
SB 237 v. A.PDF SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Hearing Request 4.15.22.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Fiscal Note 345 - DOL.PDF SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Letter of Support AK Surgery Center.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 237 Written Testimony as of 4.24.22.pdf SL&C 5/11/2022 1:30:00 PM
SB 237
SB 232 v. A.PDF SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Sponsor Statement.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Sectional Analysis v. A.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
SB 232 Fiscal Note 345 - DOL.pdf SL&C 5/11/2022 1:30:00 PM
SB 232
HB 363 Work Draft v. D.pdf SL&C 5/11/2022 1:30:00 PM
HB 363
HB 363 Shawn Williams Written Testimony 5.11.22.pdf SL&C 5/11/2022 1:30:00 PM
HB 363