Legislature(2019 - 2020)BELTZ 105 (TSBldg)

03/21/2019 01:30 PM LABOR & COMMERCE

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Audio Topic
01:30:10 PM Start
01:31:58 PM Confirmation Hearing(s):
01:36:15 PM SB65
01:41:35 PM SB66
01:53:44 PM SB69
02:25:32 PM Confirmation Hearing(s)
02:39:06 PM SJR8
02:48:45 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Consideration of Governor's Appointees: TELECONFERENCED
- Workers' Compensation Board - Chuck Collins,
Sarah Lefebvre
- Board of Physical Therapy & Occupational
Therapy - Dr. Enlow Walker
-- Public Testimony --
*+ SB 69 EXEMPT CHARITABLE GAMING FROM PERMIT/FEES TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
*+ SJR 8 U.S.-MEXICO-CANADA AGREEMENT ON TRADE TELECONFERENCED
Heard & Held
-Invited Testimony Followed by Public Testimony-
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 65 DEPT. OF LABOR: TECHNICAL ED. PROGRAMS TELECONFERENCED
Moved SB 65 Out of Committee
+= SB 66 LABOR STANDARDS/SAFETY; WORKER COMP. TELECONFERENCED
Moved SB 66 Out of Committee
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 21, 2019                                                                                         
                           1:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lora Reinbold, Chair                                                                                                    
Senator Mia Costello, Vice Chair                                                                                                
Senator Click Bishop                                                                                                            
Senator Chris Birch                                                                                                             
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING:                                                                                                           
                                                                                                                                
Board of Physical Therapy                                                                                                     
Dr. Enlow Walker - North Pole                                                                                                   
                                                                                                                                
     CONFIRMATION ADVANCED                                                                                                      
                                                                                                                                
SENATE BILL NO. 65                                                                                                              
"An Act  relating to the  duties of  the Department of  Labor and                                                               
Workforce Development; and providing for an effective date."                                                                    
                                                                                                                                
     - MOVED SB 65 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 66                                                                                                              
"An Act relating  to the division of labor  standards and safety;                                                               
relating to  the division of workers'  compensation; establishing                                                               
the division  of workers' safety and  compensation; and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED SB 66 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 69                                                                                                              
"An   Act  establishing   an  exception   from  permit   and  fee                                                               
requirements for  certain charitable gaming  activities; relating                                                               
to fees for  applicants for a charitable  gaming permit; amending                                                               
the  definition of  'permittee'; and  providing for  an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CONFIRMATION HEARING:                                                                                                           
                                                                                                                                
Workers' Compensation Board                                                                                                   
Chuck Collins - Juneau                                                                                                          
Sarah LeFebvre - Fairbanks                                                                                                      
                                                                                                                                
     CONFIRMATIONS ADVANCED                                                                                                     
                                                                                                                                
SENATE JOINT RESOLUTION NO. 8                                                                                                   
Supporting  the ratification  of the  United States-Mexico-Canada                                                               
Agreement  on trade;  encouraging the  federal Administration  to                                                               
remove the steel and aluminum  tariffs on imports from Canada and                                                               
Mexico; and  urging the  United States  Congress and  the federal                                                               
Administration   to  call   on  Canada   and  Mexico   to  remove                                                               
retaliatory tariffs on  all goods and services  exported from the                                                               
United States.                                                                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 65                                                                                                                   
SHORT TITLE: DEPT. OF LABOR: TECHNICAL ED. PROGRAMS                                                                             
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/20/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (S)       L&C, FIN                                                                                               
03/19/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/19/19       (S)       Heard & Held                                                                                           
03/19/19       (S)       MINUTE(L&C)                                                                                            
03/21/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 66                                                                                                                   
SHORT TITLE: LABOR STANDARDS/SAFETY; WORKER COMP.                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/20/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (S)       L&C, FIN                                                                                               
03/19/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/19/19       (S)       Heard & Held                                                                                           
03/19/19       (S)       MINUTE(L&C)                                                                                            
03/21/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 69                                                                                                                   
SHORT TITLE: EXEMPT CHARITABLE GAMING FROM PERMIT/FEES                                                                          
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/22/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/19       (S)       L&C, FIN                                                                                               
03/21/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SJR 8                                                                                                                   
SHORT TITLE: U.S.-MEXICO-CANADA AGREEMENT ON TRADE                                                                              
SPONSOR(s): SENATOR(s) COSTELLO                                                                                                 
                                                                                                                                
03/01/19       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/01/19       (S)       L&C                                                                                                    
03/21/19       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ENLOW WALKER, M.D., Appointee                                                                                                   
Board of Physical Therapy                                                                                                       
Division of Corporations, Business & Professional Licensing                                                                     
Department of Commerce, Community and Economic Development                                                                      
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Board of                                                                    
Physical Therapy.                                                                                                               
                                                                                                                                
TAMIKA LEDBETTER, Ph.D., Commissioner Designee                                                                                  
Department of Labor and Workforce Development (DOLWD)                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified during the discussion of SB 65.                                                                 
                                                                                                                                
GREY MITCHELL, Director                                                                                                         
Division of Workers' Compensation                                                                                               
Central office                                                                                                                  
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during the discussion of                                                               
SB 66.                                                                                                                          
                                                                                                                                
BRUCE TANGEMAN, Commissioner Designee                                                                                           
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified on behalf of the administration on                                                              
SB 69.                                                                                                                          
                                                                                                                                
COLLEEN GLOVER, Director                                                                                                        
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Presented a sectional analysis for SB 69.                                                                 
                                                                                                                                
SARAH OATES, President                                                                                                          
Alaska Cabaret, Hotel, Restaurant and Retail Association                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to SB 69.                                                                         
                                                                                                                                
STEVEN BORCHERDING, Manager                                                                                                     
Gold Cache Bingo                                                                                                                
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in opposition to SB 69.                                                                         
                                                                                                                                
KATRINA MITCHELL, Gaming Group Manager                                                                                          
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions during the discussion of                                                               
SB 69.                                                                                                                          
                                                                                                                                
CHUCK COLLINS, JR., Appointee                                                                                                   
Workers' Compensation Board                                                                                                     
Department of Labor and Workforce Development (DOLWD)                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified as appointee to the Workers'                                                                    
Compensation Board,                                                                                                             
                                                                                                                                
SARAH LEFEBVRE, Appointee                                                                                                       
Workers' Compensation Board                                                                                                     
Department of Labor and Workforce Development (DOLWD)                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Workers'                                                                    
Compensation Board.                                                                                                             
                                                                                                                                
ERIN MCLAUGHLIN, Intern                                                                                                         
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified on behalf of the sponsor of SJR 8,                                                              
Senator Mia Costello.                                                                                                           
                                                                                                                                
MATTHEW MORRISON, Chief Executive Officer (CEO)                                                                                 
Pacific NorthWest Economic Region (PNWER)                                                                                       
Seattle, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SJR 8.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:10 PM                                                                                                                    
CHAIR  LORA  REINBOLD  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 1:30 p.m.  Present at the                                                               
call  to  order  were  Senators  Costello,  Gray-Jackson,  Birch,                                                               
Bishop, and Chair Reinbold.                                                                                                     
                                                                                                                                
^CONFIRMATION HEARING(S):                                                                                                       
                    CONFIRMATION HEARING(S):                                                                                
                   Board of Physical Therapy                                                                                
                                                                                                                              
1:31:58 PM                                                                                                                    
CHAIR REINBOLD announced  that the first order  of business would                                                               
be confirmation hearings for the Board of Physical Therapy.                                                                     
                                                                                                                                
1:32:23 PM                                                                                                                    
ENLOW  WALKER,  M.D.,  Appointee,   Board  of  Physical  Therapy,                                                               
Division  of  Corporations,  Business &  Professional  Licensing,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), North  Pole, said he  has been  serving on the  Board of                                                               
Physical Therapy since July 2018.  He retired from active medical                                                               
practice in 2016.  He still fills in at the  Fairbanks Clinic for                                                               
his  previous partners.  He served  on  active duty  as a  family                                                               
practice physician  in the U.S.  Air Force for seven  years, with                                                               
five years at Eielson Air Force  Base (EAFB). He also served four                                                               
years  in  the  Alaska  Air National  Guard.  He  then  practiced                                                               
medicine at the Fairbanks Clinic for  30 years. Since 2011 he has                                                               
served  as  the  physician  member   on  the  Advisory  Board  on                                                               
Alcoholism and Drug  Abuse, and as chair in 2018.  He also serves                                                               
as a  member of  the Fairbanks North  Star Borough  Commission on                                                               
Health  and  Social  Services, and  the  Golden  Valley  Electric                                                               
Association Member Advisory Committee.                                                                                          
                                                                                                                                
He said he used physical  therapists for several months after his                                                               
knee replacement surgery and as  a physician he referred patients                                                               
to   physical   and   occupational  therapy.   Several   of   his                                                               
grandchildren  have received  extensive occupational  therapy, he                                                               
said. He expressed interest in serving  on the board to give back                                                               
to his community and the state.                                                                                                 
                                                                                                                                
1:35:04 PM                                                                                                                    
SENATOR BISHOP said  that Dr. Walker's resume  is impressive, and                                                               
he appreciates  his willingness to  serve. He remarked  that with                                                               
his distinguished  career he  will be  an asset  to the  State of                                                               
Alaska.                                                                                                                         
                                                                                                                                
CHAIR REINBOLD said that she was  impressed that he has served on                                                               
the  Advisory Board  on  Alcoholism and  Drug  Abuse since  2011.                                                               
Alaska currently  faces a crisis  in drug and alcohol  abuse, she                                                               
said. She thanked Dr. Walker for making Alaska a better place.                                                                  
                                                                                                                                
1:35:52 PM                                                                                                                    
CHAIR REINBOLD  opened public  testimony, and  after ascertaining                                                               
no  one  wished  to  testify,  closed  public  testimony  on  the                                                               
confirmation  hearing for  Enlow Walker,  M.D., appointee  to the                                                               
Board of Physical Therapy.                                                                                                      
                                                                                                                                
          SB 65-DEPT. OF LABOR: TECHNICAL ED. PROGRAMS                                                                      
                                                                                                                                
1:36:15 PM                                                                                                                    
CHAIR REINBOLD  announced that the  next order of  business would                                                               
be SENATE  BILL NO.  65, "An  Act relating to  the duties  of the                                                               
Department of Labor and Workforce  Development; and providing for                                                               
an effective date."                                                                                                             
                                                                                                                                
1:37:09 PM                                                                                                                    
TAMIKA  LEDBETTER, Ph.D.,  Commissioner  Designee, Department  of                                                               
Labor and  Workforce Development (DOLWD), Anchorage,  said she is                                                               
very  excited about  the process  and interested  in leading  and                                                               
monitoring the  career and technical education  (CTE) programs in                                                               
Alaska.  She expressed  interest  in the  opportunity to  partner                                                               
with  the Department  of Education  and Early  Development (DEED)                                                               
and the University of Alaska in this effort.                                                                                    
                                                                                                                                
1:38:41 PM                                                                                                                    
SENATOR  BISHOP  reviewed the  Department  of  Labor &  Workforce                                                               
Development fiscal  note for an  appropriation of $140,100  in FY                                                               
2020  to  the  Commissioner   and  Administrative  Services.  The                                                               
allocation  is  the  Workforce  Investment  Board,  and  the  OMB                                                               
component is  2659. There is  no fiscal impact to  the department                                                               
as  a  result   of  this  legislation,  because   this  does  not                                                               
significantly change the  department's programs. This legislation                                                               
simply formalizes  the department's  role in the  coordination of                                                               
the state's CTE programs.                                                                                                       
                                                                                                                                
SENATOR  BISHOP reviewed  the Department  of Education  and Early                                                               
Development (DEED),  zero fiscal note. The  allocation is Student                                                               
and  School  Achievement and  the  OMB  component is  2796.  This                                                               
legislation  amends AS  44.31.020,  requiring  the Department  of                                                               
Labor and  Workforce Development to coordinate  and monitor state                                                               
career and  technical education programs by  cooperating with the                                                               
Department of Education and Early  Development, the University of                                                               
Alaska,  and  any  other  entities that  provide  or  fund  these                                                               
programs.  This legislation  would become  effective immediately.                                                               
There is no fiscal impact to the department.                                                                                    
                                                                                                                                
1:40:54 PM                                                                                                                    
SENATOR COSTELLO moved  to report SB 65,  work order 31-GS1139\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal  note(s). There  being no  objection, SB  65 was  reported                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
           SB 66-LABOR STANDARDS/SAFETY; WORKER COMP.                                                                       
                                                                                                                                
1:41:35 PM                                                                                                                    
CHAIR REINBOLD  announced that the  next order of  business would                                                               
be SENATE BILL NO. 66, "An  Act relating to the division of labor                                                               
standards  and  safety;  relating  to the  division  of  workers'                                                               
compensation; establishing  the division  of workers'  safety and                                                               
compensation; and providing for an effective date."                                                                             
                                                                                                                                
1:42:35 PM                                                                                                                    
GREY  MITCHELL,  Director,  Division  of  Workers'  Compensation,                                                               
Central  Office, Department  of Labor  and Workforce  Development                                                               
(DOLWD), Juneau,  briefly reviewed  SB 66.  As stated  during the                                                               
previous  hearing, SB  66  would combine  the  Division of  Labor                                                               
Standards  and  Safety  (DLSS)  with  the  Division  of  Workers'                                                               
Compensation. The  department does  not intend  to change  any of                                                               
the programs,  but to create  opportunities for  efficiencies and                                                               
remove silos between  the two divisions. The  department hopes to                                                               
capture  some  immediate  savings by  flattening  the  management                                                               
structure  in the  Occupational Safety  and Health  component and                                                               
taking advantage  of a vacancy  in an administrative  position in                                                               
Fairbanks.  The  department   would  combine  the  administrative                                                               
functions in the two divisions.  One provision in the fiscal note                                                               
is related  to reclassification of  the director's position  to a                                                               
deputy director,  who would work  in tandem with the  director of                                                               
the  Division  of  Workers'  Compensation  in  the  newly  formed                                                               
Division of  Worker Safety  and Compensation.  The administrative                                                               
officer  II  position   that  is  currently  in   DLSS  would  be                                                               
reclassified  to  an  administrative  officer  I  position.  This                                                               
position would be  part of the team for the  combined division to                                                               
more effectively  manage the administrative operations.  It would                                                               
help create a safety net  and career pathway within the division.                                                               
Currently,  when  one  position  becomes  vacant,  it  means  the                                                               
department must train  a new person. This would  help ensure that                                                               
someone  is trained  and ready  to step  in at  the same  time it                                                               
would create efficiencies and better overall management.                                                                        
                                                                                                                                
1:44:16 PM                                                                                                                    
SENATOR BISHOP  reviewed the zero-fiscal note  for the Department                                                               
of Labor and Workforce,  Workers' Compensation. The appropriation                                                               
and  allocation  are  both  Workers'  Compensation  and  the  OMB                                                               
component  is  344. He  read  the  fiscal note  commentary:  This                                                               
merger  will  not result  in  an  immediate cost  savings  within                                                               
Workers' Compensation.  Potential future  year cost  savings will                                                               
have  to be  determined  as position  responsibilities and  lease                                                               
space needs are evaluated moving forward.                                                                                       
                                                                                                                                
SENATOR BISHOP said the second  fiscal note for the Department of                                                               
Labor &  Workforce Development shows  the potential  savings. The                                                               
appropriation is  Labor Standards  and Safety, the  allocation is                                                               
Occupational Safety and Health, and  the OMB component is 970. He                                                               
said  there would  be a  general  fund reduction  of $71,400  and                                                               
designated general fund  savings of $211,600 for  a total savings                                                               
of $283,000. He read the following fiscal note analysis:                                                                        
                                                                                                                                
     This   legislation  merges   the   Division  of   Labor                                                                    
     Standards  and  Safety  and the  Division  of  Workers'                                                                    
     Compensation into  the Division of Workers'  Safety and                                                                    
     Compensation.  The new  division  would administer  the                                                                    
     same programs as are currently  administered by the two                                                                    
     separate divisions.  The department's  regulations need                                                                    
     to be updated to reflect the division name change.                                                                         
                                                                                                                                
     This  merger would  result in  immediate administrative                                                                    
     efficiencies  resulting  in   position  reductions  and                                                                    
     personal services  savings. The estimated  cost savings                                                                    
     is  based   on  the   reclassification  of   the  Labor                                                                    
     Standards and  Safety Director (range  27) to  a Deputy                                                                    
     Director (range  25) position,  the elimination  of the                                                                    
     Occupational  Safety   and  Health  Chief   (range  23)                                                                    
     position  with  those  duties  assumed  by  the  Deputy                                                                    
     Director, the elimination of  a vacant office assistant                                                                    
     II (range  10) position, and the  reclassification of a                                                                    
     vacant  Administrative Officer  II (range  19) position                                                                    
     to an Administrative Officer I (range 17) position.                                                                        
                                                                                                                                
1:46:45 PM                                                                                                                    
CHAIR  REINBOLD  expressed  appreciation   for  the  fiscal  note                                                               
analysis.                                                                                                                       
                                                                                                                                
1:47:06 PM                                                                                                                    
SENATOR  BISHOP  removed  his  objection. He  said  that  he  has                                                               
workload concerns about the director  position and he would offer                                                               
an  amendment in  the Senate  Finance Committee.  He said  he has                                                               
previously held discussions with  Mr. Mitchell. During his tenure                                                               
as  commissioner  of  the  Department   of  Labor  and  Workforce                                                               
Development (DOLWD),  he considered  collapsing the  division. He                                                               
said  he would  err  on the  side of  worker  safety for  working                                                               
people.  He  expressed concern  that  the  director would  suffer                                                               
burnout.                                                                                                                        
                                                                                                                                
1:48:34 PM                                                                                                                    
SENATOR COSTELLO moved  to report SB 66,  work order 31-GS1049\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal  note(s). There  being no  objection, SB  66 was  reported                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
1:48:54 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
        SB 69-EXEMPT CHARITABLE GAMING FROM PERMIT/FEES                                                                     
                                                                                                                                
1:53:44 PM                                                                                                                    
CHAIR  REINBOLD reconvened  the  meeting and  announced that  the                                                               
next  order of  business would  be SENATE  BILL NO.  69, "An  Act                                                               
establishing an  exception from permit  and fee  requirements for                                                               
certain  charitable  gaming  activities;  relating  to  fees  for                                                               
applicants  for   a  charitable   gaming  permit;   amending  the                                                               
definition of 'permittee'; and providing for an effective date."                                                                
                                                                                                                                
1:54:00 PM                                                                                                                    
BRUCE  TANGEMAN, Commissioner  Designee,  Department of  Revenue,                                                               
Anchorage,  stated   that  the   Department  of   Revenue  issues                                                               
charitable  gaming permits  and  licenses and  collects fees  and                                                               
taxes.  Municipalities and  qualified organizations  that hold  a                                                               
permit are  authorized to conduct  gaming activities.  The annual                                                               
permit is based  on a tiered fee structure.  The department would                                                               
charge a  $20 fee for  an applicant  with gross receipts  of less                                                               
than  $20,000, a  $50 fee  for an  applicant with  gross receipts                                                               
greater than $20,000  but less than $100,000, and a  $100 fee for                                                               
an applicant with gross receipts greater than $100,000.                                                                         
                                                                                                                                
He  said  that   SB  69  would  eliminate  the   permit  and  fee                                                               
requirement for small charitable  organizations with annual gross                                                               
receipts of  less than $20,000.  The bill would reduce  costs and                                                               
workload  for small  charitable  organizations  to conduct  these                                                               
activities.  This reduction  of  regulation  on small  charitable                                                               
organizations  is  part  of  the   governor's  pledge  to  reduce                                                               
regulations, he said.                                                                                                           
                                                                                                                                
COMMISSIONER  DESIGNEE TANGEMAN  said  this would  result in  the                                                               
lack of  regulation for small  charitable organizations,  but the                                                               
department   requires   an    annual   certification   of   these                                                               
organizations that  would serve  as a  quality check.  Only those                                                               
that  qualify for  regulatory relief  would benefit.  He reported                                                               
that  in  2017,   of  the  1,071  reports  that   were  filed  by                                                               
permitholders,  403 or  approximately 38  percent reported  gross                                                               
receipts of  less than $20,000.  He reported that of  the $61,400                                                               
in permit  fees, $8,000  was from  those organizations  with less                                                               
than $20,000 in gross receipts.                                                                                                 
                                                                                                                                
He summarized that  SB 69 would provide an  exemption from annual                                                               
permits  and  fees for  qualified  organizations  with less  than                                                               
$20,000 in annual gross receipts.  Exempt organizations must file                                                               
an  annual certification,  under penalty  of perjury,  to certify                                                               
that  the  organization qualifies  for  the  exemption. The  bill                                                               
would take effect  January 2020, so it would not  have any effect                                                               
in calendar year 2019.                                                                                                          
                                                                                                                                
1:57:26 PM                                                                                                                    
COLLEEN GLOVER,  Director, Tax  Division, Department  of Revenue,                                                               
Anchorage, reviewed  the sectional analysis  for SB 69.  She read                                                               
Sections 1-4.                                                                                                                   
                                                                                                                                
     Section 1:  Amends AS  05.15 to add  a new  section, AS                                                                  
     05.15.055,  to   allow  a  municipality   or  qualified                                                                    
     organization  to  conduct  charitable  gaming  activity                                                                    
     without  a permit  and  without paying  a  fee, if  the                                                                    
     annual gross  receipts from charitable  gaming activity                                                                    
     are less than $20,000.  Provides that a municipality or                                                                    
     qualified  organization  conducting limited  charitable                                                                    
     gaming  does not  need to  file a  report or  apply for                                                                    
     registration but  must file an annual  certification of                                                                    
     compliance. (Page 1, beginning on line 5)                                                                                  
                                                                                                                                
     Section 2: Amends  AS 05.15.115(a) to use  the words "a                                                                  
     permittee"  rather than  "a  municipality or  qualified                                                                    
     organization holding  a permit  to conduct  an activity                                                                    
     under this chapter." (Page 2, beginning on line 3)                                                                         
                                                                                                                                
     Section  3: Amends  AS 05.15.185  to use  the words  "a                                                                  
     permittee"  rather than  "a  municipality or  qualified                                                                    
     organization holding  a permit  to conduct  an activity                                                                    
     under this chapter." (Page 2, lines 9-18)                                                                                  
                                                                                                                                
     Section 4:  Amends the definition of  "permittee" in AS                                                                  
     05.15.690(35)  to include  a municipality  or qualified                                                                    
     organization   conducting  limited   charitable  gaming                                                                    
     activity  without a  permit and  without paying  a fee.                                                                    
     (Page 2, lines 19-23)                                                                                                      
                                                                                                                                
1:59:12 PM                                                                                                                    
MS. GLOVER read Sections 5-8:                                                                                                   
                                                                                                                                
     Section 5: This section  repeals AS 05.15.020(c)(1) and                                                                  
     05.15.020(c)(2). (Page 2, line 24)                                                                                         
                                                                                                                                
     Section 6:  Allows the Department  of Revenue  to adopt                                                                  
     transition regulations. (Page 2, lines 25-30)                                                                              
                                                                                                                                
     Section  7: Provides  an immediate  effective date  for                                                                  
     Section 6. (Page 2, line 31)                                                                                               
                                                                                                                                
     Section 8:  Provides for an  effective date  of January                                                                  
     1, 2020, for Sections 1-5. (Page 3, line 1)                                                                                
                                                                                                                                
1:59:44 PM                                                                                                                    
MS.  GLOVER   said  that  the   bill  would  replace   the  terms                                                               
"municipality or  qualified organization  holding a  permit" with                                                               
the term  "permittee" since smaller organizations  would not hold                                                               
a permit. It also would define "permittee."                                                                                     
                                                                                                                                
2:00:17 PM                                                                                                                    
SENATOR GRAY-JACKSON  asked whether  the fees  were the  same for                                                               
every organization.                                                                                                             
                                                                                                                                
MS.  GLOVER answered  that  the  fees were  tiered  based on  the                                                               
amount of gross receipts.                                                                                                       
                                                                                                                                
SENATOR GRAY-JACKSON  asked whether  some organizations  bring in                                                               
less than $20,000.                                                                                                              
                                                                                                                                
COMMISSIONER DESIGNEE  TANGEMAN answered that the  total fees for                                                               
all permittees  was $61,400 and  $8,000 of that was  derived from                                                               
those organizations with gross receipts of less than $20,000.                                                                   
                                                                                                                                
2:01:37 PM                                                                                                                    
SENATOR GRAY-JACKSON  asked for  confirmation that the  total was                                                               
$8,000.                                                                                                                         
                                                                                                                                
COMMISSIONER DESIGNEE TANGEMAN answered yes.                                                                                    
                                                                                                                                
2:01:47 PM                                                                                                                    
SENATOR BIRCH remarked that hockey  teams from all over the state                                                               
are  likely rejoicing  that they  do not  have to  dive into  the                                                               
regulatory  morass  for modest  fundraising  for  their kids.  He                                                               
expressed gratitude for the bill.                                                                                               
                                                                                                                                
2:02:09 PM                                                                                                                    
SENATOR BISHOP  asked whether the organizations  would be totally                                                               
unregulated.                                                                                                                    
                                                                                                                                
COMMISSIONER DESIGNEE  TANGEMAN answered that they  would provide                                                               
a year-end report to prove they qualify for the exemption.                                                                      
                                                                                                                                
SENATOR BISHOP said he wanted to avoid fraud.                                                                                   
                                                                                                                                
2:02:50 PM                                                                                                                    
SENATOR  COSTELLO  said she  appreciates  the  comment about  the                                                               
hockey  organizations.  She  referred  to an  email  that  voiced                                                               
concern that it might be confusing  to the public as to who would                                                               
need a permit. She asked how that would be addressed.                                                                           
                                                                                                                                
COMMISSIONER DESIGNEE TANGEMAN deferred to Ms. Glover.                                                                          
                                                                                                                                
MS. GLOVER  answered that the  division was  currently discussing                                                               
this. She  said that it would  be part of the  regulation packet.                                                               
She  assured  members that  the  department  wants people  to  be                                                               
informed.                                                                                                                       
                                                                                                                                
2:03:57 PM                                                                                                                    
SENATOR COSTELLO related another  concern about criminal activity                                                               
such  as altering  pull  tabs to  resemble  winning tickets.  She                                                               
asked  whether  the department  considered  that  the bill  might                                                               
potentially increase illegal activity  or if the department could                                                               
provide assurances that this will not happen.                                                                                   
                                                                                                                                
MS.  GLOVER answered  that this  bill  does not  affect pull  tab                                                               
regulations.  This  bill  only affects  charitable  organizations                                                               
that need a permit.                                                                                                             
                                                                                                                                
SENATOR COSTELLO requested the answer in writing for clarity.                                                                   
                                                                                                                                
MS. GLOVER agreed to provide a written answer to the committee.                                                                 
                                                                                                                                
2:06:12 PM                                                                                                                    
CHAIR REINBOLD opened public testimony on SB 69.                                                                                
                                                                                                                                
2:06:45 PM                                                                                                                    
SARAH   OATES,  President   and  CEO,   Alaska  Cabaret,   Hotel,                                                               
Restaurant and Retail Association  (CHARR), Anchorage, stated her                                                               
opposition to SB  69. She expressed concern that  it would create                                                               
a massive loophole  with no means of  enforcement. Although CHARR                                                               
would  not  currently qualify  for  an  exemption, nothing  would                                                               
prevent  them from  creating new  corporations that  individually                                                               
would  gross  less than  $20,000  per  year.  She said  that  the                                                               
department  would  not  know  whether  an  organization  exceeded                                                               
$20,000  since  it would  only  file  a  simple affidavit.  If  a                                                               
violation did  occur, there would  not be  any means to  impose a                                                               
civil penalty, suspend, or revoke  a permit. She asked whether an                                                               
entity  would  have  to  retroactively  file  a  report  if  they                                                               
exceeded the  threshold or  how the  department would  know about                                                               
new entities who  anticipated they would gross  less than $20,000                                                               
per year. She  offered her belief that the $50  cost and supposed                                                               
regulatory  burden was  minimal  at best.  She  urged members  to                                                               
oppose the bill.                                                                                                                
                                                                                                                                
2:08:59 PM                                                                                                                    
STEVEN BORCHERDING,  Manager, Gold  Cache Bingo,  Wasilla, stated                                                               
he has  bingo operations  in Wasilla  and Anchorage.  He reviewed                                                               
his background  to show  that he  had considerable  experience in                                                               
the industry and as a distributor.  He said he has also served on                                                               
task force and regulatory committees.                                                                                           
                                                                                                                                
He stated  his opposition to  SB 69. He  said that the  bingo and                                                               
pull  tab  industries are  highly  regulated  ones. They  require                                                               
substantial   oversight   similar   to  alcohol,   tobacco,   and                                                               
marijuana, he  said. SB  69 would remove  this oversight  for the                                                               
smaller groups  that likely  need it  because they  probably lack                                                               
the  knowledge  and  experience in  the  industry.  He  expressed                                                               
concern that  this lack of  knowledge would lead to  problems. In                                                               
fact,  it has  already led  to problems  with smaller  groups, he                                                               
said. The  permit process  ensures a  certain level  of oversight                                                               
and  a basic  knowledge  of statutes  and  regulations, he  said.                                                               
Members  in  charge and  gaming  managers  must  take a  test  to                                                               
receive a permit.                                                                                                               
                                                                                                                                
MR.  BORCHERDING  said that  the  permit  and regulatory  process                                                               
currently  requires businesses  to  provide  proof of  insurance,                                                               
payroll  submissions, tax  documentation, manager  contracts, and                                                               
various other  requirements. The state oversees  these operations                                                               
through the  permitting process and applicants  prove legitimacy,                                                               
in part, by providing a  physical address where gaming operations                                                               
will occur. The  state can revoke permits, but  without a permit,                                                               
these businesses  would have  no reason  to comply.  For example,                                                               
the bill  does not have  any reporting requirements,  even though                                                               
previous testimony indicated an  annual report would be required.                                                               
He  said  that he  has  taught  several  courses at  AFN  {Alaska                                                               
Federation  of Natives]  conventions on  gaming. Just  because an                                                               
operation is  a small  one does  not mean that  it should  not be                                                               
regulated  in this  highly regulated  industry. He  urged members                                                               
not to pass the bill.                                                                                                           
                                                                                                                                
2:13:22 PM                                                                                                                    
CHAIR  REINBOLD   asked  him  to  submit   written  testimony  to                                                               
senate.labor.and.commerce@akleg.gov.                                                                                            
                                                                                                                                
2:14:03 PM                                                                                                                    
SENATOR BIRCH  asked what percentage  of net revenues  from bingo                                                               
are given to charities. He recalled that it was substantial.                                                                    
                                                                                                                                
MR. BORCHERDING answered that it  was over $20 million. This year                                                               
Gold  Cache Bingo  donated about  $2.2 million  to charities.  He                                                               
offered his belief  that the gross revenue  for charitable gaming                                                               
was about $300 million.                                                                                                         
                                                                                                                                
CHAIR REINBOLD  asked Commissioner  Designee Tangeman  to respond                                                               
to Mr. Borcherding's testimony.                                                                                                 
                                                                                                                                
2:15:29 PM                                                                                                                    
COMMISSIONER DESIGNEE TANGEMAN deferred to Ms. Glover.                                                                          
                                                                                                                                
2:15:44 PM                                                                                                                    
MS.  GLOVER  responded that  the  bill  would require  an  annual                                                               
certification for  small charitable  organizations that  would be                                                               
exempt from the  permit application process and  fees. They would                                                               
not be required to submit an  annual report of revenues, but they                                                               
must certify their gross revenues, she said.                                                                                    
                                                                                                                                
She  explained  this permit  process  would  apply to  charitable                                                               
organizations  with  less than  $20,000  in  gross receipts  that                                                               
often contract  with operators,  such as a  bingo parlor  or pull                                                               
tab operators. Bingo and pull  tab entities would not be affected                                                               
by this bill. Regulations for  pull tab operators, manufacturers,                                                               
or distributors would not change.                                                                                               
                                                                                                                                
MS. GLOVER said the division  was still considering how to handle                                                               
retroactive permits  for entities who exceeded  the $20,000 gross                                                               
receipts limit but  had not applied for a  permit. The department                                                               
planned to  address the issue of  identifying small organizations                                                               
by regulation,  likely by requiring  an initial  certification at                                                               
the beginning of the year rather than the end of the year.                                                                      
                                                                                                                                
2:18:41 PM                                                                                                                    
SENATOR BISHOP asked  whether the 38 percent  of organizations in                                                               
the category  of small organizations  would fall under  the realm                                                               
of raffle tickets.                                                                                                              
                                                                                                                                
MS. GLOVER said she did not have that information.                                                                              
                                                                                                                                
2:19:23 PM                                                                                                                    
KATRINA MITCHELL, Gaming Group  Manager, Tax Division, Department                                                               
of   Revenue,  Juneau,   said  she   thought  that   the  primary                                                               
organizations  with  $20,000  or  less in  gross  receipts  would                                                               
conduct raffles.  She said that  organizations involved  in bingo                                                               
or  pull  tabs  would  easily and  quickly  surpass  the  $20,000                                                               
threshold.                                                                                                                      
                                                                                                                                
2:20:01 PM                                                                                                                    
SENATOR  BIRCH recalled  earlier testimony  with concern  that an                                                               
unscrupulous  operator might  try to  keep the  operation's gross                                                               
receipts under $20,000. He asked her to address the concern.                                                                    
                                                                                                                                
MS. GLOVER  replied that the  question related to  operators, but                                                               
they will  not be  impacted by  this bill.  This bill  would only                                                               
affect  small  charitable  organizations or  municipalities.  She                                                               
said she did not see any risk.                                                                                                  
                                                                                                                                
2:21:18 PM                                                                                                                    
SENATOR COSTELLO asked for the  difference between a permit and a                                                               
certification,  whether  a  permit must  be  displayed  publicly,                                                               
whether operators  are regulated,  and if operators  are required                                                               
to pay corporate income tax to the state.                                                                                       
                                                                                                                                
MS.  GLOVER answered  that  when an  organization  applies for  a                                                               
permit, the division would approve  or disapprove the permit. The                                                               
required annual  certification includes  a report,  under penalty                                                               
of perjury, on  the gross annual receipts. She  deferred the next                                                               
three questions to Ms. Mitchell.                                                                                                
                                                                                                                                
MS. MITCHELL  confirmed that the  gaming permit must  be publicly                                                               
displayed   where  the   activity  occurs.   The  operators   are                                                               
regulated. They must  obtain a license, post a  bond depending on                                                               
the number  of permittees they  game for, and file  quarterly and                                                               
annual  reports  with  the  division.   In  response  to  whether                                                               
operators  must pay  state corporate  income  tax, she  explained                                                               
that an applicant must be a  natural person in order to obtain an                                                               
operator's license.  She did  not think  that operators  would be                                                               
required  to  pay  state  corporate  taxes  unless  they  have  a                                                               
subsidiary.                                                                                                                     
                                                                                                                                
2:24:33 PM                                                                                                                    
SENATOR COSTELLO asked what purpose  is the statute requiring the                                                               
applicant to  be "a natural person"  as opposed to a  business or                                                               
corporation.                                                                                                                    
                                                                                                                                
MS. MITCHELL answered that she was unsure of the reason.                                                                        
                                                                                                                                
CHAIR REINBOLD stated that she would hold SB 69 in committee.                                                                   
                                                                                                                                
^CONFIRMATION HEARING(S)                                                                                                        
                    CONFIRMATION HEARING(S):                                                                                
                  Workers' Compensation Board                                                                               
                                                                                                                                
2:25:32 PM                                                                                                                    
CHAIR  REINBOLD returned  to the  confirmation  hearings for  the                                                               
Workers' Compensation Board.                                                                                                    
                                                                                                                                
2:26:09 PM                                                                                                                    
CHUCK  COLLINS,  JR.,  Appointee,  Workers'  Compensation  Board,                                                               
Department of  Labor and  Workforce Development  (DOLWD), Juneau,                                                               
said that he has served on  the Workers' Compensation Board for a                                                               
number  of years  and currently  serves in  an industry  seat. He                                                               
said that  he was initially  appointed when he  was self-employed                                                               
and  owned  a  few  stores.  Although  he  sold  his  stores,  he                                                               
currently operates a small business.  In 2010, the NFIB [National                                                               
Federation of  Independent Businesses] asked  him to serve  as an                                                               
industry representative on the Worker's Compensation Board.                                                                     
                                                                                                                                
MR. COLLINS  said that  he takes the  role of  representing small                                                               
businesses  seriously. The  last  few  administrations have  made                                                               
significant   changes  related   to  labor,   such  as   workers'                                                               
compensation and labor  safety issues. He said that  he has tried                                                               
to hold the line for small businesses in Alaska.                                                                                
                                                                                                                                
2:27:53 PM                                                                                                                    
SENATOR BISHOP asked how he values the worker.                                                                                  
                                                                                                                                
MR. COLLINS said  he works right alongside his  workers and would                                                               
not  ask them  to do  anything he  would not  do. He  provided an                                                               
anecdote to  illustrate his family-friendly style  of management.                                                               
He said he  currently runs a hotel in Juneau  and hires Alaskans.                                                               
He said he  attended Kansas State University and  moved to Juneau                                                               
30 years  ago. He  said that  Alaskans are  willing to  adapt and                                                               
overcome obstacles.                                                                                                             
                                                                                                                                
2:30:14 PM                                                                                                                    
CHAIR REINBOLD said she was  glad he represented small businesses                                                               
on the Workers' Compensation Board.  She said it was important to                                                               
do something for small businesses.                                                                                              
                                                                                                                                
2:30:56 PM                                                                                                                    
MR. COLLINS  said he does not  have a view  on SB 66 yet,  but he                                                               
would be  watching it  very closely.  He echoed  Senator Bishop's                                                               
concerns related to potential director burnout.                                                                                 
                                                                                                                                
2:31:39 PM                                                                                                                    
SENATOR  COSTELLO   asked  the  record  to   reflect  that  board                                                               
appointees  were not  appointed based  on their  support or  non-                                                               
support  of  legislation.  Instead,   appointees  to  boards  and                                                               
commissions  were appointed  based on  their qualifications.  She                                                               
said  that the  process  is clear  that  the legislature  handles                                                               
legislation.                                                                                                                    
                                                                                                                                
2:32:43 PM                                                                                                                    
MR. COLLINS thanked members for serving the state.                                                                              
                                                                                                                                
CHAIR REINBOLD  offered her belief  that board members  should be                                                               
aware of  legislation since the  laws and  subsequent regulations                                                               
would affect them. She echoed Senator Costello's remarks.                                                                       
                                                                                                                                
2:33:38 PM                                                                                                                    
SARAH   LEFEBVRE,   Appointee,   Workers'   Compensation   Board,                                                               
Department   of   Labor   and  Workforce   Development   (DOLWD),                                                               
Fairbanks, said  she has  served on  this board  for five  or six                                                               
years.   She  said   that  she   has  participated   in  workers'                                                               
compensation claims from the employer's  perspective for about 20                                                               
years. One strength and focus she  brings to the board is to keep                                                               
the pendulum in the middle with  no big swings to the employer or                                                               
the  employee. The  state cannot  be  fair and  impartial at  the                                                               
extreme ends, she said. She said  she finds it gratifying to help                                                               
injured workers  and to  work as  part of a  team to  ensure good                                                               
outcomes for  everyone involved, including  employers, providers,                                                               
and employees.                                                                                                                  
                                                                                                                                
2:35:10 PM                                                                                                                    
SENATOR BISHOP  thanked her  for her  willingness to  continue to                                                               
serve  on  the  board.  He  said  he  appreciated  her  comments,                                                               
especially coming from the owner's  perspective. He said that she                                                               
brings a fair  and balanced approach to the process  and he would                                                               
hate to see her experience lost.                                                                                                
                                                                                                                                
2:35:40 PM                                                                                                                    
CHAIR REINBOLD  opened public testimony and  after determining no                                                               
one   wished  to   testify,  closed   public  testimony   on  the                                                               
confirmation hearing  for Chuck Collins, Jr.  and Sarah LeFebvre,                                                               
appointees to the Workers' Compensation Board.                                                                                  
                                                                                                                                
MS.  LEFEBRVE   said  that  she   appreciates  the   process  the                                                               
legislature uses  to ensure  that the board  is balanced  and she                                                               
appreciates the opportunity to serve.                                                                                           
                                                                                                                                
2:36:32 PM                                                                                                                    
CHAIR REINBOLD stated  that in accordance with  AS 39.05.080, the                                                               
Senate  Labor  and  Commerce   Standing  Committee  reviewed  the                                                               
following  and  recommends the  appointments  be  forwarded to  a                                                               
joint session for consideration:                                                                                                
                                                                                                                                
Board of Physical Therapy                                                                                                     
Enlow Walker, M.D. - North Pole                                                                                                 
                                                                                                                                
Workers' Compensation Board                                                                                                   
Sarah LeFebvre - Fairbanks                                                                                                      
Chuck Collins - Juneau                                                                                                          
                                                                                                                                
Signing  the   reports  regarding  appointments  to   boards  and                                                               
commissions in  no way reflects  individual members'  approval or                                                               
disapproval  of  the  appointees;   the  nominations  are  merely                                                               
forwarded to the full legislature for confirmation or rejection.                                                                
                                                                                                                                
2:37:07 PM                                                                                                                    
At-ease.                                                                                                                        
                                                                                                                                
          SJR 8-U.S.-MEXICO-CANADA AGREEMENT ON TRADE                                                                       
                                                                                                                                
2:39:06 PM                                                                                                                    
CHAIR  REINBOLD reconvened  the meeting.  She announced  that the                                                               
final  order  of  business   would  be  SJR  8-U.S.-MEXICO-CANADA                                                               
AGREEMENT ON TRADE.                                                                                                             
                                                                                                                                
2:39:36 PM                                                                                                                    
ERIN  MCLAUGHLIN,  Intern,  Senator Mia  Costello,  Alaska  State                                                               
Legislature, Juneau,  said that she  is an intern in  the Senator                                                               
Ted Stevens  Legislative Internship  Program working  for Senator                                                               
Costello.  She introduced SJR 8 speaking to the following                                                                       
prepared statement.                                                                                                             
                                                                                                                                
   • Thank you,  Madam  Chair   and  Labor   and  Commerce                                                                      
     Committee members                                                                                                          
                                                                                                                                
   • For the record name                                                                                                        
                                                                                                                                
   • I am here today to present Senator  Costello's Senate                                                                      
     Joint Resolution No. 8                                                                                                     
                                                                                                                                
   • Two goals to the resolution                                                                                                
                                                                                                                                
        1. to encourage the federal gov. to ratify the New North                                                                
          American  Free  Trade  Agreement,  New  NAFTA,  or  the                                                               
          United States  Mexico Canada Agreement, USMCA.  For the                                                               
          purpose of this  hearing I will refer  to the agreement                                                               
          as the New NAFTA.                                                                                                     
                                                                                                                                
        2. While the resolution does support the New NAFTA, it is                                                               
          against the 25 percent tariffs on steel and 10 percent                                                                
          tariff on aluminum                                                                                                    
2:40:30 PM                                                                                                                    
MS. MCLAUGHLIN continued.                                                                                                       
                                                                                                                                
   • In November after more than  a year  of negotiations,                                                                      
        the United States, Canada and Mexico reached an                                                                       
       agreement to update the North American Free Trade                                                                      
     Agreement                                                                                                                  
                                                                                                                                
   • which governs more than $1.2 trillion worth  of trade                                                                      
     among the three nations                                                                                                    
                                                                                                                                
   • The new deal won't go into effect right away. Most of                                                                      
     the key provisions don't start until 2020                                                                                  
   • This is because leaders from the three countries have                                                                      
     to sign it                                                                                                                 
   • then Congress and  the  legislatures  in  Canada  and                                                                      
     Mexico have to approve it, a process that is expected                                                                      
     to take months.                                                                                                            
                                                                                                                                
2:41:03 PM                                                                                                                    
MS. MCLAUGHLIN emphasized that the agreement was not yet                                                                        
ratified. She continued:                                                                                                        
                                                                                                                                
   • Madam Chair let me illustrate the vital importance of                                                                      
     Senator Costello's Joint Resolution today                                                                                  
   • The New NAFTA  would  play an  important  role  on  a                                                                      
     growing part of Alaska's economy                                                                                           
   • While there are numerous provisions to the 1994 NAFTA                                                                      
     there  is one  area of  the New  NAFTA that  supports a                                                                    
     growing sector in Alaska                                                                                                   
   o Intellectual property                                                                                                      
                                                                                                                                
   • Senate Joint Resolution No. 8 supports the  New NAFTA                                                                      
     since  it brings  the trade  agreement into  the modern                                                                    
     era                                                                                                                        
   o It  brings  protections  for  patents  and  trademarks,                                                                    
     which  includes biotech,  financial  services and  even                                                                    
     domain names                                                                                                               
                                                                                                                                
   • Alaska hosts a variety of programs and institutions that                                                                   
     enable the growth of innovation and entrepreneurship, which                                                                
     positions the state to compete in the global economy.                                                                      
                                                                                                                                
   • One of   those   institutions  is   the   Office   of                                                                      
     Intellectual  Property and  Commercialization which  is                                                                    
     one of the University of Alaska Research Centers.                                                                          
   o dedicated to  the development and  commercialization of                                                                    
     intellectual   property,   research  and   development,                                                                    
     ability to conduct sponsored research                                                                                      
                                                                                                                                
2:42:26 PM                                                                                                                    
MS. MCLAUGHLIN continued:                                                                                                       
                                                                                                                                
   • Madam Chair while the resolution does support the New                                                                      
     NAFTA it is against the tariffs on steel and aluminum                                                                      
                                                                                                                                
   • On March 1, 2018 the federal administration announced                                                                      
     that  the US  would be  imposing 25  percent tariff  on                                                                    
     steel  and  a  10  percent tariff  on  aluminum,  which                                                                    
     Mexico and Canada would be granted waivers for                                                                             
   •                                                                                                                            
   o However, they were later imposed on Canada and Mexico                                                                      
                                                                                                                                
   • This resulted in retaliatory tariffs, which  would be                                                                      
     lifted as soon as the US removes their imposed tariffs                                                                     
   •                                                                                                                            
2:43:19 PM                                                                                                                    
MS. MCLAUGHLIN continued.                                                                                                       
                                                                                                                                
   • The United States relationship with Canada is vital to                                                                     
     the Alaskan economy                                                                                                        
                                                                                                                                
   • According to a study commissioned by the Embassy of Canada,                                                                
     21,300  Alaskan jobs  depend on  trade  and investment  with                                                               
     Canada                                                                                                                     
                                                                                                                                
   • In 2017, Alaska exported $707 million dollars to Canada,                                                                   
     $331 million of which was  metal, according to the office of                                                               
     United States Trade Representative                                                                                         
                                                                                                                                
   • The trade Representative also reports that Canada imports                                                                  
     $16 million in Iron and  steel tubes, pipes, and sheets from                                                               
     Alaska.                                                                                                                    
                                                                                                                                
   • The tariffs on steel and aluminum harm the industry and                                                                    
     workers  on  both   sides  of  the  Canada-   US  border  by                                                               
     disrupting supply chains                                                                                                   
                                                                                                                                
   • Senator Costello has reached out to the Alaskan                                                                            
     Congressional  Delegation. U.S.  Senator Sullivan  said that                                                               
     he supports  the ratification of  the New NAFTA and  he also                                                               
     is against the tariffs on steel and aluminum.                                                                              
                                                                                                                                
   • Once again Madam Chair thank you for the opportunity to                                                                    
     present Senator Costello's Senate  Joint Resolution No. 8 to                                                               
     the Labor and Commerce Committee                                                                                           
                                                                                                                                
2:44:35 PM                                                                                                                    
SENATOR BISHOP complimented her on the excellent delivery. He                                                                   
said he was proud of her.                                                                                                       
                                                                                                                                
SENATOR GRAY-JACKSON echoed Senator Bishop's comments.                                                                          
                                                                                                                                
2:45:38 PM                                                                                                                    
CHAIR REINBOLD opened public testimony on SJR 8.                                                                                
                                                                                                                                
CHAIR REINBOLD reviewed committee announcements.                                                                                
                                                                                                                                
2:46:59 PM                                                                                                                    
MATTHEW   MORRISON,  Chief   Executive  Officer   (CEO),  Pacific                                                               
NorthWest   Economic  Region,   Seattle,   stated  that   Senator                                                               
Murkowski  estimated that  the aluminum  and steel  tariffs would                                                               
increase the  proposed natural gas  pipeline by $500  million. He                                                               
urged members  to support  SJR 8.  He commended  Ms. McLaughlin's                                                               
testimony.                                                                                                                      
                                                                                                                                
2:47:51 PM                                                                                                                    
SENATOR  COSTELLO commended  Ms.  McLaughlin's presentation.  She                                                               
said her  performance is a testament  to the value of  the intern                                                               
program,  in which  university students  have the  opportunity to                                                               
serve as full-fledged  staffers in the legislature.  She said she                                                               
strongly supports the program.                                                                                                  
                                                                                                                                
CHAIR  REINBOLD held  SJR 8  in committee  with public  testimony                                                               
open.                                                                                                                           
                                                                                                                                
2:48:45 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Reinbold  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:48 p.m.                                                                                                  

Document Name Date/Time Subjects
L&C Physical Therapy Resume - Walker.pdf SL&C 3/21/2019 1:30:00 PM
L&C Workers Compensation Resume - Collins.pdf SL&C 3/21/2019 1:30:00 PM
L&C Workers Compensation Resume - LeFebvre.pdf SL&C 3/21/2019 1:30:00 PM
SB 69 Version A.PDF SL&C 3/21/2019 1:30:00 PM
SB 69
SB 69 Transmittal Letter - 02.21.19 President Giessel.pdf SL&C 3/21/2019 1:30:00 PM
SB 69
SB 69 FN SB69-DOR-TAX-3-20-2019.pdf SL&C 3/21/2019 1:30:00 PM
SB 69
SJR 8 Ver. A.PDF SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 - Sponsor Statement.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - GDP and Trade AK 2017.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - june_13_-_pnwer_press_release_on_tariffs_-_for_immediate_release.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Proposed USMCA Trade Agreement (1).pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR8 Support Letter.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Alaska - Canada trade.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SJR 8 Supporting Document - Alaska USMCA.pdf SL&C 3/21/2019 1:30:00 PM
SJR 8
SB 65 SB 66 DOLWD Responses to Committee Questions from (S) L&C hearing on 03.19.19.pdf SL&C 3/21/2019 1:30:00 PM
SB 65
SB 66