Legislature(2017 - 2018)BELTZ 105 (TSBldg)

01/30/2018 01:00 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Public Testimony --
-- Please Note Time Change --
*+ SB 126 VISITING PHYSICIANS WITH SPORTS TEAMS TELECONFERENCED
Moved SB 126 Out of Committee
+ HB 208 TRUSTS; COMM PROP TRUSTS; POWERS OF APPT TELECONFERENCED
Moved HB 208 Out of Committee
+= HB 102 LIMITED TEACHER CERTIFICATES; LANGUAGES TELECONFERENCED
Moved CSHB 102(EDC) Out of Committee
+ HB 114 BOILER/PRESSURE VESSEL INSPECTION REPORTS TELECONFERENCED
Moved HB 114 Out of Committee
+ HB 121 OCC. HEALTH AND SAFETY CIVIL PENALTIES TELECONFERENCED
Moved HB 121 Out of Committee
+ HB 124 BENEFIT CORPORATIONS TELECONFERENCED
Moved CSHB 124(FIN) Out of Committee
+ HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Heard & Held
+ HCR 8 KODIAK SEAFOOD & MARINE SCIENCE CENTER TELECONFERENCED
Moved HCR 8 AM Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 30, 2018                                                                                        
                           1:02 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Kevin Meyer                                                                                                             
Senator Berta Gardner                                                                                                           
Senator Peter Micciche                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Gary Stevens                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 126                                                                                                             
"An Act providing for an exception to the regulation of the                                                                     
practice of medicine for a physician who provides medical                                                                       
services to an athletic team from another state."                                                                               
                                                                                                                                
     - MOVED SB 126 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 124(FIN)                                                                                
"An   Act    relating   to   corporations,    including   benefit                                                               
corporations, and other entities; and providing for an effective                                                                
date."                                                                                                                          
                                                                                                                                
     - MOVED CSHB 124(FIN) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 208                                                                                                              
"An Act relating to trusts and powers of appointment; and                                                                       
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 208 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 102(EDC)                                                                                
"An Act relating to instruction in a language other than                                                                        
English; and relating to limited teacher certificates."                                                                         
                                                                                                                                
     - MOVED CSHB 102(EDC) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 114                                                                                                              
"An  Act   relating  to  boiler   and  unfired   pressure  vessel                                                               
inspection reports and fees."                                                                                                   
                                                                                                                                
     - MOVED HB 114 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 121                                                                                                              
"An Act  relating to occupational  safety and  health enforcement                                                               
penalties; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED HB 121 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 86                                                                                                               
"An  Act  relating to  nonrenewal  of  occupational licenses  for                                                               
default on a student loan."                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE CONCURRENT RESOLUTION NO. 8 AM                                                                                            
Expressing  the strong  support of  the Alaska  State Legislature                                                               
for the Kodiak Seafood and  Marine Science Center; and urging the                                                               
University  of Alaska  to  find  a solution  to  keep the  Kodiak                                                               
Seafood and Marine Science Center  operating as a stable resource                                                               
in the state.                                                                                                                   
                                                                                                                                
     - MOVED HCR 8 AM OUT OF COMMITTEE                                                                                          
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 126                                                                                                                  
SHORT TITLE: VISITING PHYSICIANS WITH SPORTS TEAMS                                                                              
SPONSOR(s): SENATOR(s) MACKINNON                                                                                                
                                                                                                                                
01/16/18       (S)       PREFILE RELEASED 1/8/18                                                                                
01/16/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/18       (S)       L&C                                                                                                    
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 208                                                                                                                  
SHORT TITLE: TRUSTS; COMM PROP TRUSTS; POWERS OF APPT                                                                           
SPONSOR(s): REPRESENTATIVE(s) JOHNSON                                                                                           
                                                                                                                                
03/31/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/31/17       (H)       JUD                                                                                                    
04/10/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/10/17       (H)       Scheduled but Not Heard                                                                                
04/12/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/12/17       (H)       Heard & Held                                                                                           
04/12/17       (H)       MINUTE(JUD)                                                                                            
04/14/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
04/14/17       (H)       Moved HB 208 Out of Committee                                                                          
04/14/17       (H)       MINUTE(JUD)                                                                                            
04/15/17       (H)       JUD RPT 2DP 5NR                                                                                        
04/15/17       (H)       DP: KOPP, CLAMAN                                                                                       
04/15/17       (H)       NR: EASTMAN, FANSLER, KREISS-TOMKINS,                                                                  
                        LEDOUX, REINBOLD                                                                                        
05/10/17       (H)       TRANSMITTED TO (S)                                                                                     
05/10/17       (H)       VERSION: HB 208                                                                                        
05/11/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
05/11/17       (S)       L&C, JUD                                                                                               
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 102                                                                                                                  
SHORT TITLE: LIMITED TEACHER CERTIFICATES; LANGUAGES                                                                            
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
02/03/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/03/17       (H)       EDC                                                                                                    
03/01/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/01/17       (H)       Heard & Held                                                                                           
03/01/17       (H)       MINUTE(EDC)                                                                                            
03/15/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/15/17       (H)       <Bill Hearing Canceled>                                                                                
03/20/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/20/17       (H)       Heard & Held                                                                                           
03/20/17       (H)       MINUTE(EDC)                                                                                            
03/27/17       (H)       EDC RPT CS(EDC) 4DP 1NR 1AM                                                                            
03/27/17       (H)       DP: TALERICO, PARISH, SPOHNHOLZ, KOPP                                                                  
03/27/17       (H)       NR: DRUMMOND                                                                                           
03/27/17       (H)       AM: FANSLER                                                                                            
03/27/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/27/17       (H)       Moved  CSHB 102(EDC) Out of Committee                                                                  
03/27/17       (H)       MINUTE(EDC)                                                                                            
04/05/17       (H)       TRANSMITTED TO (S)                                                                                     
04/05/17       (H)       VERSION: CSHB 102(EDC)                                                                                 
04/06/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/06/17       (S)       L&C, EDC                                                                                               
04/11/17       (S)       L&C AT 9:00 AM BELTZ 105 (TSBldg)                                                                      
04/11/17       (S)       Heard & Held                                                                                           
04/11/17       (S)       MINUTE(L&C)                                                                                            
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 114                                                                                                                  
SHORT TITLE: BOILER/PRESSURE VESSEL INSPECTION REPORTS                                                                          
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/10/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/10/17       (H)       L&C, FIN                                                                                               
02/27/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/27/17       (H)       Heard & Held                                                                                           
02/27/17       (H)       MINUTE(L&C)                                                                                            
03/01/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/01/17       (H)       Moved  HB 114 Out of Committee                                                                         
03/01/17       (H)       MINUTE(L&C)                                                                                            
03/03/17       (H)       L&C RPT 4DP 1NR                                                                                        
03/03/17       (H)       DP: STUTES, WOOL, JOSEPHSON, KITO                                                                      
03/03/17       (H)       NR: KNOPP                                                                                              
04/06/17       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/06/17       (H)       Moved HB 114 Out of Committee                                                                          
04/06/17       (H)       MINUTE(FIN)                                                                                            
04/07/17       (H)       FIN RPT 9DP 1NR                                                                                        
04/07/17       (H)       DP: WILSON, GARA, ORTIZ, THOMPSON,                                                                     
                         GUTTENBERG,   GRENN,   TILTON,   SEATON,                                                               
                         FOSTER                                                                                                 
04/07/17       (H)       NR: KAWASAKI                                                                                           
04/08/17       (H)       TRANSMITTED TO (S)                                                                                     
04/08/17       (H)       VERSION: HB 114                                                                                        
04/10/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/17       (S)       L&C, FIN                                                                                               
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 121                                                                                                                  
SHORT TITLE: OCC. HEALTH AND SAFETY CIVIL PENALTIES                                                                             
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/13/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/13/17       (H)       L&C, JUD                                                                                               
02/27/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/27/17       (H)       Heard & Held                                                                                           
02/27/17       (H)       MINUTE(L&C)                                                                                            
03/01/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/01/17       (H)       Moved  HB 121 Out of Committee                                                                         
03/01/17       (H)       MINUTE(L&C)                                                                                            
03/03/17       (H)       L&C RPT 4DP                                                                                            
03/03/17       (H)       DP: STUTES, WOOL, JOSEPHSON, KITO                                                                      
03/08/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/08/17       (H)       Heard & Held                                                                                           
03/08/17       (H)       MINUTE(JUD)                                                                                            
03/13/17       (H)       JUD AT 1:00 PM GRUENBERG 120                                                                           
03/13/17       (H)       Moved  HB 121 Out of Committee                                                                         
03/13/17       (H)       MINUTE(JUD)                                                                                            
03/15/17       (H)       JUD RPT 3DP 2NR                                                                                        
03/15/17       (H)       DP: KOPP, FANSLER, CLAMAN                                                                              
03/15/17       (H)       NR: EASTMAN, LEDOUX                                                                                    
03/15/17       (H)       FIN REFERRAL ADDED AFTER JUD                                                                           
04/06/17       (H)       FIN AT 9:00 AM HOUSE FINANCE 519                                                                       
04/06/17       (H)       Moved HB 121 Out of Committee                                                                          
04/06/17       (H)       MINUTE(FIN)                                                                                            
04/07/17       (H)       FIN RPT 7DP 2NR 1AM                                                                                    
04/07/17       (H)       DP: GARA, ORTIZ, THOMPSON, GUTTENBERG,                                                                 
                         GRENN, SEATON, FOSTER                                                                                  
04/07/17       (H)       NR: WILSON, TILTON                                                                                     
04/07/17       (H)       AM: KAWASAKI                                                                                           
04/08/17       (H)       NOT TAKEN UP 4/8 - ON 4/9 CALENDAR                                                                     
04/10/17       (H)       TRANSMITTED TO (S)                                                                                     
04/10/17       (H)       VERSION: HB 121                                                                                        
04/11/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/17       (S)       L&C, FIN                                                                                               
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 124                                                                                                                  
SHORT TITLE: BENEFIT CORPORATIONS                                                                                               
SPONSOR(s): KITO                                                                                                                
                                                                                                                                
02/15/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/17       (H)       L&C, FIN                                                                                               
04/01/17       (H)       L&C AT 1:00 PM BARNES 124                                                                              
04/01/17       (H)       Heard & Held                                                                                           
04/01/17       (H)       MINUTE(L&C)                                                                                            
04/07/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/07/17       (H)       Scheduled but Not Heard                                                                                
04/10/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/17       (H)       Moved CSHB 124(L&C) Out of Committee                                                                   
04/10/17       (H)       MINUTE(L&C)                                                                                            
04/11/17       (H)       L&C RPT CS(L&C) 1DP 5NR                                                                                
04/11/17       (H)       DP: KITO                                                                                               
04/11/17       (H)       NR: SULLIVAN-LEONARD, WOOL, JOSEPHSON,                                                                 
                         BIRCH, KNOPP                                                                                           
04/17/17       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/17/17       (H)       Heard & Held                                                                                           
04/17/17       (H)       MINUTE(FIN)                                                                                            
04/26/17       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/26/17       (H)       Heard & Held                                                                                           
04/26/17       (H)       MINUTE(FIN)                                                                                            
05/09/17       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
05/09/17       (H)       Moved CSHB 124(FIN) Out of Committee                                                                   
05/09/17       (H)       MINUTE(FIN)                                                                                            
05/10/17       (H)       FIN RPT CS(FIN) 5DP 3DNP 2NR 1AM                                                                       
05/10/17       (H)       DP: THOMPSON, GRENN, GARA, SEATON,                                                                     
                         FOSTER                                                                                                 
05/10/17       (H)       DNP: TILTON, PRUITT, WILSON                                                                            
05/10/17       (H)       NR: ORTIZ, STUTES                                                                                      
05/10/17       (H)       AM: KAWASAKI                                                                                           
05/17/17       (H)       TRANSMITTED TO (S)                                                                                     
05/17/17       (H)       VERSION: CSHB 124(FIN)                                                                                 
01/18/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/18       (S)       L&C, FIN                                                                                               
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  86                                                                                                                  
SHORT TITLE: STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                          
SPONSOR(s): CLAMAN                                                                                                              
                                                                                                                                
01/27/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/17       (H)       EDC, L&C                                                                                               
03/01/17       (H)       EDC RPT 7DP                                                                                            
03/01/17       (H)       DP: TALERICO, PARISH, KOPP, SPOHNHOLZ,                                                                 
                         JOHNSTON, FANSLER, DRUMMOND                                                                            
03/01/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
03/01/17       (H)       Moved  HB 86 Out of Committee                                                                          
03/01/17       (H)       MINUTE(EDC)                                                                                            
03/22/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/22/17       (H)       Heard & Held                                                                                           
03/22/17       (H)       MINUTE(L&C)                                                                                            
03/24/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/17       (H)       Moved  HB 86 Out of Committee                                                                          
03/24/17       (H)       MINUTE(L&C)                                                                                            
03/27/17       (H)       L&C RPT 6DP 1NR                                                                                        
03/27/17       (H)       DP: SULLIVAN-LEONARD, STUTES, WOOL,                                                                    
                         JOSEPHSON, BIRCH, KITO                                                                                 
03/27/17       (H)       NR: KNOPP                                                                                              
03/29/17       (H)       TRANSMITTED TO (S)                                                                                     
03/29/17       (H)       VERSION: HB 86                                                                                         
03/31/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/31/17       (S)       EDC, L&C                                                                                               
04/12/17       (S)       EDC AT 8:00 AM BUTROVICH 205                                                                           
04/12/17       (S)       Heard & Held                                                                                           
04/12/17       (S)       MINUTE(EDC)                                                                                            
04/14/17       (S)       EDC RPT  4DP                                                                                           
04/14/17       (S)       DP: STEVENS, BEGICH, COGHILL, HUGHES                                                                   
04/14/17       (S)       EDC AT 8:30 AM BUTROVICH 205                                                                           
04/14/17       (S)       Moved HB 86 Out of Committee                                                                           
04/14/17       (S)       MINUTE(EDC)                                                                                            
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HCR  8                                                                                                                  
SHORT TITLE: KODIAK SEAFOOD & MARINE SCIENCE CENTER                                                                             
SPONSOR(s): FISHERIES                                                                                                           
                                                                                                                                
03/01/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/17       (H)       FSH                                                                                                    
03/14/17       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
03/14/17       (H)       -- MEETING CANCELED --                                                                                 
03/28/17       (H)       FSH AT 10:00 AM GRUENBERG 120                                                                          
03/28/17       (H)       Moved HCR 8 Out of Committee                                                                           
03/28/17       (H)       MINUTE(FSH)                                                                                            
03/29/17       (H)       FSH RPT 4DP 1NR                                                                                        
03/29/17       (H)       DP:   TARR,   FANSLER,   KREISS-TOMKINS,                                                               
                         STUTES                                                                                                 
03/29/17       (H)       NR: NEUMAN                                                                                             
04/07/17       (H)       TRANSMITTED TO (S)                                                                                     
04/07/17       (H)       VERSION: HCR 8 AM                                                                                      
04/10/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/17       (S)       EDC, L&C                                                                                               
04/14/17       (S)       EDC REFERRAL WAIVED UC                                                                                 
04/14/17       (S)       EDC AT 8:30 AM BUTROVICH 205                                                                           
04/14/17       (S)       Heard & Held                                                                                           
04/14/17       (S)       MINUTE(EDC)                                                                                            
04/15/17       (S)       EDC AT 1:00 PM BUTROVICH 205                                                                           
04/15/17       (S)       -- MEETING CANCELED --                                                                                 
01/30/18       (S)       L&C AT 1:00 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR ANNA MACKINNON                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 126.                                                                                        
                                                                                                                                
DR. JEFF MOORE, Orthopedic Physician and                                                                                        
National Delegate                                                                                                               
American Orthopedic Society for Sports Medicine                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 126.                                                                           
                                                                                                                                
DEBORA STOVERN, Executive Administrator                                                                                         
State Medical Board                                                                                                             
Division of Corporations, Business & Professional Licensing                                                                     
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to SB 126.                                                                     
                                                                                                                                
REPRESENTATIVE SAM KITO III                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 124.                                                                                        
                                                                                                                                
CATLYN ELLIS, Staff                                                                                                             
Representative Sam Kito III                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HB 124 on behalf of the sponsor.                                                                
                                                                                                                                
REPRESENTATIVE DELENA JOHNSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 208.                                                                                        
                                                                                                                                
ANDREW EVENS, Staff                                                                                                             
Representative DeLena Johnson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HB 208 on behalf of the sponsor.                                                                
                                                                                                                                
JONATHAN BLATTMACHR, representing self                                                                                          
Long Island, New York                                                                                                           
POSITION STATEMENT: Testified in support of HB 208.                                                                           
                                                                                                                                
MATHEW BLATTMACHR, Vice President                                                                                               
Peak Trust Company                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 208.                                                                           
                                                                                                                                
ABIGAIL O'CONNOR, representing self                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 208.                                                                           
                                                                                                                                
DOUGLAS BLATTMACHR, President and CEO                                                                                           
Peak Trust Company                                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Stated wholehearted support for HB 208.                                                                   
                                                                                                                                
RICH HOMPESCH, representing self                                                                                                
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 208.                                                                           
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 102                                                                                         
                                                                                                                                
REID MAGDANZ, Staff                                                                                                             
Representative Kreiss-Tomkins                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 102 on behalf of the sponsor.                                                               
                                                                                                                                
BRANDON LOCKE, Director                                                                                                         
World Languages                                                                                                                 
Anchorage School District (ASD)                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Stated support for HB 102                                                                                 
                                                                                                                                
SONDRA MEREDITH, Education Administrator II                                                                                     
Teaching and Learning Support                                                                                                   
Department of Education and Early Development (DEED)                                                                            
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to HB 102.                                                                     
                                                                                                                                
REPRESENTATIVE SAM KITO III                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HB 114 as chair of the House Labor                                                              
and Commerce Committee.                                                                                                         
                                                                                                                                
DEBORA KELLY, Director                                                                                                          
Division of Labor Standards & Safety                                                                                            
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to HB 114.                                                                     
                                                                                                                                
REPRESENTATIVE SAM KITO III                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HB 121 as chair of the House Labor                                                              
and Commerce Committee.                                                                                                         
                                                                                                                                
DEBORA KELLY, Director                                                                                                          
Division of Labor Standards & Safety                                                                                            
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided supporting information on HB 121.                                                                
                                                                                                                                
REPRESENTATIVE MATT CLAMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 86.                                                                                         
                                                                                                                                
CERI GODINEZ, Staff                                                                                                             
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented HB 86 on behalf of the sponsor.                                                                 
                                                                                                                                
STEPHANIE BUTLER, Executive Director                                                                                            
Alaska Commission on Postsecondary Education                                                                                    
Department of Education and Early Development (DEED)                                                                            
Juneau, AK                                                                                                                      
POSITION STATEMENT: Provided supporting testimony for HB 86.                                                                  
                                                                                                                                
AMBER MICHAIS, Registered Nurse                                                                                                 
Alaska Nurses Association                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 86.                                                                            
                                                                                                                                
MATT GRUENING, Staff                                                                                                            
Representative Louise Stutes and aide                                                                                           
House Fisheries Committee                                                                                                       
POSITION STATEMENT: Introduced HCR 8 on behalf of the House                                                                   
Fisheries Committee.                                                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:02:26 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:02  p.m. Present at the  call to                                                               
order  were   Senators  Gardner,   Micciche,  Meyer,   and  Chair                                                               
Costello. She noted that Senator Stevens would not be present.                                                                  
                                                                                                                                
                                                                                                                                
          SB 126-VISITING PHYSICIANS WITH SPORTS TEAMS                                                                      
                                                                                                                                
1:03:15 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of SB 126.                                                                           
                                                                                                                                
1:03:36 PM                                                                                                                    
SENATOR ANNA MACKINNON, Alaska State Legislature, Juneau,                                                                       
Alaska, sponsor of SB 126, introduced the legislation speaking                                                                  
to the following sponsor statement:                                                                                             
                                                                                                                                
     Competitive   sports  teams   typically  have   a  team                                                                    
     physician who provides care for  the athletes. When the                                                                    
     team  travels   out  of  state,  the   physician  often                                                                    
     accompanies them. However, if  an athlete is injured or                                                                    
     needs a prescription filled  while traveling in Alaska,                                                                    
     the team  physician would not  be able to  provide care                                                                    
     without being licensed here.                                                                                               
                                                                                                                                
     Senate Bill  126 would provide  an exemption  for state                                                                    
     licensure for  this narrow circumstance.  The physician                                                                    
     would  have  to be  licensed  to  practice medicine  in                                                                    
     another  state, under  a  written  contract to  provide                                                                    
     care to  an athletic  team in that  state and  would be                                                                    
     limited to  providing services to  members of  the team                                                                    
     while  they   are  traveling  or  participating   in  a                                                                    
     sporting event in Alaska.                                                                                                  
                                                                                                                                
     The bill  is a narrow  solution to a  specific problem.                                                                    
     Thirty-five   other   states    have   passed   similar                                                                    
     legislation to  ensure that the doctors  who know their                                                                    
     patients best can continue to treat them.                                                                                  
                                                                                                                                
SENATOR  MACKINNON  summarized  that  this  is  a  simple  policy                                                               
decision to  allow sports team  members from  out of state  to be                                                               
treated  by  their  team  physician  when  they're  traveling  in                                                               
Alaska.                                                                                                                         
                                                                                                                                
1:04:49 PM                                                                                                                    
SENATOR GARDNER asked if she'd heard any opposition to the bill.                                                                
                                                                                                                                
SENATOR MACKINNON answered  no and noted a new  letter of support                                                               
in the packets.                                                                                                                 
                                                                                                                                
SENATOR  MICCICHE pointed  out  that the  physician  must have  a                                                               
written agreement with the team.                                                                                                
                                                                                                                                
SENATOR MACKINNON agreed.                                                                                                       
                                                                                                                                
1:05:41 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 126.                                                                               
                                                                                                                                
1:05:58 PM                                                                                                                    
                                                                                                                                
DR.  JEFF  MOORE,  Orthopedic Physician  and  National  Delegate,                                                               
American  Orthopedic  Society  for  Sports  Medicine,  Anchorage,                                                               
Alaska,  testified in  support of  SB  126. He  reported that  35                                                               
states have  passed similar legislation and  13 states, including                                                               
Alaska, have it  under consideration. He opined that  it would be                                                               
very beneficial if  team physicians could take care  of their own                                                               
athletes when they visit Alaska.                                                                                                
                                                                                                                                
CHAIR COSTELLO asked, should the  bill pass, if the Department of                                                               
Commerce,  Community  and  Economic Development  would  have  any                                                               
involvement with the visiting physician.                                                                                        
                                                                                                                                
1:07:17 PM                                                                                                                    
DEBORA  STOVERN, Executive  Administrator,  State Medical  Board,                                                               
Division  of  Corporations,  Business &  Professional  Licensing,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), Anchorage,  Alaska, replied the State  Medical Board may                                                               
need  to  adopt  regulations  to   implement  the  bill  and  the                                                               
department supports the board in those endeavors.                                                                               
                                                                                                                                
SENATOR  MICCICHE observed  that  the fiscal  note reflects  that                                                               
this is a  receipt supported service and therefore a  net zero to                                                               
the state.                                                                                                                      
                                                                                                                                
CHAIR COSTELLO asked  Senator MacKinnon if she  wished to comment                                                               
on  the  fiscal  note  that reflects  $2,500  for  a  regulations                                                               
project.                                                                                                                        
                                                                                                                                
SENATOR MACKINNON  expressed appreciation that DCCED  submitted a                                                               
fiscal note after  multiple requests. She agreed  that the fiscal                                                               
impact is net zero and opined  that the bill could be referred to                                                               
finance.                                                                                                                        
                                                                                                                                
1:10:00 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on SB 126.                                                                               
                                                                                                                                
SENATOR  MEYER  asked  if  one team  doctor  is  prohibited  from                                                               
helping another team doctor in the event of injury.                                                                             
                                                                                                                                
DR MOORE said  local doctors would be available  to help visiting                                                               
team doctors.                                                                                                                   
                                                                                                                                
1:11:41 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report SB  126  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR COSTELLO stated  that without objection, SB  126 moved from                                                               
the Senate Labor and Commerce Standing Committee.                                                                               
                                                                                                                                
                  HB 124-BENEFIT CORPORATIONS                                                                               
                                                                                                                                
1:12:03 PM                                                                                                                    
CHAIR  COSTELLO  announced the  consideration  of  HB 124.  [CSHB                                                               
124(FIN) was before the committee.]                                                                                             
                                                                                                                                
1:12:22 PM                                                                                                                    
REPRESENTATIVE SAM  KITO III,  Alaska State  Legislature, Juneau,                                                               
Alaska,  sponsor  of HB  124,  stated  that  the purpose  of  the                                                               
legislation is to modify Alaska's  corporation structure to allow                                                               
a  corporation to  add a  beneficial component  to its  business.                                                               
This allows  owners and  boards to  take actions  that positively                                                               
impact their  communities and business without  fear of violating                                                               
their fiduciary responsibility to shareholders.                                                                                 
                                                                                                                                
1:15:10 PM                                                                                                                    
CATLYN ELLIS,  Staff, Representative  Sam Kito III,  Alaska State                                                               
Legislature, Juneau, Alaska,  explained that benefit corporations                                                               
work towards  two goals. They  have the  fiduciary responsibility                                                               
to achieve  the best  profits for  their shareholders  while they                                                               
incorporate public benefits and  community improvement into their                                                               
day-to-day   business  practices.   A   benefit  corporation   is                                                               
protected by its  legal framework and is taxed the  same as other                                                               
corporations.  The   business  develops   its  own   articles  of                                                               
incorporation and  is held  accountable through  biannual reports                                                               
to shareholders,  the state, and  the public. Failure  to produce                                                               
these  reports  could  result  in  the  Department  of  Commerce,                                                               
Community  and   Economic  Development  (DCCED)   dissolving  the                                                               
corporation.                                                                                                                    
                                                                                                                                
MS. ELLIS reported that 31  states have a similar designation for                                                               
benefit  corporations. She  noted that  a few  Alaskan businesses                                                               
have gone through  the process of becoming  certified through the                                                               
international benefit  corporation structure. This would  work in                                                               
tandem and provide statewide legal protection.                                                                                  
                                                                                                                                
1:18:49 PM                                                                                                                    
CHAIR  COSTELLO  asked if  a  business  could  form solely  as  a                                                               
benefit corporation.                                                                                                            
                                                                                                                                
MS. ELLIS  answered yes, and  an existing corporation  could vote                                                               
to convert to a benefit corporation                                                                                             
                                                                                                                                
SENATOR  GARDNER asked  1)  the  genesis of  the  bill  and if  a                                                               
business  could  form  as  a benefit  corporation  if  the  state                                                               
doesn't   participate  by   licensure,  and   2)  if   a  benefit                                                               
corporation  is  subject to  penalty  if  it  fails to  meet  its                                                               
beneficial  goal but  does meet  its fiduciary  responsibility to                                                               
shareholders.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KITO  explained  that  the  bill  was  originally                                                               
requested  by Alaskan  businesses because  state law  prohibits a                                                               
corporation   from  using   the   beneficial  component   without                                                               
violating  its   fiduciary  responsibility  to   shareholders.  A                                                               
benefit  corporation  must identify  its  beneficial  use in  the                                                               
articles   of  incorporation   and  biannually   report  on   its                                                               
beneficial  and  fiduciary  responsibility. The  department  will                                                               
review the  reports and  he imagined  the corporation  would have                                                               
the flexibility to scale up or down its beneficial use.                                                                         
                                                                                                                                
MS.  ELLIS  cited  Patagonia  as   an  example  of  a  beneficial                                                               
corporation;  the  bylaws  direct   the  corporation  to  deliver                                                               
products that don't impact the  community, but it isn't specific.                                                               
She confirmed that  Alaska businesses could form  as a beneficial                                                               
corporation,  but   they  wouldn't   have  legal   protection  if                                                               
shareholders said  the corporation  failed to meet  its fiduciary                                                               
responsibilities.                                                                                                               
                                                                                                                                
CHAIR  COSTELLO   noted  the  individuals  available   to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
1:24:28 PM                                                                                                                    
SENATOR MEYER  asked for  an example of  an Alaska  business that                                                               
has formed as a beneficial corporation.                                                                                         
                                                                                                                                
MS.  ELLIS said  Arctic Solar  Ventures  in Anchorage  is one  of                                                               
three  businesses  that  have   gone  through  the  international                                                               
certification process.                                                                                                          
                                                                                                                                
SENATOR  MEYER asked  if the  social benefit  would be  the solar                                                               
panels.                                                                                                                         
                                                                                                                                
MS. ELLIS  replied they listed environmental  and social benefits                                                               
in the bylaws.                                                                                                                  
                                                                                                                                
SENATOR MEYER asked  how social benefit is defined  and who makes                                                               
the determination.                                                                                                              
                                                                                                                                
MS. ELLIS replied the corporation  makes the determination in its                                                               
bylaws.                                                                                                                         
                                                                                                                                
SENATOR MICCICHE  commented that  citing Patagonia as  an example                                                               
isn't  a good  lead-off since  it opposes  many of  the important                                                               
industries in Alaska. He acknowledged  the bottom-line benefit of                                                               
the legislation was  that the corporation identifies  itself as a                                                               
socially responsible entity.                                                                                                    
                                                                                                                                
1:26:22 PM                                                                                                                    
CHAIR COSTELLO  opened public testimony  on HB 124 and  closed it                                                               
after ascertaining that no one wished to testify.                                                                               
                                                                                                                                
1:26:57 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:27:15 PM                                                                                                                    
CHAIR  COSTELLO reconvened  the meeting  and again  opened public                                                               
testimony on HB 124. Finding none, she closed it.                                                                               
                                                                                                                                
SENATOR  GARDNER  pointed  out   that  the  supporting  documents                                                               
include  a letter  from a  coffee  company that  talks about  the                                                               
social value  of empowering indigenous  farmers and  helping them                                                               
earn up to 50 percent more of the specialty coffee dollars.                                                                     
                                                                                                                                
SENATOR  MICCICHE reviewed  the  $22,500 DCCED  fiscal note  that                                                               
does not have a negative impact  to the state. He paraphrased the                                                               
last  paragraph of  the analysis.  "Corporation  filing fees  are                                                               
General  Fund/Program Receipts  fund source  1005 GF/Prgm  (DGF).                                                               
Corporation filing fees  are set in regulation per AS  10 and 32,                                                               
and revenue in excess of  authorized budgeted expenses reverts to                                                               
the State of Alaska general fund."                                                                                              
                                                                                                                                
1:29:39 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  124  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
1:29:52 PM                                                                                                                    
CHAIR COSTELLO  announced that  without objection,  CSHB 124(FIN)                                                               
moved from the Senate Labor and Commerce Standing Committee.                                                                    
                                                                                                                                
        HB 208-TRUSTS; COMM PROP TRUSTS; POWERS OF APPT                                                                     
                                                                                                                                
1:30:06 PM                                                                                                                    
CHAIR  COSTELLO  announced  the  consideration  of  HB  208.  She                                                               
reminded members that  the committee heard the  Senate version of                                                               
the bill last session.                                                                                                          
                                                                                                                                
1:30:31 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:34:08 PM                                                                                                                    
CHAIR COSTELLO reconvened the  meeting and invited Representative                                                               
Johnson to present HB 208.                                                                                                      
                                                                                                                                
1:34:29 PM                                                                                                                    
REPRESENTATIVE DELENA JOHNSON,  Alaska State Legislature, Juneau,                                                               
Alaska, sponsor  of HB 208,  stated that this  legislation amends                                                               
trust  law  by  making  it  more  responsive  to  current  market                                                               
conditions. Should  it pass, Alaska  will return to  its premiere                                                               
position of being among the  best jurisdictions in the country to                                                               
hold  trusts.   This  legislation  will  create   jobs  and  help                                                               
diversify the economy.                                                                                                          
                                                                                                                                
1:36:15 PM                                                                                                                    
ANDREW EVENS, Staff, Representative  DeLena Johnson, Alaska State                                                               
Legislature, Juneau,  Alaska, introduced  HB 208 speaking  to the                                                               
following sponsor statement:                                                                                                    
                                                                                                                                
     Alaska has always  sought be a leader  in adopting laws                                                                    
     to  improve   estate  and  tax  planning   options  for                                                                    
     Alaskans as  well as non-resident  trust holders.  As a                                                                    
     result,  by  1998 Alaska  ranked  among  the top  three                                                                    
     favorable environments to place trusts.                                                                                    
                                                                                                                                
     Since  the end  of the  1990s however,  states such  as                                                                    
     Nevada, New York, South Dakota,  and others have passed                                                                    
     newer  laws expanding  the  flexibilities available  to                                                                    
     trusts. As  a result,  Alaska is  now trailing  much of                                                                    
     the nation  in evolving  our trust related  statutes to                                                                    
     meet current  market realities and demands.   According                                                                    
     to  a leading  index,  Alaska's ranking  has fallen  to                                                                    
     eighth place  as an increasing number  of states become                                                                    
     superior trust-favorable environments.                                                                                     
                                                                                                                                
     This bill seeks  to reverse this trend  by updating and                                                                    
     increasing  flexibility  in  trust-related  regulation,                                                                    
     while maintaining  the protections already  codified in                                                                    
     existing statutes.                                                                                                         
                                                                                                                                
     This bill  will stimulate  increased investment  in our                                                                    
     economy through the creation  of more opportunities for                                                                    
     Alaskan  banks, trust  companies,  and other  financial                                                                    
     institutions.   It  will help  to create  higher paying                                                                    
     jobs in  the financial services  sector.  It  will help                                                                    
     to diversify Alaska's economy  by expanding an industry                                                                    
     that is  not 'resource economy' dependent,  and it will                                                                    
     add a source of fee-based income for state government.                                                                     
                                                                                                                                
     House  Bill 208  will  bring Alaska  trust related  law                                                                    
     into  the 21st  century,  restore  the state's  ranking                                                                    
     among trust-friendly states,  stimulate stable economic                                                                    
     growth and  employment, and  bring in  additional state                                                                    
     revenue.                                                                                                                   
                                                                                                                                
     I respectfully ask for your support of House Bill 208.                                                                     
                                                                                                                                
1:40:47 PM                                                                                                                    
SENATOR GARDNER asked if the  trust professionals are required to                                                               
be Alaska residents.                                                                                                            
                                                                                                                                
MR. EVENS deferred the question to Mr. Blattmachr.                                                                              
                                                                                                                                
1:41:16 PM                                                                                                                    
MATHEW   BLATTMACHR,   Vice   President,  Peak   Trust   Company,                                                               
Anchorage, Alaska,  explained that  to be  deemed a  valid Alaska                                                               
trust some  administration must  occur within  the state  and the                                                               
trust  must  have  a  resident   Alaskan  trustee.  The  drafting                                                               
attorney does  not have  to be  a resident,  but it  is advisable                                                               
that  the trust  is  "blessed by  Alaska  counsel." Likewise,  an                                                               
accountant for  a trust is not  required to reside or  operate in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MR.  BLATTMACHR added  that most  of the  provisions in  the bill                                                               
simply clarify  and enhance the flexibility  of existing statute.                                                               
He  cited the  changes to  the decanting  statute as  an example.                                                               
Alaska  passed its  decanting statute  20 years  ago and  several                                                               
states have  more modern decanting  laws. HB 208 seeks  to update                                                               
the statute and put Alaska back on par.                                                                                         
                                                                                                                                
CHAIR COSTELLO asked for an explanation of decanting.                                                                           
                                                                                                                                
MR. BLATTMACHR explained that decanting  in the trust industry is                                                               
similar  to decanting  wine. It  is  the gradual  pouring of  the                                                               
contents  of one  container into  another vehicle.  In the  trust                                                               
context, the assets stay the  same, but the container is changed.                                                               
Decanting is a  process that might be used to  make a change when                                                               
there is  a scrivener's error  in an irrevocable  trust document,                                                               
when there  is an unexpected tax  law change, or when  there is a                                                               
substantial change in beneficiary circumstances.                                                                                
                                                                                                                                
SENATOR MEYER asked  if a nonresident who doesn't  have assets in                                                               
Alaska can set up an Alaska trust.                                                                                              
                                                                                                                                
1:44:29 PM                                                                                                                    
MR. BLATTMACHR answered no; one  of the safe harbor provisions is                                                               
that some of the assets of the trust must be in Alaska.                                                                         
                                                                                                                                
SENATOR  MEYER  asked if  an  Alaskan  resident could  engage  an                                                               
Alaskan  attorney to  place both  their Alaska  assets and  their                                                               
Washington state assets in a single trust.                                                                                      
                                                                                                                                
MR. BLATTMACHR  said yes,  but he  and other  trust professionals                                                               
would recommend  engaging an attorney  who is either  licensed in                                                               
both  states or  who  works  with an  organization  that has  the                                                               
capability to offer advice on the laws of both states.                                                                          
                                                                                                                                
SENATOR MEYER  commented that  hiring an  attorney in  each state                                                               
would be an additional expense.                                                                                                 
                                                                                                                                
MR.  BLATTMACHR  agreed  and added  that  individuals  have  been                                                               
willing to  pay that  cost, so they  can accomplish  the planning                                                               
under Alaska's flexible trust laws.                                                                                             
                                                                                                                                
SENATOR MICCICHE asked  if the taxable value of the  trust is the                                                               
ultimate value to the state.                                                                                                    
                                                                                                                                
MR. BLATTMACHR answered yes.                                                                                                    
                                                                                                                                
SENATOR  MICCICHE observed  that  the bill  primarily deals  with                                                               
powers of appointment. He asked  if other issues have made Alaska                                                               
trust law less competitive.                                                                                                     
                                                                                                                                
MR.  BLATTMACHR  clarified  that  the decanting  statute  is  the                                                               
greatest  factor  for  Alaska  being  a  less  competitive  trust                                                               
landscape.  Powers  of  appointment   is  a  smaller  piece  that                                                               
clarifies when those powers are triggered.                                                                                      
                                                                                                                                
SENATOR MICCICHE asked if he agrees  that the benefits of a trust                                                               
vary depending on the individual.                                                                                               
                                                                                                                                
MR. BLATTMACHR  agreed that the  best trust  jurisdiction depends                                                               
on the planning scenario.                                                                                                       
                                                                                                                                
1:49:15 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 208.                                                                               
                                                                                                                                
1:49:41 PM                                                                                                                    
ABIGAIL O'CONNOR, representing self,  Anchorage, Alaska, said she                                                               
is a trust  and estate attorney testifying in support  of HB 208.                                                               
She referenced  the question about trust  decanting and explained                                                               
that this  is a very  important feature  to "fix" a  broken trust                                                               
without going to  court. Many states have  greatly expanded their                                                               
rules  on perpetuity  which means  that trusts  can exist  longer                                                               
than  estate planning  attorneys  can envision  in  terms of  the                                                               
interests of the beneficiaries.  Decanting allows the assets from                                                               
the  current trust  to be  placed in  a new  trust. She  cited an                                                               
example  of a  trust  with mandatory  distributions  that are  no                                                               
longer appropriate because the beneficiary  is disabled and needs                                                               
protection. The decanting provision in  HB 208 will make Alaska a                                                               
more flexible jurisdiction  and may bring more  trust business to                                                               
the state.                                                                                                                      
                                                                                                                                
1:53:32 PM                                                                                                                    
JONATHAN BLATTMACHR,  representing self,  Long Island,  New York,                                                               
stated that he  was the original drafter of the  Alaska Trust Act                                                               
that passed in 1997, and he  wrote the first decanting statute in                                                               
the nation.  It was for New  York and the second  was for Alaska.                                                               
He said  his goal has been  to make Alaska the  premier financial                                                               
capital in the country. He agreed  with Mr. Evens that Alaska has                                                               
seen tremendous  competition from other jurisdictions.  He opined                                                               
that HB  208 will  help return  Alaska to the  front of  the line                                                               
thereby attracting more business and bringing in new revenue.                                                                   
                                                                                                                                
1:55:23 PM                                                                                                                    
DOUGLAS  BLATTMACHR,  President  and  CEO,  Peak  Trust  Company,                                                               
Anchorage, Alaska, stated wholehearted support  for HB 208. It is                                                               
advantageous for Alaskans and the state.                                                                                        
                                                                                                                                
1:56:01 PM                                                                                                                    
RICH HOMPESCH, representing self,  Fairbanks, Alaska, stated that                                                               
he is an  attorney in private practice and would  like to respond                                                               
to earlier questions  related to HB 208. Senator  Meyer asked how                                                               
assets from other  states end up in an Alaska  trust. He said his                                                               
experience  is  that  the  nonresident  client  forms  an  Alaska                                                               
limited  liability company  (LLC), transfers  the assets  to that                                                               
LLC, and  then transfers  the membership interest  in the  LLC to                                                               
the Alaska trust.  The state benefits because  those entities pay                                                               
a $250 fee to form an LLC and  a $100 biannual tax. He added that                                                               
the decanting  provision will be particularly  valuable to trusts                                                               
that Alaska attorneys prepared 25 years ago that need updating.                                                                 
                                                                                                                                
1:58:11 PM                                                                                                                    
CHAIR COSTELLO  closed public  testimony on HB  208 and  said she                                                               
would look to the will of the committee.                                                                                        
                                                                                                                                
1:58:23 PM                                                                                                                    
SENATOR  GARDNER asked  what proportion  of  Alaskans use  Alaska                                                               
trusts. She posited  that only a handful of  people are following                                                               
the bill.                                                                                                                       
                                                                                                                                
DOUGLAS BLATTMACHR said Peak Trust  Company sees a fair number of                                                               
Alaskans  who  use  this  type   of  planning,  and  they  aren't                                                               
necessarily  high  net worth  individuals.  He  noted that  trust                                                               
planning is also used for special needs beneficiaries.                                                                          
                                                                                                                                
SENATOR MEYER  asked if  there is any  protection of  assets that                                                               
the settlor neglected to add to or include to the trust.                                                                        
                                                                                                                                
DOUGLAS  BLATTMACHR said  an asset  purchased in  an individual's                                                               
name would  not have  the protection of  the trust.  However, the                                                               
individual  could transfer  the  asset  to the  LLC  and have  it                                                               
placed inside the trust.                                                                                                        
                                                                                                                                
SENATOR MICCICHE asked  him to clarify that  individuals may have                                                               
different trusts  for different purposes  and they may  choose to                                                               
hold certain assets outside the trust.                                                                                          
                                                                                                                                
MR. BLATTMACHR confirmed that individuals  may have more than one                                                               
trust and that it's not necessarily an all or none scenario.                                                                    
                                                                                                                                
CHAIR  COSTELLO  found  no  further  questions  and  solicited  a                                                               
motion.                                                                                                                         
                                                                                                                                
2:02:23 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  208  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
2:02:38 PM                                                                                                                    
CHAIR COSTELLO  found no objection  and stated that HB  208 moves                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
         HB 102-LIMITED TEACHER CERTIFICATES; LANGUAGES                                                                     
                                                                                                                                
2:03:35 PM                                                                                                                    
CHAIR  COSTELLO  announced the  consideration  of  HB 102.  [CSHB                                                               
102(EDC)  was before  the committee.]  She asked  the sponsor  to                                                               
refresh  members' recollections;  the companion  bill was  in the                                                               
committee last  year. She  related the  intention to  take public                                                               
testimony and look to the will of the committee.                                                                                
                                                                                                                                
REPRESENTATIVE KREISS-TOMKINS,  Alaska State  Legislature Juneau,                                                               
Alaska,  sponsor  of  HB  102, said  this  legislation  seeks  to                                                               
support the  growth of immersion  language education  programs in                                                               
Alaska  schools.  This  would  include   both  world  and  Native                                                               
languages and  draw on  the success  and national  recognition of                                                               
the programs  in Anchorage, Wasilla,  and Bethel.  He highlighted                                                               
that his  office received additional  support for HB 102  and the                                                               
Senate companion during the interim.                                                                                            
                                                                                                                                
2:05:16 PM                                                                                                                    
REID MAGDANZ, Staff,  Representative Kreiss-Tomkins, Alaska State                                                               
Legislature, Juneau, Alaska,  stated that the language  in HB 102                                                               
is the same that the committee  saw when it considered the Senate                                                               
companion bill.  He asked  the chair  how she  would like  him to                                                               
proceed.                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO asked  Mr. Magdanz  to walk  through a  sectional                                                               
analysis.                                                                                                                       
                                                                                                                                
2:05:50 PM                                                                                                                    
MR. MAGDANZ  directed attention to  the document titled  "HB 102,                                                               
Limited  Teacher Certificates  - Comparison  to Current  Law." He                                                               
highlighted the following in the single section bill:                                                                           
                                                                                                                                
   • Page 1, line 4, identifies the legislation as repeal and                                                                   
     reenactment of AS 14.20.025.                                                                                               
   • Subsection (a) on page 1 gives school districts the                                                                        
     flexibility  to hire  teachers on  limited certificates  for                                                               
     language immersion programs.                                                                                               
   • Paragraph (4) on page 1, line 12, is new language. It                                                                      
     authorizes  the  department  to   issue  a  limited  teacher                                                               
     certificate to  a person qualified  under (b) to  teach "any                                                               
    subject if the language of instruction is not English".                                                                     
   • Subsection (b) on page 1, lines 13-14 through page 2, line                                                                 
     5, is  drawn from  current law. It  states that  the limited                                                               
     certificate can only be issued  to a person the school board                                                               
     specifically requests.  It also empowers the  state board of                                                               
     education  to  write  regulations ensuring  the  person  who                                                               
     holds a  limited certificate  has "instructional  skills and                                                               
     subject  matter expertise  sufficient to  assure the  public                                                               
     that the person  is competent as a teacher."  It also allows                                                               
     the state board to require  a person to undertake additional                                                               
     academic training and university classes.                                                                                  
   • Subsection (c) clarifies that limited certificates are                                                                     
     issued on a  case-by-case basis and that  the certificate is                                                               
     only valid within that school district. This provides local                                                                
     control and case-by-case flexibility.                                                                                      
   • Subsection (d) requires the board of education to give an                                                                  
     applicant the option of demonstrating competency in the                                                                    
     instructional language for which the limited certificate is                                                                
     valid.                                                                                                                     
   • Subsection (e) provides that a limited certificate is                                                                      
     initially valid for one year. Subsequent extensions are                                                                    
     guided by regulation.                                                                                                      
                                                                                                                                
CHAIR COSTELLO opened public testimony on HB 102.                                                                               
                                                                                                                                
2:10:34 PM                                                                                                                    
BRANDON  LOCKE,  Director,   World  Languages,  Anchorage  School                                                               
District  (ASD),  Anchorage, Alaska,  stated  that  HB 102  would                                                               
support filling  language emersion  positions that  are typically                                                               
very difficult to  fill. ASD has been  offering language emersion                                                               
programs  since  1989  and  it  is always  a  challenge  to  find                                                               
qualified,  fully certificated  teachers who  are native  or near                                                               
native speakers.  He reported that  ASC has about  3,000 students                                                               
in  K-12 immersion  programs and  will add  Yupik immersion  this                                                               
fall through a  federal grant. A French immersion  program may be                                                               
added  next. He  said the  provision in  subsection (d)  would be                                                               
particularly  helpful  to  ASD  because  applicants  whose  first                                                               
language  is  not English  generally  have  difficulty passing  a                                                               
practice test  that is administered  in English.  He acknowledged                                                               
that the school district would  be ultimately responsible for the                                                               
person and they would have  to go through the appropriate vetting                                                               
procedures in  the district. He  opined that this would  not open                                                               
the  floodgates; it  would be  used for  those unique  situations                                                               
where there is  no workaround. The worst-case scenario  is to put                                                               
a non-immersion  language speaker in the  classroom. That defeats                                                               
the purpose of the program.                                                                                                     
                                                                                                                                
2:14:46 PM                                                                                                                    
SENATOR  MICCICHE  asked  if   background  checks  are  addressed                                                               
elsewhere in state law, because it's not in the bill                                                                            
                                                                                                                                
MR.  LOCKE  replied the  bill  doesn't  eliminate the  background                                                               
check requirement.                                                                                                              
                                                                                                                                
MR.  MAGDANZ  added,  "This  is  repeal  and  reenactment  of  an                                                               
existing portion  of law.  That existing  portion of  law doesn't                                                               
specifically  require  background   checks  but  the  regulations                                                               
implementing that section do."                                                                                                  
                                                                                                                                
2:17:26 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:17:55 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and asked Ms. Meredith how                                                               
background checks would apply to HB 102.                                                                                        
                                                                                                                                
2:17:58 PM                                                                                                                    
SONDRA  MEREDITH,   Education  Administrator  II,   Teaching  and                                                               
Learning Support,  Department of Education and  Early Development                                                               
(DEED),  Juneau, Alaska,  clarified  that AS  14.20 contains  the                                                               
statutory  reference   that  covers  certification.   A  separate                                                               
section  speaks to  the background  requirements for  all teacher                                                               
certifications that DEED issues.                                                                                                
                                                                                                                                
CHAIR COSTELLO  closed public testimony  on HB 102 and  looked to                                                               
the will of the committee.                                                                                                      
                                                                                                                                
2:19:08 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  102  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR  COSTELLO  stated  that without  objection,  CSHB  102(EDC)                                                               
moves from the Senate Labor and Commerce Standing Committee.                                                                    
                                                                                                                                
        HB 114-BOILER/PRESSURE VESSEL INSPECTION REPORTS                                                                    
                                                                                                                                
2:19:41 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of HB 114.                                                                           
                                                                                                                                
2:20:12 PM                                                                                                                    
REPRESENTATIVE SAM  KITO III,  Alaska State  Legislature, Juneau,                                                               
Alaska,  stated  that  HB  114  is a  House  Labor  and  Commerce                                                               
Committee  bill  that  was  introduced  at  the  request  of  the                                                               
Department of  Labor and Workforce  Development (DOLWD).  It does                                                               
two things. First,  it establishes a $10 fee for  each boiler and                                                               
pressure  vessel inspection  report that  is filed  without using                                                               
the online system. Second, it  reduces the time allowed to submit                                                               
the report  following an inspection  from the current 30  days to                                                               
15 days.  The bill seeks  to encourage  people to use  the online                                                               
system.  The nominal  fee for  those who  do not  use the  online                                                               
system helps  cover the department's costs  for manually entering                                                               
the information.  He listed the  individuals available  to answer                                                               
questions.                                                                                                                      
                                                                                                                                
SENATOR  MICCICHE asked  if the  bill provides  any accommodation                                                               
for  a  small  business  owner   in  rural  Alaska  who  has  not                                                               
transitioned to using technology.                                                                                               
                                                                                                                                
REPRESENTATIVE KITO deferred the question to the department.                                                                    
                                                                                                                                
2:22:07 PM                                                                                                                    
DEBORA  KELLY, Director,  Division of  Labor Standards  & Safety,                                                               
Department of  Labor and  Workforce Development  (DOLWD), Juneau,                                                               
Alaska, explained  that these inspections  are generally  done by                                                               
insurance  companies  or  state inspectors,  not  small  business                                                               
owners.  The inspector  is still  free to  submit the  inspection                                                               
report by mail,  and the impact would  be a $10 fee  every two to                                                               
five  years.  She  noted  that most  of  the  inspection  reports                                                               
already come through the online system.                                                                                         
                                                                                                                                
2:23:12 PM                                                                                                                    
CHAIR COSTELLO  found no one who  wanted to testimony on  HB 114.                                                               
Finding no questions, she solicited a motion.                                                                                   
                                                                                                                                
2:23:36 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  114  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR COSTELLO stated  that without objection, HB  114 moves from                                                               
the Senate Labor and Commerce Standing Committee.                                                                               
                                                                                                                                
         HB 121-OCC. HEALTH AND SAFETY CIVIL PENALTIES                                                                      
                                                                                                                                
2:24:38 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of HB 121.                                                                           
                                                                                                                                
2:24:41 PM                                                                                                                    
REPRESENTATIVE  SAM KITO  III Alaska  State Legislature,  Juneau,                                                               
Alaska,  stated  that  HB  121  is a  House  Labor  and  Commerce                                                               
Committee  bill  that  was  introduced  at  the  request  of  the                                                               
Department of  Labor and Workforce Development  (DOLWD). He spoke                                                               
to the following sponsor statement:                                                                                             
                                                                                                                                
     House Bill 121 brings  Alaska's Occupational Safety and                                                                    
     Health (AKOSH) state plan  into compliance with federal                                                                    
     requirements,   ensuring   continued  eligibility   for                                                                    
     federal  grant funds  and  helping  to protect  workers                                                                    
     from workplace injuries, illnesses, and fatalities.                                                                        
                                                                                                                                
     In 2015,  Congress passed  the Federal  Civil Penalties                                                                    
     Inflation  Adjustment Act  Improvements Act,  requiring                                                                    
     many   federal  agencies   to   adjust  penalties   for                                                                    
     inflation going back to  1990, and requiring subsequent                                                                    
     yearly   adjustments  according   to  changes   in  the                                                                    
     Consumer  Price Index.  Occupational Safety  and Health                                                                    
     Administration  complied  by  adjusting  their  maximum                                                                    
     penalties  in July  2016, including  a six-month  grace                                                                    
     period for  states to comply.  In order to  comply with                                                                    
     federal program requirements, AKOSH  must have at least                                                                    
     equivalent  maximum and  minimum penalties.  AKOSH fell                                                                    
     out of  compliance with this requirement  on January 1,                                                                    
     2017, when the six-month buffer period expired.                                                                            
                                                                                                                                
     Maximum  and   minimum  penalties  for   violations  of                                                                    
     Alaska's  occupational  safety   and  health  laws  are                                                                    
     specified  in AS  18.60.095, the  Penalties section  of                                                                    
     Prevention of  Accident and Health Hazards.  House Bill                                                                    
     121  allows  the  Department  of  Labor  and  Workforce                                                                    
     Development to  set penalty  amounts by  regulation and                                                                    
     limits the penalties  to corresponding federal maximums                                                                    
     for each  violation type.  This enables  the department                                                                    
     to adjust  to federally required changes  while placing                                                                    
     a cap on increases.                                                                                                        
                                                                                                                                
     Please  join  me  in  supporting   House  Bill  121  to                                                                    
     maintain over $2 million in  yearly federal grant funds                                                                    
     that  serve  working  Alaskans  by  reducing  workplace                                                                    
     injuries, illnesses, and fatalities.                                                                                       
                                                                                                                                
2:25:45 PM                                                                                                                    
DEBORA  KELLY, Director,  Division of  Labor Standards  & Safety,                                                               
Department of  Labor and  Workforce Development  (DOLWD), Juneau,                                                               
explained  that AKOSH  is Alaska's  state plan  through which  it                                                               
receives  federal  grants  and  ensures  the  safety  and  health                                                               
standards  that  protect most  Alaskan  workers.  She listed  the                                                               
following benefits of having a state plan:                                                                                      
                                                                                                                                
   • Industries have direct input into developing safety and                                                                    
     health standards.                                                                                                          
   • State and municipal employees gain safety and health                                                                       
     protections.                                                                                                               
   • Citation appeals go through a local administrative process.                                                                
                                                                                                                                
To maintain the state plan, AKOSH must be at least as effective                                                                 
as federal OSHA. That includes statutory maximum penalties.                                                                     
                                                                                                                                
In  2015,  Congress  passed  legislation that  caused  a  lot  of                                                               
federal agencies  to inflation adjust  their penalties.  OSHA did                                                               
so in  2016 and required all  state plans to follow  suit. Alaska                                                               
fell out of compliance January 1,  2017 and HB 121 is the remedy.                                                               
It requires DOLWD to adopt  maximum penalty amounts by regulation                                                               
and limits the  amounts to the corresponding  federal amounts for                                                               
each violation type.                                                                                                            
                                                                                                                                
CHAIR COSTELLO  asked when  the department  became aware  that it                                                               
was out of compliance.                                                                                                          
                                                                                                                                
MS.  KELLY  replied  it  was  when  OSHA  inflation-adjusted  its                                                               
penalties and  required state  plans like AKOSH  to do  the same.                                                               
That is when DOLWD began working to develop the bill                                                                            
                                                                                                                                
CHAIR COSTELLO commented on the effective date of the Act.                                                                      
                                                                                                                                
MS. KELLY  directed attention to Section  9 on page 3.  It states                                                               
that Section 8 of the Act takes effect immediately.                                                                             
                                                                                                                                
2:29:06 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:29:10 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
SENATOR GARDNER  requested clarification  that the bill  does not                                                               
change the  health and  safety standards.  It simply  changes the                                                               
penalty for being in violation of the inspection requirements.                                                                  
                                                                                                                                
MS. KELLY agreed.                                                                                                               
                                                                                                                                
SENATOR MICCICHE observed that Sections 1,  3, and 4 use the term                                                               
 may"  and Section  2 uses  the term   shall.  He  asked what  is                                                               
different in Section 2 that would require a "shall.                                                                             
                                                                                                                                
REPRESENTATIVE KITO said  he didn't know the  reason that  shall                                                                
was used in Section 2.                                                                                                          
                                                                                                                                
CHAIR COSTELLO asked Ms. Kelly if she could respond.                                                                            
                                                                                                                                
MS. KELLY offered to do follow-up  research on the history of the                                                               
statutory language.                                                                                                             
                                                                                                                                
SENATOR MICCICHE said  he'd like to know if it  was a mistake. He                                                               
also expressed concern  that the legislature has  no control over                                                               
the amount of the maximum civil  penalties if it is determined by                                                               
regulation.                                                                                                                     
                                                                                                                                
CHAIR COSTELLO asked  the sponsor if someone  from the department                                                               
could respond.                                                                                                                  
                                                                                                                                
REPRESENTATIVE KITO  deferred to  the department. He  returned to                                                               
the question  about the use  of "shall  versus  may"  and advised                                                               
that it is existing law that HB 121 does not change.                                                                            
                                                                                                                                
CHAIR COSTELLO  asked Senator Micciche  if he wanted to  hold the                                                               
bill or pass it along to finance and get the answer there.                                                                      
                                                                                                                                
SENATOR MICCICHE said he'll see it in finance.                                                                                  
                                                                                                                                
2:33:40 PM                                                                                                                    
SENATOR  MICCICHE moved  to  report HB  121  from committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
CHAIR COSTELLO stated  that without objection, HB  121 moves from                                                               
Senate Labor and Commerce Standing Committee.                                                                                   
                                                                                                                                
        HB  86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL                                                                    
                                                                                                                                
2:34:23 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of HB 86.                                                                            
                                                                                                                                
2:34:38 PM                                                                                                                    
REPRESENTATIVE  MATT CLAMAN,  Alaska  State Legislature,  Juneau,                                                               
Alaska,  sponsor of  HB  86, quoted  Thomas  Jefferson who  said,                                                               
"Government is best which governs least."  He said the goal of HB                                                               
86  is   to  revoke  the   Alaska  Commission   on  Postsecondary                                                               
Education's  authority  to  use the  nonrenewal  of  occupational                                                               
licenses as an  incentive to ensure the payment  of student loans                                                               
that  are  in default.  The  commission  has not  exercised  this                                                               
authority since  2010 and  has found that  garnishing wages  is a                                                               
more effective  tool. In the  past, those who had  their licenses                                                               
revoked  left the  state and  established practice  elsewhere. In                                                               
those instances, the  state not only lost the  ability to collect                                                               
but  also a  skilled member  of the  Alaskan workforce.  Thus, it                                                               
makes  sense to  ensure that  this sort  of government  overreach                                                               
cannot occur.                                                                                                                   
                                                                                                                                
2:35:56 PM                                                                                                                    
CERI GODINEZ, Staff, Representative Matt Claman, Alaska State                                                                   
Legislature, Juneau, Alaska, presented HB 86, reading from the                                                                  
following prepared statement:                                                                                                   
                                                                                                                                
     House Bill  86 repeals current statutes  that allow the                                                                    
     Alaska Commission on  Postsecondary Education (ACPE) to                                                                    
     threaten  nonrenewal   of  occupational   licenses  for                                                                    
     individuals who have defaulted  on their student loans.                                                                    
     Repealing   this   authority    will   allow   licensed                                                                    
     individuals to continue their work  in order to earn an                                                                    
     income and pay back  their defaulted loans without fear                                                                    
     of losing their license.                                                                                                   
                                                                                                                                
     There are  already many difficulties that  one faces if                                                                    
     they  default on  their student  loans, not  limited to                                                                    
     late fees, court costs, liens  on property, and adverse                                                                    
     reports to consumer reporting agencies.                                                                                    
                                                                                                                                
     The current statute states that  the commission has the                                                                    
     authority to  provide notice  to a  licensing authority                                                                    
     for nonrenewal of  a license upon default.  If the ACPE                                                                    
     posts such  notice, the licensing entity  may not renew                                                                    
     said  license during  the next  renewal cycle.  Many of                                                                    
     these laws  were passed in  the 1990s and  early 2000s,                                                                    
     when  student aid  was often  provided by  states. Now,                                                                    
     however, most loans are federal.                                                                                           
                                                                                                                                
     In  2016,  Montana became  the  first  state to  repeal                                                                    
     similar statutes  and now only  20 states  remain. This                                                                    
     bill allows  us to follow Montana's  example and reduce                                                                    
     that  number  to 19  states  and  protect our  licensed                                                                    
     nurses,   pharmacists,    social   workers,   teachers,                                                                    
     correctional officers, and many others.                                                                                    
                                                                                                                                
     I'll  now provide  a brief  sectional  analysis of  the                                                                    
     bill.                                                                                                                      
                                                                                                                                
     Section  One   deletes  language  that  is   no  longer                                                                    
     necessary after the repeals mentioned in section two.                                                                      
                                                                                                                                
     Section Two repeals the following statutes:                                                                                
                                                                                                                                
        AS 14.43.145(a)(4) which gives authority to the                                                                         
          commission to provide notice of default to a                                                                          
        licensing entity for nonrenewal of a license.                                                                           
                                                                                                                                
        AS 14.43.148  which  indicates  that  a  licensing                                                                      
        entity may  not  renew  a  license  if  they  have                                                                      
        received  notice  from  the  commission  that  the                                                                      
        licensee has  defaulted on  a loan  issued by  the                                                                      
        commission.                                                                                                             
                                                                                                                                
       AS   21.27.390(d)   which   references   temporary                                                                       
        licenses.                                                                                                               
                                                                                                                                
CHAIR COSTELLO asked Ms. Butler  if the department had a position                                                               
on the bill.                                                                                                                    
                                                                                                                                
2:38:26 PM                                                                                                                    
STEPHANIE  BUTLER,  Executive  Director,   Alaska  Commission  on                                                               
Postsecondary   Education,  Department  of  Education  and  Early                                                               
Development    (DEED),   Juneau,   Alaska,    stated   that   the                                                               
commission  is not  currently  using  its authority  to threaten                                                                
nonrenewal  of  an  occupational  license   for individuals   who                                                               
have  defaulted  on their  student  loans.  It  has not  been  an                                                               
effective  tool  and therefore  the commission  has  no concerns                                                                
with HB  86.                                                                                                                    
                                                                                                                                
CHAIR  COSTELLO  asked  her to  comment  on  the March  20,  2017                                                               
memo  in which Representative   Birch asked  if she  had a  sense                                                               
of  the magnitude  of  the  debt and  number  of  recipients  who                                                               
would  be impacted  by the bill.                                                                                                
                                                                                                                                
MS.  BUTLER  said at  that  time there  was  about  $240 million                                                                
in  outstanding   state  loans.  The  value  of  that  portfolio                                                                
currently    is  slightly    less   than   $200   million.    She                                                               
reiterated   that   the  commission   has   found   it  is   most                                                               
effective   to  collect   on  defaulted   loans   by  garnishing                                                                
either  wages or the  permanent  fund dividend  PFD.                                                                            
                                                                                                                                
CHAIR  COSTELLO  noted  that the  memo  identified  46 defaulted                                                                
borrowers  with  outstanding  loans, none  of whom  are employed                                                                
in Alaska.                                                                                                                      
                                                                                                                                
MS.  BUTLER   said  that's   correct  and   the  commission   has                                                               
released  the holds  on those licenses.                                                                                         
                                                                                                                                
CHAIR  COSTELLO   asked  if  the  comment   about  garnishing   a                                                               
permanent  fund dividend  was hypothetical.                                                                                     
                                                                                                                                
MS. BUTLER  answered  yes.                                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked  if the  commission   is powerless   to                                                               
collect  on those 46  defaulted  loans.                                                                                         
                                                                                                                                
MS.  BUTLER   replied  there   are  nationwide   tools  such   as                                                               
credit  reporting,  but  the  ability  to collect  is  less  when                                                               
the defaulted  borrower  is out  of state.                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked  if garnishing   wages  is  an option,                                                                
although  more difficult,  when  the  defaulted borrower  is  out                                                               
of state.                                                                                                                       
                                                                                                                                
MS. BUTLER  answered  yes.                                                                                                      
                                                                                                                                
SENATOR  MICCICHE   asked,  "It's  not  something  you  use,  and                                                               
you  have  no  concern   about  eliminating   the  potential   to                                                               
revoke  licensing?"                                                                                                             
                                                                                                                                
MS.  BUTLER  replied  that's  correct;  it  wasn't  an effective                                                                
tool.                                                                                                                           
                                                                                                                                
2:42:52 PM                                                                                                                    
SENATOR   GARDNER  asked   if  [$200]  million   was  the   total                                                               
outstanding,  not the  amount in  default.                                                                                      
                                                                                                                                
MS. BUTLER  replied  that's correct.                                                                                            
                                                                                                                                
SENATOR  MEYER  summarized  that  nonrenewal  has not  been  used                                                               
since  2010,  and  the  best  tool  is  to  garnish  the  PFD  or                                                               
wages.                                                                                                                          
                                                                                                                                
MS. BUTLER  said that's  correct.                                                                                               
                                                                                                                                
SENATOR  MICCICHE  expressed  interest  in  looking  at the  data                                                               
on the  average amounts  of the  defaulted loans.                                                                               
                                                                                                                                
MS. BUTLER  agreed  to follow up  with the information.                                                                         
                                                                                                                                
CHAIR   COSTELLO   asked   the   sponsor   to  comment   on   the                                                               
perception  that  it's  a  lose-lose  situation  if  a defaulted                                                                
borrower  leaves  the  state.  The  state  doesn't  collect,  and                                                               
it also  loses that  worker.                                                                                                    
                                                                                                                                
REPRESENTATIVE  CLAMAN  said  his office  found that  having  the                                                               
authority  to exercise  this power  was a double  negative.                                                                     
                                                                                                                                
CHAIR  COSTELLO  said  she  would  hold  the  bill  awaiting  the                                                               
information    on    the   46    borrowers    with   outstanding                                                                
occupational  license  holds.                                                                                                   
                                                                                                                                
SENATOR   MEYER   asked   if   licensing    entities   check   on                                                               
outstanding  loans  in other states.                                                                                            
                                                                                                                                
MS.  BUTLER  said  she  was unaware   of any  state  reciprocity                                                                
specific  to defaulted  student  loans.                                                                                         
                                                                                                                                
SENATOR  MEYER  asked  if  they  were  talking   about  state  or                                                               
federal  loans.                                                                                                                 
                                                                                                                                
MS. BUTLER  replied  only state  loans.                                                                                         
                                                                                                                                
SENATOR  MEYER  commented   on  the  need  to keep  students   in                                                               
Alaska.                                                                                                                         
                                                                                                                                
SENATOR  MICCICHE   clarified   that  his  request   was  on  the                                                               
outstanding  state  loans.   He added  that  he  is  inclined  to                                                               
forgive  loans to  encourage  Alaskans  to stay  here as opposed                                                                
to eliminating  a collection  tool.                                                                                             
                                                                                                                                
2:49:54 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 86.                                                                                
                                                                                                                                
2:50:06 PM                                                                                                                    
AMBER  MICHAIS,  Registered  Nurse,  Alaska  Nurses  Association,                                                               
Anchorage, Alaska, stated  support for HB 86 and  described it as                                                               
student  debt relief.  She  said student  debt  is a  significant                                                               
issue and  it makes sense  to keep  someone who has  student debt                                                               
working.  Preventing them  from  working by  nonrenewal of  their                                                               
professional  license makes  it  difficult to  impossible to  pay                                                               
back their  loan. HB 86 will  ensure that Alaska nurses  are able                                                               
to continue their  profession so that Alaskans  receive care when                                                               
it's needed.                                                                                                                    
                                                                                                                                
She shared  that she has high  balance loans and the  current law                                                               
could cripple her  ability to support her family  should she find                                                               
herself in default.                                                                                                             
                                                                                                                                
SENATOR GARDNER pointed out that debt  relief is not the focus of                                                               
the bill. It's about how to  best protect the state's interest in                                                               
collecting where appropriate.                                                                                                   
                                                                                                                                
2:53:29 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on HB  86 and  held the                                                               
bill in committee.                                                                                                              
                                                                                                                                
         HCR  8-KODIAK SEAFOOD & MARINE SCIENCE CENTER                                                                      
                                                                                                                                
2:53:58 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of HCR 8. [HCR  8 AM                                                               
was before the committee.]                                                                                                      
                                                                                                                                
2:54:13 PM                                                                                                                    
MATT GRUENING,  Staff, Representative  Louise Stutes and  aide to                                                               
the House Fisheries Committee,  Alaska State Legislature, Juneau,                                                               
Alaska,  introduced  HCR  8  on behalf  of  the  House  Fisheries                                                               
Committee.  He  summarized  that  the  resolution  expresses  the                                                               
legislature's support  for the Kodiak Seafood  and Marine Science                                                               
Center  (KSMSC) and  urges the  University  of Alaska  to find  a                                                               
solution to keep it operating.                                                                                                  
                                                                                                                                
He  explained  that  early  in  2016  the  University  of  Alaska                                                               
Fairbanks  notified  KSMSC  that  due  to  budget  cuts,  it  was                                                               
considering  transferring   ownership  of   the  center   to  the                                                               
University  of  Alaska  Anchorage  for  repurposing  or  possibly                                                               
closing the center altogether.                                                                                                  
                                                                                                                                
The  City and  Borough  of  Kodiak and  industry  groups such  as                                                               
Trident  Seafoods,   Alaska  Pacific  Seafoods,   Alaska  Seafood                                                               
Marketing  Institute,  Seafood   Processors  Association,  Icicle                                                               
Seafoods,  and  others  sent   letters  protesting  the  proposed                                                               
closure.  U.S. Senator  Lisa Murkowski  met  with KSMSC's  policy                                                               
group to express concern and  support of the center. In response,                                                               
the 501(c)(3) nonprofit Alaska Research  Consortium was formed to                                                               
act  as the  operating  body  for the  center.  UAF is  currently                                                               
looking  at the  possibility of  a public/private  partnership to                                                               
keep the center open.                                                                                                           
                                                                                                                                
SENATOR MICCICHE asked if the  resolution is trying to manage the                                                               
universits   decisions  about how to handle  the significant cuts                                                               
it has seen in the last few years                                                                                               
                                                                                                                                
MR. GRUENING clarified that the intent  is not to manage what the                                                               
Board of Regents does. The  university itself has reached out and                                                               
is  trying to  work with  the sponsor's  office and  the City  of                                                               
Kodiak to  find a  solution to  keep the center  open. It  is the                                                               
state's  only  pilot  processing   plant  that  does  significant                                                               
research and is of great value to the seafood industry.                                                                         
                                                                                                                                
He  noted  that  part  of  the  difficulty  came  about  when  an                                                               
agricultural  grant  that  partially  funded the  center  was  no                                                               
longer offered.                                                                                                                 
                                                                                                                                
2:59:18 PM                                                                                                                    
SENATOR MEYER asked  if processors donate to  the program because                                                               
they make money off it.                                                                                                         
                                                                                                                                
MR. GRUENING said he didn't know.                                                                                               
                                                                                                                                
SENATOR MEYER said that would be good to know.                                                                                  
                                                                                                                                
SENATOR MICCICHE stated support for  finding creative ways like a                                                               
public/private partnership to keep the center open.                                                                             
                                                                                                                                
3:01:26 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on HCR 8.                                                                                
                                                                                                                                
3:01:42 PM                                                                                                                    
SENATOR  MICCICHE  moved to  report  HCR  8 from  committee  with                                                               
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
3:02:06 PM                                                                                                                    
SENATOR  MEYER  objected to  request  the  information about  the                                                               
industry participation.                                                                                                         
                                                                                                                                
MR. GRUENING said  he would provide the information  to the chair                                                               
as soon as possible.                                                                                                            
                                                                                                                                
SENATOR MEYER removed his objection.                                                                                            
                                                                                                                                
3:02:44 PM                                                                                                                    
SENATOR  MICCICHE  restated  the  motion to  report  HCR  8  from                                                               
committee  with  individual  recommendations  and  attached  zero                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO stated  that without  objection, HCR  8 AM  moves                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
3:03:29 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Costello adjourned the Senate Labor and Commerce Standing                                                                 
Committee meeting at 3:03 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 126 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB 126 Testimony.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
SB126-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
SB 126
HB208 Sectional Analysis ver A 4.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
HB208-LAW-CIV-01-26-2018.pdf SL&C 1/30/2018 1:00:00 PM
HB 208
Sponsor Statement - HB - 208.pdf SL&C 1/30/2018 1:00:00 PM
HB 208 Fiscal Note 01.26.18
HB102 Supporting Document-Nome Schools Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Koniag KANA Roundtable Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Dr Wilson Letter 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102 Supporting Document-Native Village of Port Lions Resolution 1.26.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HCR 8 Supporting Document-KSMSC Budget.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document-APICDA 12.10.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Supporting Document AML 11.5.15.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 ver A.A.PDF SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Explanation of Changes ver A.A 1.28.17.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Leg Research Report 1.2.16.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR 8 Sponsor Statement ver A.A 1.28.18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HCR8-LEG-SESS-01-29-18.pdf SL&C 1/30/2018 1:00:00 PM
HCR 8
HB102 Fiscal Note EED-SSA-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 102
HB102.PDF SL&C 1/30/2018 1:00:00 PM
HB 102
HB114 Sectional Analysis.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB114 ver D.PDF SL&C 1/30/2018 1:00:00 PM
HB 114
HB 114-DOLWD-MI-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 114
HB121-DOLWD-OSH-1-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - ver O 2.27.17.PDF SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sponsor Statement 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Sectional Analysis 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Support Document - Federal memo to state plans 02.23.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Additional Document - Sponsor's Reply to House Judiciary Committee Questions 3.10.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB 121 - Supporting Document-OSHA Fact Sheet 3.6.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 121
HB124 Explanation of changes from ver A to ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sponsor Statement 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Sectional Analysis ver U 1.18.18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124CS(FIN)-DCCED-CBPL-01-26-18.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 Support Documents - Letters of Support 4.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB124 ver. U 5.11.17.pdf SL&C 1/30/2018 1:00:00 PM
HB 124
HB 86 ver A.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Sponsor Statement.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Fiscal Note EED-ACPE.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Supporting Document - Letter of Support.PDF SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - Questions Memo HLNC.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - ACPE Loan Default Consequences.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 - Background - NY Times Student Loans.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
HB 86 Senator Costello Senate Labor and Commerce Committee Follow-up.pdf SL&C 1/30/2018 1:00:00 PM
HB 86
ASMA Letter of Support SB 126.pdf SL&C 1/30/2018 1:00:00 PM
SB 126