Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/02/2017 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING TELECONFERENCED
Heard & Held
*+ SB 51 EXTEND BOARD OF VETERINARY EXAMINERS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
-- Public Testimony --
+= SB 15 E-CIGS: SALE TO AND POSSESSION BY MINOR TELECONFERENCED
Moved CSSB 15(L&C) Out of Committee
+= SB 29 REPEAL WORKERS' COMP APPEALS COMMISSION TELECONFERENCED
Moved SB 29 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 2, 2017                                                                                          
                           1:34 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Shelley Hughes, Vice Chair                                                                                              
Senator Kevin Meyer                                                                                                             
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Stevens                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 15                                                                                                              
"An Act relating  to possession of an  electronic smoking product                                                               
or a  product containing nicotine  by a  minor and to  selling or                                                               
giving  an electronic  smoking product  to a  minor; relating  to                                                               
business  license   endorsements  to  sell   cigarettes,  cigars,                                                               
tobacco,   products   containing  tobacco,   electronic   smoking                                                               
products,  or  products  containing  nicotine;  and  relating  to                                                               
citations  for certain  offenses concerning  tobacco or  nicotine                                                               
products."                                                                                                                      
                                                                                                                                
     - MOVED  CSSB 15(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 29                                                                                                              
"An Act  repealing the Workers' Compensation  Appeals Commission;                                                               
relating  to decisions  and orders  of the  Workers' Compensation                                                               
Appeals Commission; relating to  superior court jurisdiction over                                                               
appeals  from  Alaska   Workers'  Compensation  Board  decisions;                                                               
repealing  Rules  201.1,  401.1,   and  501.1,  Alaska  Rules  of                                                               
Appellate  Procedure, and  amending Rules  202(a), 204(a)  - (c),                                                               
210(e), 601(b), and 603(a), Alaska  Rules of Appellate Procedure;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
     - MOVED  SB 29 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 4                                                                                        
"An  Act  relating to  the  Board  of Barbers  and  Hairdressers;                                                               
relating   to  a   limited  license   to  practice   non-chemical                                                               
barbering; relating to a license to practice hair braiding;                                                                     
relating to the Department of Environmental Conservation; and                                                                   
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 51                                                                                                              
"An Act extending the termination date of the Board of                                                                          
Veterinary Examiners; and providing for an effective date."                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  15                                                                                                                  
SHORT TITLE: E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                            
SPONSOR(s): SENATOR(s) STEVENS                                                                                                  
                                                                                                                                
01/13/17       (S)       PREFILE RELEASED 1/13/17                                                                               
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       L&C, JUD                                                                                               
02/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/14/17       (S)       Heard & Held                                                                                           
02/14/17       (S)       MINUTE(L&C)                                                                                            
02/21/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/17       (S)       Heard & Held                                                                                           
02/21/17       (S)       MINUTE(L&C)                                                                                            
02/28/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/17       (S)       <Bill Hearing Canceled>                                                                                
03/02/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  29                                                                                                                  
SHORT TITLE: REPEAL WORKERS' COMP APPEALS COMMISSION                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/20/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/20/17       (S)       L&C, JUD, FIN                                                                                          
02/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/14/17       (S)       Heard & Held                                                                                           
02/14/17       (S)       MINUTE(L&C)                                                                                            
02/28/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/17       (S)       Heard & Held                                                                                           
02/28/17       (S)       MINUTE(L&C)                                                                                            
03/02/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB   4                                                                                                                  
SHORT TITLE: NON-CHEMICAL BARBERING;HAIR BRAIDING                                                                               
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
01/09/17       (S)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       L&C, FIN                                                                                               
02/17/17       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/17/17       (S)       L&C, FIN                                                                                               
03/02/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  51                                                                                                                  
SHORT TITLE: EXTEND BOARD OF VETERINARY EXAMINERS                                                                               
SPONSOR(s): SENATOR(s) VON IMHOF                                                                                                
                                                                                                                                
02/08/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/08/17       (S)       L&C, FIN                                                                                               
03/02/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
TIM LAMKIN, Staff                                                                                                               
Senator Gary Stevens                                                                                                            
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Reviewed the differences between version A                                                                
and version R of SB 15.                                                                                                         
                                                                                                                                
ANGELA BIRT, Chief Investigator                                                                                                 
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information related to SB 15.                                                                    
                                                                                                                                
SENATOR PETER MICCICHE                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 4.                                                                                          
                                                                                                                                
RACHEL HANKE, Staff                                                                                                             
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Delivered a sectional analysis for SSSB 4.                                                                
                                                                                                                                
CHRISTINA CARPENTER, Director                                                                                                   
Division of Environmental Health                                                                                                
Department of Environmental Conservation (DEC)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions related to SSSB 4.                                                                    
                                                                                                                                
JANEY HOVENDEN, Director                                                                                                        
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to SSSB 4.                                                                     
                                                                                                                                
WILLIE CANADY, Member                                                                                                           
Board of Barbers and Hairdressers                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SSSB 4.                                                                           
                                                                                                                                
JEANNINE JABAAY, Member                                                                                                         
Board of Barbers and Hairdressers                                                                                               
Hope, Alaska                                                                                                                    
POSITION STATEMENT: Testified in support of SSSB 4.                                                                           
                                                                                                                                
KEVIN MCKINLEY, Chair                                                                                                           
Board of Barbers and Hairdressers                                                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SSSB 4.                                                                           
                                                                                                                                
DAVE COLESON, Old-Fashioned Barber                                                                                              
Kenai, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SSSB 4.                                                                           
                                                                                                                                
SHAREEN CROSBY, Staff                                                                                                           
Senator Natasha von Imhof                                                                                                       
Alaska State Legislature                                                                                                        
POSITION STATEMENT: Introduced SB 51 on behalf of the sponsor.                                                                
                                                                                                                                
SENATOR NATASHA VON IMHOF                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 51.                                                                                         
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Division of Legislative Audit                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Discussed the sunset audit addressed in SB                                                                
51.                                                                                                                             
                                                                                                                                
RACHEL BERNGARTT, Member                                                                                                        
Board of Veterinary Examiners                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified on SB 51.                                                                                       
                                                                                                                                
PAMELA SAMASH, representing herself                                                                                             
Nenana, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition  to SB 51 due to lack                                                             
of rural representation.                                                                                                        
                                                                                                                                
MARGIE RILEY, representing herself                                                                                              
Nenana, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition  to SB 51 due to lack                                                             
of rural representation.                                                                                                        
                                                                                                                                
ANGIE FITCH, representing herself                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition  to SB 51 due to lack                                                             
of rural representation.                                                                                                        
                                                                                                                                
LEA MCKENZIE, representing herself                                                                                              
Sutton, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition  to SB 51 due to lack                                                             
of rural representation.                                                                                                        
                                                                                                                                
BRIAN BERUBE                                                                                                                    
Veterinary Clinic                                                                                                               
Rural Alaska                                                                                                                    
POSITION STATEMENT: Testified  that he would support SB  51 if it                                                             
were amended to include rural representation.                                                                                   
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:34:05 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:34  p.m. Present at the  call to                                                               
order were Senators Meyer, Hughes, Gardner, and Chair Costello.                                                                 
                                                                                                                                
         SB  15-E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                     
                                                                                                                                
1:35:13 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of SB 15.  She noted                                                               
that there was a new committee substitute (CS).                                                                                 
                                                                                                                                
1:35:57 PM                                                                                                                    
SENATOR HUGHES moved  to adopt the work draft CS  for Senate Bill                                                               
15, labeled 30-LS0170\R, as the working document.                                                                               
                                                                                                                                
1:36:07 PM                                                                                                                    
CHAIR COSTELLO objected for an explanation.                                                                                     
                                                                                                                                
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State                                                                           
Legislature, sponsor of SB 15, reminded the members that the                                                                    
primary purpose of the is bill is to restrict youth access to e-                                                                
cigarette products.                                                                                                             
                                                                                                                                
He reviewed the changes between version A and version R of SB 15                                                                
speaking to the following summary: [Original punctuation                                                                        
provided.]                                                                                                                      
                                                                                                                                
                                                                                                                                
 The  Department of Commerce, Community, & Economic  Development                                                                
 requested  penalties  associated  with violations  of  the  law                                                                
 restricting  youth access to  tobacco and E-Cigarette  products                                                                
 be   increased  to  more  effectively  compel  compliance,   as                                                                
 described below.                                                                                                               
                                                                                                                                
 CSSB  15  (L&C) Version  R, increases  the criminal  and  civil                                                                
 penalties (fines) associated with  violating the law by selling                                                                
 tobacco, products containing nicotine,  or E-Cigarette products                                                                
 to minors, as follows:                                                                                                         
                                                                                                                                
     1.  Under  AS  43.70.075(d),  the  person  holding  the                                                                    
     business license endorsement is fined the following:                                                                       
                                                                                                                                
             1st offense: a civil penalty of $1,000                                                                             
          (increased from $300)                                                                                                 
                                                                                                                                
             2nd offense: a civil penalty of $2,000                                                                             
          (increased from $500)                                                                                                 
                                                                                                                                
             3rd offense: a civil penalty of $4,000                                                                             
          (increased from $1,000)                                                                                               
                                                                                                                                
          After   3    convictions:   suspend   license                                                                         
          indefinitely  (increased from  1 year)  and a                                                                         
          civil  penalty  of  $10,000  (increased  from                                                                         
          $2,500)                                                                                                               
                                                                                                                                
     The  only  other substantive  change  in  Version R  is                                                                    
     regarding the  required product 'warning'  signage. The                                                                    
     verbiage  is  consolidated   to  include  reference  to                                                                    
     tobacco  products,  products  containing  nicotine,  or                                                                    
     "electronic  smoking  products,"  as being  illegal  to                                                                    
     sell to persons under the  age of 19. The dimensions of                                                                    
     the signage  were reduced  to 8.5" x  11" to  allow for                                                                    
     more  efficient means  for DCED  to  e-mail signage  to                                                                    
     vendors, and for  vendors to print and  post signage on                                                                    
     their own.  This change will reduce  the current fiscal                                                                    
     note considerably.                                                                                                         
                                                                                                                                
                                                                                                                                
1:39:30 PM                                                                                                                    
SENATOR  HUGHES  asked  what "indefinite  suspension  of  license                                                               
after three convictions" means in practice.                                                                                     
                                                                                                                                
MR.  LAMKIN  suggested  the  department speak  to  that,  but  he                                                               
believes  there  would  be  no   good-faith  remedy  after  three                                                               
convictions.                                                                                                                    
                                                                                                                                
1:40:34 PM                                                                                                                    
ANGELA  BIRT,  Chief   Investigator,  Division  of  Corporations,                                                               
Business,  and Professional  Licensing,  Department of  Commerce,                                                               
Community  and Economic  Development  (DCCED),  explained that  a                                                               
business or person could resume  selling tobacco products if both                                                               
DCCED  and the  Department  of Health  and  Social Services  were                                                               
satisfied  that  appropriate  training and  constraints  were  in                                                               
place  to prevent  the sale  of tobacco  or nicotine  products to                                                               
children.                                                                                                                       
                                                                                                                                
CHAIR COSTELLO  asked the department  to put that in  writing, so                                                               
it could follow the bill through the process.                                                                                   
                                                                                                                                
SENATOR HUGHES commented that three  occurrences over 30 years is                                                               
very different  than three occurrences  over just a few  years so                                                               
it's appropriate to have a path back to good standing.                                                                          
                                                                                                                                
MR.   LAMKIN  pointed   out  that   the  bill   stipulates  three                                                               
occurrences within two years.                                                                                                   
                                                                                                                                
SENATOR GARDNER asked  if the department wanted  the penalties in                                                               
Section 14  to apply to  all tobacco sales and  if the bill  is a                                                               
vehicle for that.                                                                                                               
                                                                                                                                
MR.  LAMKIN said  that is  his understanding  but the  department                                                               
should speak to that directly.                                                                                                  
                                                                                                                                
1:43:22 PM                                                                                                                    
MS. BIRT  confirmed that the  department asked for the  change to                                                               
update the  fine structure  and support the  cost of  running the                                                               
program.                                                                                                                        
                                                                                                                                
SENATOR HUGHES asked if the  bill only requires these products to                                                               
be behind  the counter  and out  of reach, not  out of  a child's                                                               
sight.                                                                                                                          
                                                                                                                                
MR. LAMKIN answered that's correct.                                                                                             
                                                                                                                                
SENATOR HUGHES suggested  that should be addressed  at some point                                                               
in the future. She asked  if the sponsor would consider requiring                                                               
the products  to be  out of sight  rather than  just incidentally                                                               
behind the counter.                                                                                                             
                                                                                                                                
MR. LAMKIN said that has  been brought to the sponsor's attention                                                               
and the idea will be vetted.                                                                                                    
                                                                                                                                
CHAIR  COSTELLO  removed  her  objection  and  found  no  further                                                               
objection; therefore, version R was adopted.                                                                                    
                                                                                                                                
1:48:10 PM                                                                                                                    
SENATOR HUGHES  moved to report the  CS for SB 15  from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
CHAIR COSTELLO announced that without  objection, CSSB 15(L&C) is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:48:23 PM                                                                                                                    
                                                                                                                                
         SB  29-REPEAL WORKERS' COMP APPEALS COMMISSION                                                                     
                                                                                                                                
1:50:33 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 29. She  noted that the  department endorsed                                                               
the bill  and Andy  Hemenway contacted  her office  to say  he is                                                               
interested in  changing his earlier  testimony. She  suggested he                                                               
send a  letter so  that his  sentiment could  be included  in the                                                               
official bill  file. She noted  that Mr. Hemenway was  the former                                                               
[Chair]  of the  Workers' Compensation  Appeals Commission  so he                                                               
has intimate  knowledge of how  the commission works.  Finding no                                                               
questions, she solicited a motion.                                                                                              
                                                                                                                                
1:52:09 PM                                                                                                                    
SENATOR  HUGHES  moved  to  report  SB  29  from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection,  SB  29  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:52:27 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
          SB   4-NON-CHEMICAL BARBERING;HAIR BRAIDING                                                                       
                                                                                                                                
1:56:14 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of SSSB  4.  She  stated that  this  is the  first                                                               
hearing  and the  intention is  to hear  the bill,  take member's                                                               
questions, and hold the bill for further consideration.                                                                         
                                                                                                                                
1:56:57 PM                                                                                                                    
SENATOR PETER MICCICHE, Alaska State Legislature, sponsor of                                                                    
SSSB 4, introduced the bill speaking to the following sponsor                                                                   
statement: [Original punctuation provided.]                                                                                     
                                                                                                                                
     During this  time of recession in  Alaska's economy, we                                                                    
     are  evaluating the  balance  between quality  training                                                                    
     programs and  situations where government  has hindered                                                                    
     commerce  and  the  ability  for  Alaskans  to  earn  a                                                                    
     living.  Revisions to  the  barbers' and  hairdressers'                                                                    
     statutes  provide  several   opportunities  to  correct                                                                    
     these imbalances.                                                                                                          
                                                                                                                                
     Under Title  8 licensed professionals regulated  by the                                                                    
     Board of Barbers and Hairdressers  (Board) must work in                                                                    
     a licensed  shop. These  students or  practitioners are                                                                    
     required  by  statute  to conspicuously  display  their                                                                    
     licenses, however the shop owner  is not. This inequity                                                                    
     has led  to employees being fined  because, unbeknownst                                                                    
     to them, the shop owner's license had lapsed.                                                                              
                                                                                                                                
     SSSB4 requires the shop  owner to conspicuously display                                                                    
     the  shop   license,  as  well   as  the   licenses  of                                                                    
     employees, renters and students.                                                                                           
                                                                                                                                
     By   statute,  an   individual  must   obtain  a   shop                                                                    
     certification  from  the  Department  of  Environmental                                                                    
     Conservation (DEC)  before they receive a  license from                                                                    
     the Board  of Barbers and  Hairdressers. The DEC  is no                                                                    
     longer   providing   certifications   due   to   budget                                                                    
     reductions.  SSSB4  will  allow a  DEC  standard  self-                                                                    
     certification process regulated through the Board.                                                                         
                                                                                                                                
     Additionally,  SSSB4  creates  two new  license  types.                                                                    
     First  is a  non-chemical barber's  license. Currently,                                                                    
     all barbers  are held  to nearly  the same  standard as                                                                    
     hairdressers  and   are  required  to   have  practical                                                                    
     training  in chemical  waving, chemical  straightening,                                                                    
     bleaching, and coloring.                                                                                                   
                                                                                                                                
     They must complete  a total of 1,650  training hours or                                                                    
     3,000   apprentice  hours,   which  is   equivalent  to                                                                    
     hairdressers.  SSSB4   will  open  the  door   to  more                                                                    
     Alaskans   interested  in   joining  the   industry  by                                                                    
     balancing  training   requirements  and   reducing  the                                                                    
     burden.  In essence,  the bill  provides more  economic                                                                    
     opportunity  and  less  government-induced  burden  for                                                                    
     hard  working   Alaskans.  The   higher-level  barber's                                                                    
     license  will remain  available  to those  who wish  to                                                                    
     perform chemical procedures.                                                                                               
                                                                                                                                
     Finally,  SSSB4  will  create a  specific  license  for                                                                    
     braiding; a trade that has  been growing in popularity.                                                                    
     Braiders are  also being held  to the same  standard as                                                                    
     hairdressers, including  the same  1,650 hours  or more                                                                    
     of practical  training in addition  to a  written exam.                                                                    
     This bill will welcome  more workers into the industry,                                                                    
     creating  jobs  and  a stronger  economy  by  balancing                                                                    
     training  requirements  to  the  specific  demands  and                                                                    
     required skills of the trade.                                                                                              
                                                                                                                                
1:59:55 PM                                                                                                                    
RACHEL HANKE, Staff, Senator Micciche, Alaska State Legislature,                                                                
delivered the following sectional analysis of SSSB 4.                                                                           
                                                                                                                                
     Section 1                                                                                                              
                                                                                                                              
     AS  08.01.065(h)  removes   the  requirement  that  the                                                                  
     Department  of  Environmental Conservation  inspect  or                                                                    
     regulate   barbering,   hairdressing,  manicuring,   or                                                                    
     esthetics establishments.                                                                                                  
                                                                                                                                
     Section 2, 5, 10-11, 13, 16-18, 20, 22-24                                                                              
                                                                                                                              
     Add  the  term "hair  braiding"  or  "hair braider"  to                                                                    
     statute.                                                                                                                   
     Section 3                                                                                                              
                                                                                                                              
     AS  08.13.030(c)  removes the  ability  of  the DEC  to                                                                  
     investigate the  practices of a person,  shop or school                                                                    
     in  the fields  of barbering,  hairdressing, manicuring                                                                    
     or esthetics, it also adds  hair braiding to this list.                                                                    
     Adds  new subsection  that will  continue to  allow the                                                                    
     DEC  to   investigate  practices  for   body  piercing,                                                                    
     tattooing, and permanent cosmetic coloring.                                                                                
                                                                                                                                
     Section 4                                                                                                              
                                                                                                                              
     AS 08.13.040 adds a new  subsection that will not allow                                                                  
     the  board  to  administer  an exam  to  an  individual                                                                    
     applying  for a  limited non-chemical  barber's license                                                                    
     that  tests  a  person's  knowledge  in  the  areas  of                                                                    
     chemical   processes   such    as   permanent   waving,                                                                    
     bleaching, coloring, or chemical straightening.                                                                            
                                                                                                                                
     Section 6                                                                                                              
                                                                                                                              
     AS 08.13.080(a)  specifies that courses  and curriculum                                                                  
     required for  a barber's examination may  be limited to                                                                    
     non-chemical barbering.                                                                                                    
                                                                                                                                
     Section 7                                                                                                              
                                                                                                                              
     AS   08.13.080  adds   a   new   subsection  (e)   that                                                                  
     establishes  the application  requirements  for a  hair                                                                    
     braiding license.                                                                                                          
                                                                                                                                
     Section 8                                                                                                              
                                                                                                                                
     AS  08.13.082(a) removes  the ability  of the  board to                                                                  
     require a  person applying  for a  limited non-chemical                                                                    
     barber's license  to have  practical hours  or training                                                                    
     in   chemical  processes,   which  includes   permanent                                                                    
     waving, bleaching, coloring or chemical straightening.                                                                     
                                                                                                                                
     Section 9                                                                                                              
                                                                                                                              
     AS  08.13.100(a)  adds  a sentence  that  requires  the                                                                  
     board  to  issue  a  hair   braiding  license  to  each                                                                    
     applicant  who  satisfied  all  requirements  under  AS                                                                    
     08.13.080(d).                                                                                                              
                                                                                                                                
     Section 12                                                                                                             
                                                                                                                              
     AS 08.13.100  adds new subsection (f)  that directs the                                                                  
     board to  adopt regulations  allowing for  the practice                                                                    
     of  non-chemical   barbering  and  requires   that  the                                                                    
     limitation be stated on the license.                                                                                       
                                                                                                                                
     Section 14                                                                                                             
                                                                                                                              
     AS 08.13.120  adds new  subsection instructs  the board                                                                  
     to adopt  regulations for standards of  cleanliness for                                                                    
     licensed   establishments,  not   including  tattooing,                                                                    
     piercing or permanent cosmetic coloring.                                                                                   
                                                                                                                                
     Section 15                                                                                                             
                                                                                                                              
     AS 08.13.130(a) is  amended to state that  a shop owner                                                                  
     is responsible  for conspicuous  display of  the shop's                                                                    
     license,  as  well  as employees'  and  booth  renters'                                                                    
     licenses.                                                                                                                  
                                                                                                                                
     Section 19                                                                                                             
                                                                                                                              
     AS 08.13.185(a)  requires that the  board set  fees for                                                                  
     initial hair braiding licenses and renewals.                                                                               
                                                                                                                                
     Section 21                                                                                                             
                                                                                                                              
     AS  08.13.210(a)   establishes  that  the   board  will                                                                  
     supervise health and  sanitary conditions in barbering,                                                                    
     hairdressing, hair  braiding, manicuring  and esthetics                                                                    
     shops, maintains  that DEC  will supervise  the tattoo,                                                                    
     piercing and cosmetic coloring shops.                                                                                      
                                                                                                                                
     Section 25                                                                                                             
                                                                                                                              
     AS  44.46.020(a)  removes   the  requirement  that  DEC                                                                  
     regulate  the standards  of cleanliness  and sanitation                                                                    
     in  barbering,  hairdressing, manicuring  or  esthetics                                                                    
     shops.                                                                                                                     
                                                                                                                                
     Section 26                                                                                                             
                                                                                                                              
     Uncodified  law directs  the board  to adopt  necessary                                                                  
     regulations to  implement these changes but  not before                                                                    
     the effective date.                                                                                                        
                                                                                                                                
     Section 27                                                                                                             
                                                                                                                              
     Uncodified  law -  provides that  section 26  will take                                                                  
     effect immediately.                                                                                                        
                                                                                                                                
     Section 28                                                                                                             
                                                                                                                              
     Uncodified law - provides that all other sections take                                                                   
     effect January 1, 2018.                                                                                                    
                                                                                                                                
CHAIR  COSTELLO asked  if there  is a  definition in  statute for                                                               
hair braiding.                                                                                                                  
                                                                                                                                
MS. HANKE read the definition on page 9, lines 1-4, of the bill.                                                                
                                                                                                                                
CHAIR COSTELLO  asked if the  bill covers environments such  as a                                                               
state fair where a volunteer might be braiding.                                                                                 
                                                                                                                                
MS.  HANKE said  she  would  check with  the  department but  she                                                               
believes they would need a license.                                                                                             
                                                                                                                                
SENATOR  MICCICHE  clarified that  the  bill  doesn't expand  the                                                               
universe  of  those  required  to   have  a  license.  It  simply                                                               
streamlines the requirements for professional hair braiders.                                                                    
                                                                                                                                
2:04:52 PM                                                                                                                    
SENATOR HUGHES  asked if a  hairdresser could hire  someone right                                                               
now who  knows how to braid  but isn't licensed. If  so, the bill                                                               
would increase the requirements for hair braiders.                                                                              
                                                                                                                                
SENATOR MICCICHE  emphasized that the bill  reduces requirements.                                                               
A hairdresser  can't hire someone to  work in their shop  if they                                                               
haven't  been through  the training.  He said  the bill  tries to                                                               
balance  the  training  hours   against  DEC's  requirements  for                                                               
hygiene.                                                                                                                        
                                                                                                                                
SENATOR HUGHES asked  for an explanation of how it  would work to                                                               
have the board supervise health  and sanitary conditions for hair                                                               
braiding.                                                                                                                       
                                                                                                                                
CHRISTINA CARPENTER, Director,  Division of Environmental Health,                                                               
Department  of   Environmental  Conservation   (DEC),  Anchorage,                                                               
Alaska, explained that with FY2016  budget reductions DEC neither                                                               
issues memos of non-objection for  a business to operate nor does                                                               
inspections as a result of complaints.                                                                                          
                                                                                                                                
SENATOR  MICCICHE  said  he  envisions   that  none  of  the  DEC                                                               
standards will  be reduced.  The board will  develop a  system of                                                               
self-certification to  maintain those same standards  and provide                                                               
the same protections.                                                                                                           
                                                                                                                                
SENATOR  HUGHES  asked   if  the  board  has   the  authority  to                                                               
investigate complaints.                                                                                                         
                                                                                                                                
SENATOR  MICCICHE  clarified  that DEC  isn't  relinquishing  its                                                               
authority if there is a hygiene complaint.                                                                                      
                                                                                                                                
2:09:38 PM                                                                                                                    
SENATOR MEYER  asked if  hair braiders  in a  booth at  the state                                                               
fair and similar venues would be required to have a license.                                                                    
                                                                                                                                
2:10:22 PM                                                                                                                    
JANEY HOVENDEN, Director, Division  of Corporations, Business and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), advised  that a volunteer would not                                                               
need a license;  they are only required when  someone is braiding                                                               
for commercial purposes.                                                                                                        
                                                                                                                                
SENATOR MEYER asked  if it's a commercial operation  if the booth                                                               
is charging $10 for braiding.                                                                                                   
                                                                                                                                
MS. HOVENDON said she would follow up with the answer.                                                                          
                                                                                                                                
SENATOR  MEYER  said he  likes  the  South Dakota  approach  that                                                               
doesn't require training or licensing for hair braiding.                                                                        
                                                                                                                                
SENATOR  MICCICHE restated  that there  are some  expectations of                                                               
hygiene  and  cleanliness  that   need  to  be  balanced  against                                                               
requirements for  training. He  acknowledged that  fewer training                                                               
hours is the  committee's discretion and offered  his belief that                                                               
no training would be inadequate.                                                                                                
                                                                                                                                
SENATOR MEYER asked  how many hours of training  would get Alaska                                                               
to an A or B grade.                                                                                                             
                                                                                                                                
SENATOR MICCICHE reviewed  a handout that indicated  that a state                                                               
would receive  an A if it  didn't require any training  hours, an                                                               
A- if it  required 6 hours of  training, and a B+  if it required                                                               
16 hours of training. He said he  isn't shooting for an A in this                                                               
context  because  there  is some  responsibility  to  ensure  the                                                               
health and wellbeing of Alaskans.                                                                                               
                                                                                                                                
SENATOR  MEYER  asked  if  that  organization  also  grades  non-                                                               
chemical barbers.                                                                                                               
                                                                                                                                
2:15:06 PM                                                                                                                    
SENATOR MICCICHE  said the document  he is citing  only addresses                                                               
braiding.                                                                                                                       
                                                                                                                                
SENATOR  MEYER  commented on  not  imposing  an undue  burden  on                                                               
barbers with 35 hours of training  and added that he would accept                                                               
what the bill proposes.                                                                                                         
                                                                                                                                
SENATOR  MICCICHE  said  he  trusts  the  Board  of  Barbers  and                                                               
Hairdressers and he believes their  approach has been reasonable.                                                               
He  asked the  committee to  also take  a reasonable  approach to                                                               
ensure adequate public safety.                                                                                                  
                                                                                                                                
2:16:42 PM                                                                                                                    
SENATOR  GARDNER   said  it  seems   that  the  shop   owner  has                                                               
responsibility for  basic cleanliness of the  facility and making                                                               
sure  that workers  practice basic  sterilizing  for brushes  and                                                               
combs.  She said  she  doesn't see  a lot  of  public purpose  in                                                               
requiring 35  hours training  for someone  who is  braiding hair.                                                               
She expressed  concern that  DEC doesn't  do any  inspections and                                                               
related  a personal  experience  that demonstrates  the need  for                                                               
them.                                                                                                                           
                                                                                                                                
SENATOR MICCICHE pointed out that  inspections are not being done                                                               
now, and individuals are licensed  on their professional conduct.                                                               
The  shop  is  licensed,  and  the  professional  hairdresser  is                                                               
licensed. Should  the bill pass,  barbers and braiders  will have                                                               
their own standards  of conduct and professionalism,  but all the                                                               
licenses require  some level  of training.  He urged  balance and                                                               
cautioned against  amending the  bill to  zero hours  of training                                                               
for braiders.                                                                                                                   
                                                                                                                                
2:20:00 PM                                                                                                                    
SENATOR HUGHES  asked if  the 35  hours is all  on hygiene  or if                                                               
part of it is instruction in braiding.                                                                                          
                                                                                                                                
SENATOR MICCICHE said Section 7  lays out the health, safety, and                                                               
skill training for a hair braider.                                                                                              
                                                                                                                                
SENATOR  HUGHES mentioned  the health  concern of  detecting lice                                                               
and scalp infections that a braider would need to be aware of.                                                                  
                                                                                                                                
2:22:04 PM                                                                                                                    
SENATOR GARDNER asked, instead of  identifying a number of hours,                                                               
if  it  makes  sense  to  say a  person  has  to  demonstrate  an                                                               
appropriate understanding  of the health, safety,  and sanitation                                                               
practices  for the  particular work.  It would  be different  for                                                               
someone who does braiding than someone who does chemical dying.                                                                 
                                                                                                                                
SENATOR MICCICHE  clarified that all certifications  are based on                                                               
hours of training. The bill  reduces the number of hours required                                                               
for barbers and  hair braiders to be certified from  1,650 to 35.                                                               
The board  has determined  that this  is the  number of  hours to                                                               
adequately train  an individual to  understand the trade  as well                                                               
as public health, safety, and sanitation.                                                                                       
                                                                                                                                
SENATOR  GARDNER  observed  that  this  can  be  an  entry  level                                                               
business  and  not  everyone  has  to  have  the  same  level  of                                                               
expertise.  A  haircut  can  cost  $100 or  $10  and  the  market                                                               
accommodates that.                                                                                                              
                                                                                                                                
SENATOR  HUGHES  asked  what  it  would  cost  for  35  hours  of                                                               
instruction.                                                                                                                    
                                                                                                                                
SENATOR MICCICHE deferred the question  to the board and reminded                                                               
the  committee that  the bill  is  about reducing  the number  of                                                               
hours of instruction  from 1,650 to 35. He reiterated  that it is                                                               
important to recognize basic policies  and procedures that ensure                                                               
public safety.                                                                                                                  
                                                                                                                                
2:26:02 PM                                                                                                                    
CHAIR COSTELLO  asked Ms.  Hovenden if the  Board of  Barbers and                                                               
Hairdressers is operating in the red  or black and if she had any                                                               
concerns to share with the committee.                                                                                           
                                                                                                                                
MS. HOVENDEN  advised that the  board ended the first  quarter of                                                               
FY2017  $460,688 in  the black,  and that  there are  no concerns                                                               
about the board's financial health.                                                                                             
                                                                                                                                
2:27:15 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SSSB 4.                                                                               
                                                                                                                                
2:27:33 PM                                                                                                                    
WILLIE  CANADY,  Member,  Board   of  Barbers  and  Hairdressers,                                                               
Anchorage,  Alaska,  explained  that hair  braiding  is  meshing,                                                               
weaving,  and in-weaving  natural hair  without using  chemicals.                                                               
She  maintained  that 35  hours  of  instruction is  adequate  to                                                               
ensure  an  understanding of  safety,  sanitation,  and hair  and                                                               
scalp analysis. The bill seeks  to encourage braiders to come out                                                               
of the  shadows and ensure  health and safety for  customers. She                                                               
said many braiders operate out  of their homes because they don't                                                               
want to  pay for 1,600  hours of  instruction when 85  percent of                                                               
the curriculum  doesn't apply to  braiding. She pointed  out that                                                               
the bill  does not  cover advanced  techniques such  as full-head                                                               
weaving, just braiding.                                                                                                         
                                                                                                                                
CHAIR COSTELLO asked  her to email photos to  illustrate the type                                                               
of braiding under discussion.                                                                                                   
                                                                                                                                
SENATOR MEYER  said he's come to  agree with the sponsor  that 35                                                               
hours of training  is adequate, but he wonders how  much it would                                                               
cost  and  how  many  places  in  Alaska  provide  this  type  of                                                               
training.                                                                                                                       
                                                                                                                                
MS. CANADY said  everyone she's spoken with  agrees that anything                                                               
under 50 hours is sufficient for braiding certification.                                                                        
                                                                                                                                
CHAIR COSTELLO asked her to  forward the letters discussing hours                                                               
of  instruction   to  her  office.   She  also  asked   what  the                                                               
instruction costs.                                                                                                              
                                                                                                                                
MS. CANADY estimated that 50 hours would cost about $600.                                                                       
                                                                                                                                
CHAIR COSTELLO asked what braiders charge.                                                                                      
                                                                                                                                
MS. CANADY said  it depends on what the client  wants, but it can                                                               
cost $350-$500 for  a job that takes two days  to complete. Basic                                                               
cornrows without any design costs $25-$50.                                                                                      
                                                                                                                                
CHAIR COSTELLO asked how many training facilities are in Alaska.                                                                
                                                                                                                                
MS. CANADY replied there are none.                                                                                              
                                                                                                                                
CHAIR COSTELLO  asked where  in Alaska you  could receive  the 35                                                               
hours of training.                                                                                                              
                                                                                                                                
MS. CANADY said any hair school or shop with an apprenticeship.                                                                 
                                                                                                                                
2:37:11 PM                                                                                                                    
SENATOR  GARDNER  asked who  is  responsible  for evaluating  and                                                               
approving the quality of the trainers.                                                                                          
                                                                                                                                
MS.  CANADY said  you need  to be  a licensed  instructor in  the                                                               
state of Alaska.                                                                                                                
                                                                                                                                
SENATOR GARDNER asked who licenses instructors in Alaska.                                                                       
                                                                                                                                
MS. CANADY  replied the  Board of  Barbers and  Hairdressers. She                                                               
also   discussed   instruction  requirements   for   non-chemical                                                               
barbering. She  suggested looking at the  curriculum and removing                                                               
the portions  related to the  use of  chemicals to tell  what the                                                               
appropriate  number of  hours of  instruction would  be for  non-                                                               
chemical  barbers, which  involves learning  to use  scissors and                                                               
give a shave.                                                                                                                   
                                                                                                                                
2:38:43 PM                                                                                                                    
JEANNINE  JABAAY,  Member,  Board of  Barbers  and  Hairdressers,                                                               
Hope, Alaska, stated  that SSSB 4 will help  grow commerce, clean                                                               
up the  statutes, and remove burdensome  regulation. Creating new                                                               
licenses  for  hair  braiding  and  non-chemical  barbering  will                                                               
increase job opportunities. She  said board members and licensees                                                               
are  very  concerned  about  cross  contamination  of  contagious                                                               
diseases  of  the scalp  and  want  practitioners who  recognizes                                                               
these issues.                                                                                                                   
                                                                                                                                
She agreed  with Ms. Canady's  testimony that there is  no formal                                                               
training in  Alaska to teach  braiding and instruction  on safety                                                               
and sanitation. She  shared her preference to allow  the board to                                                               
adopt regulations to demonstrate  that safety standards are being                                                               
met, similar to  how it is addressed  for non-chemical barbering.                                                               
Addressing an  earlier question, she opined  that current schools                                                               
throughout  the  state  could  easily  adopt  new  curriculum  to                                                               
address these new licenses.                                                                                                     
                                                                                                                                
She  stated   support  for  eliminating  the   reference  to  DEC                                                               
inspections  because they  haven't happened  since July  of 2015.                                                               
That is what forced the  board to allow self-certification. Under                                                               
the  current  process, the  applicant  submits  a notarized  form                                                               
stating that  they meet the  DEC safety regulations.  She pointed                                                               
out  that self-certification  is not  compliant with  statute and                                                               
exposes the state to a potential lawsuit.                                                                                       
                                                                                                                                
The bill  also protects  employees by requiring  a shop  owner to                                                               
display their  current license.  She noted there  is a  letter of                                                               
support  in the  packets from  a shop  owner who  doesn't believe                                                               
their employees  should be penalized  if the owner  allowed their                                                               
license to  lapse. With regard  to volunteers at  schools, fairs,                                                               
and  church carnivals  that manipulate  hair  for a  fee and  not                                                               
charity, she said those operations  fall outside the statute. She                                                               
stated support amending the bill to correct that.                                                                               
                                                                                                                                
MS.  JABAAY  suggested adding  a  provision  to grandfather  nail                                                               
technicians so  they don't have  to prove  additional educational                                                               
hours. This was an unintended  consequence of House Bill 131 that                                                               
was  enacted in  January  2016. It  affects  994 technicians  who                                                               
could lose their livelihood by 2019 if the amendment isn't made.                                                                
                                                                                                                                
She  highlighted  that the  board  is  receipt supported  and  is                                                               
consistently operating  in the black.  She expects it to  carry a                                                               
zero general fund fiscal note.                                                                                                  
                                                                                                                                
CHAIR COSTELLO noted that the bill  has a fiscal note, so it will                                                               
go to the  Finance Committee. She expressed  appreciation for the                                                               
information that the  35 hours of instruction doesn't  have to do                                                               
with  non-chemical barbering.  The  board will  decide the  hours                                                               
required for that training.                                                                                                     
                                                                                                                                
2:44:05 PM                                                                                                                    
KEVIN  MCKINLEY,  Chair,  Board   of  Barbers  and  Hairdressers,                                                               
Anchorage, Alaska, said the board  agrees with the testimony from                                                               
Ms.  Canady  and  Ms.  Jabaay  on SSSB  4.  He  agreed  with  the                                                               
provision to remove the requirement  for DEC inspections from the                                                               
statutes, and  opined that 35  hours of training isn't  much time                                                               
when the  curriculum is split  into safety, sanitation,  and skin                                                               
conditions, and then the actual hair braiding.                                                                                  
                                                                                                                                
He also stated support for  amending the bill to grandfather nail                                                               
technicians  from  House Bill  131  and  addressing braiders  who                                                               
volunteer their services.                                                                                                       
                                                                                                                                
SENATOR  HUGHES  asked  Ms.  Jabaay   if  she  supports  treating                                                               
instruction  for  hair  braiders  the same  as  for  non-chemical                                                               
barbering.                                                                                                                      
                                                                                                                                
MS. JABAAY said her personal preference  is to allow the Board to                                                               
adopt  regulations  governing  hours of  instruction  instead  of                                                               
through the legislative process.                                                                                                
                                                                                                                                
SENATOR HUGHES  suggested getting the sponsor's  thoughts on that                                                               
recommendation.                                                                                                                 
                                                                                                                                
2:48:59 PM                                                                                                                    
DAVE COLESON, representing himself,  Kenai, Alaska, stated he has                                                               
been  a licensed  barber  in  Alaska since  1985  and a  licensed                                                               
instructor since 1992.  He talked about the injustice  to the men                                                               
and  women of  Alaska because  the old-fashioned  barbershops are                                                               
disappearing. Forcing  students to learn how  to perform chemical                                                               
services is  unnecessary for those  who want  to be a  plain old-                                                               
fashioned barber.  He said  the current  mindset won't  keep this                                                               
iconic American tradition alive and  men and women will be deeply                                                               
disappointed  when  they  can't  find  an  iconic  barbershop  to                                                               
introduce  their  son  to  keep   the  monthly  Saturday  haircut                                                               
tradition  alive.  He   shared  that  as  an   instructor  he  is                                                               
approached by a  few people a year who want  to do straight-razor                                                               
shaves and  flat tops, but when  they find they will  be required                                                               
to learn to perform perms and hair coloring they back off.                                                                      
                                                                                                                                
He expressed hope  for a law that allows  the continued existence                                                               
of barbers that do not have a chemical license.                                                                                 
                                                                                                                                
CHAIR COSTELLO clarified that his  letter states support for SSSB                                                               
4 because  it addresses individuals who  want to be a  barber but                                                               
not a beautician.                                                                                                               
                                                                                                                                
MR. COLESON agreed.                                                                                                             
                                                                                                                                
2:51:07 PM                                                                                                                    
SENATOR  GARDNER  thanked  Mr.  Coleson  for  his  testimony.  It                                                               
reminded her that her grandfather  converted his front porch to a                                                               
barbershop  when he  retired.  "He  spent the  rest  of his  life                                                               
cutting his  neighbors' hair and  giving them a  Saturday morning                                                               
shave."                                                                                                                         
                                                                                                                                
MR. COLESON replied  it's an important part of the  fabric of the                                                               
nation.                                                                                                                         
                                                                                                                                
SENATOR  HUGHES  shared  that   her  father-in-law  was  an  old-                                                               
fashioned barber; she envisions a Norman Rockwell painting.                                                                     
                                                                                                                                
MR. COLESON  responded, "We're losing  that, and we need  to keep                                                               
it alive."                                                                                                                      
                                                                                                                                
2:52:13 PM                                                                                                                    
CHAIR COSTELLO  closed public  testimony on SSSB  4 and  held the                                                               
bill in committee.                                                                                                              
                                                                                                                                
          SB  51-EXTEND BOARD OF VETERINARY EXAMINERS                                                                       
                                                                                                                                
2:52:47 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of SB 51.  She noted                                                               
that this  is the  first hearing;  the intention  is to  hear the                                                               
bill,  take members  questions, take  public testimony,  and hold                                                               
the bill for further consideration.                                                                                             
                                                                                                                                
2:53:34 PM                                                                                                                    
SHAREEN CROSBY,  Staff, Senator Natasha  von Imhof,  Alaska State                                                               
Legislature, introduced SB  51 on behalf of  the sponsor speaking                                                               
to the following sponsor statement:                                                                                             
                                                                                                                                
     SB  51 extends  the termination  date of  the Board  of                                                                    
     Veterinary Examiners  (BVE). Currently, the  board will                                                                    
     sunset on  June 30,  2017. SB 51  extends this  date by                                                                    
     eight years, to June 30, 2025.                                                                                             
                                                                                                                                
     I  encourage   all  of  the   members  to   review  the                                                                    
     Legislative Audit  summary and  the full  audit report.                                                                    
     Your will see that in  the opinion of our auditors, the                                                                    
     BE  is serving  the  public's  interest by  effectively                                                                    
     licensing and  regulating veterinarians  and veterinary                                                                    
     technicians. The board monitors  licensees and works to                                                                    
     ensure    only    qualified    individuals    practice.                                                                    
     Additionally  it  was  found, the  board  develops  and                                                                    
     adopts  regulations  to  improve the  veterinarian  and                                                                    
     veterinary technician occupations in Alaska.                                                                               
                                                                                                                                
     The  BVE serves  an  important role  in protecting  the                                                                    
     health  and  safety  of Alaska's  many  pets  and  farm                                                                    
     animals. From  lap dogs to  sled dogs, ball  pythons to                                                                    
     sleigh-pulling  work horses,  our pets  and animals  in                                                                    
     Alaska deserve  qualified veterinarians  and veterinary                                                                    
     technicians   for  their   care  and   well-being.  The                                                                    
     continuation of the board is very important.                                                                               
                                                                                                                                
MS. CROSBY noted the individuals available to answer questions.                                                                 
                                                                                                                                
SENATOR NATASHA  VON IMHOF, Alaska State  Legislature, sponsor of                                                               
SB 51, said  this is an excellent board that  does good work. She                                                               
deferred questions to her staff and the auditor.                                                                                
                                                                                                                                
CHAIR COSTELLO  clarified that testimony should  be restricted to                                                               
the bill itself.                                                                                                                
                                                                                                                                
2:56:37 PM                                                                                                                    
KRIS CURTIS, Legislative Auditor,  Division of Legislative Audit,                                                               
Alaska State  Legislature, stated  that the division  conducted a                                                               
sunset audit of  the Board of Veterinary  Examiners and concluded                                                               
that  the board  is serving  the public  interest by  effectively                                                               
licensing   and    regulating   veterinarians    and   veterinary                                                               
technicians  and is  appropriately regulating  the industry.  The                                                               
audit  recommends   that  the  legislature  extend   the  board's                                                               
termination date eight years to June 30, 2025.                                                                                  
                                                                                                                                
She directed attention  to Exhibit 2 on page 5  of the audit that                                                               
reports that  as of  February 2016 this  board had  670 licenses.                                                               
She noted  this is a  57 percent  increase since the  last sunset                                                               
audit in  2008. Exhibit 3  on page 5 reports  that at the  end of                                                               
FY2013 the board  had a $108,829 surplus. Fees  were decreased at                                                               
that time so  at the end of FY2015 the  surplus was $22,735. Fees                                                               
were not adjusted  and at the end of February  2016 the board was                                                               
running  a [$25,828]  deficit.  At  the time  of  the audit,  the                                                               
Division  of Corporations,  Business  and Professional  Licensing                                                               
indicated plans to reassess fees at the end of FY2016.                                                                          
                                                                                                                                
MS. CURTIS directed attention  to the administrative housekeeping                                                               
recommendation  on page  7  for  the board  chair  to review  the                                                               
annual  report   for  accuracy  and  completeness   before  final                                                               
submission  to   the  Department  of  Commerce,   Community,  and                                                               
Economic Develop. It  was an oversight of DCBPL  staff that every                                                               
year for the last four years  the board reported on the status of                                                               
the Board of  Dental Examiners rather than those of  the Board of                                                               
Veterinary Examiners.                                                                                                           
                                                                                                                                
2:59:14 PM                                                                                                                    
SENATOR GARDNER asked if the  board addressed the fee increase at                                                               
the end of FY2016.                                                                                                              
                                                                                                                                
MS. CURTIS said she didn't know  and deferred the question to the                                                               
division.                                                                                                                       
                                                                                                                                
SENATOR MEYER  asked about  the 69 open  complaints, 18  of which                                                               
resulted in investigations.                                                                                                     
                                                                                                                                
MS. CURTIS  said that is discussed  on the bottom of  page 3. She                                                               
paraphrased the following:                                                                                                      
                                                                                                                                
     There were  69 complaints  open or opened  between July                                                                    
     1,    2012,   and    February   15,    2016.   Eighteen                                                                    
     investigations resulted  from the complaints,  of which                                                                    
     14 were  closed during  the period. The  remaining four                                                                    
     open  investigations  were  open for  less  than  eight                                                                    
     months as of February 2016.                                                                                                
                                                                                                                                
She  explained  that  this  review   is  done  to  assess  timely                                                               
investigations   and  the   conclusion  was   there  was   not  a                                                               
significant problem with timeliness.                                                                                            
                                                                                                                                
SENATOR   GARDNER   asked   if  the   complaints   that   weren't                                                               
investigated were  not pursued because  they were  unfounded, out                                                               
of jurisdiction, or some other reason.                                                                                          
                                                                                                                                
MS.  CURTIS said  the audit  doesn't report  the reason,  but the                                                               
myriad  of  codes  for  not   going  forward  include  those  she                                                               
mentioned.                                                                                                                      
                                                                                                                                
SENATOR  GARDNER asked  if  those numbers  are  in the  auditor's                                                               
comfort range.                                                                                                                  
                                                                                                                                
MS. CURTIS said the risk-based  approach to auditing indicated it                                                               
didn't warrant expending resources.                                                                                             
                                                                                                                                
CHAIR COSTELLO  asked what  the threshold  is for  identifying an                                                               
area as a risk worth investigating.                                                                                             
                                                                                                                                
MS. CURTIS explained that during  the planning survey phase of an                                                               
audit they review board meeting  minutes and annual reports, they                                                               
interview board members and department  licensing staff, and they                                                               
get statistics  from the investigative  section. If  that process                                                               
shows complaints  aren't followed up  or there are  concerns with                                                               
investigations in general, they will  identify that as an area of                                                               
risk and do detailed audit work on it.                                                                                          
                                                                                                                                
SENATOR GARDNER  asked if unusually  high expenses  accounted for                                                               
the rapidly declining surplus between  FY2013 and FY2015, because                                                               
licenses increased 57 percent in that timeframe.                                                                                
                                                                                                                                
MS. CURTIS  said the  detail expenditures in  Exhibit 3  were not                                                               
identified  as   an  area  of  concern.   She  acknowledged  that                                                               
increasing licenses typically reduces a deficit.                                                                                
                                                                                                                                
CHAIR COSTELLO  asked when  the board was  established and  if an                                                               
eight-year extension is a typical for this board.                                                                               
                                                                                                                                
MS.  CURTIS  said  this board  received  the  maximum  eight-year                                                               
extension  after  the  2008  sunset audit.  She  noted  that  the                                                               
recommendations from  the prior audit are  at the top of  page 7.                                                               
One  recommendation was  to review  and decrease  licensing fees,                                                               
which   is   an  indication   there   was   a  surplus.   Another                                                               
recommendation  was to  fill  vacant seats  in  a timely  manner.                                                               
Those recommendations were addressed.                                                                                           
                                                                                                                                
3:05:40 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:05:45 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   opened  public                                                               
testimony on SB 51.                                                                                                             
                                                                                                                                
3:06:46 PM                                                                                                                    
RACHEL   BERNGARTT,  Member,   Board  of   Veterinary  Examiners,                                                               
reported that  in July 2016  the cost  to renew all  licenses for                                                               
this board  increased dramatically;  for veterinarians  a license                                                               
jumped  from  $300 to  $500.  The  board suggested  numbers  they                                                               
thought would  significantly address  the deficit, but  the state                                                               
had a different idea. She predicted  that the board would soon be                                                               
well in the black.                                                                                                              
                                                                                                                                
She pointed out that the audit  found the board to be functional,                                                               
necessary and unique.                                                                                                           
                                                                                                                                
SENATOR  MEYER asked  the  cost  of a  veterinary  license and  a                                                               
veterinary technician license.                                                                                                  
                                                                                                                                
MS. BERNGARTT  said the  veterinary license  renewal is  $500 and                                                               
the veterinary technician license renewal  is $100. Prior to 2016                                                               
the numbers were $300 and $50 respectively.                                                                                     
                                                                                                                                
SENATOR  HUGHES   asked  if   there  is   still  a   shortage  of                                                               
veterinarians in Alaska.                                                                                                        
                                                                                                                                
MS. BERNGARTT replied the state is  in much better shape now than                                                               
a  few years  ago.  She  advised that  the  University of  Alaska                                                               
Fairbanks has  a veterinarian  program now;  after two  years the                                                               
students  transfer to  a sister  program at  a university  in the                                                               
Lower  48. She  added that  the board  is very  cognizant of  the                                                               
shortage  and  strives  to  get   veterinary  services  to  rural                                                               
communities.                                                                                                                    
                                                                                                                                
SENATOR HUGHES said that's encouraging to hear.                                                                                 
                                                                                                                                
3:11:24 PM                                                                                                                    
PAMELA  SAMASH,  representing  herself,  Nenana,  Alaska,  stated                                                               
opposition to SB 51 because the  current board has done little to                                                               
help people in  rural communities. Her community is  going on the                                                               
fourth year of having no  veterinary care, which includes no spay                                                               
or  neutering  and   no  rabies  vaccines.  This   is  a  problem                                                               
throughout Alaska  and it  stems from the  fact that  the current                                                               
board has no rural representation.                                                                                              
                                                                                                                                
She  proposed starting  with an  entirely new  board where  rural                                                               
people have a voice.                                                                                                            
                                                                                                                                
SENATOR GARDNER asked if she  has suggestions about how the board                                                               
can increase the number of veterinarians in rural Alaska.                                                                       
                                                                                                                                
MS. SAMASH  said it would  help to have  a couple of  people from                                                               
rural communities on  the board. They would actually  look at the                                                               
licenses of  traveling vets who  apply and decide whether  or not                                                               
to  approve the  applications.  That isn't  happening right  now;                                                               
it's generally known that itinerate  vets have difficulty getting                                                               
a license in Alaska.                                                                                                            
                                                                                                                                
SENATOR GARDNER asked if she  is saying that traveling or out-of-                                                               
state veterinarians don't get the  necessary approval to practice                                                               
in Alaska.                                                                                                                      
                                                                                                                                
MS. SAMASH said that's been her experience.                                                                                     
                                                                                                                                
CHAIR COSTELLO asked if her  reference to traveling veterinarians                                                               
means  about  veterinarians within  Alaska  who  would travel  to                                                               
rural  communities  to  provide services  or  veterinarians  from                                                               
outside the state who would do the same.                                                                                        
                                                                                                                                
MS. SAMASH  said all the  above although it's more  difficult for                                                               
veterinarians  from   outside  the   state  to  get   a  license.                                                               
Veterinarians  within  the  state  generally  charge  full  price                                                               
despite   the  limited   resources  of   many  rural   residents.                                                               
Veterinarians  from outside  often come  from organizations  that                                                               
help  with supplies  so the  cost to  the consumer  is less.  She                                                               
highlighted  the  problem  of expired  rabies  vaccines  and  the                                                               
dearth of rabies  clinics in rural Alaska. It's  becoming a human                                                               
health risk, she said.                                                                                                          
                                                                                                                                
3:18:54 PM                                                                                                                    
MARGIE RILEY, representing herself,  Nenana, Alaska, testified in                                                               
opposition to SB 51. She reported  on the lack of health care for                                                               
animals  throughout  the Interior.  She  asked  the committee  to                                                               
reconsider  the  composition  of  the  board  and  recognize  the                                                               
importance  of  having veterinarians  who  will  travel to  rural                                                               
communities.                                                                                                                    
                                                                                                                                
3:20:38 PM                                                                                                                    
ANGIE FITCH,  representing herself, Fairbanks, Alaska,  urged the                                                               
committee to  either vote no  on SB 51 or  amend it to  add rural                                                               
representation.                                                                                                                 
                                                                                                                                
3:21:27 PM                                                                                                                    
LEA MCKENZIE, representing herself,  Sutton, Alaska, testified in                                                               
opposition to  SB 51.  She described  her experience  with animal                                                               
rescue and  working in  a clinic  with a  traveling veterinarian.                                                               
Based on that  experience she does not believe that  the board is                                                               
serving  the public  interest.  She urged  the  committee not  to                                                               
extend  the board  until  changes are  made  such that  traveling                                                               
veterinarians are approved to work in remote villages.                                                                          
                                                                                                                                
3:23:18 PM                                                                                                                    
BRIAN BERUBE,  representing himself, Rural, Alaska,  advised that                                                               
he has helped set up  veterinary clinics in rural communities and                                                               
he  believes  that the  veterinary  board  has made  progress  in                                                               
trying  to solve  the problems  in  rural communities  associated                                                               
with access to care. However, it's  clear that a large portion of                                                               
the  state  doesn't  have adequate  access  to  veterinary  care.                                                               
Having rural representation on the  board would be beneficial for                                                               
those  areas  and  the  entire   state  and  improve  the  public                                                               
perception.                                                                                                                     
                                                                                                                                
CHAIR COSTELLO held SB 51  in committee for further consideration                                                               
with public testimony open.                                                                                                     
                                                                                                                                
CHAIR COSTELLO reviewed the agenda for the following week.                                                                      
                                                                                                                                
3:26:46 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 3:26 p.m.                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
2017.03.02 Sen. L&C - SB 15 - Summary of Changes Ver. A to Ver. R.pdf SL&C 3/2/2017 1:30:00 PM
SB 15
DOL&WD Response to Senator's Questions - Budget Charts.pdf SL&C 3/2/2017 1:30:00 PM
DOL&WD Response to Senator's Questions.pdf SL&C 3/2/2017 1:30:00 PM
CSS15 Ver. O.pdf SL&C 3/2/2017 1:30:00 PM
SB 4 Support Documents.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SB 4 Support Letters.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SB 15 ver. R.pdf SL&C 3/2/2017 1:30:00 PM
SB 15
SB 40 - Slide Presentation.pdf SL&C 3/2/2017 1:30:00 PM
SB 40
SB 45 - DCCED Response to Senator's Questions.pdf SL&C 3/2/2017 1:30:00 PM
SB 45
SB 51 Bill Version A.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Fiscal Note - DCCED.pdf SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Sponsor Statement.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Supporting Documents-Legislative Audit.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SSSB 4 Fiscal Note - DCCED.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB 4 Fiscal Note - DEC.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Sectional Analysis.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Sponsor Statement.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Ver. J.PDF SL&C 3/2/2017 1:30:00 PM
SB 4