ALASKA STATE LEGISLATURE  HOUSE LABOR AND COMMERCE STANDING COMMITTEE  February 10, 2018 1:01 p.m. MEMBERS PRESENT Representative Sam Kito, Chair Representative Andy Josephson Representative Louise Stutes Representative Chris Birch Representative Bryce Edgmon (alternate) MEMBERS ABSENT  Representative Adam Wool, Vice Chair Representative Gary Knopp Representative Colleen Sullivan-Leonard Representative Mike Chenault (alternate) COMMITTEE CALENDAR  HOUSE BILL NO. 278 "An Act extending the termination date of the Board of Certified Real Estate Appraisers; and providing for an effective date." - MOVED HB 278 OUT OF COMMITTEE HOUSE BILL NO. 279 "An Act extending the termination date of the Real Estate Commission; and providing for an effective date." - MOVED HB 279 OUT OF COMMITTEE HOUSE BILL NO. 280 "An Act extending the termination date of the Board of Marital and Family Therapy; and providing for an effective date." - MOVED HB 280 OUT OF COMMITTEE HOUSE BILL NO. 302 "An Act extending the termination date of the Board of Professional Counselors; and providing for an effective date." - MOVED HB 302 OUT OF COMMITTEE HOUSE BILL NO. 323 "An Act extending the termination date of the Board of Pharmacy; and providing for an effective date." - MOVED HB 323 OUT OF COMMITTEE HOUSE BILL NO. 318 "An Act extending the termination date of the Board of Social Work Examiners; and providing for an effective date." - MOVED HB 318 OUT OF COMMITTEE HOUSE BILL NO. 255 "An Act relating to individuals and employees who must have certificates of fitness to perform certain plumbing and electrical work; and relating to civil penalties and violations for not having required certificates of fitness." - MOVED CSHB 255(L&C) OUT OF COMMITTEE HOUSE BILL NO. 299 "An Act extending the termination date of the Alcoholic Beverage Control Board; and providing for an effective date." - BILL HEARING CANCELED PREVIOUS COMMITTEE ACTION  BILL: HB 255 SHORT TITLE: PLUMBING/ELECTRIC CERTIFICATE OF FITNESS SPONSOR(s): REPRESENTATIVE(s) TUCK 01/08/18 (H) PREFILE RELEASED 1/8/18 01/16/18 (H) READ THE FIRST TIME - REFERRALS 01/16/18 (H) L&C, FIN 02/02/18 (H) L&C AT 3:15 PM BARNES 124 02/02/18 (H) Heard & Held 02/02/18 (H) MINUTE(L&C) 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 278 SHORT TITLE: EXTEND:CERT. REAL ESTATE APPRAISERS BOARD SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON 01/16/18 (H) READ THE FIRST TIME - REFERRALS 01/16/18 (H) L&C, FIN 01/29/18 (H) L&C AT 3:15 PM BARNES 124 01/29/18 (H) Heard & Held 01/29/18 (H) MINUTE(L&C) 02/05/18 (H) L&C AT 3:15 PM BARNES 124 02/05/18 (H) Scheduled but Not Heard 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 279 SHORT TITLE: EXTEND: REAL ESTATE COMMISSION SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON 01/16/18 (H) READ THE FIRST TIME - REFERRALS 01/16/18 (H) L&C, FIN 01/29/18 (H) L&C AT 3:15 PM BARNES 124 01/29/18 (H) Heard & Held 01/29/18 (H) MINUTE(L&C) 02/05/18 (H) L&C AT 3:15 PM BARNES 124 02/05/18 (H) Scheduled but Not Heard 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 280 SHORT TITLE: EXTEND: BOARD OF MARITAL & FAMILY THERAPY SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON 01/16/18 (H) READ THE FIRST TIME - REFERRALS 01/16/18 (H) L&C, FIN 01/29/18 (H) L&C AT 3:15 PM BARNES 124 01/29/18 (H) Heard & Held 01/29/18 (H) MINUTE(L&C) 02/05/18 (H) L&C AT 3:15 PM BARNES 124 02/05/18 (H) Scheduled but Not Heard 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 302 SHORT TITLE: EXTEND: BOARD OF PROFESSIONAL COUNSELORS SPONSOR(s): REPRESENTATIVE(s) WOOL 01/24/18 (H) READ THE FIRST TIME - REFERRALS 01/24/18 (H) L&C, FIN 02/02/18 (H) L&C AT 3:15 PM BARNES 124 02/02/18 (H) Heard & Held 02/02/18 (H) MINUTE(L&C) 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 323 SHORT TITLE: EXTEND: BOARD OF PHARMACY SPONSOR(s): REPRESENTATIVE(s) SULLIVAN-LEONARD 02/02/18 (H) READ THE FIRST TIME - REFERRALS 02/02/18 (H) L&C, FIN 02/05/18 (H) L&C AT 3:15 PM BARNES 124 02/05/18 (H) Heard & Held 02/05/18 (H) MINUTE(L&C) 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 318 SHORT TITLE: EXTEND: BOARD OF SOCIAL WORK EXAMINERS SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ 01/31/18 (H) READ THE FIRST TIME - REFERRALS 01/31/18 (H) L&C, FIN 02/09/18 (H) L&C AT 3:15 PM BARNES 124 02/09/18 (H) Heard & Held 02/09/18 (H) MINUTE(L&C) 02/10/18 (H) L&C AT 1:00 PM BARNES 124 BILL: HB 255 SHORT TITLE: PLUMBING/ELECTRIC CERTIFICATE OF FITNESS SPONSOR(s): REPRESENTATIVE(s) TUCK 01/08/18 (H) PREFILE RELEASED 1/8/18 01/16/18 (H) READ THE FIRST TIME - REFERRALS 01/16/18 (H) L&C, FIN 02/02/18 (H) L&C AT 3:15 PM BARNES 124 02/02/18 (H) Heard & Held 02/02/18 (H) MINUTE(L&C) 02/10/18 (H) L&C AT 1:00 PM BARNES 124 WITNESS REGISTER MEGAN HOLLAND, Staff Representative Andy Josephson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 278 on behalf of Representative Josephson, prime sponsor. MEGAN HOLLAND, Staff Representative Andy Josephson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 279 on behalf of Representative Josephson, prime sponsor. TRACI BARICKMAN, Chair Real Estate Commission Palmer, Alaska POSITION STATEMENT: Answered questions in the hearing on HB 279. SARAH CHAMBERS, Deputy Director Division of Corporations, Business, & Professional Licensing (DCBPL) Department of Commerce, Community & Economic Development (DCCED) Juneau, Alaska POSITION STATEMENT: Answered questions in the hearing on HB 279. MEGAN HOLLAND, Staff Representative Andy Josephson Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 280 on behalf of Representative Josephson, prime sponsor. ASHLEY STRAUCH, Staff REPRESENTATIVE ADAM WOOL Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 302 on behalf of Representative Wool, prime sponsor. DEBBIE HAMILTON Professional Counselors Board Soldotna, Alaska POSITION STATEMENT: Answered questions in the hearing on HB 302. TED MADSEN, Staff Representative Ivy Spohnholz Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 318 on behalf of Representative Spohnholz, prime sponsor. REPRESENTATIVE CHRIS TUCK Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced HB 255 as prime sponsor. DEBORAH KELLY, Director Labor Standards and Safety Division Department of Labor & Workforce Development (DWLD) POSITION STATEMENT: Answered questions in the hearing on HB 255. WILLIAM HARLAN Mechanical Inspection Manager Department of Labor and Workforce Development (DLWD) Anchorage, Alaska POSITION STATEMENT: Answered questions in the hearing on HB 255. ACTION NARRATIVE 1:01:44 PM CHAIR SAM KITO called the House Labor and Commerce Standing Committee meeting to order at 1:01 p.m. Representatives Josephson, Stutes, Edgmon (alternate), and Birch were present at the call to order. HB 278-EXTEND:CERT. REAL ESTATE APPRAISERS BOARD  1:02:39 PM CHAIR KITO announced that the first order of business would be HOUSE BILL NO. 278, "An Act extending the termination date of the Board of Certified Real Estate Appraisers; and providing for an effective date." 1:02:58 PM MEGAN HOLLAND, Staff, Representative Andy Josephson, Alaska State Legislature, introduced HB 278 on behalf of Representative Josephson, prime sponsor. She stated that the proposed bill would extend the termination date for the Board of Real Estate Appraisers by eight years as recommended by Legislative Budget and Audit (LB&A). CHAIR KITO stated public testimony had remained open from a previous meeting on HB 278. Upon ascertaining that there was no one available for public testimony, closed public testimony. 1:04:11 PM REPRESENTATIVE JOSEPHSON moved to report HB 278 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:04:27 PM The committee took an at-ease from 1:04 p.m. to 1:06 p.m. HB 279-EXTEND: REAL ESTATE COMMISSION  1:06:08 PM CHAIR KITO announced that the next order of business would be HOUSE BILL NO. 279 "An Act extending the termination date of the Real Estate Commission; and providing for an effective date." 1:06:23 PM MEGAN HOLLAND, Staff, Representative Andy Josephson, Alaska State Legislature, introduced HB 279 on behalf of Representative Josephson, prime sponsor. She stated the proposed bill would extend the termination date of the Real Estate Commission by eight years as recommended by LB&A. 1:06:48 PM CHAIR KITO stated public testimony was still open from a previous hearing on HB 279. Upon ascertaining that there was no one available for public testimony, he closed public testimony. 1:07:22 PM REPRESENTATIVE BIRCH spoke to the concerns of a constituent regarding the responsiveness and transparency of the commission. He asked whether there had been complaints leveled and how they had been addressed. MS. HOLLAND deferred to the commission. 1:08:30 PM TRACI BARICKMAN, Chair, Real Estate Commission, answered questions in the hearing on HB 279. She asked for the question to be restated. REPRESENTATIVE BIRCH spoke to the issues of transparency in commission meetings brought forward in a letter from his constituent. MS. BARICKMAN answered there is a process for complaints which go through the investigative unit and not directly to the commission, so it would not be appropriate for the commission to hear a complaint in a public meeting. REPRESENTATIVE BIRCH reiterated the process. MS. BARICKMAN answered she could not speak to the specific case but confirmed his understanding of the process was correct. 1:10:41 PM SARAH CHAMBERS, Deputy Director, Division of Corporations, Business, & Professional Licensing (DCBPL), Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on HB 279. She stated the department was familiar with the letter, but it had been determined to be non-jurisdictional. The constituent had been contacted and had attended a commission meeting. She offered her assistance to the constituent. 1:12:43 PM REPRESENTATIVE JOSEPHSON moved to report HB 279 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:13:05 PM The committee took an at-ease from 1:13 p.m. to 1:14 p.m. HB 280-EXTEND: BOARD OF MARITAL & FAMILY THERAPY  1:13:08 PM MEGAN HOLLAND, Staff, Representative Andy Josephson, Alaska State Legislature, introduced HB 280 on behalf of Representative Josephson, prime sponsor. She stated the proposed bill would extend the termination date of the Board of Marital and Family Therapy by eight years, as recommended by LB&A. 1:15:18 PM CHAIR KITO announced that public testimony had remained open. After ascertaining that there was no one available to testify, closed public testimony on HB 280. 1:15:59 PM REPRESENTATIVE JOSEPHSON moved to report HB 280 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:16:20 PM The committee took an at-ease from 1:16 p.m. to 1:17 p.m. HB 302-EXTEND: BOARD OF PROFESSIONAL COUNSELORS  1:17:37 PM CHAIR KITO announced that the next order of business would be HOUSE BILL NO. 302, "An Act extending the termination date of the Board of Professional Counselors; and providing for an effective date." 1:17:46 PM ASHLEY STRAUCH, Staff, REPRESENTATIVE ADAM WOOL, Alaska State Legislature, reintroduced HB 302 on behalf of Representative Wool, prime sponsor. She gave a brief overview of HB 302, explaining that the proposed bill would extend the termination date of the Board of Professional Counselors to 2026. She highlighted there had been a 46 percent increase in licensees since the previous sunset audit. 1:18:45 PM DEBBIE HAMILTON, Professional Counselors Board, testified that the board welcomed the extension. 1:19:14 PM CHAIR KITO said public testimony was still open from a previous hearing. Upon ascertaining that no one was available to testify, he closed public testimony on HB 302. 1:19:29 PM SPEAKER EDGMON asked for clarification on the board extension. 1:19:32 PM MS. STRAUCH clarified the extension was for eight years to 2026. 1:20:10 PM REPRESENTATIVE BIRCH asked about the advancement of telehealth regulations and the delivery of services for mental health occupations. 1:20:44 PM MS. HAMILTON answered the board had recently drafted regulations to help telehealth mental health service providers and was currently awaiting completion of those regulations. REPRESENTATIVE BIRCH surmised it was about administering mental health services via telehealth. MS. HAMILTON answered the regulation will increase accessibility to mental health services. 1:22:00 PM REPRESENTATIVE JOSEPHSON moved to report HB 302 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:22:23 PM The committee took an at-ease from 1:22 p.m. to 1:23 p.m. HB 323-EXTEND: BOARD OF PHARMACY  1:23:50 PM CHAIR KITO announced that the next order of business would be HOUSE BILL NO. 323, "An Act extending the termination date of the Board of Pharmacy; and providing for an effective date." CHAIR KITO announced he would reintroduce HB 323 on behalf of Representative Sullivan-Leonard, prime sponsor, as she was unable to attend the bill hearing. CHAIR KITO paraphrased from the sponsor statement, which reads as follows [original punctuation provided]: House Bill 323 extends the termination date for the Board of Pharmacy to June 30, 2022. Pursuant to A.S.?08.03.010( c)(16), this Board is scheduled to sunset on June 30th, 2018 if the legislature does not pass legislation extending it. Legislative Audit reviewed the Board's operations and determined that it is in the best interest of the state to extend this Board considering recent statutory changes that expand the Board's responsibilities in relation to the controlled substance prescription database. Therefore, recommendation is made to extend this Board for 4 years or through June 30, 2022. The Board of Pharmacy is composed of 7 members; 5 licensed pharmacists actively engaged in the practice of pharmacy in the State for a period of 3 years immediately preceding their appointments and 2 members of the public. The Board also regulates admission into the practice of pharmacy, establishes and enforces compliance with professional standards and adopts regulations. It also establishes and maintains a controlled substance prescription database, and establishes standards for the independent administration by a pharmacist of vaccines, related emergency medications and opioid overdose drugs. The Board also oversees licensing for pharmacists, pharmacy interns, pharmacy technicians, pharmacies, wholesale drug distributors located inside the state, licenses drug rooms located inside institutional facilities and also registers pharmacies located outside of the State if a pharmacy ships, mails or delivers prescription drugs to consumers of that state. These regulations control various aspects of the field, including but not limited to controlling and regulating the practice of pharmacy in Alaska. A.S.?08.80.005 mandates that effective control and regulation is necessary to promote, preserve and protect the public's health, safety and welfare. 1:26:41 PM REPRESENTATIVE JOSEPHSON moved to report HB 323 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:26:55 PM The committee took an at-ease from 1:27 p.m. to 1:28 p.m. HB 318-EXTEND: BOARD OF SOCIAL WORK EXAMINERS  1:28:14 PM CHAIR KITO announced that the next order of business would be HOUSE BILL NO. 318, "An Act extending the termination date of the Board of Social Work Examiners; and providing for an effective date." 1:28:27 PM TED MADSEN, Staff, Representative Ivy Spohnholz, Alaska State Legislature, introduced HB 318 on behalf of Representative Spohnholz, prime sponsor. He testified HB 318 would extend the termination date of the Board of Social Work Examiners until June 30, 2026. CHAIR KITO announced public testimony was still open from a previous hearing. Upon ascertaining that no one was available to testify, he closed public testimony on HB 318. 1:29:48 PM REPRESENTATIVE JOSEPHSON moved to report HB 318 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:30:07 PM The committee took a brief at-ease. HB 255-PLUMBING/ELECTRIC CERTIFICATE OF FITNESS  1:31:56 PM CHAIR KITO announced that the final order of business would be HOUSE BILL NO. 255, "An Act relating to individuals and employees who must have certificates of fitness to perform certain plumbing and electrical work; and relating to civil penalties and violations for not having required certificates of fitness." 1:32:05 PM REPRESENTATIVE CHRIS TUCK, Alaska State Legislature, introduced HB 255 as prime sponsor. He gave an overview of the bill, explaining that HB 255 would change the violation for working without a certificate of fitness from a misdemeanor to a citation and a fine. He stated the proposed bill would bring the department practices in line with other business license standards. 1:33:47 PM CHAIR KITO moved Amendment 1. Page 2, lines 14 - 15: Delete "[, EITHER AN EMPLOYER OR EMPLOYEE,]" Insert ", other than [EITHER] an [EMPLOYER OR] employee," Page 2, lines 17 - 18: Delete "BY A FINE OF NOT MORE THAN $500]" Insert "] by a fine of not more than $500" REPRESENTATIVE TUCK explained Amendment 1 reserves violations for employers. He pointed to page 2, line 14, of the statute and explained that independent contractors would be under the same sanctions as an employer. 1:35:36 PM REPRESENTATIVE JOSEPHSON asked about violations, citations, and administrative penalties. 1:36:33 PM DEBORAH KELLY, Director, Labor Standards and Safety Division, answered questions in the hearing on HB 255. She explained there was a multitiered process involving options for a citation or an administrative fine. CHAIR KITO asked whether the two penalties worked in conjunction. MS. KELLY answered in the affirmative. She added the way penalties work for other licensure, such as contractor licensing, generally an administrative fine is issued. She added that with severe violations or for those who refused to pay, the citation process is used. 1:37:30 PM REPRESENTATIVE STUTES shared her concern that the change would put the employee "between a rock and a hard spot." She suggested exempting the employee. 1:38:14 PM REPRESENTATIVE TUCK mentioned the committee had heard Representative Knopp state he did not like the certificate of fitness. He explained that general contractors cannot perform or expect their employees to do electrical work. He added that in the electrical industry there was a requirement for additional licensing for administrators. He said the aim was to maintain the integrity of the system. He said there should not be any "gray areas." 1:39:46 PM REPRESENTATIVE JOSEPHSON spoke to misdemeanors and said that taking a case to a jury can be hard to do. He asked for confirmation that the fine would be up to $500 and not imposed on the employee. REPRESENTATIVE TUCK clarified the fine would be not more than $500 for the employer, and $125 for the first offence and $250 for each subsequent offence for the employee. REPRESENTATIVE JOSEPHSON surmised "there is jurisdictional workplace confusion about who has the authority and training to do certain work in the field," and asked whether the proposed bill simply made it easier to cite someone. REPRESENTATIVE TUCK answered that it is the responsibility on the employee to maintain the certificate of fitness. REPRESENTATIVE JOSEPHSON asked whether there is a gray area regarding who does what work on a worksite. 1:42:20 PM REPRESENTATIVE TUCK answered there were different requirements according to the scope of work, and some licenses only require 1,000 hours of training. He added that HB 255 does not address those issues. REPRESENTATIVE JOSEPHSON spoke to Amendment 1. He offered a hypothetical situation involving the action of an employee and asked whether the proposed bill would offer leniency in that scenario. REPRESENTATIVE TUCK answered HB 255 was modelled after other licensing legislation. He said the original draft contained the same fines for both employee and employer, and the amendment made the proposed bill "very soft" in comparison to other license violations with more severe fines. 1:44:44 PM REPRESENTATIVE BIRCH spoke to Amendment 1. He cited the language regarding a person other than an employee. He said he was still uncertain of how the amendment would help that person. 1:45:49 PM REPRESENTATIVE TUCK answered that the amendment further softens the penalty on the employee. He added it maintains a person carrying out the work who is not an employee or an employer would get the same sanctions for a violation as an employer. He further added the amendment would ensure there was not an increase on the fine and contains a cap of $25 thousand for an employer. 1:46:50 PM CHAIR KITO asked for clarification of whether it should be $2,500 or $25 thousand for the employer. REPRESENTATIVE TUCK clarified it was $25 thousand for the employer and $2,500 for the employee. SPEAKER EDGMON removed his objection. There being no other further objection, Amendment 1 was adopted. 1:47:41 PM REPRESENTATIVE STUTES asked whether a certification of fitness was required to drive a truck to backfill a ditch. REPRESENTATIVE TUCK answered in the affirmative. He added a certification of fitness was required to install the pipe, to install wire, to dig the ditch, to backfill the ditch, to set the poles, and to set the gear. He explained that with too many contractors working on a system, it is hard to determine who is responsible when something goes wrong. He reiterated that the certificate of fitness maintains the integrity of the system. REPRESENTATIVE STUTES said she thought it seems "we are putting our general labors out of work." 1:49:07 PM CHAIR KITO asked whether the bill would change how the penalties are assessed or change the responsibilities. REPRESENTATIVE TUCK mentioned Representative Knopp's remarks that he did not want the penalties and that "if it's not enforceable, then it's allowed." 1:49:51 PM REPRESENTATIVE STUTES restated her question of whether a worker was required to have a certificate of fitness in order to "backfill." REPRESENTATIVE TUCK answered in the affirmative. He deferred to the department. 1:50:26 PM WILLIAM HARLAN, Mechanical Inspection Manager, Department of Labor and Workforce Development (DLWD), answered questions in the hearing on HB 255. He confirmed that under current policy a certificate of fitness would be required. He added that the proposed bill would not affect the requirement. 1:51:21 PM REPRESENTATIVE JOSEPHSON asked whether there is something called a "utility card" that allows someone without a certificate of fitness to do that work. MR. HARLAN asked for the question to be restated. REPRESENTATIVE JOSEPHSON asked whether a utility card would enable someone who does not have the certificate of fitness to do "in-between work." MR. HARLAN explained that public utilities are exempted elsewhere in statute so that they can carry out work in a public easement. He added that subcontractors doing work on a public utility property would need a certificate of fitness. 1:53:14 PM MS. KELLY added that there are some other certificates of fitness, such as a plumber-restricted public utility certificate of fitness, which allows certain types of plumbing work to be carried out with fewer hours required than for a full plumber journeyman. 1:53:56 PM REPRESENTATIVE JOSEPHSON moved to report HB 255 out of committee as amended with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 1:54:47 PM ADJOURNMENT  There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 1:54 p.m.