01/30/2018 01:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB126 | |
| HB124 | |
| HB208 | |
| HB102 | |
| HB114 | |
| HB121 | |
| HB86 | |
| HCR8 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 126 | TELECONFERENCED | |
| + | HB 208 | TELECONFERENCED | |
| += | HB 102 | TELECONFERENCED | |
| + | HB 114 | TELECONFERENCED | |
| + | HB 121 | TELECONFERENCED | |
| + | HB 124 | TELECONFERENCED | |
| + | HB 86 | TELECONFERENCED | |
| + | HCR 8 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 30, 2018
1:02 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Kevin Meyer
Senator Berta Gardner
Senator Peter Micciche
MEMBERS ABSENT
Senator Gary Stevens
COMMITTEE CALENDAR
SENATE BILL NO. 126
"An Act providing for an exception to the regulation of the
practice of medicine for a physician who provides medical
services to an athletic team from another state."
- MOVED SB 126 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 124(FIN)
"An Act relating to corporations, including benefit
corporations, and other entities; and providing for an effective
date."
- MOVED CSHB 124(FIN) OUT OF COMMITTEE
HOUSE BILL NO. 208
"An Act relating to trusts and powers of appointment; and
providing for an effective date."
- MOVED HB 208 OUT OF COMMITTEE
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 102(EDC)
"An Act relating to instruction in a language other than
English; and relating to limited teacher certificates."
- MOVED CSHB 102(EDC) OUT OF COMMITTEE
HOUSE BILL NO. 114
"An Act relating to boiler and unfired pressure vessel
inspection reports and fees."
- MOVED HB 114 OUT OF COMMITTEE
HOUSE BILL NO. 121
"An Act relating to occupational safety and health enforcement
penalties; and providing for an effective date."
- MOVED HB 121 OUT OF COMMITTEE
HOUSE BILL NO. 86
"An Act relating to nonrenewal of occupational licenses for
default on a student loan."
- HEARD & HELD
HOUSE CONCURRENT RESOLUTION NO. 8 AM
Expressing the strong support of the Alaska State Legislature
for the Kodiak Seafood and Marine Science Center; and urging the
University of Alaska to find a solution to keep the Kodiak
Seafood and Marine Science Center operating as a stable resource
in the state.
- MOVED HCR 8 AM OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 126
SHORT TITLE: VISITING PHYSICIANS WITH SPORTS TEAMS
SPONSOR(s): SENATOR(s) MACKINNON
01/16/18 (S) PREFILE RELEASED 1/8/18
01/16/18 (S) READ THE FIRST TIME - REFERRALS
01/16/18 (S) L&C
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 208
SHORT TITLE: TRUSTS; COMM PROP TRUSTS; POWERS OF APPT
SPONSOR(s): REPRESENTATIVE(s) JOHNSON
03/31/17 (H) READ THE FIRST TIME - REFERRALS
03/31/17 (H) JUD
04/10/17 (H) JUD AT 1:00 PM GRUENBERG 120
04/10/17 (H) Scheduled but Not Heard
04/12/17 (H) JUD AT 1:00 PM GRUENBERG 120
04/12/17 (H) Heard & Held
04/12/17 (H) MINUTE(JUD)
04/14/17 (H) JUD AT 1:00 PM GRUENBERG 120
04/14/17 (H) Moved HB 208 Out of Committee
04/14/17 (H) MINUTE(JUD)
04/15/17 (H) JUD RPT 2DP 5NR
04/15/17 (H) DP: KOPP, CLAMAN
04/15/17 (H) NR: EASTMAN, FANSLER, KREISS-TOMKINS,
LEDOUX, REINBOLD
05/10/17 (H) TRANSMITTED TO (S)
05/10/17 (H) VERSION: HB 208
05/11/17 (S) READ THE FIRST TIME - REFERRALS
05/11/17 (S) L&C, JUD
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 102
SHORT TITLE: LIMITED TEACHER CERTIFICATES; LANGUAGES
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS
02/03/17 (H) READ THE FIRST TIME - REFERRALS
02/03/17 (H) EDC
03/01/17 (H) EDC AT 8:00 AM CAPITOL 106
03/01/17 (H) Heard & Held
03/01/17 (H) MINUTE(EDC)
03/15/17 (H) EDC AT 8:00 AM CAPITOL 106
03/15/17 (H) <Bill Hearing Canceled>
03/20/17 (H) EDC AT 8:00 AM CAPITOL 106
03/20/17 (H) Heard & Held
03/20/17 (H) MINUTE(EDC)
03/27/17 (H) EDC RPT CS(EDC) 4DP 1NR 1AM
03/27/17 (H) DP: TALERICO, PARISH, SPOHNHOLZ, KOPP
03/27/17 (H) NR: DRUMMOND
03/27/17 (H) AM: FANSLER
03/27/17 (H) EDC AT 8:00 AM CAPITOL 106
03/27/17 (H) Moved CSHB 102(EDC) Out of Committee
03/27/17 (H) MINUTE(EDC)
04/05/17 (H) TRANSMITTED TO (S)
04/05/17 (H) VERSION: CSHB 102(EDC)
04/06/17 (S) READ THE FIRST TIME - REFERRALS
04/06/17 (S) L&C, EDC
04/11/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
04/11/17 (S) Heard & Held
04/11/17 (S) MINUTE(L&C)
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 114
SHORT TITLE: BOILER/PRESSURE VESSEL INSPECTION REPORTS
SPONSOR(s): LABOR & COMMERCE
02/10/17 (H) READ THE FIRST TIME - REFERRALS
02/10/17 (H) L&C, FIN
02/27/17 (H) L&C AT 3:15 PM BARNES 124
02/27/17 (H) Heard & Held
02/27/17 (H) MINUTE(L&C)
03/01/17 (H) L&C AT 3:15 PM BARNES 124
03/01/17 (H) Moved HB 114 Out of Committee
03/01/17 (H) MINUTE(L&C)
03/03/17 (H) L&C RPT 4DP 1NR
03/03/17 (H) DP: STUTES, WOOL, JOSEPHSON, KITO
03/03/17 (H) NR: KNOPP
04/06/17 (H) FIN AT 9:00 AM HOUSE FINANCE 519
04/06/17 (H) Moved HB 114 Out of Committee
04/06/17 (H) MINUTE(FIN)
04/07/17 (H) FIN RPT 9DP 1NR
04/07/17 (H) DP: WILSON, GARA, ORTIZ, THOMPSON,
GUTTENBERG, GRENN, TILTON, SEATON,
FOSTER
04/07/17 (H) NR: KAWASAKI
04/08/17 (H) TRANSMITTED TO (S)
04/08/17 (H) VERSION: HB 114
04/10/17 (S) READ THE FIRST TIME - REFERRALS
04/10/17 (S) L&C, FIN
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 121
SHORT TITLE: OCC. HEALTH AND SAFETY CIVIL PENALTIES
SPONSOR(s): LABOR & COMMERCE
02/13/17 (H) READ THE FIRST TIME - REFERRALS
02/13/17 (H) L&C, JUD
02/27/17 (H) L&C AT 3:15 PM BARNES 124
02/27/17 (H) Heard & Held
02/27/17 (H) MINUTE(L&C)
03/01/17 (H) L&C AT 3:15 PM BARNES 124
03/01/17 (H) Moved HB 121 Out of Committee
03/01/17 (H) MINUTE(L&C)
03/03/17 (H) L&C RPT 4DP
03/03/17 (H) DP: STUTES, WOOL, JOSEPHSON, KITO
03/08/17 (H) JUD AT 1:00 PM GRUENBERG 120
03/08/17 (H) Heard & Held
03/08/17 (H) MINUTE(JUD)
03/13/17 (H) JUD AT 1:00 PM GRUENBERG 120
03/13/17 (H) Moved HB 121 Out of Committee
03/13/17 (H) MINUTE(JUD)
03/15/17 (H) JUD RPT 3DP 2NR
03/15/17 (H) DP: KOPP, FANSLER, CLAMAN
03/15/17 (H) NR: EASTMAN, LEDOUX
03/15/17 (H) FIN REFERRAL ADDED AFTER JUD
04/06/17 (H) FIN AT 9:00 AM HOUSE FINANCE 519
04/06/17 (H) Moved HB 121 Out of Committee
04/06/17 (H) MINUTE(FIN)
04/07/17 (H) FIN RPT 7DP 2NR 1AM
04/07/17 (H) DP: GARA, ORTIZ, THOMPSON, GUTTENBERG,
GRENN, SEATON, FOSTER
04/07/17 (H) NR: WILSON, TILTON
04/07/17 (H) AM: KAWASAKI
04/08/17 (H) NOT TAKEN UP 4/8 - ON 4/9 CALENDAR
04/10/17 (H) TRANSMITTED TO (S)
04/10/17 (H) VERSION: HB 121
04/11/17 (S) READ THE FIRST TIME - REFERRALS
04/11/17 (S) L&C, FIN
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 124
SHORT TITLE: BENEFIT CORPORATIONS
SPONSOR(s): KITO
02/15/17 (H) READ THE FIRST TIME - REFERRALS
02/15/17 (H) L&C, FIN
04/01/17 (H) L&C AT 1:00 PM BARNES 124
04/01/17 (H) Heard & Held
04/01/17 (H) MINUTE(L&C)
04/07/17 (H) L&C AT 3:15 PM BARNES 124
04/07/17 (H) Scheduled but Not Heard
04/10/17 (H) L&C AT 3:15 PM BARNES 124
04/10/17 (H) Moved CSHB 124(L&C) Out of Committee
04/10/17 (H) MINUTE(L&C)
04/11/17 (H) L&C RPT CS(L&C) 1DP 5NR
04/11/17 (H) DP: KITO
04/11/17 (H) NR: SULLIVAN-LEONARD, WOOL, JOSEPHSON,
BIRCH, KNOPP
04/17/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/17/17 (H) Heard & Held
04/17/17 (H) MINUTE(FIN)
04/26/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/26/17 (H) Heard & Held
04/26/17 (H) MINUTE(FIN)
05/09/17 (H) FIN AT 1:30 PM HOUSE FINANCE 519
05/09/17 (H) Moved CSHB 124(FIN) Out of Committee
05/09/17 (H) MINUTE(FIN)
05/10/17 (H) FIN RPT CS(FIN) 5DP 3DNP 2NR 1AM
05/10/17 (H) DP: THOMPSON, GRENN, GARA, SEATON,
FOSTER
05/10/17 (H) DNP: TILTON, PRUITT, WILSON
05/10/17 (H) NR: ORTIZ, STUTES
05/10/17 (H) AM: KAWASAKI
05/17/17 (H) TRANSMITTED TO (S)
05/17/17 (H) VERSION: CSHB 124(FIN)
01/18/18 (S) READ THE FIRST TIME - REFERRALS
01/18/18 (S) L&C, FIN
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HB 86
SHORT TITLE: STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL
SPONSOR(s): CLAMAN
01/27/17 (H) READ THE FIRST TIME - REFERRALS
01/27/17 (H) EDC, L&C
03/01/17 (H) EDC RPT 7DP
03/01/17 (H) DP: TALERICO, PARISH, KOPP, SPOHNHOLZ,
JOHNSTON, FANSLER, DRUMMOND
03/01/17 (H) EDC AT 8:00 AM CAPITOL 106
03/01/17 (H) Moved HB 86 Out of Committee
03/01/17 (H) MINUTE(EDC)
03/22/17 (H) L&C AT 3:15 PM BARNES 124
03/22/17 (H) Heard & Held
03/22/17 (H) MINUTE(L&C)
03/24/17 (H) L&C AT 3:15 PM BARNES 124
03/24/17 (H) Moved HB 86 Out of Committee
03/24/17 (H) MINUTE(L&C)
03/27/17 (H) L&C RPT 6DP 1NR
03/27/17 (H) DP: SULLIVAN-LEONARD, STUTES, WOOL,
JOSEPHSON, BIRCH, KITO
03/27/17 (H) NR: KNOPP
03/29/17 (H) TRANSMITTED TO (S)
03/29/17 (H) VERSION: HB 86
03/31/17 (S) READ THE FIRST TIME - REFERRALS
03/31/17 (S) EDC, L&C
04/12/17 (S) EDC AT 8:00 AM BUTROVICH 205
04/12/17 (S) Heard & Held
04/12/17 (S) MINUTE(EDC)
04/14/17 (S) EDC RPT 4DP
04/14/17 (S) DP: STEVENS, BEGICH, COGHILL, HUGHES
04/14/17 (S) EDC AT 8:30 AM BUTROVICH 205
04/14/17 (S) Moved HB 86 Out of Committee
04/14/17 (S) MINUTE(EDC)
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
BILL: HCR 8
SHORT TITLE: KODIAK SEAFOOD & MARINE SCIENCE CENTER
SPONSOR(s): FISHERIES
03/01/17 (H) READ THE FIRST TIME - REFERRALS
03/01/17 (H) FSH
03/14/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/14/17 (H) -- MEETING CANCELED --
03/28/17 (H) FSH AT 10:00 AM GRUENBERG 120
03/28/17 (H) Moved HCR 8 Out of Committee
03/28/17 (H) MINUTE(FSH)
03/29/17 (H) FSH RPT 4DP 1NR
03/29/17 (H) DP: TARR, FANSLER, KREISS-TOMKINS,
STUTES
03/29/17 (H) NR: NEUMAN
04/07/17 (H) TRANSMITTED TO (S)
04/07/17 (H) VERSION: HCR 8 AM
04/10/17 (S) READ THE FIRST TIME - REFERRALS
04/10/17 (S) EDC, L&C
04/14/17 (S) EDC REFERRAL WAIVED UC
04/14/17 (S) EDC AT 8:30 AM BUTROVICH 205
04/14/17 (S) Heard & Held
04/14/17 (S) MINUTE(EDC)
04/15/17 (S) EDC AT 1:00 PM BUTROVICH 205
04/15/17 (S) -- MEETING CANCELED --
01/30/18 (S) L&C AT 1:00 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR ANNA MACKINNON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 126.
DR. JEFF MOORE, Orthopedic Physician and
National Delegate
American Orthopedic Society for Sports Medicine
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 126.
DEBORA STOVERN, Executive Administrator
State Medical Board
Division of Corporations, Business & Professional Licensing
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 126.
REPRESENTATIVE SAM KITO III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 124.
CATLYN ELLIS, Staff
Representative Sam Kito III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 124 on behalf of the sponsor.
REPRESENTATIVE DELENA JOHNSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 208.
ANDREW EVENS, Staff
Representative DeLena Johnson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 208 on behalf of the sponsor.
JONATHAN BLATTMACHR, representing self
Long Island, New York
POSITION STATEMENT: Testified in support of HB 208.
MATHEW BLATTMACHR, Vice President
Peak Trust Company
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 208.
ABIGAIL O'CONNOR, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 208.
DOUGLAS BLATTMACHR, President and CEO
Peak Trust Company
Anchorage, Alaska
POSITION STATEMENT: Stated wholehearted support for HB 208.
RICH HOMPESCH, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of HB 208.
REPRESENTATIVE KREISS-TOMKINS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 102
REID MAGDANZ, Staff
Representative Kreiss-Tomkins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 102 on behalf of the sponsor.
BRANDON LOCKE, Director
World Languages
Anchorage School District (ASD)
Anchorage, Alaska
POSITION STATEMENT: Stated support for HB 102
SONDRA MEREDITH, Education Administrator II
Teaching and Learning Support
Department of Education and Early Development (DEED)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 102.
REPRESENTATIVE SAM KITO III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 114 as chair of the House Labor
and Commerce Committee.
DEBORA KELLY, Director
Division of Labor Standards & Safety
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 114.
REPRESENTATIVE SAM KITO III
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 121 as chair of the House Labor
and Commerce Committee.
DEBORA KELLY, Director
Division of Labor Standards & Safety
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Provided supporting information on HB 121.
REPRESENTATIVE MATT CLAMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 86.
CERI GODINEZ, Staff
Representative Matt Claman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 86 on behalf of the sponsor.
STEPHANIE BUTLER, Executive Director
Alaska Commission on Postsecondary Education
Department of Education and Early Development (DEED)
Juneau, AK
POSITION STATEMENT: Provided supporting testimony for HB 86.
AMBER MICHAIS, Registered Nurse
Alaska Nurses Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 86.
MATT GRUENING, Staff
Representative Louise Stutes and aide
House Fisheries Committee
POSITION STATEMENT: Introduced HCR 8 on behalf of the House
Fisheries Committee.
ACTION NARRATIVE
1:02:26 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:02 p.m. Present at the call to
order were Senators Gardner, Micciche, Meyer, and Chair
Costello. She noted that Senator Stevens would not be present.
SB 126-VISITING PHYSICIANS WITH SPORTS TEAMS
1:03:15 PM
CHAIR COSTELLO announced the consideration of SB 126.
1:03:36 PM
SENATOR ANNA MACKINNON, Alaska State Legislature, Juneau,
Alaska, sponsor of SB 126, introduced the legislation speaking
to the following sponsor statement:
Competitive sports teams typically have a team
physician who provides care for the athletes. When the
team travels out of state, the physician often
accompanies them. However, if an athlete is injured or
needs a prescription filled while traveling in Alaska,
the team physician would not be able to provide care
without being licensed here.
Senate Bill 126 would provide an exemption for state
licensure for this narrow circumstance. The physician
would have to be licensed to practice medicine in
another state, under a written contract to provide
care to an athletic team in that state and would be
limited to providing services to members of the team
while they are traveling or participating in a
sporting event in Alaska.
The bill is a narrow solution to a specific problem.
Thirty-five other states have passed similar
legislation to ensure that the doctors who know their
patients best can continue to treat them.
SENATOR MACKINNON summarized that this is a simple policy
decision to allow sports team members from out of state to be
treated by their team physician when they're traveling in
Alaska.
1:04:49 PM
SENATOR GARDNER asked if she'd heard any opposition to the bill.
SENATOR MACKINNON answered no and noted a new letter of support
in the packets.
SENATOR MICCICHE pointed out that the physician must have a
written agreement with the team.
SENATOR MACKINNON agreed.
1:05:41 PM
CHAIR COSTELLO opened public testimony on SB 126.
1:05:58 PM
DR. JEFF MOORE, Orthopedic Physician and National Delegate,
American Orthopedic Society for Sports Medicine, Anchorage,
Alaska, testified in support of SB 126. He reported that 35
states have passed similar legislation and 13 states, including
Alaska, have it under consideration. He opined that it would be
very beneficial if team physicians could take care of their own
athletes when they visit Alaska.
CHAIR COSTELLO asked, should the bill pass, if the Department of
Commerce, Community and Economic Development would have any
involvement with the visiting physician.
1:07:17 PM
DEBORA STOVERN, Executive Administrator, State Medical Board,
Division of Corporations, Business & Professional Licensing,
Department of Commerce, Community and Economic Development
(DCCED), Anchorage, Alaska, replied the State Medical Board may
need to adopt regulations to implement the bill and the
department supports the board in those endeavors.
SENATOR MICCICHE observed that the fiscal note reflects that
this is a receipt supported service and therefore a net zero to
the state.
CHAIR COSTELLO asked Senator MacKinnon if she wished to comment
on the fiscal note that reflects $2,500 for a regulations
project.
SENATOR MACKINNON expressed appreciation that DCCED submitted a
fiscal note after multiple requests. She agreed that the fiscal
impact is net zero and opined that the bill could be referred to
finance.
1:10:00 PM
CHAIR COSTELLO closed public testimony on SB 126.
SENATOR MEYER asked if one team doctor is prohibited from
helping another team doctor in the event of injury.
DR MOORE said local doctors would be available to help visiting
team doctors.
1:11:41 PM
SENATOR MICCICHE moved to report SB 126 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO stated that without objection, SB 126 moved from
the Senate Labor and Commerce Standing Committee.
HB 124-BENEFIT CORPORATIONS
1:12:03 PM
CHAIR COSTELLO announced the consideration of HB 124. [CSHB
124(FIN) was before the committee.]
1:12:22 PM
REPRESENTATIVE SAM KITO III, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 124, stated that the purpose of the
legislation is to modify Alaska's corporation structure to allow
a corporation to add a beneficial component to its business.
This allows owners and boards to take actions that positively
impact their communities and business without fear of violating
their fiduciary responsibility to shareholders.
1:15:10 PM
CATLYN ELLIS, Staff, Representative Sam Kito III, Alaska State
Legislature, Juneau, Alaska, explained that benefit corporations
work towards two goals. They have the fiduciary responsibility
to achieve the best profits for their shareholders while they
incorporate public benefits and community improvement into their
day-to-day business practices. A benefit corporation is
protected by its legal framework and is taxed the same as other
corporations. The business develops its own articles of
incorporation and is held accountable through biannual reports
to shareholders, the state, and the public. Failure to produce
these reports could result in the Department of Commerce,
Community and Economic Development (DCCED) dissolving the
corporation.
MS. ELLIS reported that 31 states have a similar designation for
benefit corporations. She noted that a few Alaskan businesses
have gone through the process of becoming certified through the
international benefit corporation structure. This would work in
tandem and provide statewide legal protection.
1:18:49 PM
CHAIR COSTELLO asked if a business could form solely as a
benefit corporation.
MS. ELLIS answered yes, and an existing corporation could vote
to convert to a benefit corporation
SENATOR GARDNER asked 1) the genesis of the bill and if a
business could form as a benefit corporation if the state
doesn't participate by licensure, and 2) if a benefit
corporation is subject to penalty if it fails to meet its
beneficial goal but does meet its fiduciary responsibility to
shareholders.
REPRESENTATIVE KITO explained that the bill was originally
requested by Alaskan businesses because state law prohibits a
corporation from using the beneficial component without
violating its fiduciary responsibility to shareholders. A
benefit corporation must identify its beneficial use in the
articles of incorporation and biannually report on its
beneficial and fiduciary responsibility. The department will
review the reports and he imagined the corporation would have
the flexibility to scale up or down its beneficial use.
MS. ELLIS cited Patagonia as an example of a beneficial
corporation; the bylaws direct the corporation to deliver
products that don't impact the community, but it isn't specific.
She confirmed that Alaska businesses could form as a beneficial
corporation, but they wouldn't have legal protection if
shareholders said the corporation failed to meet its fiduciary
responsibilities.
CHAIR COSTELLO noted the individuals available to answer
questions.
1:24:28 PM
SENATOR MEYER asked for an example of an Alaska business that
has formed as a beneficial corporation.
MS. ELLIS said Arctic Solar Ventures in Anchorage is one of
three businesses that have gone through the international
certification process.
SENATOR MEYER asked if the social benefit would be the solar
panels.
MS. ELLIS replied they listed environmental and social benefits
in the bylaws.
SENATOR MEYER asked how social benefit is defined and who makes
the determination.
MS. ELLIS replied the corporation makes the determination in its
bylaws.
SENATOR MICCICHE commented that citing Patagonia as an example
isn't a good lead-off since it opposes many of the important
industries in Alaska. He acknowledged the bottom-line benefit of
the legislation was that the corporation identifies itself as a
socially responsible entity.
1:26:22 PM
CHAIR COSTELLO opened public testimony on HB 124 and closed it
after ascertaining that no one wished to testify.
1:26:57 PM
At ease
1:27:15 PM
CHAIR COSTELLO reconvened the meeting and again opened public
testimony on HB 124. Finding none, she closed it.
SENATOR GARDNER pointed out that the supporting documents
include a letter from a coffee company that talks about the
social value of empowering indigenous farmers and helping them
earn up to 50 percent more of the specialty coffee dollars.
SENATOR MICCICHE reviewed the $22,500 DCCED fiscal note that
does not have a negative impact to the state. He paraphrased the
last paragraph of the analysis. "Corporation filing fees are
General Fund/Program Receipts fund source 1005 GF/Prgm (DGF).
Corporation filing fees are set in regulation per AS 10 and 32,
and revenue in excess of authorized budgeted expenses reverts to
the State of Alaska general fund."
1:29:39 PM
SENATOR MICCICHE moved to report HB 124 from committee with
individual recommendations and attached fiscal note(s).
1:29:52 PM
CHAIR COSTELLO announced that without objection, CSHB 124(FIN)
moved from the Senate Labor and Commerce Standing Committee.
HB 208-TRUSTS; COMM PROP TRUSTS; POWERS OF APPT
1:30:06 PM
CHAIR COSTELLO announced the consideration of HB 208. She
reminded members that the committee heard the Senate version of
the bill last session.
1:30:31 PM
At ease
1:34:08 PM
CHAIR COSTELLO reconvened the meeting and invited Representative
Johnson to present HB 208.
1:34:29 PM
REPRESENTATIVE DELENA JOHNSON, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 208, stated that this legislation amends
trust law by making it more responsive to current market
conditions. Should it pass, Alaska will return to its premiere
position of being among the best jurisdictions in the country to
hold trusts. This legislation will create jobs and help
diversify the economy.
1:36:15 PM
ANDREW EVENS, Staff, Representative DeLena Johnson, Alaska State
Legislature, Juneau, Alaska, introduced HB 208 speaking to the
following sponsor statement:
Alaska has always sought be a leader in adopting laws
to improve estate and tax planning options for
Alaskans as well as non-resident trust holders. As a
result, by 1998 Alaska ranked among the top three
favorable environments to place trusts.
Since the end of the 1990s however, states such as
Nevada, New York, South Dakota, and others have passed
newer laws expanding the flexibilities available to
trusts. As a result, Alaska is now trailing much of
the nation in evolving our trust related statutes to
meet current market realities and demands. According
to a leading index, Alaska's ranking has fallen to
eighth place as an increasing number of states become
superior trust-favorable environments.
This bill seeks to reverse this trend by updating and
increasing flexibility in trust-related regulation,
while maintaining the protections already codified in
existing statutes.
This bill will stimulate increased investment in our
economy through the creation of more opportunities for
Alaskan banks, trust companies, and other financial
institutions. It will help to create higher paying
jobs in the financial services sector. It will help
to diversify Alaska's economy by expanding an industry
that is not 'resource economy' dependent, and it will
add a source of fee-based income for state government.
House Bill 208 will bring Alaska trust related law
into the 21st century, restore the state's ranking
among trust-friendly states, stimulate stable economic
growth and employment, and bring in additional state
revenue.
I respectfully ask for your support of House Bill 208.
1:40:47 PM
SENATOR GARDNER asked if the trust professionals are required to
be Alaska residents.
MR. EVENS deferred the question to Mr. Blattmachr.
1:41:16 PM
MATHEW BLATTMACHR, Vice President, Peak Trust Company,
Anchorage, Alaska, explained that to be deemed a valid Alaska
trust some administration must occur within the state and the
trust must have a resident Alaskan trustee. The drafting
attorney does not have to be a resident, but it is advisable
that the trust is "blessed by Alaska counsel." Likewise, an
accountant for a trust is not required to reside or operate in
Alaska.
MR. BLATTMACHR added that most of the provisions in the bill
simply clarify and enhance the flexibility of existing statute.
He cited the changes to the decanting statute as an example.
Alaska passed its decanting statute 20 years ago and several
states have more modern decanting laws. HB 208 seeks to update
the statute and put Alaska back on par.
CHAIR COSTELLO asked for an explanation of decanting.
MR. BLATTMACHR explained that decanting in the trust industry is
similar to decanting wine. It is the gradual pouring of the
contents of one container into another vehicle. In the trust
context, the assets stay the same, but the container is changed.
Decanting is a process that might be used to make a change when
there is a scrivener's error in an irrevocable trust document,
when there is an unexpected tax law change, or when there is a
substantial change in beneficiary circumstances.
SENATOR MEYER asked if a nonresident who doesn't have assets in
Alaska can set up an Alaska trust.
1:44:29 PM
MR. BLATTMACHR answered no; one of the safe harbor provisions is
that some of the assets of the trust must be in Alaska.
SENATOR MEYER asked if an Alaskan resident could engage an
Alaskan attorney to place both their Alaska assets and their
Washington state assets in a single trust.
MR. BLATTMACHR said yes, but he and other trust professionals
would recommend engaging an attorney who is either licensed in
both states or who works with an organization that has the
capability to offer advice on the laws of both states.
SENATOR MEYER commented that hiring an attorney in each state
would be an additional expense.
MR. BLATTMACHR agreed and added that individuals have been
willing to pay that cost, so they can accomplish the planning
under Alaska's flexible trust laws.
SENATOR MICCICHE asked if the taxable value of the trust is the
ultimate value to the state.
MR. BLATTMACHR answered yes.
SENATOR MICCICHE observed that the bill primarily deals with
powers of appointment. He asked if other issues have made Alaska
trust law less competitive.
MR. BLATTMACHR clarified that the decanting statute is the
greatest factor for Alaska being a less competitive trust
landscape. Powers of appointment is a smaller piece that
clarifies when those powers are triggered.
SENATOR MICCICHE asked if he agrees that the benefits of a trust
vary depending on the individual.
MR. BLATTMACHR agreed that the best trust jurisdiction depends
on the planning scenario.
1:49:15 PM
CHAIR COSTELLO opened public testimony on HB 208.
1:49:41 PM
ABIGAIL O'CONNOR, representing self, Anchorage, Alaska, said she
is a trust and estate attorney testifying in support of HB 208.
She referenced the question about trust decanting and explained
that this is a very important feature to "fix" a broken trust
without going to court. Many states have greatly expanded their
rules on perpetuity which means that trusts can exist longer
than estate planning attorneys can envision in terms of the
interests of the beneficiaries. Decanting allows the assets from
the current trust to be placed in a new trust. She cited an
example of a trust with mandatory distributions that are no
longer appropriate because the beneficiary is disabled and needs
protection. The decanting provision in HB 208 will make Alaska a
more flexible jurisdiction and may bring more trust business to
the state.
1:53:32 PM
JONATHAN BLATTMACHR, representing self, Long Island, New York,
stated that he was the original drafter of the Alaska Trust Act
that passed in 1997, and he wrote the first decanting statute in
the nation. It was for New York and the second was for Alaska.
He said his goal has been to make Alaska the premier financial
capital in the country. He agreed with Mr. Evens that Alaska has
seen tremendous competition from other jurisdictions. He opined
that HB 208 will help return Alaska to the front of the line
thereby attracting more business and bringing in new revenue.
1:55:23 PM
DOUGLAS BLATTMACHR, President and CEO, Peak Trust Company,
Anchorage, Alaska, stated wholehearted support for HB 208. It is
advantageous for Alaskans and the state.
1:56:01 PM
RICH HOMPESCH, representing self, Fairbanks, Alaska, stated that
he is an attorney in private practice and would like to respond
to earlier questions related to HB 208. Senator Meyer asked how
assets from other states end up in an Alaska trust. He said his
experience is that the nonresident client forms an Alaska
limited liability company (LLC), transfers the assets to that
LLC, and then transfers the membership interest in the LLC to
the Alaska trust. The state benefits because those entities pay
a $250 fee to form an LLC and a $100 biannual tax. He added that
the decanting provision will be particularly valuable to trusts
that Alaska attorneys prepared 25 years ago that need updating.
1:58:11 PM
CHAIR COSTELLO closed public testimony on HB 208 and said she
would look to the will of the committee.
1:58:23 PM
SENATOR GARDNER asked what proportion of Alaskans use Alaska
trusts. She posited that only a handful of people are following
the bill.
DOUGLAS BLATTMACHR said Peak Trust Company sees a fair number of
Alaskans who use this type of planning, and they aren't
necessarily high net worth individuals. He noted that trust
planning is also used for special needs beneficiaries.
SENATOR MEYER asked if there is any protection of assets that
the settlor neglected to add to or include to the trust.
DOUGLAS BLATTMACHR said an asset purchased in an individual's
name would not have the protection of the trust. However, the
individual could transfer the asset to the LLC and have it
placed inside the trust.
SENATOR MICCICHE asked him to clarify that individuals may have
different trusts for different purposes and they may choose to
hold certain assets outside the trust.
MR. BLATTMACHR confirmed that individuals may have more than one
trust and that it's not necessarily an all or none scenario.
CHAIR COSTELLO found no further questions and solicited a
motion.
2:02:23 PM
SENATOR MICCICHE moved to report HB 208 from committee with
individual recommendations and attached fiscal note(s).
2:02:38 PM
CHAIR COSTELLO found no objection and stated that HB 208 moves
from the Senate Labor and Commerce Standing Committee.
HB 102-LIMITED TEACHER CERTIFICATES; LANGUAGES
2:03:35 PM
CHAIR COSTELLO announced the consideration of HB 102. [CSHB
102(EDC) was before the committee.] She asked the sponsor to
refresh members' recollections; the companion bill was in the
committee last year. She related the intention to take public
testimony and look to the will of the committee.
REPRESENTATIVE KREISS-TOMKINS, Alaska State Legislature Juneau,
Alaska, sponsor of HB 102, said this legislation seeks to
support the growth of immersion language education programs in
Alaska schools. This would include both world and Native
languages and draw on the success and national recognition of
the programs in Anchorage, Wasilla, and Bethel. He highlighted
that his office received additional support for HB 102 and the
Senate companion during the interim.
2:05:16 PM
REID MAGDANZ, Staff, Representative Kreiss-Tomkins, Alaska State
Legislature, Juneau, Alaska, stated that the language in HB 102
is the same that the committee saw when it considered the Senate
companion bill. He asked the chair how she would like him to
proceed.
CHAIR COSTELLO asked Mr. Magdanz to walk through a sectional
analysis.
2:05:50 PM
MR. MAGDANZ directed attention to the document titled "HB 102,
Limited Teacher Certificates - Comparison to Current Law." He
highlighted the following in the single section bill:
• Page 1, line 4, identifies the legislation as repeal and
reenactment of AS 14.20.025.
• Subsection (a) on page 1 gives school districts the
flexibility to hire teachers on limited certificates for
language immersion programs.
• Paragraph (4) on page 1, line 12, is new language. It
authorizes the department to issue a limited teacher
certificate to a person qualified under (b) to teach "any
subject if the language of instruction is not English".
• Subsection (b) on page 1, lines 13-14 through page 2, line
5, is drawn from current law. It states that the limited
certificate can only be issued to a person the school board
specifically requests. It also empowers the state board of
education to write regulations ensuring the person who
holds a limited certificate has "instructional skills and
subject matter expertise sufficient to assure the public
that the person is competent as a teacher." It also allows
the state board to require a person to undertake additional
academic training and university classes.
• Subsection (c) clarifies that limited certificates are
issued on a case-by-case basis and that the certificate is
only valid within that school district. This provides local
control and case-by-case flexibility.
• Subsection (d) requires the board of education to give an
applicant the option of demonstrating competency in the
instructional language for which the limited certificate is
valid.
• Subsection (e) provides that a limited certificate is
initially valid for one year. Subsequent extensions are
guided by regulation.
CHAIR COSTELLO opened public testimony on HB 102.
2:10:34 PM
BRANDON LOCKE, Director, World Languages, Anchorage School
District (ASD), Anchorage, Alaska, stated that HB 102 would
support filling language emersion positions that are typically
very difficult to fill. ASD has been offering language emersion
programs since 1989 and it is always a challenge to find
qualified, fully certificated teachers who are native or near
native speakers. He reported that ASC has about 3,000 students
in K-12 immersion programs and will add Yupik immersion this
fall through a federal grant. A French immersion program may be
added next. He said the provision in subsection (d) would be
particularly helpful to ASD because applicants whose first
language is not English generally have difficulty passing a
practice test that is administered in English. He acknowledged
that the school district would be ultimately responsible for the
person and they would have to go through the appropriate vetting
procedures in the district. He opined that this would not open
the floodgates; it would be used for those unique situations
where there is no workaround. The worst-case scenario is to put
a non-immersion language speaker in the classroom. That defeats
the purpose of the program.
2:14:46 PM
SENATOR MICCICHE asked if background checks are addressed
elsewhere in state law, because it's not in the bill
MR. LOCKE replied the bill doesn't eliminate the background
check requirement.
MR. MAGDANZ added, "This is repeal and reenactment of an
existing portion of law. That existing portion of law doesn't
specifically require background checks but the regulations
implementing that section do."
2:17:26 PM
At ease
2:17:55 PM
CHAIR COSTELLO reconvened the meeting and asked Ms. Meredith how
background checks would apply to HB 102.
2:17:58 PM
SONDRA MEREDITH, Education Administrator II, Teaching and
Learning Support, Department of Education and Early Development
(DEED), Juneau, Alaska, clarified that AS 14.20 contains the
statutory reference that covers certification. A separate
section speaks to the background requirements for all teacher
certifications that DEED issues.
CHAIR COSTELLO closed public testimony on HB 102 and looked to
the will of the committee.
2:19:08 PM
SENATOR MICCICHE moved to report HB 102 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO stated that without objection, CSHB 102(EDC)
moves from the Senate Labor and Commerce Standing Committee.
HB 114-BOILER/PRESSURE VESSEL INSPECTION REPORTS
2:19:41 PM
CHAIR COSTELLO announced the consideration of HB 114.
2:20:12 PM
REPRESENTATIVE SAM KITO III, Alaska State Legislature, Juneau,
Alaska, stated that HB 114 is a House Labor and Commerce
Committee bill that was introduced at the request of the
Department of Labor and Workforce Development (DOLWD). It does
two things. First, it establishes a $10 fee for each boiler and
pressure vessel inspection report that is filed without using
the online system. Second, it reduces the time allowed to submit
the report following an inspection from the current 30 days to
15 days. The bill seeks to encourage people to use the online
system. The nominal fee for those who do not use the online
system helps cover the department's costs for manually entering
the information. He listed the individuals available to answer
questions.
SENATOR MICCICHE asked if the bill provides any accommodation
for a small business owner in rural Alaska who has not
transitioned to using technology.
REPRESENTATIVE KITO deferred the question to the department.
2:22:07 PM
DEBORA KELLY, Director, Division of Labor Standards & Safety,
Department of Labor and Workforce Development (DOLWD), Juneau,
Alaska, explained that these inspections are generally done by
insurance companies or state inspectors, not small business
owners. The inspector is still free to submit the inspection
report by mail, and the impact would be a $10 fee every two to
five years. She noted that most of the inspection reports
already come through the online system.
2:23:12 PM
CHAIR COSTELLO found no one who wanted to testimony on HB 114.
Finding no questions, she solicited a motion.
2:23:36 PM
SENATOR MICCICHE moved to report HB 114 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO stated that without objection, HB 114 moves from
the Senate Labor and Commerce Standing Committee.
HB 121-OCC. HEALTH AND SAFETY CIVIL PENALTIES
2:24:38 PM
CHAIR COSTELLO announced the consideration of HB 121.
2:24:41 PM
REPRESENTATIVE SAM KITO III Alaska State Legislature, Juneau,
Alaska, stated that HB 121 is a House Labor and Commerce
Committee bill that was introduced at the request of the
Department of Labor and Workforce Development (DOLWD). He spoke
to the following sponsor statement:
House Bill 121 brings Alaska's Occupational Safety and
Health (AKOSH) state plan into compliance with federal
requirements, ensuring continued eligibility for
federal grant funds and helping to protect workers
from workplace injuries, illnesses, and fatalities.
In 2015, Congress passed the Federal Civil Penalties
Inflation Adjustment Act Improvements Act, requiring
many federal agencies to adjust penalties for
inflation going back to 1990, and requiring subsequent
yearly adjustments according to changes in the
Consumer Price Index. Occupational Safety and Health
Administration complied by adjusting their maximum
penalties in July 2016, including a six-month grace
period for states to comply. In order to comply with
federal program requirements, AKOSH must have at least
equivalent maximum and minimum penalties. AKOSH fell
out of compliance with this requirement on January 1,
2017, when the six-month buffer period expired.
Maximum and minimum penalties for violations of
Alaska's occupational safety and health laws are
specified in AS 18.60.095, the Penalties section of
Prevention of Accident and Health Hazards. House Bill
121 allows the Department of Labor and Workforce
Development to set penalty amounts by regulation and
limits the penalties to corresponding federal maximums
for each violation type. This enables the department
to adjust to federally required changes while placing
a cap on increases.
Please join me in supporting House Bill 121 to
maintain over $2 million in yearly federal grant funds
that serve working Alaskans by reducing workplace
injuries, illnesses, and fatalities.
2:25:45 PM
DEBORA KELLY, Director, Division of Labor Standards & Safety,
Department of Labor and Workforce Development (DOLWD), Juneau,
explained that AKOSH is Alaska's state plan through which it
receives federal grants and ensures the safety and health
standards that protect most Alaskan workers. She listed the
following benefits of having a state plan:
• Industries have direct input into developing safety and
health standards.
• State and municipal employees gain safety and health
protections.
• Citation appeals go through a local administrative process.
To maintain the state plan, AKOSH must be at least as effective
as federal OSHA. That includes statutory maximum penalties.
In 2015, Congress passed legislation that caused a lot of
federal agencies to inflation adjust their penalties. OSHA did
so in 2016 and required all state plans to follow suit. Alaska
fell out of compliance January 1, 2017 and HB 121 is the remedy.
It requires DOLWD to adopt maximum penalty amounts by regulation
and limits the amounts to the corresponding federal amounts for
each violation type.
CHAIR COSTELLO asked when the department became aware that it
was out of compliance.
MS. KELLY replied it was when OSHA inflation-adjusted its
penalties and required state plans like AKOSH to do the same.
That is when DOLWD began working to develop the bill
CHAIR COSTELLO commented on the effective date of the Act.
MS. KELLY directed attention to Section 9 on page 3. It states
that Section 8 of the Act takes effect immediately.
2:29:06 PM
At ease
2:29:10 PM
CHAIR COSTELLO reconvened the meeting.
SENATOR GARDNER requested clarification that the bill does not
change the health and safety standards. It simply changes the
penalty for being in violation of the inspection requirements.
MS. KELLY agreed.
SENATOR MICCICHE observed that Sections 1, 3, and 4 use the term
may" and Section 2 uses the term shall. He asked what is
different in Section 2 that would require a "shall.
REPRESENTATIVE KITO said he didn't know the reason that shall
was used in Section 2.
CHAIR COSTELLO asked Ms. Kelly if she could respond.
MS. KELLY offered to do follow-up research on the history of the
statutory language.
SENATOR MICCICHE said he'd like to know if it was a mistake. He
also expressed concern that the legislature has no control over
the amount of the maximum civil penalties if it is determined by
regulation.
CHAIR COSTELLO asked the sponsor if someone from the department
could respond.
REPRESENTATIVE KITO deferred to the department. He returned to
the question about the use of "shall versus may" and advised
that it is existing law that HB 121 does not change.
CHAIR COSTELLO asked Senator Micciche if he wanted to hold the
bill or pass it along to finance and get the answer there.
SENATOR MICCICHE said he'll see it in finance.
2:33:40 PM
SENATOR MICCICHE moved to report HB 121 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO stated that without objection, HB 121 moves from
Senate Labor and Commerce Standing Committee.
HB 86-STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL
2:34:23 PM
CHAIR COSTELLO announced the consideration of HB 86.
2:34:38 PM
REPRESENTATIVE MATT CLAMAN, Alaska State Legislature, Juneau,
Alaska, sponsor of HB 86, quoted Thomas Jefferson who said,
"Government is best which governs least." He said the goal of HB
86 is to revoke the Alaska Commission on Postsecondary
Education's authority to use the nonrenewal of occupational
licenses as an incentive to ensure the payment of student loans
that are in default. The commission has not exercised this
authority since 2010 and has found that garnishing wages is a
more effective tool. In the past, those who had their licenses
revoked left the state and established practice elsewhere. In
those instances, the state not only lost the ability to collect
but also a skilled member of the Alaskan workforce. Thus, it
makes sense to ensure that this sort of government overreach
cannot occur.
2:35:56 PM
CERI GODINEZ, Staff, Representative Matt Claman, Alaska State
Legislature, Juneau, Alaska, presented HB 86, reading from the
following prepared statement:
House Bill 86 repeals current statutes that allow the
Alaska Commission on Postsecondary Education (ACPE) to
threaten nonrenewal of occupational licenses for
individuals who have defaulted on their student loans.
Repealing this authority will allow licensed
individuals to continue their work in order to earn an
income and pay back their defaulted loans without fear
of losing their license.
There are already many difficulties that one faces if
they default on their student loans, not limited to
late fees, court costs, liens on property, and adverse
reports to consumer reporting agencies.
The current statute states that the commission has the
authority to provide notice to a licensing authority
for nonrenewal of a license upon default. If the ACPE
posts such notice, the licensing entity may not renew
said license during the next renewal cycle. Many of
these laws were passed in the 1990s and early 2000s,
when student aid was often provided by states. Now,
however, most loans are federal.
In 2016, Montana became the first state to repeal
similar statutes and now only 20 states remain. This
bill allows us to follow Montana's example and reduce
that number to 19 states and protect our licensed
nurses, pharmacists, social workers, teachers,
correctional officers, and many others.
I'll now provide a brief sectional analysis of the
bill.
Section One deletes language that is no longer
necessary after the repeals mentioned in section two.
Section Two repeals the following statutes:
AS 14.43.145(a)(4) which gives authority to the
commission to provide notice of default to a
licensing entity for nonrenewal of a license.
AS 14.43.148 which indicates that a licensing
entity may not renew a license if they have
received notice from the commission that the
licensee has defaulted on a loan issued by the
commission.
AS 21.27.390(d) which references temporary
licenses.
CHAIR COSTELLO asked Ms. Butler if the department had a position
on the bill.
2:38:26 PM
STEPHANIE BUTLER, Executive Director, Alaska Commission on
Postsecondary Education, Department of Education and Early
Development (DEED), Juneau, Alaska, stated that the
commission is not currently using its authority to threaten
nonrenewal of an occupational license for individuals who
have defaulted on their student loans. It has not been an
effective tool and therefore the commission has no concerns
with HB 86.
CHAIR COSTELLO asked her to comment on the March 20, 2017
memo in which Representative Birch asked if she had a sense
of the magnitude of the debt and number of recipients who
would be impacted by the bill.
MS. BUTLER said at that time there was about $240 million
in outstanding state loans. The value of that portfolio
currently is slightly less than $200 million. She
reiterated that the commission has found it is most
effective to collect on defaulted loans by garnishing
either wages or the permanent fund dividend PFD.
CHAIR COSTELLO noted that the memo identified 46 defaulted
borrowers with outstanding loans, none of whom are employed
in Alaska.
MS. BUTLER said that's correct and the commission has
released the holds on those licenses.
CHAIR COSTELLO asked if the comment about garnishing a
permanent fund dividend was hypothetical.
MS. BUTLER answered yes.
SENATOR MICCICHE asked if the commission is powerless to
collect on those 46 defaulted loans.
MS. BUTLER replied there are nationwide tools such as
credit reporting, but the ability to collect is less when
the defaulted borrower is out of state.
SENATOR MICCICHE asked if garnishing wages is an option,
although more difficult, when the defaulted borrower is out
of state.
MS. BUTLER answered yes.
SENATOR MICCICHE asked, "It's not something you use, and
you have no concern about eliminating the potential to
revoke licensing?"
MS. BUTLER replied that's correct; it wasn't an effective
tool.
2:42:52 PM
SENATOR GARDNER asked if [$200] million was the total
outstanding, not the amount in default.
MS. BUTLER replied that's correct.
SENATOR MEYER summarized that nonrenewal has not been used
since 2010, and the best tool is to garnish the PFD or
wages.
MS. BUTLER said that's correct.
SENATOR MICCICHE expressed interest in looking at the data
on the average amounts of the defaulted loans.
MS. BUTLER agreed to follow up with the information.
CHAIR COSTELLO asked the sponsor to comment on the
perception that it's a lose-lose situation if a defaulted
borrower leaves the state. The state doesn't collect, and
it also loses that worker.
REPRESENTATIVE CLAMAN said his office found that having the
authority to exercise this power was a double negative.
CHAIR COSTELLO said she would hold the bill awaiting the
information on the 46 borrowers with outstanding
occupational license holds.
SENATOR MEYER asked if licensing entities check on
outstanding loans in other states.
MS. BUTLER said she was unaware of any state reciprocity
specific to defaulted student loans.
SENATOR MEYER asked if they were talking about state or
federal loans.
MS. BUTLER replied only state loans.
SENATOR MEYER commented on the need to keep students in
Alaska.
SENATOR MICCICHE clarified that his request was on the
outstanding state loans. He added that he is inclined to
forgive loans to encourage Alaskans to stay here as opposed
to eliminating a collection tool.
2:49:54 PM
CHAIR COSTELLO opened public testimony on HB 86.
2:50:06 PM
AMBER MICHAIS, Registered Nurse, Alaska Nurses Association,
Anchorage, Alaska, stated support for HB 86 and described it as
student debt relief. She said student debt is a significant
issue and it makes sense to keep someone who has student debt
working. Preventing them from working by nonrenewal of their
professional license makes it difficult to impossible to pay
back their loan. HB 86 will ensure that Alaska nurses are able
to continue their profession so that Alaskans receive care when
it's needed.
She shared that she has high balance loans and the current law
could cripple her ability to support her family should she find
herself in default.
SENATOR GARDNER pointed out that debt relief is not the focus of
the bill. It's about how to best protect the state's interest in
collecting where appropriate.
2:53:29 PM
CHAIR COSTELLO closed public testimony on HB 86 and held the
bill in committee.
HCR 8-KODIAK SEAFOOD & MARINE SCIENCE CENTER
2:53:58 PM
CHAIR COSTELLO announced the consideration of HCR 8. [HCR 8 AM
was before the committee.]
2:54:13 PM
MATT GRUENING, Staff, Representative Louise Stutes and aide to
the House Fisheries Committee, Alaska State Legislature, Juneau,
Alaska, introduced HCR 8 on behalf of the House Fisheries
Committee. He summarized that the resolution expresses the
legislature's support for the Kodiak Seafood and Marine Science
Center (KSMSC) and urges the University of Alaska to find a
solution to keep it operating.
He explained that early in 2016 the University of Alaska
Fairbanks notified KSMSC that due to budget cuts, it was
considering transferring ownership of the center to the
University of Alaska Anchorage for repurposing or possibly
closing the center altogether.
The City and Borough of Kodiak and industry groups such as
Trident Seafoods, Alaska Pacific Seafoods, Alaska Seafood
Marketing Institute, Seafood Processors Association, Icicle
Seafoods, and others sent letters protesting the proposed
closure. U.S. Senator Lisa Murkowski met with KSMSC's policy
group to express concern and support of the center. In response,
the 501(c)(3) nonprofit Alaska Research Consortium was formed to
act as the operating body for the center. UAF is currently
looking at the possibility of a public/private partnership to
keep the center open.
SENATOR MICCICHE asked if the resolution is trying to manage the
universits decisions about how to handle the significant cuts
it has seen in the last few years
MR. GRUENING clarified that the intent is not to manage what the
Board of Regents does. The university itself has reached out and
is trying to work with the sponsor's office and the City of
Kodiak to find a solution to keep the center open. It is the
state's only pilot processing plant that does significant
research and is of great value to the seafood industry.
He noted that part of the difficulty came about when an
agricultural grant that partially funded the center was no
longer offered.
2:59:18 PM
SENATOR MEYER asked if processors donate to the program because
they make money off it.
MR. GRUENING said he didn't know.
SENATOR MEYER said that would be good to know.
SENATOR MICCICHE stated support for finding creative ways like a
public/private partnership to keep the center open.
3:01:26 PM
CHAIR COSTELLO closed public testimony on HCR 8.
3:01:42 PM
SENATOR MICCICHE moved to report HCR 8 from committee with
individual recommendations and attached fiscal note(s).
3:02:06 PM
SENATOR MEYER objected to request the information about the
industry participation.
MR. GRUENING said he would provide the information to the chair
as soon as possible.
SENATOR MEYER removed his objection.
3:02:44 PM
SENATOR MICCICHE restated the motion to report HCR 8 from
committee with individual recommendations and attached zero
fiscal note(s).
CHAIR COSTELLO stated that without objection, HCR 8 AM moves
from the Senate Labor and Commerce Standing Committee.
3:03:29 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:03 p.m.