05/17/2022 09:00 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB232 | |
| HB132 | |
| Confirmation Hearing | |
| HB132 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 232 | TELECONFERENCED | |
| += | HB 132 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
May 17, 2022
12:35 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Joshua Revak, Vice Chair
Senator Gary Stevens
Senator Elvi Gray-Jackson
MEMBERS ABSENT
Senator Peter Micciche
COMMITTEE CALENDAR
SENATE BILL NO. 232
"An Act relating to employee intellectual property."
- HEARD & HELD
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 132(FIN)
"An Act relating to technical education and registered
apprenticeships."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 232
SHORT TITLE: INTELLECTUAL PROPERTY OF EMPLOYEES
SPONSOR(s): LABOR & COMMERCE
03/15/22 (S) READ THE FIRST TIME - REFERRALS
03/15/22 (S) L&C
03/25/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/25/22 (S) Scheduled but Not Heard
04/13/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/13/22 (S) <Bill Hearing Canceled>
05/11/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/11/22 (S) Scheduled but Not Heard
05/17/22 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
BILL: HB 132
SHORT TITLE: SCHOOL APPRENTICESHIP PROGS; TAX CREDITS
SPONSOR(s): LABOR & COMMERCE
03/10/21 (H) READ THE FIRST TIME - REFERRALS
03/10/21 (H) L&C, EDC, FIN
03/15/21 (H) L&C AT 6:30 PM BARNES 124
03/15/21 (H) Heard & Held
03/15/21 (H) MINUTE(L&C)
03/22/21 (H) L&C AT 3:15 PM DAVIS 106
03/22/21 (H) Moved CSHB 132(L&C) Out of Committee
03/22/21 (H) MINUTE(L&C)
03/22/21 (H) L&C AT 6:30 PM DAVIS 106
03/22/21 (H) -- MEETING CANCELED --
03/25/21 (H) L&C RPT CS(L&C) NEW TITLE 5DP 1AM
03/25/21 (H) DP: SNYDER, SCHRAGE, MCCARTY,
SPOHNHOLZ, FIELDS
03/25/21 (H) AM: NELSON
04/09/21 (H) EDC AT 8:00 AM DAVIS 106
04/09/21 (H) Heard & Held
04/09/21 (H) MINUTE(EDC)
04/19/21 (H) EDC AT 8:00 AM DAVIS 106
04/19/21 (H) Heard & Held
04/19/21 (H) MINUTE(EDC)
04/23/21 (H) EDC AT 8:00 AM DAVIS 106
04/23/21 (H) Moved CSHB 132(EDC) Out of Committee
04/23/21 (H) MINUTE(EDC)
04/28/21 (H) EDC RPT CS(EDC) NEW TITLE 3DP 3NR
04/28/21 (H) DP: ZULKOSKY, DRUMMOND, STORY
04/28/21 (H) NR: CRONK, GILLHAM, HOPKINS
05/06/21 (H) FIN AT 9:00 AM ADAMS 519
05/06/21 (H) Heard & Held
05/06/21 (H) MINUTE(FIN)
05/07/21 (H) FIN AT 1:30 PM ADAMS 519
05/07/21 (H) Heard & Held
05/07/21 (H) MINUTE(FIN)
05/14/21 (H) FIN AT 1:30 PM ADAMS 519
05/14/21 (H) Moved CSHB 132(FIN) Out of Committee
05/14/21 (H) MINUTE(FIN)
05/18/21 (H) FIN RPT CS(FIN) NEW TITLE 7DP 1DNP 2NR
05/18/21 (H) DP: ORTIZ, EDGMON, LEBON, THOMPSON,
WOOL, MERRICK, FOSTER
05/18/21 (H) DNP: CARPENTER
05/18/21 (H) NR: JOHNSON, JOSEPHSON
05/19/21 (H) LIMIT ALL DEBATE TO 2 MIN EACH Y23 N16
E1
05/19/21 (H) TRANSMITTED TO (S)
05/19/21 (H) VERSION: CSHB 132(FIN)
01/18/22 (S) READ THE FIRST TIME - REFERRALS
01/18/22 (S) EDC, L&C, FIN
03/11/22 (S) EDC AT 9:00 AM BUTROVICH 205
03/11/22 (S) Heard & Held
03/11/22 (S) MINUTE(EDC)
04/11/22 (S) EDC AT 9:00 AM BUTROVICH 205
04/11/22 (S) Heard & Held
04/11/22 (S) MINUTE(EDC)
04/13/22 (S) EDC AT 9:00 AM BUTROVICH 205
04/13/22 (S) -- MEETING CANCELED --
04/20/22 (S) EDC AT 9:00 AM BUTROVICH 205
04/20/22 (S) Moved SCS CSHB 132(EDC) Out of
Committee
04/20/22 (S) MINUTE(EDC)
04/22/22 (S) EDC RPT SCS(EDC) 3DP 1NR NEW TITLE
04/22/22 (S) DP: HOLLAND, HUGHES, MICCICHE
04/22/22 (S) NR: STEVENS
04/27/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/27/22 (S) -- MEETING CANCELED --
05/04/22 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/04/22 (S) Heard & Held
05/04/22 (S) MINUTE(L&C)
05/17/22 (S) L&C AT 12:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
KATIE MCCALL, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 232.
MARK BILLINGSLEY, Director
Office of Intellectual Property & Commercialization;
Center for Innovation, Commercialization, and Entrepreneurship
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Testified by invitation on SB 232.
KATIE MCCALL, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an explanation of Amendment 1 for
HB 132.
REPRESENTATIVE ZACK FIELDS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Co-chair of the House Labor and Commerce
Standing Committee, sponsor of HB 132, answered questions about
Amendment 1.
ALICIA MALTBY, President and CEO
Associated Builders and Contractors (ABC) of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of Amendment 1 for HB
132.
ALICIA SIIRA, Executive Director
Associated General Contractors (AGC) of Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in support of Amendment 1 for HB
132.
REPRESENTATIVE IVY SPOHNHOLZ
Alaska State Legislative
Juneau, Alaska
POSITION STATEMENT: Co-chair of the House Labor and Commerce
Committee, sponsor of HB 132, opposed Amendment 1.
ACTION NARRATIVE
12:35:39 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 12:35 p.m. Present at the call to
order were Senators Gray-Jackson, Revak, and Chair Costello.
Senator Stevens joined the committee soon thereafter.
SB 232-INTELLECTUAL PROPERTY OF EMPLOYEES
12:36:12 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
232 "An Act relating to employee intellectual property."
She noted that this was the first hearing and the intention was
to hear the introduction, take questions, hear public testimony,
and look to the will of the committee.
12:36:39 PM
KATIE MCCALL, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, introduced SB 232 paraphrasing the
sponsor statement that read as follows:
Senate Bill 232 protects Alaskan innovators. Right
now, an employer can try to claim, and profit from, an
employee's personal creations. This bill will protect
Alaskans' intellectual property. An employee who
invents something, from widgets to software, on their
own time with their own resources, will keep the
rights to their invention. The bill also makes sure
any disputes are heard in Alaska courts, not those of
other states.
Protecting Alaskans' intellectual property helps
further innovation and economic development in Alaska
by demonstrating our state's commitment to supporting
those with new and unique ideas. Implementing the
protections in Senate Bill 232 would provide assurance
to Alaskan employees that their innovative ideas are
their own.
12:37:49 PM
SENATOR STEVENS joined the committee.
12:37:55 PM
MS. MCCALL presented the sectional analysis for SB 232:
Sec. 1 AS 23.10.038 Page 1, Lines 3-15 & Page 2,
Line 1
Adds a new section of law which:
• Prohibits employers from claiming rights to an
employee's intellectual property, if the employee
developed an invention on their own time, outside
the scope of employment, and without using the
employer's resources
• Invalidates any employment agreement which tries
to give the employer rights to an employee's
personal inventions
• Ensures employees have access to the Alaska
courts to defend their personal inventions
Sec. 2 Page 2, Lines 2-5
Specifies that this Act only applies to employment
agreements on or after the effective date.
12:38:56 PM
CHAIR COSTELLO found no questions and invited Mark Billingsley
to provide his testimony
12:39:27 PM
MARK BILLINGSLEY, Director, Office of Intellectual Property &
Commercialization, and the Center for Innovation,
Commercialization, and Entrepreneurship, University of Alaska
Fairbanks (UAF), Fairbanks, Alaska, stated that he was one of
two practicing patent attorneys in the state. His job at the
university was to implement and commercialize university
research and development (R&D) and spur entrepreneurial
endeavors. He offered his perspective that there was a lot of
opportunity in Alaska and that there was a lot of interest in
the state nationally, but that it had a long way to go to be
competitive with the rest of the US. He said innovations don't
necessarily mean designing new things. What's needed here is to
take what already exists, bring it to Alaska, and adapt it for
use here. He pointed out that Alaska needed programs and
systems, economic structures, and financial tools.
MR. BILLINGSLEY said SB 232 broadly addresses employment
contracts and an employer who claims the intellectual property
rights of an employee's innovation that was developed on their
own time, in their own place, and using their own resources. He
said it would be for the courts to decide but he wonders whether
such an employment contract would be enforceable. He noted that
whoever drafted the bill did a good job of recognizing potential
issues with retroactive application.
12:44:16 PM
CHAIR COSTELLO asked if the bill addresses the situation of an
individual who on their own time and in their own place,
innovates some kind of intellectual property and commercializes
it, and their employer asserts ownership.
MR. BILLINGSLEY said the default owner of intellectual property
is the inventor or author so in that example the employee is the
owner, not the employer. The main exception to that is invention
for hire, which is when somebody is specifically hired to invent
something. Large organizations typically have employee language
in the hiring contract that assigns everything the employee
invents that is related to the scope of their work to that
organization. Even if that language is missing there is a legal
mechanism for the employer to keep ownership of the invention.
CHAIR COSTELLO asked if it was his opinion that SB 232 placed
the default into statue, which was that the employee owns their
intellectual property.
MR. BILLINGSLEY replied the default was that the employee owns
their intellectual property. His view of the legislation was
that it sought to overcome a contract that tries to undermine
the default.
CHAIR COSTELLO thanked him for the testimony.
12:48:44 PM
CHAIR COSTELLO opened public testimony on SB 232; finding none,
she closed public testimony.
12:49:02 PM
At ease
12:50:10 PM
CHAIR COSTELLO reconvened the meeting and stated she would hold
SB 232 in committee.
HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS
12:50:16 PM
CHAIR COSTELLO announced the consideration of CS FOR HOUSE BILL
NO. 132(FIN) "An Act relating to technical education and
registered apprenticeships."
[SCS CSHB 132(EDC) was before the committee.]
12:50:29 PM
CHAIR COSTELLO moved to adopt Amendment 1, work order 32-
LS0476\F.1.
32-LS0476\F.1
Klein
5/16/22
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR COSTELLO
TO: SCS CSHB 132(EDC)
Page 6, following line 22:
Insert a new subsection to read:
"(e) A contract under this section must
allow an apprentice enrolled in an apprenticeship
program under 29 U.S.C. 50 - 50c and the employer
of the apprentice to compete for construction
projects and may not require that the apprentice
or employer be a signatory to a collective
bargaining agreement."
SENATOR REVAK objected for discussion purposes.
12:50:44 PM
KATIE MCCALL, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska, explained that Amendment 1 would
insert a new subsection, the intent of which was to allow an
apprentice enrolled in an apprenticeship program and their
employer to compete for construction projects without being part
of a collective bargaining agreement.
12:51:58 PM
At ease
12:52:14 PM
CHAIR COSTELLO reconvened the meeting and asked Representative
Fields to comment on Amendment 1.
12:52:21 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, Juneau,
Alaska, speaking as co-chair of the House Labor and Commerce
Committee that sponsored HB 132, stated that he could answer
questions about Amendment 1, but he would not speak in favor or
against it because it touched on his private sector work with
the Anchorage School District.
12:52:54 PM
SENATOR REVAK asked where the bill goes next.
CHAIR COSTELLO replied it goes to Senate Finance.
REPRESENTATIVE FIELDS advised that the Senate Education
Committee removed the tax credit, which may eliminate the need
for the finance referral.
SENATOR REVAK asked for a plain explanation of what the
amendment would do.
12:53:34 PM
REPRESENTATIVE FIELDS said his understanding was it would
restrict school districts from using state money awarded through
DEED for projects where a school board had put a student
community workforce agreement in place. He explained that
community workforce agreements were similar to project labor
agreements.
CHAIR COSTELLO said the intention of the amendment was to expand
the scope of application to provide more opportunities.
12:54:11 PM
At ease
12:58:11 PM
CHAIR COSTELLO reconvened the meeting and advised that she would
recess the committee to provide members time to review the
amendment and bill, HB 132.
^CONFIRMATION HEARING
12:58:37 PM
CHAIR COSTELLO stated that she had a clarification for the
record. She stated that when the joint body was considering
governor appointees to boards and commissions, she incorrectly
stated that the four people who testified in this committee
against Ramsey Bell's appointment to the Board of Pharmacy were
members of the board. She relayed her intention to write the
board a letter apologizing for that misstatement and advising
that it was corrected in a public hearing.
12:59:50 PM
CHAIR COSTELLO recessed the meeting to a call of the chair.
3:04:57 PM
CHAIR COSTELLO reconvened the meeting. Senators Gray-Jackson,
Stevens and Chair Costello were present.
HB 132-SCHOOL APPRENTICESHIP PROGS; TAX CREDITS
3:05:03 PM
CHAIR COSTELLO returned attention to HB 132 and asked Alicia
Maltby to provide her comments on the proposed Amendment 1.
3:05:37 PM
ALICIA MALTBY, President and CEO, Associated Builders and
Contractors (ABC) of Alaska, Anchorage, Alaska, shared the
history of the association and relayed that unions recently
received approval for community workforce agreements on all
Anchorage School District construction projects. She reported
that 75 percent of the Alaskan construction workforce is
nonunion and said these workers would be ineligible to work on
those projects under this agreement. She cited an example from
just one contractor member who won and completed the following
projects:
• $12 million for Chester Valley school renovation
• $15 million for Girdwood K-8 remodel
• $8 million for Rabbit Creek Elementary renewal
• $60 million Airport Heights school addition and
• $11.7 million for Eagle River earthquake recovery projects.
She pointed out that the contractor, the Alaskan employees, and
the Alaskan apprentices that worked on these projects will no
longer be eligible to work on Anchorage School District
projects.
MS. MALTBY stated support for Amendment 1 that says school
districts must allow apprentices and their employers that are
not in a bargaining unit to work on school projects. It means
that state funding may not be used to discriminate against
apprentices who choose not to join a union hall. She said the
apprenticeship program should be fair and open to all and this
amendment will allow for that. She urged the committee to pass
Amendment 1.
3:08:40 PM
CHAIR COSTELLO related her understanding that nothing in the
amendment or bill would prohibit ABC from using a project labor
agreement; it's just not a mandate. She asked if that was
correct.
MS. MALTBY answered yes; contractors may put a PLA on any of
their projects, but most ABC member contractors are not doing
so.
CHAIR COSTELLO discerned there were no questions and asked
Alicia Siira to comment on Amendment 1.
3:09:32 PM
ALICIA SIIRA, Executive Director, Associated General Contractors
(AGC) of Alaska, Anchorage, Alaska, advised that AGC is a trade
association that represents both union and nonunion contractors.
They support Amendment 1, and do not support a requirement to
use a project labor agreements on publicly funded projects. AGC
contractors are, however, free to use PLAs if they feel it would
be a good tool for a particular project. She concluded her
comments stating support for both the bill and amendment.
CHAIR COSTELLO asked Representative Spohnholz to comment on
Amendment 1 as co-chair of the House Labor and Commerce Standing
Committee that sponsored HB 132.
3:11:05 PM
REPRESENTATIVE IVY SPOHNHOLZ, Alaska State Legislative, Juneau,
Alaska, speaking as co-chair of the House Labor and Commerce
Committee that sponsored HB 132, said she appreciates the intent
but believes the amendment would prevent local communities from
exercising local control. The constitution supports local
control and she and Representative Fields believe that local
communities and jurisdictions should have the option of entering
into project labor agreements just as contractors have that
choice. She said PLAs ensure that the people who oversee
apprentices are well-trained and will receive a living wage. She
stressed that nothing in the legislation requires participation
in a PLA, but it would ensure that local jurisdictions have the
option of entering into a PLA. She concluded that she did not
support Amendment 1, because it would undermine the intention of
the bill.
REPRESENTATIVE FIELDS, Alaska State Legislative, Juneau, Alaska,
speaking as co-chair of the House Labor and Commerce Committee
that sponsored HB 132, restated that he would not discuss the
amendment because it touches on his private sector work.
3:12:43 PM
CHAIR COSTELLO offered her understanding that projects that use
local funds would fall under the student community workforce
agreement. She said the amendment specifically addresses
projects that use state funds and both the Associated Builders
and Contractors (ABC) of Alaska and Associated General
Contractors (AGC) of Alaska said they had the option of using a
project labor agreement. She asked Representative Spohnholz if
she wanted to clarify her remarks related to the funding source.
3:13:15 PM
REPRESENTATIVE SPOHNHOLZ said she and her co-chair generally
believe in local communities being able to make decisions at the
local level; that state funding is meant to augment local
funding for those projects; and that it is important to ensure
that communities continue to have the option to advance projects
using a PLA if they believe it is in their best interest to do
so. She underscored the emphasis the state constitution places
on local control to the maximum extent possible.
CHAIR COSTELLO asked if she was aware of any problems associated
with the construction projects for the elementary schools that
Ms. Maltby mentioned that would have been addressed had there
been a project labor agreement.
REPRESENTATIVE SPOHNHOLZ replied she didn't have any comment on
specific projects other than that she attended Rabbit Creek
Elementary School and was pleased to see that work was done.
3:14:19 PM
SENATOR STEVENS asked for examples of projects he might be aware
of that would have problems under the proposed amendment.
SENATOR GRAY-JACKSON cited her positive experience with project
labor agreements and that the community had been well served by
qualified and well paid workers on these projects. She would
hate to see anything prevent the use of PLAs.
CHAIR COSTELLO related her understanding that Amendment 1 would
allow companies that don't require union membership to bid on
projects. She referenced the list of projects Ms. Maltby
mentioned that one contractor completed for the Anchorage School
District and others.
3:16:06 PM
At ease
3:17:50 PM
CHAIR COSTELLO reconvened the meeting.
[CHAIR COSTELLO held HB 132 in committee.]
3:18:10 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:18 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 132 Amendment F.1.pdf |
SL&C 5/17/2022 9:00:00 AM |
HB 132 |