04/16/2015 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB131 | |
| HCR10 | |
| SB107 | |
| HB41 | |
| HB123 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 131 | TELECONFERENCED | |
| + | HCR 10 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| += | SB 107 | TELECONFERENCED | |
| + | HB 123 | TELECONFERENCED | |
| + | HB 12 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 16, 2015
2:53 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
HOUSE BILL NO. 131 AM
"An Act relating to the licensure of nail technicians and
hairdressers; relating to the practice of manicuring; and
providing for an effective date."
- MOVED HB 131 AM OUT OF COMMITTEE
CS FOR HOUSE CONCURRENT RESOLUTION NO. 10(FSH)
Supporting the Alaska Maritime Workforce Development Industry
Advisory Committee, the Alaska Workforce Investment Board, the
Alaska Vocational Technical Education Center in Seward, and
further efforts to carry out the Alaska Maritime Workforce
Development Plan.
- MOVED CSHCR 10(FSH) OUT OF COMMITTEE
SENATE BILL NO. 107
"An Act relating to insurance; relating to risk based capital
for domestic insurers and within an insurance holding company
system or transactions involving a domestic fraternal benefit
societies, including provisions related to insurers subject to
risk based insurer; relating to management and examination of
domestic insurers that are part of capital and action level
event requirements; relating to review by the director of an
insurance holding company system; adding provisions relating to
participation by the insurance of an insurer's risk based
capital plan; relating to confidentiality and sharing director
of insurance in a supervisory college; relating to civil and
criminal penalties for of certain information submitted to the
director of insurance; relating to evaluating an violations by
insurers and individuals; relating to provisions for risk
management and insurance holding company and the acquisition of
control of or merger with a domestic own risk and solvency
assessments by insurers; relating to operating requirements for
insurer; relating to risk based capital, risk management, and
own risk and solvency controlling insurance producers; relating
to producer-controlled insurers; adding and assessments of
insurers; clarifying provisions related to risk based capital
plans; relating amending definitions related to insurers; and
providing for an effective date." to exemptions by the director
of insurance for certain domestic and casualty insurers from
risk based capital requirements; relating to insurance holding
companies, including filing requirements, divestiture, content
of statements, notifications, and hearings; relating to
registration requirements of insurers; relating to transactions
- MOVED SB 107 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 41(FIN) AM
"An Act relating to sport fishing services, sport fishing
operators, and sport fishing guides; and providing for an
effective date."
- MOVED CSHB 41(FIN) AM OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 123(JUD) AM
"An Act establishing the Marijuana Control Board; relating to
the powers and duties of the Marijuana Control Board; relating
to the appointment, removal, and duties of the director of the
Marijuana Control Board; relating to the Alcoholic Beverage
Control Board; and providing for an effective date."
- MOVED SCS CSHB 123(L&C) OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 12(L&C)
"AN ACT RELATING TO MORTGAGE LENDING, MORTGAGE LOAN ORIGINATORS,
AND DEPOSITORY INSTITUTIONS; AND PROVIDING FOR AN EFFECTIVE
DATE."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: HB 131
SHORT TITLE: LICENSURE OF MANICURISTS/HAIR DRESSING
SPONSOR(s): REPRESENTATIVE(s) GATTIS
03/02/15 (H) READ THE FIRST TIME - REFERRALS
03/02/15 (H) L&C
04/10/15 (H) L&C AT 3:15 PM BARNES 124
04/10/15 (H) Moved HB 131 Out of Committee
04/10/15 (H) MINUTE(L&C)
04/11/15 (H) L&C RPT 1DP 5AM
04/11/15 (H) DP: OLSON
04/11/15 (H) AM: LEDOUX, HUGHES, KITO, JOSEPHSON,
TILTON
04/14/15 (H) TRANSMITTED TO (S)
04/14/15 (H) VERSION: HB 131 AM
04/15/15 (S) READ THE FIRST TIME - REFERRALS
04/15/15 (S) L&C
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HCR 10
SHORT TITLE: MARITIME WORKFORCE DEVELOPMENT
SPONSOR(s): REPRESENTATIVE(s) STUTES
03/18/15 (H) READ THE FIRST TIME - REFERRALS
03/18/15 (H) FSH
04/07/15 (H) FSH AT 5:00 PM CAPITOL 120
04/07/15 (H) Moved CSHCR 10(FSH) Out of Committee
04/07/15 (H) MINUTE(FSH)
04/08/15 (H) FSH RPT CS(FSH) NT 7DP
04/08/15 (H) DP: HERRON, FOSTER, MILLETT, JOHNSON,
KREISS-TOMKINS, ORTIZ, STUTES
04/13/15 (H) TRANSMITTED TO (S)
04/13/15 (H) VERSION: CSHCR 10(FSH)
04/14/15 (S) READ THE FIRST TIME - REFERRALS
04/14/15 (S) L&C
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 41
SHORT TITLE: SPORT FISHING SERVICES
SPONSOR(s): REPRESENTATIVE(s) TILTON, MUNOZ
01/21/15 (H) PREFILE RELEASED 1/9/15
01/21/15 (H) READ THE FIRST TIME - REFERRALS
01/21/15 (H) FSH, FIN
02/12/15 (H) FSH AT 10:00 AM CAPITOL 120
02/12/15 (H) Moved CSHB 41(FSH) Out of Committee
02/12/15 (H) MINUTE(FSH)
02/13/15 (H) FSH RPT CS(FSH) 2DP 2NR
02/13/15 (H) DP: ORTIZ, STUTES
02/13/15 (H) NR: HERRON, FOSTER
03/25/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
03/25/15 (H) Heard & Held
03/25/15 (H) MINUTE(FIN)
04/01/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/01/15 (H) <Bill Hearing Postponed to 4/2/15>
04/02/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/02/15 (H) -- MEETING CANCELED --
04/03/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/03/15 (H) Moved CSHB 41(FIN) Out of Committee
04/03/15 (H) MINUTE(FIN)
04/06/15 (H) FIN RPT CS(FIN) 4DP 5NR
04/06/15 (H) DP: PRUITT, MUNOZ, NEUMAN, THOMPSON
04/06/15 (H) NR: KAWASAKI, WILSON, GARA, GUTTENBERG,
GATTIS
04/13/15 (H) TRANSMITTED TO (S)
04/13/15 (H) VERSION: CSHB 41(FIN) AM
04/13/15 (S) RES AT 3:30 PM BUTROVICH 205
04/13/15 (S) Scheduled but Not Heard
04/14/15 (S) READ THE FIRST TIME - REFERRALS
04/14/15 (S) L&C, FIN
04/14/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/14/15 (S) Heard & Held
04/14/15 (S) MINUTE(L&C)
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 107
SHORT TITLE: INSURANCE; RISK MG'T; HOLDING COMPANIES
SPONSOR(s): LABOR & COMMERCE
04/11/15 (S) READ THE FIRST TIME - REFERRALS
04/11/15 (S) L&C
04/11/15 (S) L&C AT 11:00 AM BELTZ 105 (TSBldg)
04/11/15 (S) Heard & Held
04/11/15 (S) MINUTE(L&C)
04/14/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/14/15 (S) Scheduled but Not Heard
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 123
SHORT TITLE: ESTABLISH MARIJUANA CONTROL BOARD
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/23/15 (H) READ THE FIRST TIME - REFERRALS
02/23/15 (H) L&C, JUD, FIN
03/04/15 (H) L&C AT 3:15 PM BARNES 124
03/04/15 (H) Heard & Held
03/04/15 (H) MINUTE(L&C)
03/11/15 (H) L&C AT 3:15 PM BARNES 124
03/11/15 (H) Heard & Held
03/11/15 (H) MINUTE(L&C)
03/16/15 (H) L&C AT 3:15 PM BARNES 124
03/16/15 (H) Heard & Held
03/16/15 (H) MINUTE(L&C)
03/20/15 (H) L&C AT 3:15 PM BARNES 124
03/20/15 (H) Heard & Held
03/20/15 (H) MINUTE(L&C)
03/23/15 (H) JUD AT 1:00 PM CAPITOL 120
03/23/15 (H) Scheduled but Not Heard
03/23/15 (H) L&C AT 3:15 PM BARNES 124
03/23/15 (H) Heard & Held
03/23/15 (H) MINUTE(L&C)
03/27/15 (H) L&C AT 3:15 PM BARNES 124
03/27/15 (H) Moved CSHB 123(L&C) Out of Committee
03/27/15 (H) MINUTE(L&C)
03/30/15 (H) L&C RPT CS(L&C) 1DP 3NR 3AM
03/30/15 (H) DP: OLSON
03/30/15 (H) NR: TILTON, HUGHES, KITO
03/30/15 (H) AM: LEDOUX, JOSEPHSON, COLVER
03/30/15 (H) JUD AT 1:00 PM CAPITOL 120
03/30/15 (H) Heard & Held
03/30/15 (H) MINUTE(JUD)
04/03/15 (H) JUD AT 1:00 PM CAPITOL 120
04/03/15 (H) -- MEETING CANCELED --
04/06/15 (H) JUD AT 1:00 PM CAPITOL 120
04/06/15 (H) Heard & Held
04/06/15 (H) MINUTE(JUD)
04/08/15 (H) JUD AT 1:00 PM CAPITOL 120
04/08/15 (H) Moved CSHB 123(JUD) Out of Committee
04/08/15 (H) MINUTE(JUD)
04/09/15 (H) JUD RPT CS(JUD) 2DP 4NR 1AM
04/09/15 (H) DP: GRUENBERG, LEDOUX
04/09/15 (H) NR: MILLETT, CLAMAN, KELLER, FOSTER
04/09/15 (H) AM: LYNN
04/10/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/10/15 (H) Heard & Held
04/10/15 (H) MINUTE(FIN)
04/13/15 (H) FIN RPT CS(JUD) 2DP 4NR 1AM
04/13/15 (H) DP: EDGMON, THOMPSON
04/13/15 (H) NR: SADDLER, PRUITT, WILSON, MUNOZ
04/13/15 (H) AM: KAWASAKI
04/13/15 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/13/15 (H) Moved CSHB 123(JUD) Out of Committee
04/13/15 (H) MINUTE(FIN)
04/15/15 (H) TRANSMITTED TO (S)
04/15/15 (H) VERSION: CSHB 123(JUD) AM
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 12
SHORT TITLE: MORTGAGE LENDING AND LOAN ORIGINATORS
SPONSOR(s): HUGHES
01/21/15 (H) PREFILE RELEASED 1/9/15
01/21/15 (H) READ THE FIRST TIME - REFERRALS
01/21/15 (H) L&C
04/13/15 (H) L&C AT 3:15 PM BARNES 124
04/13/15 (H) Heard & Held
04/13/15 (H) MINUTE(L&C)
04/15/15 (H) L&C AT 3:15 PM BARNES 124
04/15/15 (H) Moved CSHB 12(L&C) Out of Committee
04/15/15 (H) MINUTE(L&C)
04/16/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
REPRESENTATIVE LYNN GATTIS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 131.
DEANNA PRUHS, Member
Board of Barbers and Hairdressers
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 131.
JEANNINE JABAAY, Member
State Board of Barbers and Hairdressers
Department of Commerce, Community and Economic Development
Hope, Alaska
POSITION STATEMENT: Testified in support of HB 131.
GLENDA LEDFORD, Member
State Board of Barbers & Hairdressers
Department of Commerce, Community and Economic Development
Wasilla, Alaska
POSITION STATEMENT: Testified in support of HB 131.
REPRESENTATIVE LOUISE STUTES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HCR 10
REED HARRIS, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HCR 10 on behalf of the sponsor.
GREG CASHEN, Deputy Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Testified that DOLWD fully supports HCR 10.
AGGIE FOUTS, Maritime Workforce Coordinator
Industry Advisory Committee (IAC)
Alaska Maritime Workforce Development Plan
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HCR 10.
CHRIS SANNITO
Alaska Marine Advisory Program and
University of Alaska, Fairbanks
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HCR 10.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 107.
MARTY HESTER, Deputy Director
Division of Insurance
Department of Commerce, Community and Economic Development
POSITION STATEMENT: Provided clarifying information related to
SB 107.
CRYSTAL KOENEMAN, Staff
Representative Cathy Munoz
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information and answered questions
related to HB 41 on behalf of the sponsor.
BEN MULLIGAN, Legislative Liaison
Alaska Department of Fish and Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Answered questions and provided the
department's perspective of HB 41.
TOM BROOKOVER, Acting Director
Division of Sport Fish
Alaska Department of Fish and Game (ADF&G)
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to HB 41.
ALPHEUS BULLARD, Legislative Counsel
Legislative Legal Services
Legislative Affairs Agency
Alaska State Legislature
POSITION STATEMENT: Provided information related to HB 41.
PAUL JOHNSON, Guide
Gull Cove, Alaska
POSITION STATEMENT: Testified in opposition to HB 41.
WESTON EILER, Staff
Senator Mia Costello and the Senate Labor and Commerce Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes made in the work
draft version S of HB 123.
CYNTHIA FRANKLIN, Director
Alcoholic Beverage Control Board
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 123.
CHRIS HLADICK, Commissioner designee
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 123.
PAUL THOMAS, Vice Chair
Alaska CHARR
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 123
KATE BURKHART, Executive Director
Advisory Board on Alcoholism and Drug Abuse and
Alaska Mental Health Board
Juneau, Alaska
POSITION STATEMENT: Testified in support of HB 123
JASON HARDER, representing himself
Copper Center, Alaska
POSITION STATEMENT: Testified in support of HB 123.
ACTION NARRATIVE
2:53:40 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 2:53 p.m. Present at the call to
order were Senators Stevens, Meyer, and Chair Costello.
HB 131-LICENSURE OF MANICURISTS/HAIR DRESSING
2:54:26 PM
CHAIR COSTELLO announced the consideration of HB 131.: "An Act
relating to the licensure of nail technicians and hairdressers;
relating to the practice of manicuring; and providing for an
effective date." [HB 131 AM was before the committee.]
2:54:38 PM
REPRESENTATIVE LYNN GATTIS, sponsor of HB 131, stated that HB
131, as amended, improves the licensing process for nail
technicians. Under current statute, nail technicians are able to
apply for a manicurist license, which requires a 12 hour class
or an advanced manicurist license, which requires 250 hours of
course work and a final examination. HB 131 would create a
single catchall nail technician license that would require 250
hours of course work and a final examination. This is
appropriate since the industry has evolved and requires a truly
skilled workforce. Nail technicians are expected to use drills
and other electric tools and manipulate fiberglass, acetone and
other chemicals that come in contact with the customer's body.
There is a health and safety liability associated with this
industry that is generally overlooked by the general public. She
directed attention to the packets that contain pictures
depicting some of the complications that can occur. She
emphasized that it is not possible to teach the needed hygiene
and safety standards and gain needed technical knowledge in a
12-hour one time class.
REPRESENTATIVE GATTIS stated that this is the third year that
the Board of Barbers and Hairdressers asked her to carry this
legislation and over time she has come to realize that it is a
matter of health and safety. She does not believe that
government should dictate how businesses are run, but there has
to be a balance between the free market and health and safety.
Forty-eight other states require from 100 to 600 hours of course
work for licensure and many require written examinations.
Twenty-two of those states require over 400 hours of course
work. Hairdresser and esthetician licensing requirements in
Alaska have already transitioned to higher standards.
Hairdressers need 1,650 hours of experience and must take a
written and practical examination to receive a license. These
requirements have not kept the 2,500 hairdressers in Alaska from
getting their license.
REPRESENTATIVE GATTIS concluded that HB 131 is a health and
safety bill. It not only aligns Alaska's licensing requirements
with other states but also makes the licensing requirements more
appropriate for the skillset required in this industry. An added
bonus is that this bill provides license reciprocity with other
states.
2:59:50 PM
SENATOR STEVENS asked how long a person has to complete the
course work.
REPRESENTATIVE GATTIS said the people that are currently working
in the field have until August 31, 2017 to complete the course
work and take the national test.
CHAIR COSTELLO asked for an explanation of the fiscal note.
REPRESENTATIVE GATTIS stated that it is a zero fiscal note.
3:01:24 PM
CHAIR COSTELLO opened public testimony on HB 131.
3:01:45 PM
DEANNA PRUHS, Member, Board of Barbers and Hairdressers,
Department of Commerce, Community and Economic Development
(DCCED), testified in support of HB 131. She reported that she
has been a licensed hairdresser in Alaska for 30 years of the 34
years she has worked in the profession. Three years ago she was
appointed to the Board of Barbers and Hairdressers, which
oversees hairdressers, barbers, estheticians, body piercing,
tattoo artists, permanent cosmetics, and manicurists.
Manicurists represent 1,200 of the 7,500 in this group and are
the only ones that do not take a state board examination. She
described the examination and professional license as important
to show competency. The current manicurist license is misleading
and could jeopardize the health and safety of the consumer
paying for the service. She urged the committee to pass the bill
and bring the nail technician license up to national standards.
JEANNINE JABAAY, public member, State Board of Barbers and
Hairdressers, testified in support of HB 131. She stated that
she was appointed to the board two years ago and became aware
that the requirements for manicurists and nail technicians are
woefully inadequate. The 12 hours required to become a nail
technician only covers the sanitation of tools. The advanced
manicurist license requires 250 hours of education and a written
examination. The bill seeks to eliminate the virtually useless
nail technician license and instead change the current
manicurist license to a nail technician license that covers the
250 hours. This new requirement will better educate these
professionals, better protect the public and give reciprocity
for those that are currently licensed in Alaska. The curriculum
and examination is already owned by the state and therefore the
fiscal impact to the state is zero.
GLENDA LEDFORD, Member, State Board of Barbers & Hairdressers,
Department of Commerce, Community and Economic Development
(DCCED), testified in support of HB 131. She stated that the 250
hours of education called for in HB 131 would provide the
necessary time to adequately train nail technicians to perform
their duties in a professional and safe manner. This bill would
also give licenses that other states would recognize and give
reciprocity. The licensing requirements set forth in HB 131
would place the state near the lower middle compared to other
states. She stated that as a practitioner and instructor HB 131
will not present a hardship on current licensees because they
will have more than two years to take the course and pass the
examination. She urged the committee to pass the bill noting
that the board has been working on it for eight years.
3:13:12 PM
CHAIR COSTELLO found no further testifiers and closed public
testimony
3:13:31 PM
SENATOR MEYER motioned to report HB 131 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO announced that without objection HB 131 AM is
reported from the Senate Labor and Commerce Standing Committee.
3:13:47 PM
At ease
HCR 10-MARITIME WORKFORCE DEVELOPMENT
3:13:50 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HCR 10. A resolution "Supporting the Alaska
Maritime Workforce Development Industry Advisory Committee, the
Alaska Workforce Investment Board, the Alaska Vocational
Technical Education." [CSHCR 10(FSH) was before the committee.]
3:15:33 PM
REPRESENTATIVE LOUISE STUTES, sponsor of HCR 10, introduced
herself and her staff.
3:15:53 PM
REED HARRIS, Staff, Representative Louise Stutes, introduced the
HCR 10 on behalf of the sponsor speaking to the following
sponsor statement:
HCR 10 declares the Legislature's recognition of the
need for the Alaska Maritime Workforce Development
Plan, the Alaska Workforce Investment Board and Alaska
Vocational & Technical Education Center in Seward
(AVTEC). It conveys support for the Alaska Maritime
Workforce Industry Advisory Committee, whose guidance
and leadership will be an integral component of the
implementation of the Plan. HCR 10 encourages support
and participation by various state agencies already
tasked with the mission of workforce development and
includes a goal of increasing resident hire in the
maritime industry to 75 percent by 2020.
MR. HARRIS highlighted that the resolution has a zero fiscal
note, aligns state agencies already tasked with workforce
development, and creates high paying blue collar jobs for
Alaskans.
SENATOR STEVENS expressed support for the resolution.
3:17:10 PM
GREG CASHEN, Deputy Commissioner, Department of Labor and
Workforce Development (DOLWD), said he appreciates the sponsor
adding to HCR 10 the Alaska Workforce Investment Board, the
advocacy for increasing resident hire in this industry, and also
the AVTEC Maritime Training Center in Seward. He stated that
DOLWD fully supports HCR 10.
CHAIR COSTELLO highlighted that several sessions ago the
legislature passed legislation asking the departments to submit
reports in an electronic form. She asked if he would be
responsible for submitting this report to the legislature and,
if so, if it could be electronic.
MR. CASHEN replied the department would not be submitting the
report but would help to ensure it is in electronic format.
3:19:52 PM
AGGIE FOUTS, Maritime Workforce Coordinator, Industry Advisory
Committee (IAC), Alaska Maritime Workforce Development Plan,
Anchorage, Alaska, expressed gratitude to the sponsor for
introducing HCR 10, which will help the IAC further implement
the Alaska Maritime Workforce Development Plan and encourage a
wide range of state agencies to participate in this effort. The
collaborative approach is particularly important to accomplish
the goals of preparing, training, and employing more Alaskans in
the maritime industry. This will increase Alaska's competitive
advantage and ultimately improve the economy.
3:20:57 PM
CHRIS SANNITO, Alaska Marine Advisory Program, and the
University of Alaska, Fairbanks, Kodiak, Alaska, voiced support
for HCR 10. He reminded the committee that the maritime industry
represents more than 500 businesses, employs over 68,000
persons, and in 2011 added $6.7 billion to the state's economy.
He described the seafood training and quality workshops and
HACCP seafood safety workshops he conducts statewide. He said
there is great demand for this training because of the turnover
in the seafood industry. Passing HCR 10 will further support
this important industry.
3:22:49 PM
CHAIR COSTELLO found no further testifiers and closed public
testimony.
SENATOR MEYER noted that the sponsor statement speaks to the
goal of increasing the resident hire to 75 percent by 2020. He
asked what percent it is now and questioned why the goal isn't
higher than 75 percent.
MR. HARRIS offered to follow up with the information. He noted
that the goal was suggested by the Alaska Workforce Investment
Board.
SENATOR STEVENS referred to the last two resolves in HCR 10 and
questioned who would write the report regarding the
collaboration.
MR. HARRIS replied the report will be written by the Department
of Labor and Workforce Development (DOLWD).
CHAIR COSTELLO asked if the goal of 75 percent resident hire is
mentioned in the resolution.
MR. HARRIS directed attention to page 3, lines 9-10.
CHAIR COSTELLO commented that it appears to be a goal of the
Alaska Workforce Investment Board (AWIB), but she, too, wonders
why it isn't higher than 75 percent. She asked Senator Meyer if
he wanted to offer an amendment.
SENATOR MEYER replied he didn't want to offer an amendment when
he didn't know the current percent.
REPRESENTATIVE STUTES offered her understanding that resident
hire is currently below 50 percent, so 75 percent is a high bar.
The hope is to train young Alaskans, perhaps even in high
schools, so they could move directly into the seafood industry
after graduation.
SENATOR MEYER questioned why more people in the high
unemployment rural areas aren't going into the seafood industry.
REPRESENTATIVE STUTES explained it is because there aren't
enough training programs.
3:27:19 PM
SENATOR MEYER motioned to report HCR 10 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO announced that without objection, CSHCR 10(FSH)
is reported from the Senate Labor and Commerce Standing
Committee.
3:27:35 PM
CHAIR COSTELLO recessed the meeting until 5:30 p.m.
5:34:47 PM
CHAIR COSTELLO reconvened the Senate Labor and Commerce Standing
Committee meeting at 5:34 p.m. Present at the call to order were
Senators Stevens, Giessel, and Chair Costello.
SB 107-INSURANCE; RISK MG'T; HOLDING COMPANIES
5:35:52 PM
CHAIR COSTELLO announced the consideration of SB 107. "An Act
relating to insurance; relating to risk based capital for
domestic insurers and fraternal benefit societies, including
provisions related to insurers subject to risk based capital and
action level event requirements; relating to review by the
director of insurance of an insurer's risk based capital plan;
relating to confidentiality and sharing of certain information
submitted to the director of insurance; relating to evaluating
an insurance holding company and the acquisition of control of
or merger with a domestic insurer; relating to risk based
capital, risk management, and own risk and solvency assessments
of insurers; clarifying provisions related to risk based capital
plans; relating to exemptions by the director of insurance for
certain domestic and casualty insurers from risk based capital
requirements; relating to insurance holding companies, including
filing requirements, divestiture, content of statements,
notifications, and hearings; relating to registration
requirements of insurers; relating to transactions within an
insurance holding company system or transactions involving a
domestic insurer; relating to management and examination of
domestic insurers that are part of an insurance holding company
system; adding provisions relating to participation by the
director of insurance in a supervisory college; relating to
civil and criminal penalties for violations by insurers and
individuals; relating to provisions for risk management and own
risk and solvency assessments by insurers; relating to operating
requirements for controlling insurance producers; relating to
producer-controlled insurers; adding and amending definitions
related to insurers; and providing for an effective date." She
noted that this is the second hearing and public testimony is
closed.
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), introduced
herself.
MARTY HESTER, Deputy Director, Division of Insurance, Department
of Commerce, Community and Economic Development (DCCED),
introduced himself.
MS. WING-HEIER noted that she sent the members a copy of the
bill with color coding to indicate what has been adopted, what
has been changed to comply with drafting standards, what is
amended, and what is new in statute. She asked how the chair
would like to proceed.
CHAIR COSTELLO asked the will of the committee.
MR. HESTER clarified that there are four categories of color
coding: new, revised statutes, corrections to modernize the
model to Alaska, and corrections related to drafting
conventions.
5:37:47 PM
At ease
5:37:51 PM
CHAIR COSTELLO reconvened the meeting.
5:38:44 PM
SENATOR MEYER joined the committee.
5:38:48 PM
SENATOR GIESSEL motioned to report SB 107, labeled 20-LS0791\E,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO announced that without objection SB 107 is
reported from the Senate Labor and Commerce Standing Committee.
5:39:10 PM
At ease
HB 41-SPORT FISHING SERVICES
5:39:15 PM
CHAIR COSTELLO announced the consideration of HB 41. "An Act
relating to sport fishing services, sport fishing operators, and
sport fishing guides; and providing for an effective date." She
noted this is the second hearing for the bill and public
testimony is open.
5:41:20 PM
CRYSTAL KOENEMAN, Staff, Representative Cathy Munoz, summarized
that HB 41 is to reestablish the sport fish guide licensing
program that sunsetted December 31, 2014. The only change is
that the fees are doubled.
SENATOR STEVENS noted a constituent is concerned about the
overly severe penalty of having his license revoked for two
paperwork violations. He asked where that is found in the bill
and how she would address that issue.
MS. KOENEMAN directed attention to the penalty section on page 5
that speaks to a person who knowingly violates a provision of
the sport fish statutes. A person is guilty of a violation for a
first offense. If there is a second or subsequent offense in a
three year period the person is guilty of a class B misdemeanor.
The constituent takes issue with the use of the word "knowingly"
and instead suggested using the term "intentionally." She
discussed the matter with both the Alaska Department of Fish and
Game (ADF&G) and legislative legal and learned that the burden
of proof for "intentionally" is substantially higher than for
"knowingly" and would be very difficult to prove. The number of
violations each year is extremely small and ADF&G has a
provision whereby it can work with a guide and issue a letter of
agreement to accommodate a special circumstance. For these
reasons the sponsors do not support the proposed amendment.
5:46:58 PM
SENATOR STEVENS said he understands the difficulty with the
higher burden of proof, but his constituent has no reasonable
way to get the logbook report to ADF&G in a timely manner when
he is on a two week big game hunt and his client does incidental
fishing.
MS. KOENEMAN said if there isn't a drop box near by the person
can mail the report. If the report is postmarked by the deadline
she believes that would be sufficient.
SENATOR STEVENS asked where you'd get an envelope postmarked in
the middle of a bear hunting trip.
MS. KOENEMAN said that's where that letter of agreement with
ADF&G come into play. "When they know they're going to be out in
the field and can't make those deadlines they can work with fish
and game to determine a time in which those logbooks can be
delivered when they fly back in from the remote areas and are
near a post office. Whether it's a couple of months out, it's
all between the guides themselves and fish and game to come up
with that agreement," she said.
SENATOR STEVENS expressed concern with the vagueness of the
solution and questioned the timeline.
MS. KOENEMAN deferred to ADF&G to outline how the letters of
agreement are drafted.
SENATOR GIESSEL asked to hear from Mr. Mulligan.
5:50:02 PM
BEN MULLIGAN, legislative liaison, Alaska Department of Fish and
Game (ADF&G), said he understands Senator Steven's concern about
the potential solution being vague, but the department does take
a case-by-case approach when it works with people who are unable
to get their reports in on time. ADF&G tries to be understanding
and the statute and regulations allows this latitude. It says
that the guide must follow the instructions in the logbook and
the instructions given by the department. The department has
approved special arrangements for a few guides in the last
couple of years and none that received the approval have had a
violation. He suggested that Mr. Brookover might have
supplemental information.
SENATOR STEVENS asked what the penalty is for someone who has
two paperwork violations.
MR. MULLIGAN replied it's a class B misdemeanor for a second or
multiple violations within a three-year period. He noted that
given the culpability standard of "knowingly," ADF&G only issues
about a dozen citations a year. The priority is to receive this
valuable data, not issue citations.
5:53:20 PM
SENATOR GIESSEL read Sec. 16.40.291(c)(1) on page 5 and observed
that there doesn't appear to be a penalty for a first offense.
She asked if that's true.
MR. MULLIGAN replied it is a bailable offense; the person would
receive a citation and fine.
SENATOR GIESSEL read Sec. 16.40.291(c)(2) on page 5 and asked if
that was the class B misdemeanor he referenced.
MR. MULLIGAN answered yes.
CHAIR COSTELLO asked Mr. Brookover if he had anything to add to
the discussion.
5:54:16 PM
TOM BROOKOVER, Acting Director, Division of Sport Fish, Alaska
Department of Fish and Game (ADF&G), reiterated the value of the
data that's collected through the logbook program. He explained
that the purpose of the program is to provide information on
business and guide effort in the state. The program provides
valuable information and to fulfill its purpose there must be
compliance. ADF&G seeks that compliance by working with the
guides as much as possible. The program was developed over a
number of years and included meetings with charter associations
and in communities so the department could better understand the
needs and limitations of guides and businesses. The department
works with the industry both in season and out to help with
compliance. When logbooks come in with missing information or
other problems come up during the season, staff reaches out to
businesses and guides to highlight and discuss the issues.
MR. BROOKOVER said there have been very few offenses in the last
two years, which is reflective of the compliance the department
has achieved over the years. They work with remote operators on
a case-by-case basis to find a solution to the timeliness
requirement. This is preferable to turning the matter over to
protection.
5:58:53 PM
SENATOR STEVENS referenced Sec. 16.40.291(d) that says the court
may revoke the sport fishing guide license if the person is
convicted under (a) or (c)(2) of the section, and commented that
the penalties seem rather draconian. He reiterated the concern
his constituent raised about the penalties because "knowingly
violates" could simply mean you don't get your logbook in on
time. He asked, "What is a bear trip? A month long, three weeks?
You know better than I."
MR. MULLIGAN admitted he didn't know, but the average was
probably two weeks.
MS. KOENEMAN pointed out that in subsection (a), AS 16.40.261 -
16.40.300 references the licensing provision, not an untimely
logbook.
MR. MULLIGAN agreed.
6:01:40 PM
SENATOR STEVENS asked Mr. Mulligan if he can understand his
constituent's concern. He has spent his lifetime building a
successful guiding business and has never committed a crime. Now
ADF&G says it could allow a grace period if he doesn't submit
his logbooks in a timely manner.
MR. MULLIGAN said he can understand the concern added, "All we
can do is go off our track record with the program so far and
Mr. Brookover's testimony." He said ADF&G would like to work
with this particular guide and figure out a plan. Both the
logbook coordinator and the law enforcement specialist have
contacted him to work with him and try to ease his mind.
6:03:53 PM
SENATOR STEVENS asked if he could see a way to write that into
the bill.
MR. MULLIGAN replied the standard of proof for "knowingly" is a
fairly high bar. If this constituent has turned a logbook in
late he hasn't been cited. The purpose of the program is to
collect data to better manage the resource.
SENATOR STEVENS said he understands the meaning of the term, but
the concern is that this person is at a remote site where there
is no post office and no planes coming and going.
CHAIR COSTELLO asked Mr. Bullard if he was available to talk
about the specific issue on page 5, line 22 and the difference
between "knowingly" and "intentionally."
6:05:46 PM
ALPHEUS BULLARD, Legislative Counsel, Legislative Legal
Services, Legislative Affairs Agency, Alaska State Legislature
stated that he did not want to talk in large form about the
issue, but would answer specific questions about the different
standards.
CHAIR COSTELLO asked the difference between "knowingly" and
"intentionally."
MR. BULLARD explained that the four mental states for crimes in
Alaska are intentionally, knowingly, recklessly and criminal
negligence. He read the definitions for the first two terms
provided in AS 11.81.900(a).
CHAIR COSTELLO opined that the key phrase is on page 5, line 23.
It talks about timely submission of reports and the department
would provide through regulation what is and is not timely. She
said it seems that the department could take this testimony into
consideration when someone is unable to submit their report per
the requirements.
SENATOR STEVENS said he realizes the importance of the data, but
he doesn't understand the harm it could do if it comes in a week
later than required. He asked why it couldn't be submitted at
the end of the hunt.
MR. MULLIGAN explained that the time was negotiated, primarily
with sport fishing guides. The majority in that industry did not
see the week timeframe as egregious.
6:11:21 PM
MR. BROOKOVER reported that about 1,200 businesses in the state
operate under the logbook program and many return to port every
day. As mentioned earlier, the week timeframe was the result of
discussions over several years and it seems to work. However,
there are a few remote operators and the department wants to
work with them and accommodate their circumstances to the extent
possible.
6:14:16 PM
PAUL JOHNSON, Guide, testified in opposition to HB 41. He
explained that this is strict liability law and it isn't just
the State Troopers that enforce this; it is also the National
Park Service, the U.S. Fish and Wildlife, the U.S. Coast Guard,
and NOAA. The penalty for a violation is more than simply paying
the fee. He related his personal experiences and stressed that
the program was sunsetted for a purpose. He suggested the
legislature put together a working group to deal with all the
associated issues or sunset the program after one or two years.
He questioned why electronic filing isn't possible because the
federal government has figured it out. [Much of this testimony
was indiscernible.]
6:22:24 PM
CHAIR COSTELLO closed public testimony.
SENATOR STEVENS commented that the testimony was interesting and
he made good points. He said his concerns have not been allayed
and he feels more study and more input is needed.
6:23:22 PM
At ease
6:23:28 PM
CHAIR COSTELLO reconvened the meeting and stated that the
discussion was about Senator Steven's concerns about the
legislation. She said the committee will include a letter from
Senator Stevens that will be forwarded to the Finance Committee.
The department has also heard the concerns.
6:24:10 PM
SENATOR GIESSEL motioned to report HB 41, labeled 29-LS0238\P.A,
from committee with individual recommendations and attached
fiscal note.
CHAIR COSTELLO announced that without objection, CSHB 41(FIN) AM
is reported from the Senate Labor and Commerce Standing
Committee.
6:24:33 PM
At ease
HB 123-ESTABLISH MARIJUANA CONTROL BOARD
6:27:09 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 123. "An Act establishing the Marijuana
Control Board; relating to the powers and duties of the
Marijuana Control Board; relating to the appointment, removal,
and duties of the director of the Marijuana Control Board;
relating to the Alcoholic Beverage Control Board; and providing
for an effective date." She noted the new Senate committee
substitute (CS).
6:27:36 PM
SENATOR GIESSEL motioned to adopt the Senate CS for CS for HB
123, labeled 29-GH1110\S, as the working document.
CHAIR COSTELLO objected for discussion purposes. She asked Mr.
Eiler to present the Senate CS.
6:28:12 PM
WESTON EILER, Staff, Senator Costello and the Senate Labor and
Commerce Committee, said he would explain the changes that
appear in the work draft version S.
Page 2, lines 22-30, the language in subsections (c) and (d) is
deleted. These sections factor in the experience of the
executive director when filling the other sectors on the board.
The CS removes this new and unusual policy call.
Page 3, line 30, the CS changes from two years to three years
the number of successive terms a member may serve on the board.
Members are appointed to staggered terms and this change will
allow board members the opportunity to serve a little longer,
particularly the person who is appointed to serve one year. This
will allow some institutional knowledge and experience to be
built up in the board. Responding to a question from Senator
Stevens, he directed attention to the transition language in
Section 10 on page 7. It lays out the staggered terms that are
customary for establishing a new board.
Page 6, line 30, the sunset for the Marijuana Control Board was
changed from June 30, 2018 to June 30, 2017. The shortened
timeline for this new board allows the legislature to review the
potential issues sooner rather than later.
6:33:32 PM
CHAIR COSTELLO removed her objection. Finding no further
objection, version S was before the committee. She asked Mr.
Eiler to review the makeup of the board outlined on page 2,
lines 16-20.
MR. EILER explained that this language spells out the five seats
on the Marijuana Control Board. There is one person from the
public safety sector; one person from the public health sector;
one person currently residing in a rural area; one person
actively engaged in the marijuana industry; and one person who
is either from the general public or actively engaged in the
marijuana industry.
SENATOR STEVENS asked if the public health sector wouldn't be
someone from a state office.
MR. EILER said he didn't read it that way, but would defer to
Ms. Franklin.
6:35:30 PM
CYNTHIA FRANKLIN, Director, Alcoholic Beverage Control Board,
Department of Commerce, Community and Economic Development
(DCCED), explained that this language mirrors the language in
Title 4 regarding the makeup of the Alcoholic Beverage Control
Board. It prohibits anyone who is currently employed in any of
those state or federal roles from serving on the board, but the
governor and legislature would be looking for people who have
that type of experience in their background.
CHAIR COSTELLO asked if that is partially because the time
commitment of this board would preclude someone who is currently
serving in that sector.
MS. FRANKLIN replied it's that and the potential for a conflict
of interest between agency work and the board.
CHAIR COSTELLO asked her to explain how the language on page 7,
lines 9-12, affects the initial appointment of the public
member. Her understanding is that initially the only public
member will be the rural seat, because the governor would be
prohibited from choosing a public member instead of an industry
member for the initial appointment.
6:40:58 PM
MS. FRANKLIN agreed the language appears to prohibit the
governor from choosing a public member instead of an industry
member for the initial appointment.
SENATOR STEVENS asked if these five positions are salaried.
MS. FRANKLIN answered no; these people are volunteers.
SENATOR GIESSEL said she has a different interpretation of the
language in subsection (b) on page 2, lines 12-15. It says a
member of the board may not hold any other state or federal
office, either elective or appointive. It does not say that a
police officer or public health nurse can't serve on the board.
CHAIR COSTELLO agreed with the interpretation.
SENATOR STEVENS asked Ms. Franklin if that was her
interpretation.
MS. FRANKLIN said the people serving on the [ABC] Board
currently are employed. They are prohibited from being employed
by the state through an appointment process and they cannot be
employed by the state or federal government through an elective
process. She reiterated that this is the same language that has
been used for 30 years to appoint members to the ABC Board. She
is unaware of any controversy in the interpretation of the
language.
6:44:45 PM
SENATOR GIESSEL expressed concern with the shortened time period
on page 6, line 31.
CHAIR COSTELLO explained that it's not a true sunset because the
voter initiative stands until that time; it's just the
opportunity that a sunset brings. It allows the legislature to
bring the players back in the public venue and discuss the
board's progress and challenges.
SENATOR GIESSEL said she appreciates the value of a sunset
review, but a request through the Legislative Budget and Audit
for a report can be made at any time.
6:47:39 PM
CHRIS VLADICK, Commissioner designee, Department of Commerce,
Community and Economic Development (DCCED), stated his belief
that a marijuana control board should be established. He said
this is a bare bones approach given the state's financial
situation and he looks forward to working with the legislature
on this matter.
MS. FRANKLIN highlighted two imperatives about the bill, the
first of which is that it funds the initiative and safely
implements regulations related to the regulation of marijuana.
Finally, if the bill doesn't pass the voter initiative directs
that the ABC Board will take on the task of regulating this
substance. She reminded the committee that these volunteers have
already taken on the daunting task of rewriting the alcohol
statutes and to ask them to take on this new substance imposes
an undue burden and does a disservice to the work that is being
done on alcohol.
She concluded that it is important to have the enforcement and
licensing personnel able to address both substances, but it does
not make sense to distract ABC Board members from their
important task and split their attention between these two
substances. She urged the committee to support the concept of
having two groups tackle these substances separately.
6:50:59 PM
CHAIR COSTELLO opened public testimony.
6:51:17 PM
PAUL THOMAS, Vice Chair, Alaska CHARR, testified in support of
establishing a marijuana control board and adding funding for
the extra positions. The ABC Board is fully involved in the
Title 4 rewrite so it is critical to get the new board up and
running as fast as possible.
6:52:13 PM
KATE BURKHART, Executive Director, Advisory Board on Alcoholism
and Drug Abuse and the Alaska Mental Health Board, explained
that these boards are the statutory advisory boards on issues
related to substance abuse and mental health. She said she
submitted written testimony expressing complete support for the
passage of HB 123. It is imperative to have the ability in both
human and financial resources to safely and effectively
implement Ballot Measure 2 in a way that mitigates public harm.
She related that there has been great progress in the public
health issues related to underage drinking and alcohol abuse in
the last 20 years, and the ABC Board has been a large part of
that. She expressed concern that a diversion of resources from
the effective regulation and enforcement of alcohol laws will
set this progress back.
She related that the boards that she serves on operate in much
the same manner as is proposed in the bill. There are two boards
with a shared staff. The boards work in concert but each
represents a unique constituency and brings unique expertise to
the work they do. This is cost effective and a highly effective
way of doing business, as it could be with separate alcohol and
marijuana boards.
6:54:25 PM
JASON HARDER, representing himself, Copper Center, Alaska,
testified in support of HB 123. He pointed out the bill gives
rural Alaska a seat on the board so rural Alaska should be able
to participate in the commercial aspect of Ballot Measure 2.
However, SB 30 opts out all of rural Alaska from the commercial
business associated with marijuana, which doesn't make sense. He
asked the committee to not opt out people in rural communities
who do not have a way to opt back in.
6:56:12 PM
CHAIR COSTELLO closed public testimony.
6:56:21 PM
SENATOR GIESSEL motioned to report HB 123, labeled 29-GH1110\S,
from committee with individual recommendations and attached
fiscal note(s).
6:56:38 PM
CHAIR COSTELLO announced that without objection SCS CSHB
123(L&C) is reported from the Senate Labor and Commerce Standing
Committee.
6:56:52 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 6:56 p.m.