Legislature(2025 - 2026)BELTZ 105 (TSBldg)

02/26/2025 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:46:11 PM Start
01:47:15 PM Presentation: How Workers' Compensation Works
02:34:09 PM SB54
02:55:19 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued from 02/19/25 --
+ Presentation: How Workers' Compensation Works TELECONFERENCED
Chuck Collins, Director of Division of Workers'
Compensation
*+ SB 54 EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 26, 2025                                                                                        
                           1:46 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Elvi Gray-Jackson                                                                                                       
Senator Forrest Dunbar                                                                                                          
Senator Robert Yundt                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Kelly Merrick, Vice Chair                                                                                               
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION: HOW WORKERS' COMPENSATION WORKS                                                                                   
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
SPONSOR SUBSTITUTE  FOR SENATE  BILL NO. 54  "An Act  relating to                                                               
registered interior designers and  interior design; extending the                                                               
termination  date   of  the  State  Board   of  Registration  for                                                               
Architects, Engineers, and Land  Surveyors; relating to the State                                                               
Board  of  Registration  for   Architects,  Engineers,  and  Land                                                               
Surveyors;   establishing  requirements   for  the   practice  of                                                               
registered  interior   design;  relating   to  the   practice  of                                                               
architecture,    engineering,     land    surveying,    landscape                                                               
architecture,  and registered  interior  design by  partnerships;                                                               
relating  to  the scope  of  the  certification requirements  for                                                               
architects, engineers, land  surveyors, landscape architects, and                                                               
registered  interior designers;  relating to  liens for  labor or                                                               
materials  furnished; relating  to the  procurement of  landscape                                                               
architectural and interior design  services; and providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  54                                                                                                                  
SHORT TITLE: EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN                                                                          
SPONSOR(s): SENATOR(s) CLAMAN                                                                                                   
                                                                                                                                
01/24/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        

01/24/25 (S) L&C, FIN 02/24/25 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS 02/24/25 (S) L&C, FIN 02/26/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) WITNESS REGISTER CHARLES COLLINS, Director Division of Workers' Compensation Department of Labor and Workforce Development (DLWD) Juneau, Alaska POSITION STATEMENT: Provided a presentation on how workers' compensation works. SENATOR MATT CLAMAN, District H Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Sponsor of SB 54. SARENA HACKENMILLER, Staff Senator Matt Claman Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Summarized the sectional analysis for SB 54. KRIS CURTIS, Legislative Auditor Legislative Audit Division Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the audit findings for SB 54. COLIN MAYNARD, Chair State Board of Registration for Architect, Engineers and Land Surveyors (AELS) Legislative Liaison Committee Anchorage, Alaska POSITION STATEMENT: Testified by invitation on SB 54. MATT BARUSCH, Director Council for Interior Design Qualification (CIDQ) Government Affairs and Advocacy Washington D.C. POSITION STATEMENT: Testified by invitation on SB 54. ACTION NARRATIVE 1:46:11 PM CHAIR BJORKMAN called the Senate Labor and Commerce Standing Committee meeting to order at 1:46 p.m. Present at the call to order were Senators Gray-Jackson, Dunbar, Yundt and Chair Bjorkman. ^PRESENTATION: HOW WORKERS' COMPENSATION WORKS PRESENTATION: HOW WORKERS' COMPENSATION WORKS 1:47:15 PM CHAIR BJORKMAN announced the Division of Workers' Compensation will continue its presentation: How Workers' Compensation Works. 1:47:40 PM CHARLES COLLINS, Director, Division of Workers' Compensation, Department of Labor and Workforce Development, Juneau, Alaska, continued the presentation from February 19,2025 and turned to slide 16, Benefits Under Workers' Compensation. He stated that regarding death benefits, Alaska's funeral expense amount changed a few years ago and is now slightly above average. Nationally, states vary like Kentucky is high, some like Arizona are low. He said most are now raising burial benefits from $2,000 to $10,000. 1:49:00 PM MR. COLLINS moved to slide 17, Benefits Paid in 2023. He stated that medical and indemnity benefits are paid by insurers and self-insured employers like the State of Alaska and some municipalities. In 2023, over $200 million in benefits were paid, excluding premiums. He said the Workers' Compensation Division oversees this, though it's a small agency. He said only a small portion came from the uninsured employer (benefit guarantee) fund, which also covers related legal costs. A strong year for the fund was 2023 when the fund had lower spending and higher revenue. 1:50:39 PM MR. COLLINS moved to slide 18, What Does Workers' Compensation Cost. He stated that as a business owner, he always cared about the cost of doing business, including workers' compensation premiums and any out-of-pocket benefits. Slide 18 shows employer costs. The red line is the national average, about $1 per $100 payroll. He stated that the data is always a year behind due to data collection time. He stated that in 2012, Alaska had the highest rate at $3.51, but reforms cut it in half to $1.85 in 2023. Premiums may still feel high, but they're much lower than before. 1:52:47 PM MR. COLLINS moved to slide 19, 2023 Workplace Fatalities. He stated that in 2023, the division saw several workplace fatalities, including eight where individuals were found unresponsive, some may not have been work related, but were still reported. The division reviews each workplace fatality for possible benefits. The report also contains information on airplane and helicopter fatalities which are common in Alaska and may involve worker compensation claims. The division had three deaths involving active crimes and others from vehicle accidents. In such cases, workers' compensation pays medical and wage benefits, but if a third party (like in a car crash) is liable and there's a settlement, the employer or insurer is reimbursed first before the injured worker receives any payout. 1:55:44 PM MR. COLLINS moved to slide 20, Investigations Fraud Hotline and Email Tips. He stated the division gets frequent questions about workers' compensation fraud. The divisions special investigations unit handles fraud cases, mostly involving uninsured employers, which can impact the benefit guarantee fund. The division has a fraud tip line and email that received 105 tips in FY2024, the division follows up on all tips. Some result in investigations, many don't. He said tips come from both injured workers and other employers. He stated that investigators focus on educating industries, like construction and retail, about Alaska's requirement that all employers carry workers' compensation. Seasonal out-of-state employers often think their coverage applies here, but Alaska doesn't accept out-of-state policies without a specific rider. The division doesn't have reciprocity agreements with any state. He said the division issues penalties for non-compliance, but the division prefers employers get coverage rather than shut down. He said less than 1 percent of Alaska businesses have ever been uninsured, and the division aims to keep it that way. 2:00:37 PM CHAIR BJORKMAN asked for the director to explain the rules using 1099 contractors, like a fishing guide who hires other guides as independent contractors, specifically where is the line between being a true contractor and being considered an employee who requires workers' compensation coverage. 2:01:19 PM MR. COLLINS answered that the division follows statute AS 23.30.230(12), to define an independent contractor under workers' compensation, which differs from other definitions in state law. He said the first sign the division looks for is, the independent contractor must have a business license. Key factors include having a written contract, working independently, supplying their own tools, handling their own expenses and profits/losses, holding proper licenses, filing taxes with 1099s (ideally from multiple sources), and being responsible for their work. He said if an independent contractor works set hours, uses someone else's equipment, has one client, and no business license, especially in cases like fishing guides, that signals an employer-employee relationship. He said investigators look at all these details and often see this issue in construction too, where contractors label workers as "independent" when they're not independent. 2:05:57 PM CHAIR BJORKMAN asked if a contractor paid someone a lump sum to take clients out using their boat and equipment would the division consider the person an employee or independent contractor. 2:06:41 PM MR. COLLINS answered that at first glance, that setup looks like an employee-employer relationship and would trigger an investigation. He said the person is paid by one source, follows their direction, uses their tools, and serves only their clients, like a barista working in a coffee shop. In statute there is a narrow exception for harvesting and babysitting where lump sum pay for short-term, one-person work is allowed. He said some guides think they qualify as commercial fishermen, but that's a separate category requiring specific licenses and permits. 2:08:48 PM CHAIR BJORKMAN asked if the scenario of a subcontractor occasionally accepting clients from another contractor better aligns with the independent contractor model under the workers' compensation statute. 2:09:20 PM MR. COLLINS answered yes. He stated that if you're a fishing guide with your own clients, some from a lodge, others from referrals and you're responsible for the trips, that points to being an independent contractor. Especially if you use your own boat and gear, or a mix of your own and others'. He said if you hire someone to help, like clean fish, then you're the employer and need workers' compensation for them. 2:10:27 PM SENATOR BJORKMAN referred to slides 17 and 19 and said the director had mentioned 2023 was a strong financial year for workers' compensation but also had a high number of fatalities. He asked what's the typical lag time between when injuries or fatalities are reported and when the workers' compensation fund assumes financial responsibility. 2:11:02 PM MR. COLLINS answered that 2023 was financially strong for the benefit guarantee fund, but no year is good when lives are lost or workers are injured. He said fatality costs can begin quickly, like funeral expenses (up to $12,000) and a one-time payment (up to $8,000), but ongoing benefits to dependents may last decades. Workers' compensation pays overtime, unlike life insurance. He said some 2023 injuries might not show in financials until 2024 if settlements are delayed. Also, some 2023 fatalities may stem from older claims, especially in long- term cases or situations like COVID-19, which skews timing in the data. 2:13:57 PM MR. COLLINS moved to slide 21, Stay at Work Program. He stated that as of January 1, 2025, the stay-at-work program is now active. Last week he mentioned six reported cases, but the division has received more since then. The stay-at-work program coordinator, Grace Morefield, is already assisting a claimant. He said the coordinator is undergoing intensive training, and the division has found new external resources to support employers with accommodation or job modifications. He said the stay-at-work coordinator connects injured workers, medical providers, employers, and rehab specialists to ensure the job matches the worker's abilities and medical restrictions. He stated that this role fills a critical communication gap that's been a challenge. He said the stay-at-work program is moving quickly, and he will share updates as progress continues. 2:17:17 PM MR. COLLINS moved to slide 22, Designated General Funds within workers compensation. He stated that under his direction, workers' compensation manages four dedicated funds. The Second Injury Fund is closed to new claims but still pays about 50 ongoing cases, including widow benefits. Once the second injury fund is done, remaining funds transfer to the General Fund that currently holds around $4.4 million. The Fishermen's Fund, created in 1951 by a commercial fisherman, is separate but managed by the division. Next, the Benefit Guarantee Fund covers injured workers whose employers' lacked coverage; it's funded through fines, settlements, and interest from noncompliant employers. Lastly, the Workers' Safety and Compensation Administration Account (WSCAA) is funded by a fee on premiums and self-insured employers, collected by the Division of Insurance and the division receives a portion of the fees to operate. 2:19:17 PM MR. COLLINS moved to slide 23, Workers' Safety and Compensation Administration Account (WSCAA). He said WSCAA no longer covers the needs of the division and in FY2025 everything in the fund will be spent before the division even reaches its full allocation. He said over recent years, nearly $3 million has been swept from the WSCAA. The division gets 2.7 percent from insured premiums and 2.9 percent from self-insured. Lower premium costs have reduced revenue. He stated that at some point, this will need adjusting. 2:20:47 PM MR. COLLINS moved to slide 24, Direct Written Premiums. He stated that since 2016, total premiums have dropped by nearly $100 million, though they've ticked up slightly in recent years to $187 million in 2023. The division collects a 2.9 percent fee on the premium, with 2.7 percent going to WSCAA, and 0.2 percent, about $250,000 to $300,000, goes to the general fund. 2:21:41 PM MR. COLLINS moved to slide 25, National Council of Compensation Insurance (NCCI) He stated that the NCCI explains how insurance works in Alaska. NCCI, hired by the Division of Insurance, sets the loss cost rates. He said since 2012, Alaska dropped from the most expensive to 21st, with NCCI recommending yearly rate reductions. He said premium costs vary based on factors like experience rating, payroll, and job classification. He stated that businesses estimate payroll when buying a policy, but at year's end, an auditor reviews actual payroll. If payroll exceeds the estimate of $600K instead of $350K the businesses may get a surprise bill. That audit also affects the next year's premium, often leading to higher rates. 2:24:59 PM SENATOR DUNBAR asked whether the auditor ever adjusts and gives a refund. 2:25:05 PM MR. COLLINS answered yes but the division doesn't see a refund very often. He said he has not seen a refund but has seen a credit on future bills. 2:25:35 PM CHAIR BJORKMAN asked whether employers double-check the process to hold insurers accountable. 2:26:00 PM MR. COLLINS answered that he first, checks if another agency offers workers' compensation policiesmany insurance agents work with multiple carriers. Next, a knowledgeable accountant can help; several firms in Alaska have strong expertise. Lastly, NCCI doesn't sell insurance but monitors insurers and audits their auditors. Division of Insurance also conducts its own audits. 2:27:32 PM MR. COLLINS moved to slide 26, NCCI's Classification Inspection Program. He stated that NCCI has updated its basic manual for workers' compensation over the past two years, adjusting employer filings and employee classifications across 40 states, including Alaska. He said while Alaska has some unique factors, their goal remains fair premiums based on actual risk. Jobs in Alaska, like pipeline work in extreme cold, carry higher risks than similar work elsewhere. He said changes are ongoing and should benefit employers overall, though some industries may see slight premium increases while others decrease. He stated that most injuries happen in healthcare and retail, not construction, though the severity of injuries can differ widely. 2:30:59 PM At ease. SB 54-EXT ARCH, ENG, SURVEY BRD; REG INT DESIGN 2:34:09 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SPONSOR SUBSTITUTE FOR SENATE BILL NO. 54 "An Act relating to registered interior designers and interior design; extending the termination date of the State Board of Registration for Architects, Engineers, and Land Surveyors; relating to the State Board of Registration for Architects, Engineers, and Land Surveyors; establishing requirements for the practice of registered interior design; relating to the practice of architecture, engineering, land surveying, landscape architecture, and registered interior design by partnerships; relating to the scope of the certification requirements for architects, engineers, land surveyors, landscape architects, and registered interior designers; relating to liens for labor or materials furnished; relating to the procurement of landscape architectural and interior design services; and providing for an effective date." 2:34:36 PM SENATOR MATT CLAMAN, District H, Alaska State Legislature, Juneau, Alaska, sponsor of SB 54 presented the following summary: [Original punctuation provided.] Senate Bill 54 will extend the statutory authorization for the Board of Architects, Engineers, and Land Surveyors (AELS Board), add Registered Interior Designers to the board's jurisdiction, and make statutory changes requested by the board. This bill will allow the AELS Board to continue the important work of regulating design professionals in Alaska and add a qualified interior designer to the board. The 2024 Sunset Audit of the AELS Board concluded that the board served the public's interest and recommended that it be extended for eight years. In this bill, the AELS Board is taking the opportunity to update outdated language based on their analysis since the last sunset audit. Another important part of SB 54 is the opportunity for qualified interior designers to register with the AELS Board. Those wishing to practice registered interior design in buildings of public occupancy within a regulated scope of services impacting public health, safety, or welfare will now have a pathway to registration. SB 54 will allow designers practicing in public occupancy buildings to be qualified to do so, providing another measure of public safety protection and risk-mitigation for commercial buildings. It will increase the amount of design professionals able to work independently within the commercial real estate industry. The NCIDQ is a three-part, 11-hour examination that was established to identify interior design professionals with the skills and experience to take on additional responsibility. This test is designed to assess the competency of candidates to protect the public through the practice of interior design, and covers subjects such as fire safety, ADA compliance, emergency egress, and material flammability. A candidate unable to prove their understanding of life safety, codes, and standards would be unlikely to pass the exam. 2:36:42 PM SENATOR CLAMAN continued with the summary of SB 54. The goal is not to measure Interior Designers by the standards used by architects. While there are shared skillsets between architects and interior designers, interior designers focus on a narrower scope of work. By comparison, there are different licensing requirements for nurse practitioners and doctors, even though they sometimes perform similar activities. Currently, there is no state licensing of the interior design profession in Alaska. One consequence of this licensing gap is that Registered Interior designers do not have access to a construction stamp that would allow them to submit their work for permitting. Passage of SB 54 will allow Alaska to join other forward-looking states in providing a construction document stamp to allow registered interior designers to submit their own work for permitting. SB 54 does not restrict the requirements or daily practice for any other professional in design or construction including architects, engineers, contractors, trades people, decorators, or residential designers. SB 54 is intended to be cost neutral to the State, as it is self-funded within the AELS Registration Board through application, registration, and renewal fees. As shown in the attached fiscal note, the passage of this bill would enable the AELS Registration Board to hire a much-needed additional Occupational Licensee Examiner, and the cost per licensee would only be an additional $50 every two years. We often talk of making Alaska open and ready for business. This bill turns those words into action and will make Alaska a better place to do business. Please join me in supporting SB 54. 2:38:29 PM SARENA HACKENMILLER, Staff, Senator Matt Claman, Alaska State Legislature, Juneau, Alaska, summarized the sectional analysis for SB 54 as follows: [Original punctuation provided.] Section 1 extends the AELS Board's termination date by eight years to June 30, 2033, per audit recommendation. Sections 2 and 3 would add two seats to the board, one for a registered interior designer and an additional engineering seat, creating separate seats for electrical and mechanical engineering, which currently share a seat, and expanding the mining engineer seat so that three disciplines may be chosen to fill this seat. As we go into the remaining sections, please note that most of these sections are conforming changes to add "registered interior designer" or "registered interior design" to the list of professions regulated by the AELS Board. To save time, I will simply indicate that these are conforming changes and the section's general subject as we proceed. Section 4 Conforming change (related to records and reports) Section 5 This is a new subsection authorizing the AELS Board to adopt regulations establishing a definition of registered interior design and provides some of the practices that must be included in the definition. Section 6 conforming changes relating to suspension of license. This section also removes the requirement that the code of ethics be distributed in writing to every registrant and applicant. Sections 7-11 Conforming changes (related to qualifications and application for registration by examination or comity) 2:40:17 PM MS. HACKENMILLER continued with the summary of the sectional analysis for SB 54: Section 12 distinguishes that retirement status under this chapter is only available for those professions registered under a Practice Act, interior designers are excluded. Section 13 relates to a Title Act with Permitting Privileges, adds a new section specifying that unregistered interior designers may practice interior design but may not use the title "registered interior designer" Sections 14-20 conforming changes (related to seals and registration as a corp, LLC, or LLP) Section 21 relates to a Title Act with Permitting Privileges, adds a new subsection specifying that a person that is not registered with the board may not use the title "registered interior designer." Sections 22-24 conforming changes (related to violations and civil penalties) Section 25 relates to a Title Act with Permitting Privileges, adds a new subsection specifying that using the title "registered interior designer" implies that that person is registered with the board. Section 26 is unrelated to registered interior designers. In this section, two exemptions are updated at the request of the AELS Board. The first is under exemption 10, the industry exemption, which would require a professional license for the construction of natural gas pipelines. Secondly, exemption 15 would allow certain Alaska Department of Environmental Conservation employees to construct conventional onsite wastewater systems if the capacity is under 500 gallons of wastewater a day. Sections 27 and 28 conforming changes (related to definitions) 2:42:16 PM MS.HACKENMILLER continued with the summary of the sectional analysis for SB 54: Section 29 defines the practice of registered interior design and registered interior designer. Sections 30-34 conforming changes under other titles. Adds both landscape architects and registered interior designers and their respective professions under Workers' Comp, Property, Public Buildings, and Public Contracts. Section 35 adds only registered interior design to Title 36 Public Contracts. Section 36 repeals AS 08.48.011(c) which had listed the conditions for board seat engineering disciplines, the changes in Sections 2 and 3 of this bill make this section obsolete. And Sections 37-39 would establish the effective date and grace period for registration. 2:43:43 PM SENATOR DUNBAR asked to revisit Section 26 of the sectional analysis. He stated he wasn't sure why Section 26 was in SB 54. He asked what changes occurred for Section 26(a)(10) and who are the licensed employees mentioned in the exclusion. 2:44:06 PM SENATOR CLAMAN answered that [changes to] Section 26(a)(10) creates a new Section 26(a)(15). This change addresses federal concerns from past gas pipeline explosions. He said some pipeline designs now require approval by a licensed engineer with stamping authoritythese can't be done in-house. He said his office has received feedback, particularly from Enstar, asking to clarify the language. He stated that the goal is to distinguish between pipelines that must have stamped drawings and those that don't. The sponsor is working with the chair's staff to clean up that wording. He said the core intent remains- high-pressure gas pipelines must have engineer-stamped designs. 2:45:38 PM SENATOR DUNBAR stated that even though most of SB 54 focuses on architects and interior designers, it also involves the State Board of Registration for Engineers, and asked that's why it's relevant to SB 54. 2:45:56 PM SENATOR CLAMAN answered yes. 2:46:12 PM CHAIR BJORKMAN announced invited testimony for SB 54. 2:46:32 PM KRIS CURTIS, Legislative Auditor, Legislative Audit Division, Alaska State Legislature, Juneau, Alaska, presented the audit findings for SB 54. She stated that the audit report only covers the extension at the beginning of SB 54. The audit found the board is operating in the public interest and recommends the full eight-year extensionno improvements were suggested. She said on page 6 it states, as of January 2024, there were 6,628 active registrants, a 10 percent drop since 2016. Appendix B compares occupation data from 2016 to 2024. Page 8 shows the board had a $1.2 million surplus, and the commissioner and board chair both support the audit's findings, as noted in the response beginning on page 23. 2:48:13 PM COLIN MAYNARD, Chair, State Board of Registration for Architect, Engineers and Land Surveyors (AELS), Legislative Liaison Committee, Anchorage, Alaska, testified by invitation on SB 54 as follows: [Original punctuation provided.] At our February 2025 meeting, the AELS Board voted to support this bill. I would like to address a few provisions in which we have particular interest and suggest a couple of amendments: • Section 1 we are proud to see that the Legislative Audit found that the Board has been complying with the relevant statutes and regulations and is performing its duty to protect the public safety, health, and welfare. We believe that an extension of eight years is warranted. • Section 2 Board makeup -Adding petroleum and chemical engineering disciplines to the mining engineering seat as an option, instead of a fallback position, expands the pool of possible volunteers from 36 to 148 while keeping the seat in the resource extraction industry. 2:49:09 PM MR. MAYNARD continued with his testimony of SB 54: -Breaking the current mechanical/electrical engineering seat into two seats recognizes that they are the two most common disciplines after civil engineering, even more than architects or land surveyors. It also recognizes that these disciplines are different from each other and expecting one person to have expertise in both is asking a bit much. -could understand that we are already one of the largest State licensing Boards, but we regulate eighteen different disciplines with more registrants than all but two Boards. The cost of the Board is borne by those registrants, not by the public. • Section 26 Exemptions on page 13 of the bill -Item 10 (B) In 2018, a natural gas pipeline explosion in Massachusetts resulted on the destruction of 40 residences. The National Transportation Safety Board attributed design by unlicensed engineers as part of the cause. They wrote all 50 state governors and copied their respective licensing boards in 2019 asking for removal of the industrial exemption for natural gas pipelines where public safety is an issue. The AELS Board wrote a letter to the Governor indicating support for this request. The NTSB wrote an additional letter in 2022 asking for an update. The AELS Board again wrote a letter to the Governor indicating support and stated that they would address it during the sunset process, had it not been addressed earlier. That is the genesis of this language. At our February meeting, we determined that the language you see before you is too extensive and should be limited to pipelines where public safety is an issue. We are interested in licensed engineers designing pipelines in communities and not necessarily on the North Slope or Beluga. We suggest the following language for this exception to the exemption: (B) natural gas distribution systems that could pose a threat to public safety; "natural gas pipeline" has the meaning given in AS31.25.390; 2:50:50 PM MR. MAYNARD continued with his testimony of SB 54: -Item 15 during a discussion with the Department of Environmental Conservation (DEC) regarding regulations that they had adopted that required engineers to perform tasks that violate licensing law, DEC requested that an exemption be granted for small commercial domestic wastewater systems, so that they could be designed by DEC certified contractors instead of licensed engineers. The Board agreed to that request. However, this exemption should not be applicable to industrial wastewater, just wastewater from kitchens and bathrooms. Thus, we suggest one small change to the current language modify 'conventional onsite wastewater system' to "conventional onsite commercial domestic wastewater system" in both locations it occurs. There is one other provision that the Board would like to have added to the bill. The Board has been having problems retaining our Executive Administrator. We have been working with the Division and Department to get an Office of Management and Budget class evaluation for years. The fact that it is a class of one has not made that very easy and it has dragged out for years. The evaluation finally started last fall, still has several steps to go, and may not have a conclusion with which the Board agrees. Before the evaluation started, the Board decided to request that our statute specify that the AELS Executive Administrator has a salary in Range 23. Other Boards that have a similar number of registrants have a similar provision. 2:52:36 PM MATT BARUSCH, Director, Council for Interior Design Qualification (CIDQ), Government Affairs and Advocacy, testified by invitation on SB 54. He stated that the National Council for Interior Design Qualification (NCIDQ) along with its members, supports SB 54 which aims to create reasonable regulations for certifying interior designers. SB 54 would allow designers to fully practice based on their education, experience, and examination. This policy is already implemented in 29 states, along with D.C. and Puerto Rico. 2:54:38 PM SENATOR CLAMAN stated that his office is willing to work with the suggestions made. [CHAIR BJORKMAN held SB 54 in committee.] 2:55:19 PM There being no further business to come before the committee, Chair Bjorkman adjourned the Senate Labor and Commerce Standing Committee meeting at 2:55 p.m.

Document Name Date/Time Subjects
SSSB54 ver I.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Sponsor Statement ver I 02.19.25.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Sectional Analysis ver I 02.19.25.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Legislative Legal Memo 01.5.25.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SB54 Fiscal Note-DCCED-CBPL 02.21.25.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Supporting Document - ASID Report 03.9.23.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Supporting Document - Sunset Review of AELS Board 04.07.24.pdf SL&C 2/26/2025 1:30:00 PM
SB 54
SSSB54 Supporting Document - USACE Contract Opportunity 01.31.24.pdf SL&C 2/26/2025 1:30:00 PM
SB 54