Legislature(2013 - 2014)BELTZ 105 (TSBldg)

03/20/2014 01:30 PM LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 193 CONTRACTORS: BONDS; LICENSING TELECONFERENCED
Heard & Held
+= SB 189 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
Heard & Held
+= SB 190 DELEGATION OF GUIDE-OUTFITTER DUTIES TELECONFERENCED
Moved CSSB 190(L&C) Out of Committee
+= SB 156 DIRECT-ENTRY MIDWIVES TELECONFERENCED
Moved SB 156 Out of Committee
+= SB 99 AIDEA: DEVELOPMENT LOANS TELECONFERENCED
Moved CSSB 99(L&C) Out of Committee
Confirmation of Governors Appointments
*+ SB 183 EXTEND EMERGING ENERGY TECHNOLOGY FUND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 20, 2014                                                                                         
                           1:31 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator Peter Micciche, Vice Chair                                                                                              
Senator Donald Olson                                                                                                            
Senator Bert Stedman                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Johnny Ellis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
     Alaska State Board of Public Accountancy                                                                                 
          Leslie Schmitz - Anchorage                                                                                            
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Alcoholic Beverage Control Board                                                                                         
          Robert Klein - Anchorage                                                                                              
          Marvin Yoder - Palmer                                                                                                 
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     State Board of Registration for Architects, Engineers, and                                                               
     Land Surveyors                                                                                                           
          Donald (John) Christensen - Seward                                                                                    
          Brian Hanson - Anchorage                                                                                              
          Luanne Urfer - Anchorage                                                                                              
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Barbers and Hairdressers                                                                                        
          Jeannine Jabaay - Anchorage                                                                                           
          Derrick Slaughter - Anchorage                                                                                         
          Glenda Ledford - Wasilla                                                                                              
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Big Game Commercial Services Board                                                                                       
          Gene Peltola - Bethel                                                                                                 
          Michele Metz - Douglas                                                                                                
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Chiropractic Examiners                                                                                          
          Christine Hill - Anchorage                                                                                            
          Dr. Walter Campbell - Palmer                                                                                          
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Dental Examiners                                                                                                
          Dr. Thomas Wells - Anchorage                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Fishermen's Fund Advisory and Appeals Council                                                                            
          Larry Bartman - Manokotak                                                                                             
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                              
     Alaska Gasline Development Corporation Board of Directors                                                                
          Albert Bolea - Big Lake                                                                                               
          Dave Cruz - Wasilla                                                                                                   
          Drue Pearce - Anchorage                                                                                               
          Richard Rabinow - Houston                                                                                             
          John Burns - Fairbanks                                                                                                
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Alaska Labor Relations Agency                                                                                            
          Willard Askren - Big Lake                                                                                             
          Dr. Lynne Curry - Anchorage                                                                                           
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Marine Pilots                                                                                                   
          Richard Erickson - Ketchikan                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Board of Marital and Family Therapy                                                                                      
     JoAnn Young - Anchorage                                                                                                    
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Board of Certified Direct-Entry Midwives                                                                                 
          Jennifer Swander - Seward                                                                                             
                                                                                                                              
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                              
     Board of Nursing                                                                                                         
          Erin Evans - Eagle River                                                                                              
          Mary (Jennie) Grimwood - Cordova                                                                                      
          Carrie Miller - Juneau                                                                                                
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Examiners in Optometry                                                                                          
          Dr. Damien Delzer - Fairbanks                                                                                         
          Eric Lingle - Douglas                                                                                                 
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Pharmacy                                                                                                        
          William Altland - Craig                                                                                               
          Anne Gruening - Juneau                                                                                                
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     State Physical Therapy and Occupational Therapy Board                                                                    
          Dr. Ilona Farr - Anchorage                                                                                            
          Dr. Joseph Kennedy - Nome                                                                                             
          Mary (Melissa) Robinson - Moose Pass                                                                                  
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Professional Counselors                                                                                         
          Lyn Tashea - Anchorage                                                                                                
          Stephanie Johnson - Nome                                                                                              
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Certified Real Estate Appraisers                                                                                
          David Derry - Kenai                                                                                                   
          Alfred Ferrara - Anchorage                                                                                            
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Real Estate Commission                                                                                                   
          Cynthia Cartledge - Anchorage                                                                                         
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Regulatory Commission of Alaska                                                                                          
          Robert Pickett - Wasilla                                                                                              
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Board of Social Work Examiners                                                                                           
          Laura Thiesen - Glennallen                                                                                            
          Danielle LaFon - Fairbanks                                                                                            
          Tina Walter - Kenai                                                                                                   
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Board of Veterinary Examiners                                                                                            
          Dr. Teresa Beck - Palmer                                                                                              
          Dr. James Hagee - Chugiak                                                                                             
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
     Workers' Compensation Appeals Commission                                                                                 
          Philip Ulmer - Eagle River                                                                                            
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
     Alaska Workers' Compensation Board                                                                                       
          Julie Duquette - Fairbanks                                                                                            
          David Kester - Anchorage                                                                                              
          Michael O'Connor - Anchorage                                                                                          
          Donna Phillips - Girdwood                                                                                             
          Mark Talbert - Wasilla                                                                                                
          Zebulon Woodman - Fairbanks                                                                                           
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
SENATE BILL NO. 193                                                                                                             
"An Act relating to bonds required for contractors."                                                                            
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 183                                                                                                             
"An Act extending the termination date of the emerging energy                                                                   
technology fund and grant program."                                                                                             
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 189                                                                                                             
"An Act relating to an exemption from the regulation of                                                                         
construction contractors."                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 156                                                                                                             
"An Act relating to direct-entry midwives."                                                                                     
                                                                                                                                
     - MOVED SB 156 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 190                                                                                                             
"An Act  permitting a guide-outfitter  to delegate  certain guide                                                               
services  to  a person  who  is  not  licensed  by the  Big  Game                                                               
Commercial Services Board."                                                                                                     
                                                                                                                                
     - MOVED CSSB 190(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 99                                                                                                              
"An  Act   correcting  a  reference  to   the  Alaska  Industrial                                                               
Development  and Export  Authority revolving  fund; limiting  the                                                               
use  of the  Alaska Industrial  Development and  Export Authority                                                               
sustainable energy  transmission and supply development  fund for                                                               
certain loans  and loan guarantees  and allowing  the development                                                               
fund to  be used as security  for a bond guarantee;  and amending                                                               
the definition of 'qualified energy development.'"                                                                              
                                                                                                                                
     - MOVED CSSB  99(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 193                                                                                                                  
SHORT TITLE: CONTRACTORS: BONDS; LICENSING                                                                                      
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
02/21/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (S)       L&C                                                                                                    
02/27/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/27/14       (S)       -- MEETING CANCELED --                                                                                 
03/04/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/04/14       (S)       Scheduled But Not Heard                                                                                
03/11/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/11/14       (S)       -- MEETING CANCELED --                                                                                 
03/13/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/14       (S)       Scheduled But Not Heard                                                                                
03/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/18/14       (S)       -- MEETING CANCELED --                                                                                 
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 189                                                                                                                  
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS                                                                                
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/21/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (S)       L&C                                                                                                    
02/25/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/25/14       (S)       -- MEETING CANCELED --                                                                                 
03/04/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/04/14       (S)       Heard & Held                                                                                           
03/04/14       (S)       MINUTE(L&C)                                                                                            
03/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/18/14       (S)       -- MEETING CANCELED --                                                                                 
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 190                                                                                                                  
SHORT TITLE: DELEGATION OF GUIDE-OUTFITTER DUTIES                                                                               
SPONSOR(s): HUGGINS                                                                                                             
                                                                                                                                
02/21/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/21/14       (S)       L&C                                                                                                    
03/11/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/11/14       (S)       -- MEETING CANCELED --                                                                                 
03/13/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/14       (S)       Heard & Held                                                                                           
03/13/14       (S)       MINUTE(L&C)                                                                                            
03/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/18/14       (S)       -- MEETING CANCELED --                                                                                 
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 156                                                                                                                  
SHORT TITLE: DIRECT-ENTRY MIDWIVES                                                                                              
SPONSOR(s): KELLY                                                                                                               
                                                                                                                                
02/05/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/05/14       (S)       L&C                                                                                                    
03/11/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/11/14       (S)       -- MEETING CANCELED --                                                                                 
03/13/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/14       (S)       Heard & Held                                                                                           
03/13/14       (S)       MINUTE(L&C)                                                                                            
03/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/18/14       (S)       -- MEETING CANCELED --                                                                                 
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  99                                                                                                                  
SHORT TITLE: AIDEA: DEVELOPMENT LOANS                                                                                           
SPONSOR(s): MCGUIRE                                                                                                             
                                                                                                                                
04/05/13       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/13       (S)       L&C                                                                                                    
02/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/18/14       (S)       Heard & Held                                                                                           
02/18/14       (S)       MINUTE(L&C)                                                                                            
02/27/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/27/14       (S)       -- MEETING CANCELED --                                                                                 
03/13/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/13/14       (S)       Scheduled But Not Heard                                                                                
03/18/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/18/14       (S)       -- MEETING CANCELED --                                                                                 
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 183                                                                                                                  
SHORT TITLE: EXTEND EMERGING ENERGY TECHNOLOGY FUND                                                                             
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
                                                                                                                                
02/19/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/14       (S)       L&C                                                                                                    
03/20/14       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
MINDY ROWLAND, Staff                                                                                                            
Senator Micciche                                                                                                                
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced SB 193 on behalf of the sponsor.                                                               
                                                                                                                                
ED SNIFFEN, Assistant Attorney General                                                                                          
Civil Division                                                                                                                  
Consumer Protection Unit                                                                                                        
Department of Law                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Stated support for SB 193.                                                                                
                                                                                                                                
ALAN WILSON, Legislative Chair                                                                                                  
Alaska State Homebuilding Association (ASHA)                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 193.                                                                           
                                                                                                                                
JESSE LOGAN, Staff                                                                                                              
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information related to SB 183 on                                                                 
behalf of the sponsor.                                                                                                          
                                                                                                                                
EMILY FORD, Public Outreach Liaison                                                                                             
Alaska Energy Authority (AEA)                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 183.                                                                           
                                                                                                                                
ALAN WILSON, Legislative Chair                                                                                                  
Alaska State Homebuilding Association (ASHA)                                                                                    
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
PATRICK DALTON, representing himself                                                                                            
Delta Junction, Alaska                                                                                                          
POSITION STATEMENT: Testified in opposition to SB 189.                                                                        
                                                                                                                                
GARNET BROWN, President                                                                                                         
Ketchikan Homebuilders Association (KHA)                                                                                        
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
JESS HALL representing himself                                                                                                  
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 189.                                                                           
                                                                                                                                
HEATHER SHADDUCK, Staff                                                                                                         
Senator Pete Kelly                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information on SB 156 on behalf of                                                               
the sponsor.                                                                                                                    
                                                                                                                                
GARY ZEPP, Staff                                                                                                                
Senator Charlie Huggins                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced the CS for SB 190.                                                                             
                                                                                                                                
THOR STACEY, Lobbyist                                                                                                           
Alaska Professional Hunters Association (APHA)                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 190.                                                                           
                                                                                                                                
CAPTAIN BERNARD CHASTAIN, Alaska Wildlife Troopers                                                                              
Department of Public Safety                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to SB 190.                                                                     
                                                                                                                                
JOE WANT, representing himself                                                                                                  
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Offered support and a suggestion on SB 190.                                                               
                                                                                                                                
JESSE LOGAN, Staff                                                                                                              
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced the CS for  SB 99 on behalf of the                                                             
sponsor.                                                                                                                        
                                                                                                                                
TED LEONARD, Executive Director                                                                                                 
Alaska Industrial Development and Export Authority (AIDEA)                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed AIDEA's  process as it  relates to                                                             
SB 99.                                                                                                                          
                                                                                                                                
JAMES SULLIVAN                                                                                                                  
Southeast Alaska Conservation Council (SEACC)                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition to the CS for SB 99.                                                              
                                                                                                                                
KEN COLLISON, Chief Operating Officer                                                                                           
Ucore Rare Metals Inc.                                                                                                          
POSITION STATEMENT: Provided supporting  testimony for the CS for                                                             
SB 99.                                                                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:09 PM                                                                                                                    
VICE  CHAIR  MICCICHE  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:31 p.m.  Present at the                                                               
call  to  order  were  Senators   Micciche,  Stedman,  and  Chair                                                               
Dunleavy.                                                                                                                       
                                                                                                                                
              SB 193-CONTRACTORS: BONDS; LICENSING                                                                          
                                                                                                                                
1:31:44 PM                                                                                                                    
VICE CHAIR  MICCICHE announced  the consideration of  SB 193."An                                                               
Act relating  to bonds  required for  contractors." This  was the                                                               
first hearing.                                                                                                                  
                                                                                                                                
1:32:02 PM                                                                                                                    
MINDY   ROWLAND,   Staff,    Senator   Micciche,   Alaska   State                                                               
Legislature, Juneau, Alaska, introduced SB 193 on behalf of the                                                                 
sponsor speaking to the following sponsor statement:                                                                            
                                                                                                                                
     AS 08.18.071  requires contractors operating  in Alaska                                                                    
     to  file   a  license  bond  with   the  Department  of                                                                    
     Commerce,  Community  and   Economic  Development.  The                                                                    
     purpose  of  the  bond  is   not  only  to  ensure  the                                                                    
     contractor  has  financial  resources to  pay  tax  and                                                                    
     other  obligations,  it  is  established  in  order  to                                                                    
     provide the  public an avenue  to seek recourse  in the                                                                    
     event there is negligent or  improper work or breach of                                                                    
     contract.  It  also  helps provide  protection  to  the                                                                    
     business  community  to  help contractors  and  vendors                                                                    
     collect  upon  default  for unpaid  work  or  equipment                                                                    
     rental.  The  statute  is  an  important  component  of                                                                    
     Alaska's  consumer protection  laws.  The bond  amounts                                                                    
     were  established in  1982 and  have  not been  updated                                                                    
     since.   The  current   level  of$10,000   for  general                                                                    
     contractors  and $5,000  for  specialty contractors  is                                                                    
     too low and is no  longer providing the intended public                                                                    
     protection. In  many cases,  the recoverable  amount is                                                                    
     not  worth the  legal and  other costs  associated with                                                                    
     pursing a claim against a bond.                                                                                            
                                                                                                                                
     SB 193  proposes to increase  the license  bond amounts                                                                    
     to the following:                                                                                                          
     General Contractors                     $25,000                                                                            
     General Contractors only residential    $20,000                                                                            
     Mechanical or Specialty Contractors     $10,000                                                                            
     Contractors performing minimal work     $ 5,000                                                                            
                                                                                                                                
     The construction  industry, which  will be  impacted by                                                                    
     this legislation,  brought forth the  recommendation to                                                                    
     make  an  adjustment in  the  bond  amounts. Given  the                                                                    
     increase  in  inflation over  the  last  30 years,  the                                                                    
     industry felt an increase  was long overdue. Purchasing                                                                    
     a bond generally costs a  small percentage of the total                                                                    
     amount  of  coverage,   thus  providing  a  significant                                                                    
     benefit to the public  and other businesses in relation                                                                    
     to  the  small  cost  increase  as  a  result  of  this                                                                    
     legislation.                                                                                                               
                                                                                                                                
     SB 193  also corrects  a loophole  in the  statute. All                                                                    
     professional  contractors are  required to  be licensed                                                                    
     and file  a bond. A  notable exemption is that  the law                                                                    
     does not intend to  impose license and bond requirement                                                                    
     upon  non-professional   contractors  such   as  family                                                                    
     members, friends,  neighbors, etc., who get  paid for a                                                                    
     small amount of work.  However, current law allows work                                                                    
     under  $10,000  to  be  exempt  and  this  wording  has                                                                    
     allowed    individuals   who    sell   themselves    as                                                                    
     professionals   to   avoid  the   statutory   licensure                                                                    
     requirements.  In  these  cases,   the  public  has  no                                                                    
     recourse against  unlicensed and  unbonded contractors.                                                                    
     The bill  corrects this by  establishing a  very modest                                                                    
     bond   level   for   those   professional   contractors                                                                    
     performing  work on  projects less  than $10,000.  Non-                                                                    
     professional  handymen   are  still  exempt   from  the                                                                    
     license  and  bond  requirements under  the  definition                                                                    
     provided    in    AS   08.18.171(4),    which    states                                                                    
     "'contractor' means a person who,  in the pursuit of an                                                                    
     independent   business...."   This  language   is   not                                                                    
     intended  to  include  a  person  undertaking  a  small                                                                    
     project for a friend or relative.                                                                                          
                                                                                                                                
She reported no outright opposition to the bill.                                                                                
                                                                                                                                
1:35:26 PM                                                                                                                    
VICE-CHAIR MICCICHE named the people available to testify.                                                                      
                                                                                                                                
ED SNIFFEN, Assistant Attorney  General, Civil Division, Consumer                                                               
Protection Unit,  Department of  Law, stated  that DOL  likes the                                                               
changes  incorporated  in  SB  193.   It  provides  an  inflation                                                               
adjustment  of the  bonding  amounts that  have  been in  statute                                                               
since 1982. Hopefully  the increased bond amounts  will result in                                                               
more consumers  holding contractors accountable if  their work is                                                               
faulty.                                                                                                                         
                                                                                                                                
ALVIN  NAGEL, Mechanical  Inspection Manager,  Division of  Labor                                                               
Standards  and   Safety,  Department   of  Labor   and  Workforce                                                               
Development (DOLWD),  said he was  available to  answer questions                                                               
related to SB 193.                                                                                                              
                                                                                                                                
1:37:45 PM                                                                                                                    
ALAN  WILSON,   Legislative  Chair,  Alaska   State  Homebuilding                                                               
Association  (ASHA), Juneau,  Alaska,  stated that  the Board  of                                                               
Directors  of   ASHA  supports  SB   193.  They  see  it   as  an                                                               
inflationary adjustment, he said.                                                                                               
                                                                                                                                
VICE-CHAIR  MICCICHE  announced that  he  would  hold SB  193  in                                                               
committee for further consideration. Public testimony was open.                                                                 
                                                                                                                                
         SB 183-EXTEND EMERGING ENERGY TECHNOLOGY FUND                                                                      
                                                                                                                                
1:39:06 PM                                                                                                                    
VICE-CHAIR MICCICHE announced the consideration of SB 183."An                                                                  
Act extending the termination date of the emerging energy                                                                       
technology fund and grant program." This was the first hearing.                                                                 
                                                                                                                                
JESSE  LOGAN,   Staff,  Senator   Lesil  McGuire,   Alaska  State                                                               
Legislature, Juneau,  Alaska, sponsor  of SB 183,  introduced the                                                               
legislation on  behalf of the  sponsor speaking to  the following                                                               
sponsor statement: [Original punctuation provided.]                                                                             
                                                                                                                                
     The Alaska  Sustainable Energy Act of  2010 established                                                                    
     the Emerging Energy Technology  Fund (EETF). The Alaska                                                                    
     Energy  Authority (AEA)  administers the  fund and  the                                                                    
     Alaska  Center for  Energy  and  Power (ACEP)  performs                                                                    
     data collection.  Together with  a matching  grant from                                                                    
     the  Denali  Commission,  the fund  made  $8.9  million                                                                    
     available  to develop  emerging energy  technologies in                                                                    
     Alaska.                                                                                                                    
                                                                                                                                
     EETF   grants  are   for   demonstration  projects   of                                                                    
     technologies  that  have  a reasonable  expectation  of                                                                    
     becoming  commercially  viable  within five  years.  An                                                                    
     EETF  technology is  one  that  promotes, enhances,  or                                                                    
     expands  the  diversity   of  available  energy  supply                                                                    
     sources  or  means  of transmission,  increases  energy                                                                    
     efficiency,   or    reduces   negative   energy-related                                                                    
     environmental effects. Energy  technologies can include                                                                    
     technologies  related to  renewable sources  of energy,                                                                    
     conservation   of    energy,   enabling   technologies,                                                                    
     efficient  and   effective  use  of   hydrocarbons  and                                                                    
     integrated  systems.  Projects  from  Round  1  saw  an                                                                    
     impressive  diversity.  Priority  is  given  to  Alaska                                                                    
     businesses,  utilities,  non-profits, tribal  or  local                                                                    
     governments or other organizations.                                                                                        
     Projects can either:                                                                                                       
        · Test emerging energy technologies or methods of                                                                       
          conserving energy                                                                                                     
        · Improve an existing technology                                                                                        
        · Deploy an existing technology that has not                                                                            
          previously been demonstrated in the state.                                                                            
                                                                                                                                
     The  EETF  is   not  an  angel  fund,   but  rather  an                                                                    
     opportunity  for   the  state  of  Alaska   to  support                                                                    
     projects that  are near commercialization and  that can                                                                    
     help  communities  who  are  facing  increasing  energy                                                                    
     costs. This is not a fund  for projects that are in the                                                                    
     research  and development  phase,  but  a program  that                                                                    
     creates  synergy with  the business  community and  the                                                                    
     State of  Alaska to create an  environment for economic                                                                    
     growth.                                                                                                                    
                                                                                                                                
     It is for  these reasons that I have  introduced SB 183                                                                    
     with the sole intention  of extending the program which                                                                    
     still  has  considerable  funding available  under  the                                                                    
     original  appropriation  and  the  Denali  Commission's                                                                    
     generous match.                                                                                                            
                                                                                                                                
1:40:09 PM                                                                                                                    
EMILY  FORD, Public  Outreach  Liaison,  Alaska Energy  Authority                                                               
(AEA),  Anchorage, Alaska,  explained  that  the Emerging  Energy                                                               
Technology  Fund provides  an infusion  of  capital for  projects                                                               
that anticipate being commercially  viable within five years. The                                                               
EETF  supports renewable  projects,  energy conservation,  energy                                                               
efficiency,  hydrocarbons, and  integrated systems.  The enabling                                                               
legislation  was passed  in 2010  with a  January 1,  2015 sunset                                                               
date, and SB 183 would extend  the sunset to January 1, 2020. She                                                               
noted that  the packets contained  summaries and  funding amounts                                                               
of the initial projects and the status of the next steps.                                                                       
                                                                                                                                
SENATOR STEDMAN stated support for the legislation.                                                                             
                                                                                                                                
1:42:19 PM                                                                                                                    
VICE-CHAIR  MICCICHE   found  no   questions  or   testimony  and                                                               
announced he  would hold  SB 183  in committee.  Public testimony                                                               
was open.                                                                                                                       
                                                                                                                                
           SB 189-EXEMPTION: LICENSING OF CONTRACTORS                                                                       
                                                                                                                                
1:42:39 PM                                                                                                                    
VICE-CHAIR MICCICHE  announced the  consideration of SB  189. "An                                                               
Act relating to an exemption  from the regulation of construction                                                               
contractors." [This  was the second hearing  and public testimony                                                               
was open.]                                                                                                                      
                                                                                                                                
1:43:55 PM                                                                                                                    
ALAN  WILSON,   Legislative  Chair,  Alaska   State  Homebuilding                                                               
Association  (ASHA), said  that  SB 189  closes  a loophole  that                                                               
affects  builders across  the  state. The  problem  is that  some                                                               
people  in  the state  are  building  homes under  the  homeowner                                                               
exemption   when   they're   actually  contractors.   This   puts                                                               
legitimate  contractors who  are licensed,  bonded, and  purchase                                                               
insurance at a disadvantage. Consumer  safety is also potentially                                                               
affected when work is done without proper licensing.                                                                            
                                                                                                                                
SENATOR STEDMAN asked Mr. Wilson if he supports the bill.                                                                       
                                                                                                                                
MR. WILSON confirmed he did support SB 189.                                                                                     
                                                                                                                                
1:46:02 PM                                                                                                                    
PATRICK  DALTON, representing  himself,  Delta Junction,  Alaska,                                                               
said he was  a contractor testifying in opposition to  SB 189. He                                                               
cited three problems with the  bill. First, he believes that this                                                               
problem  could   be  addressed  by   local  government   in  each                                                               
jurisdiction.   The   second   problem  is   availability;   when                                                               
contractors  aren't  available, the  job  will  get done  anyway.                                                               
Finally,  the bill  infringes on  individual rights  and protects                                                               
contractors more than the individual property owner.                                                                            
                                                                                                                                
1:51:17 PM                                                                                                                    
GARNET  BROWN,  President,   Ketchikan  Homebuilders  Association                                                               
(KHA),  Ketchikan, Alaska,  stated that  KHA supports  SB 189  as                                                               
well as the right for a  person to build their own home. However,                                                               
if  they're doing  it  as  a speculative  endeavor  they need  to                                                               
follow  the building  codes, including  hiring licensed  plumbers                                                               
and  electricians. It's  a matter  of safety.  He noted  that the                                                               
bill provides  just a minor  change to  existing law that  says a                                                               
person cannot build  a house for speculative reasons  and sell it                                                               
within two years unless it's a financial hardship.                                                                              
                                                                                                                                
VICE-CHAIR MICCICHE  clarified that  the bill doesn't  talk about                                                               
hardship.  Paragraph (12)  in Section  1  says the  owner has  to                                                               
demonstrate that  the sale would not  circumvent the requirements                                                               
under the chapter.                                                                                                              
                                                                                                                                
1:53:55 PM                                                                                                                    
JESS  HALL representing  himself,  Palmer,  Alaska, testified  in                                                               
support of SB 189. He recapped  the problem and observed that the                                                               
statute  is  so vague  it  makes  it  difficult to  enforce.  The                                                               
language  in  the  bill  will  clarify the  meaning  of  both  an                                                               
owner/builder and a contractor.                                                                                                 
                                                                                                                                
1:55:41 PM                                                                                                                    
VICE-CHAIR  MICCICHE closed  public  testimony  and announced  he                                                               
would hold SB 189 in committee for further consideration.                                                                       
                                                                                                                                
1:56:08 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                  SB 156-DIRECT-ENTRY MIDWIVES                                                                              
                                                                                                                                
1:57:39 PM                                                                                                                    
VICE-CHAIR  MICCICHE reconvened  the  meeting  and announced  the                                                               
consideration  of  SB  156.  "An  Act  relating  to  direct-entry                                                               
midwives."                                                                                                                      
                                                                                                                                
1:57:54 PM                                                                                                                    
HEATHER  SHADDUCK,  Staff,  Senator   Pete  Kelly,  Alaska  State                                                               
Legislature, Juneau,  Alaska, said  she introduced SB  156 during                                                               
the previous  meeting and public  testimony was taken.  She noted                                                               
the  professionals who  were available  to  answer questions  and                                                               
that the packets contained a  letter from Don Habeger in response                                                               
to questions that were raised  last hearing. He reported that all                                                               
but one of the licensed midwives  live on the road system and she                                                               
lives  in Sandy,  Utah. He  also  reported that  there are  state                                                               
licensing exemptions for employees of tribal health programs.                                                                   
                                                                                                                                
VICE-CHAIR MICCICHE closed public testimony.                                                                                    
                                                                                                                                
1:59:37 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:04:56 PM                                                                                                                    
VICE-CHAIR  MICCICHE  reconvened  the   meeting  and  noted  that                                                               
Senator Olson had joined the committee.                                                                                         
                                                                                                                                
SENATOR OLSON asked Ms. Shadduck to remind him of the changes.                                                                  
                                                                                                                                
MS. SHADDUCK explained that the  bill allows updates and required                                                               
practices to be placed in  regulation instead of statute. It also                                                               
adds a requirement that a midwife  must be licensed for two years                                                               
and attend 50 births in order  to be a preceptor. It also repeals                                                               
the cultural traditions.                                                                                                        
                                                                                                                                
SENATOR OLSON asked if the board supported the bill.                                                                            
                                                                                                                                
MS. SHADDUCK confirmed  that both the Board  of Certified Direct-                                                               
Entry  Midwives and  the Midwives  Association of  Alaska support                                                               
the  bill.  She  reiterated  her  explanation  of  Mr.  Habeger's                                                               
letter.                                                                                                                         
                                                                                                                                
SENATOR  OLSON  asked if  the  rural  care providers  had  voiced                                                               
concern with the bill.                                                                                                          
                                                                                                                                
MS.  SHADDUCK offered  her understanding  that the  Alaska Native                                                               
Tribal  Health Consortium  (ANTHC) said  there was  no reason  to                                                               
oppose the bill because tribal organizations are exempt.                                                                        
                                                                                                                                
VICE-CHAIR MICCICHE  found no further  questions or  comments and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
2:07:07 PM                                                                                                                    
SENATOR  STEDMAN  moved to  report  SB  156 from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
VICE-CHAIR MICCICHE announced that  without objection, SB 156 was                                                               
reported from the Senate Labor & Commerce Committee.                                                                            
                                                                                                                                
          SB 190-DELEGATION OF GUIDE-OUTFITTER DUTIES                                                                       
                                                                                                                                
2:07:23 PM                                                                                                                    
VICE-CHAIR MICCICHE  announced the  consideration of  SB 190."An                                                               
Act  permitting  a  guide-outfitter  to  delegate  certain  guide                                                               
services  to  a person  who  is  not  licensed  by the  Big  Game                                                               
Commercial  Services  Board." This  was  the  second hearing.  He                                                               
noted the new committee substitute (CS), Version N.                                                                             
                                                                                                                                
2:07:55 PM                                                                                                                    
GARY  ZEPP,   Staff,  Senator   Charlie  Huggins,   Alaska  State                                                               
Legislature,   Juneau,  Alaska   said   the  proposed   committee                                                               
substitute  (CS)  for SB  190  addresses  the concerns  expressed                                                               
about delegating  guide services to unlicensed  personnel and the                                                               
unintended  consequences  of  using   the  term  "delegate."  The                                                               
changes  resulted in  a  title  change, but  the  concept of  the                                                               
original bill was not changed.                                                                                                  
                                                                                                                                
2:08:20 PM                                                                                                                    
SENATOR STEDMAN  moved to  adopt the  work draft  CS for  SB 190,                                                               
labeled 28-LS1466\N,  as the working  document. He  then objected                                                               
for purposes of an explanation.                                                                                                 
                                                                                                                                
MR.  ZEPP deferred  to  Thor  Stacy to  describe  the changes  in                                                               
detail.                                                                                                                         
                                                                                                                                
2:09:00 PM                                                                                                                    
THOR  STACEY, Lobbyist,  Alaska Professional  Hunters Association                                                               
(APHA), Juneau,  Alaska, stated that  APHA strongly  supports the                                                               
concept of  SB 190  and believes the  CS provides  better wording                                                               
than the  original draft. He  explained that the bill  creates an                                                               
exemption for  duties described under  the definition  of guiding                                                               
for unlicensed persons to do packing                                                                                            
                                                                                                                                
SENATOR STEDMAN  asked for an  explanation of the changes  in the                                                               
CS.                                                                                                                             
                                                                                                                                
MR. STACEY explained that in  Section 1 subsection (a) the duties                                                               
that can be  delegated were expanded to  include packing trophies                                                               
and  packing camping  equipment. The  language in  subsection (b)                                                               
was modified  to clarify  that the  unlicensed person  assists in                                                               
providing guide  service and that  an assistant guide  could also                                                               
be a mentor  in the trainee relationship. On page  2 the language                                                               
relating to  being licensed  in a  specific game  management unit                                                               
was deleted because it doesn't apply to assistant guides.                                                                       
                                                                                                                                
2:11:55 PM                                                                                                                    
SENATOR STEDMAN removed his objection.                                                                                          
                                                                                                                                
VICE  CHAIR MICCICHE  found no  further  objection and  announced                                                               
that Version N was adopted.                                                                                                     
                                                                                                                                
MR. ZEPP  said the CS doesn't  change the intent of  the original                                                               
bill  to  allow unlicensed  personnel  to  perform certain  guide                                                               
service tasks for compensation.                                                                                                 
                                                                                                                                
SENATOR OLSON asked if there was opposition to the bill.                                                                        
                                                                                                                                
MR. ZEPP  said no.  The CS  addressed the  only concern  that was                                                               
expressed.                                                                                                                      
                                                                                                                                
SENATOR  OLSON asked  if  the bill  had  unanimous support  among                                                               
guides.                                                                                                                         
                                                                                                                                
MR. STACEY  replied the guides  unanimously agree about  the need                                                               
for packers.                                                                                                                    
                                                                                                                                
2:13:58 PM                                                                                                                    
VICE CHAIR MICCICHE opened public testimony.                                                                                    
                                                                                                                                
CAPTAIN  BERNARD CHASTAIN,  Alaska Wildlife  Troopers, Department                                                               
of Public  Safety, Anchorage,  Alaska, said  he was  available to                                                               
answer question.                                                                                                                
                                                                                                                                
SENATOR  OLSON asked  for assurance  that he  wouldn't hear  from                                                               
guides in his  area who were being harassed  by wildlife troopers                                                               
about packers.                                                                                                                  
                                                                                                                                
CAPTAIN  CHASTAIN confirmed  that  the bill  would alleviate  the                                                               
issue the Troopers have had with packers.                                                                                       
                                                                                                                                
SENATOR OLSON asked if there was any gray area.                                                                                 
                                                                                                                                
CAPTAIN CHASTAIN  said the bill  makes it very clear  what duties                                                               
can  and   cannot  be  conducted   by  licensed   and  unlicensed                                                               
personnel.                                                                                                                      
                                                                                                                                
2:15:59 PM                                                                                                                    
JOE WANT,  representing himself,  Fairbanks, Alaska,  stated that                                                               
his  concerns about  not being  able to  delegate authority  were                                                               
ameliorated. The only remaining concern  was to make certain that                                                               
the use  of the term "delegate"  on page 1, line  7, didn't cause                                                               
problems.                                                                                                                       
                                                                                                                                
VICE CHAIR  MICCICHE closed public testimony.  Finding no further                                                               
questions, he solicited a motion.                                                                                               
                                                                                                                                
2:17:07 PM                                                                                                                    
SENATOR STEDMAN  moved to report CS  for SB 190, Version  N, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
VICE  CHAIR  MICCICHE  announced   that  without  objection  CSSB                                                               
190(L&C)  was   reported  from  the   Senate  Labor   &  Commerce                                                               
Committee.                                                                                                                      
                                                                                                                                
                SB  99-AIDEA: DEVELOPMENT LOANS                                                                             
                                                                                                                                
2:17:30 PM                                                                                                                    
CHAIR  DUNLEAVY announced  the consideration  of  SB 99."An  Act                                                               
correcting a  reference to the Alaska  Industrial Development and                                                               
Export Authority revolving  fund; limiting the use  of the Alaska                                                               
Industrial  Development and  Export Authority  sustainable energy                                                               
transmission and  supply development  fund for certain  loans and                                                               
loan guarantees and  allowing the development fund to  be used as                                                               
security for  a bond  guarantee; and  amending the  definition of                                                               
'qualified  energy  development.'" He  noted  that  this was  the                                                               
second hearing and there was a new committee substitute (CS).                                                                   
                                                                                                                                
2:17:51 PM                                                                                                                    
SENATOR  STEDMAN  moved  to  adopt  CS for  SB  99,  labeled  28-                                                               
LS0741\C,  as  the working  document  and  then objected  for  an                                                               
explanation.                                                                                                                    
                                                                                                                                
2:18:07 PM                                                                                                                    
JESSE  LOGAN,   Staff,  Senator   Lesil  McGuire,   Alaska  State                                                               
Legislature, Juneau,  Alaska, sponsor  of SB 99,  summarized that                                                               
SB  99 corrects  a  few ambiguities  in the  SETS  fund that  was                                                               
created in 2012.  The CS makes two changes to  the original bill.                                                               
Language  on page  2, lines  4-5,  directs that  the transfer  of                                                               
funds between other  funds within AIDEA is done by  a vote of the                                                               
members. This  constitutes an action  of the board  within AIDEA.                                                               
The second change found on  page 3, lines 14-25, authorizes AIDEA                                                               
to issue bonds for up to  $145 million for the infrastructure and                                                               
construction costs  of the Bokan-Dotson Ridge  Rare Earth Element                                                               
Project.                                                                                                                        
                                                                                                                                
SENATOR STEDMAN removed his objection.                                                                                          
                                                                                                                                
VICE  CHAIR MICCICHE  found no  further  objection and  announced                                                               
that  Version  C  was  adopted.   He  asked  if  there  were  any                                                               
amendments.                                                                                                                     
                                                                                                                                
2:19:13 PM                                                                                                                    
SENATOR  STEDMAN   moved  to  adopt  Amendment   1,  labeled  28-                                                               
LS0741\C.1.                                                                                                                     
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
     OFFERED IN THE SENATE                                                                                                      
                                                                                                                                
          TO:  CSSB 99 ( ), Draft Version "C"                                                                                   
                                                                                                                                
                                                                                                                                
     Page 1, line 8, following "project":                                                                                     
     Insert "and the Niblack project"                                                                                         
                                                                                                                                
     Page 3, following line 21:                                                                                                 
     Insert a new bill section to read:                                                                                         
        "*  Sec.  6. The  uncodified  law  of the  State  of                                                                
     Alaska is amended by adding a new section to read:                                                                         
     LEGISLATIVE APPROVAL;  NIBLACK PROJECT. (a)  The Alaska                                                                    
     Industrial Development  and Export Authority  may issue                                                                    
     bonds  to finance  the infrastructure  and construction                                                                    
     costs  of  the  Niblack project.  The  Niblack  project                                                                    
     includes  a mineral  processing mill,  associated dock,                                                                    
     and  loading and  related infrastructure  facilities at                                                                    
     the  Gravina  Island  Industrial Complex,  as  well  as                                                                    
     infrastructure at  the project site on  Prince of Wales                                                                    
     Island. The  mineral processing mill,  associated dock,                                                                    
     and  loading and  related infrastructure  facilities at                                                                    
     the  Gravina  Island  Industrial Complex,  as  well  as                                                                    
     infrastructure at  the project site on  Prince of Wales                                                                    
     Island, shall  be owned and  operated by  the authority                                                                    
     or  financed under  AS 44.88.172. The  principal amount                                                                    
     of the bonds provided by  the authority for the Niblack                                                                    
     project  may not  exceed $125,000,000  and may  include                                                                    
     the costs  of issuing  bonds considered  reasonable and                                                                    
     appropriate  by the  Alaska Industrial  Development and                                                                    
     Export Authority.                                                                                                          
     (b)    This  section constitutes  legislative  approval                                                                    
     required by AS 44.88.095(g)."                                                                                              
                                                                                                                                
VICE CHAIR MICCICHE objected for discussion purposes.                                                                           
                                                                                                                                
SENATOR STEDMAN read Amendment 1.                                                                                               
                                                                                                                                
2:20:44 PM                                                                                                                    
SENATOR OLSON asked if the  amendment affects the amount of money                                                               
that AIDEA would encumber for the project.                                                                                      
                                                                                                                                
SENATOR STEDMAN replied  he wasn't aware that it  would but would                                                               
defer further comment to AIDEA.                                                                                                 
                                                                                                                                
SENATOR OLSON asked if AIDEA was in favor of the amendment.                                                                     
                                                                                                                                
SENATOR STEDMAN suggested  he pose the question to  AIDEA but his                                                               
understanding was that they did favor it.                                                                                       
                                                                                                                                
2:21:57 PM                                                                                                                    
TED  LEONARD, Executive  Director, Alaska  Industrial Development                                                               
and  Export  Authority  (AIDEA), Anchorage,  Alaska,  said  AIDEA                                                               
believes that  it has  the capacity to  fund both  Bokan Mountain                                                               
and Niblack. Funding is based on  the revenues of the projects so                                                               
this would not affect AIDEA's capacity to fund other projects.                                                                  
                                                                                                                                
2:23:11 PM                                                                                                                    
SENATOR OLSON  asked for assurance  that the amendment  would not                                                               
affect the  amount that  would be encumbered  by AIDEA  for these                                                               
two projects.                                                                                                                   
                                                                                                                                
MR. LEONARD said he didn't believe it would.                                                                                    
                                                                                                                                
SENATOR OLSON asked if AIDEA was in favor of the amendment.                                                                     
                                                                                                                                
MR. LEONARD answered yes and added  that it could have a positive                                                               
economic impact for the areas of Ketchikan and Prince of Wales.                                                                 
                                                                                                                                
2:24:33 PM                                                                                                                    
PATRICK  SMITH President,  Heatherdale Resources  Ltd., owner  of                                                               
the  Niblack  Project  on  Prince of  Wales,  offered  to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
VICE-CHAIR  MICCICHE  removed  his objection  and  opened  public                                                               
testimony. Version C was before the committee.                                                                                  
                                                                                                                                
2:25:55 PM                                                                                                                    
JAMES  SULLIVAN, Southeast  Alaska Conservation  Council (SEACC),                                                               
Juneau, Alaska,  said his prepared  comments were to the  CS that                                                               
included  Bokan   Mountain  but  he'd  try   to  incorporate  the                                                               
amendment to  include the  Niblack Project  since it  was closely                                                               
related. He stated the following:                                                                                               
                                                                                                                                
     Bokan Mountain venture is near  an abandon uranium mine                                                                    
     and  has been  conducting exploration  activities since                                                                    
     2006.  It  was  April   30,  2013  that  the  Bloomberg                                                                    
     Business  Week  noted that  in  the  most recent  audit                                                                    
     report filed  by Ucor, the auditor  gave an unqualified                                                                    
     opinion expressing doubt that  the company can continue                                                                    
     as  a  going  concern.  Their  most  recent,  the  2013                                                                    
     annual, has  not been  released or was  not as  of last                                                                    
     week  when I  checked. But  it's our  belief that  they                                                                    
     will get a very similar report from their auditor.                                                                         
                                                                                                                                
     Ucore  has  not put  out  a  final economic  assessment                                                                    
     report showing  that the  project is  even economically                                                                    
     viable.  Work  to  date   has  documented  an  inferred                                                                    
     resource  of rare  earth  mineralization  at the  Bokan                                                                    
     Mountain property.  This legislation proposes  owning a                                                                    
     mine  - or  financing -  that  is not  finished in  its                                                                    
     speculation  process. Investors  have not  joined Ucore                                                                    
     so why is  the state of Alaska? The question  begs - Is                                                                    
     the state propping  up a company that can't  make it in                                                                    
     the real market?                                                                                                           
                                                                                                                                
     As for  the comments  that I  didn't have  prepared for                                                                    
     the Niblack,  but I want to  put on the record  that it                                                                    
     was  just  this  past  summer  that  Niblack  announced                                                                    
     publicly  that  they  were  pulling  back  and  putting                                                                    
     everything  on hold.  This is  due to,  I believe,  the                                                                    
     fact that  they're not able  to find investors  to help                                                                    
     them bring this  mine to viability. I think  it is very                                                                    
     concerning  that we're  proposing  buying  into a  mine                                                                    
     that isn't finished with  its speculation process, that                                                                    
     hasn't gone  through the  permitting process.  There is                                                                    
     an inherent conflict of interest.  And yes I understand                                                                    
     the capabilities of AIDEA and  I don't want my comments                                                                    
     in any way to disparage  AIDEA, which I believe has put                                                                    
     up  a  great  track  record over  the  last  couple  of                                                                    
     decades.  But this  is a  departure in  our feeling  on                                                                    
     what   AIDEA  has   done  in   the  past   with  mostly                                                                    
     infrastructure  dealings  and support  through  revenue                                                                    
     bonds  to help  mines and  other industrial  activities                                                                    
     within the state of Alaska.  This is highly speculative                                                                    
     and we believe that before  you put the state of Alaska                                                                    
     and before we  start using public money,  we should get                                                                    
     a  better  understanding  of  where  they  are  in  the                                                                    
     speculation process  and if  they are  actually viable.                                                                    
     There is no reason to think  that if we wait that we're                                                                    
     doing damage in any way.                                                                                                   
                                                                                                                                
2:29:34 PM                                                                                                                    
SENATOR OLSON said  it was his understanding that  the rare earth                                                               
elements  (REE) from  Bokan Mountain  would be  competing against                                                               
those  coming  out of  China.  He  questioned whether  it  wasn't                                                               
better  for the  environment  to rely  on  U.S. mining  practices                                                               
rather than the relatively unregulated practices in China.                                                                      
                                                                                                                                
MR.  SULLIVAN  said  SEACC  was  concerned  with  China's  mining                                                               
practices and  was aware of  the potential for a  successful mine                                                               
on  Prince of  Wales. The  point is  that the  state should  wait                                                               
until the  project proves that  it is economically  viable before                                                               
it steps  in to offer help.  The project isn't at  that point and                                                               
it's  incumbent   on  the  legislature   not  to  get   into  the                                                               
speculation fever.                                                                                                              
                                                                                                                                
2:32:12 PM                                                                                                                    
SENATOR  OLSON  asked  if  it's  true that  the  project  has  no                                                               
permits.                                                                                                                        
                                                                                                                                
MR.  SULLIVAN  replied  they have  permits  for  the  exploration                                                               
process, but none to create a mine.                                                                                             
                                                                                                                                
2:32:41 PM                                                                                                                    
VICE-CHAIR  MICCICHE  asked  Mr.   Leonard  to  describe  AIDEA's                                                               
process to  assure the committee  that it doesn't hand  out money                                                               
to companies that can't prove fitness.                                                                                          
                                                                                                                                
MR. LEONARD explained that SB 99  was a bond application to allow                                                               
AIDEA to  move forward if  the due diligence process  proves that                                                               
the mine  is feasible.  The due  diligence process  verifies that                                                               
the mine is  feasible, that it has all the  required permits, and                                                               
that investors are willing to invest.  AIDEA can't go to the bond                                                               
market  until  all the  questions  are  answered and  a  regional                                                               
advisory has  looked at the  social, economic,  and environmental                                                               
impact of  the mine. By  statute, AIDEA can't move  forward until                                                               
it can  show a financing  plan that will  pay for the  bonds that                                                               
are issued as well as any costs.                                                                                                
                                                                                                                                
2:35:31 PM                                                                                                                    
KEN COLLISON,  Chief Operating Officer,  Ucore Rare  Metals Inc.,                                                               
stated that  Ucore will  be doing a  feasibility study  this year                                                               
for assurance  that the  project is  economic and  something that                                                               
investors would support.  Ucor came to the  legislature this year                                                               
because it  may have to make  down payments on some  of the large                                                               
equipment that  has 18-24 month  lead times on  delivery. Waiting                                                               
until next year could potentially delay the project.                                                                            
                                                                                                                                
SENATOR  STEDMAN  stressed that  allowing  these  projects to  go                                                               
through AIDEA  for some  underwritten and  preferential treatment                                                               
in the  bond market increases the  probability of one or  both of                                                               
them going  forward. Reasons to  support these projects  are that                                                               
the  environmental concerns  are much  less than  anything that's                                                               
done in  China, access to REEs  in the U.S. addresses  a national                                                               
defense concern,  and the  projects create  much needed  jobs. He                                                               
suggested that  this was  an effort  to replicate  the successful                                                               
model that  AIDEA used for  the Red  Dog mine in  Senator Olson's                                                               
district. It's  good public  policy to  support both  projects if                                                               
AIDEA's due diligence process proves them feasible, he said.                                                                    
                                                                                                                                
2:39:02 PM                                                                                                                    
SENATOR  OLSON expressed  reservation  with committing  resources                                                               
for projects that might not go forward.                                                                                         
                                                                                                                                
SENATOR STEDMAN  suggested that Mr. Leonard  clarify the timeline                                                               
of the due diligence process.                                                                                                   
                                                                                                                                
VICE-CHAIR MICCICHE asked Mr. Leonard  to discuss how AIDEA might                                                               
participate early  and more  heavily later if  a mine  like these                                                               
was found to be economic.                                                                                                       
                                                                                                                                
2:40:23 PM                                                                                                                    
MR. LEONARD restated that for  full financing AIDEA would need to                                                               
have  all  the final  details  of  construction, permitting,  and                                                               
economic   assessments   completed   before  starting   the   due                                                               
diligence. In  this process AIDEA would  verify that stockholders                                                               
were  interested  in investing  in  a  portion  of the  mine  and                                                               
determine how much AIDA was willing  to finance. He noted that in                                                               
the past  that's been limited  to hard  assets like the  mill and                                                               
the road.  He reiterated that  AIDEA would  not be able  to issue                                                               
any of  the $145 million  in bonds  until all the  questions were                                                               
answered  and  the  social, economic,  and  environmental  impact                                                               
studies were finished and the full  mine was able to move forward                                                               
through operations.                                                                                                             
                                                                                                                                
He  advised that  AIDEA does  have  the ability  to finance  pre-                                                               
development  with  much smaller  loans  if  they believe  that  a                                                               
project  should  move  forward  and  they  want  to  support  the                                                               
feasibility analysis of  the project. This would  be done through                                                               
AIDEA's development  finance program,  not issuance of  bonds. He                                                               
assured the committee  that AIDEA would not  invest bond proceeds                                                               
into a project that was piecemealed together.                                                                                   
                                                                                                                                
SENATOR OLSON expressed satisfaction with the explanation.                                                                      
                                                                                                                                
2:44:55 PM                                                                                                                    
SENATOR  STEDMAN moved  to  report CS  for SB  99,  Version C  as                                                               
amended,  from  committee  with  individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
VICE-CHAIR  MICCICHE  announced   that  without  objection,  CSSB                                                               
99(L&C) moved from the Senate Labor & Commerce Committee.                                                                       
                                                                                                                                
^Confirmation Hearings                                                                                                          
                     CONFIRMATION HEARINGS                                                                                  
                                                                                                                                
2:45:15 PM                                                                                                                    
VICE-CHAIR MICCICHE  announced the  next order of  business would                                                               
be  confirmation   hearings.  He  stated  that   pursuant  to  AS                                                               
39.05.080 the following  names were referred to  the Senate Labor                                                               
and  Commerce  Committee  for   a  hearing,  recommendation,  and                                                               
report:                                                                                                                         
                                                                                                                                
Alaska State Board of Public Accountancy                                                                                      
Leslie Schmitz - Anchorage                                                                                                      
                                                                                                                                
Alcoholic Beverage Control Board                                                                                              
Robert Klein - Anchorage                                                                                                        
Marvin Yoder - Palmer                                                                                                           
                                                                                                                                
State Board  of Registration for Architects,  Engineers, and Land                                                             
Surveyors                                                                                                                     
Donald (John) Christensen - Seward                                                                                              
Brian Hanson - Anchorage                                                                                                        
Luanne Urfer - Anchorage                                                                                                        
                                                                                                                                
Board of Barbers and Hairdressers                                                                                             
Jeannine Jabaay - Anchorage                                                                                                     
Derrick Slaughter - Anchorage                                                                                                   
Glenda Ledford - Wasilla                                                                                                        
                                                                                                                              
Big Game Commercial Services Board                                                                                            
Gene Peltola - Bethel                                                                                                           
Michele Metz - Douglas                                                                                                          
                                                                                                                              
Board of Chiropractic Examiners                                                                                               
Christine Hill - Anchorage                                                                                                      
Dr. Walter Campbell - Palmer                                                                                                    
                                                                                                                                
Board of Dental Examiners                                                                                                     
Dr. Thomas Wells - Anchorage                                                                                                    
                                                                                                                                
Fishermen's Fund Advisory and Appeals Council                                                                                 
Larry Bartman - Manokotak                                                                                                       
                                                                                                                                
Alaska Gasline Development Corporation Board of Directors                                                                     
Albert Bolea - Big Lake                                                                                                         
Dave Cruz - Wasilla                                                                                                             
Drue Pearce - Anchorage                                                                                                         
Richard Rabinow - Houston                                                                                                       
John Burns - Fairbanks                                                                                                          
                                                                                                                              
Alaska Labor Relations Agency                                                                                                 
Willard Askren - Big Lake                                                                                                       
Dr. Lynne Curry - Anchorage                                                                                                     
                                                                                                                                
Board of Marine Pilots                                                                                                        
Richard Erickson - Ketchikan                                                                                                    
                                                                                                                                
Board of Marital and Family Therapy                                                                                           
JoAnn Young - Anchorage                                                                                                         
                                                                                                                              
Board of Certified Direct-Entry Midwives                                                                                      
Jennifer Swander - Seward                                                                                                       
                                                                                                                                
Board of Nursing                                                                                                              
Erin Evans - Eagle River                                                                                                        
Mary (Jennie) Grimwood - Cordova                                                                                                
Carrie Miller - Juneau                                                                                                          
                                                                                                                                
Board of Examiners in Optometry                                                                                               
Dr. Damien Delzer - Fairbanks                                                                                                   
Eric Lingle - Douglas                                                                                                           
                                                                                                                                
Board of Pharmacy                                                                                                             
William Altland - Craig                                                                                                         
Anne Gruening - Juneau                                                                                                          
                                                                                                                                
State Physical Therapy and Occupational Therapy Board                                                                         
Dr. Ilona Farr - Anchorage                                                                                                      
Dr. Joseph Kennedy - Nome                                                                                                       
Mary (Melissa) Robinson - Moose Pass                                                                                            
                                                                                                                                
Board of Professional Counselors                                                                                              
Lyn Tashea - Anchorage                                                                                                          
Stephanie Johnson - Nome                                                                                                        
                                                                                                                                
Board of Certified Real Estate Appraisers                                                                                     
David Derry - Kenai                                                                                                             
Alfred Ferrara - Anchorage                                                                                                      
                                                                                                                                
Real Estate Commission                                                                                                        
Cynthia Cartledge - Anchorage                                                                                                   
                                                                                                                                
Regulatory Commission of Alaska                                                                                               
Robert Pickett - Wasilla                                                                                                        
                                                                                                                                
Board of Social Work Examiners                                                                                                
Laura Thiesen - Glennallen                                                                                                      
Danielle LaFon - Fairbanks                                                                                                      
Tina Walter - Kenai                                                                                                             
                                                                                                                                
Board of Veterinary Examiners                                                                                                 
Dr. Teresa Beck - Palmer                                                                                                        
Dr. James Hagee - Chugiak                                                                                                       
                                                                                                                              
Workers' Compensation Appeals Commission                                                                                      
Philip Ulmer - Eagle River                                                                                                      
                                                                                                                                
Alaska Workers' Compensation Board                                                                                            
Julie Duquette - Fairbanks                                                                                                      
David Kester - Anchorage                                                                                                        
Michael O'Connor - Anchorage                                                                                                    
Donna Phillips - Girdwood                                                                                                       
Mark Talbert - Wasilla                                                                                                          
Zebulon Woodman - Fairbanks                                                                                                     
                                                                                                                              
2:52:23 PM                                                                                                                    
VICE-CHAIR  MICCICHE opened  public  testimony  on the  foregoing                                                               
appointments and  stated that written testimony  would be entered                                                               
into the record.                                                                                                                
                                                                                                                                
VICE-CHAIR MICCICHE  found no testimony or  comments from members                                                               
and solicited a motion.                                                                                                         
                                                                                                                                
2:53:07 PM                                                                                                                    
SENATOR  STEDMAN moved  to advance  the foregoing  names [to  the                                                               
full body of the legislature] for further consideration.                                                                        
                                                                                                                                
VICE-CHAIR MICCICHE  announced that without objection,  the names                                                               
would be forwarded.                                                                                                             
                                                                                                                                
2:53:55 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Vice-Chair  Micciche  adjourned  the   Senate  Labor  &  Commerce                                                               
meeting at 2:53 p.m.                                                                                                            

Document Name Date/Time Subjects
SB 183 Version A.pdf SL&C 3/20/2014 1:30:00 PM
SB 183
SB 183 Sponsor Statement.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SB183-DCCED-AEA-03-17-14.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SB 183- Supporting Document- EETF Fund Award Project Write Ups 11 16 12.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SB 183- Supporting Document- EETF Award News Release 11 16 12.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SB 183- Supporting Document- EETF Round 1 Project Status Updates - Feb 2014 (2).pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SLA2014_Senate L&C_Confirmations.doc SL&C 3/20/2014 1:30:00 PM
Confirmation Hearings
SB99_OppositionLetter_Claus.pdf SL&C 3/20/2014 1:30:00 PM
SB 99
SB183_AEA Project Status Updates_Feb 2014.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183
SB183_AEA_EETF Presentation.pdf SL&C 3/20/2014 1:30:00 PM
SL&C 3/27/2014 1:30:00 PM
SB 183