Legislature(2023 - 2024)DAVIS 106

04/03/2024 06:00 PM House WAYS & MEANS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 277 LICENSING RECIPROCITY; FEES TELECONFERENCED
Heard & Held
*+ HB 381 HEALTH CARE PROVIDER TAX TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 109 REDUCE CORP. NET INCOME TAX RATE TELECONFERENCED
Heard & Held
               HB 277-LICENSING RECIPROCITY; FEES                                                                           
                                                                                                                                
6:06:26 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER announced that the  final order of business would                                                               
be  HOUSE  BILL   NO.  277  "An  Act   relating  to  occupational                                                               
licensing; and providing for an effective date."                                                                                
                                                                                                                                
6:07:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  moved  to adopt  the  proposed  committee                                                               
substitute  (CS),  for  HB  277,  Version  33-LS0905\B,  Gunther,                                                               
3/7/24, as a working document.  There being no objection, Version                                                               
B was before the committee.                                                                                                     
                                                                                                                                
6:08:06 PM                                                                                                                    
                                                                                                                                
CHAIR  CARPENTER, on  behalf of  the House  Special Committee  on                                                               
Ways and  Means, prime  sponsor, stated that  HB 277,  Version B,                                                               
would require housing licenses to cost  no more in Alaska than in                                                               
other  states and  would create  universal licensing  reciprocity                                                               
with  other states.  He said  the cost  of a  housing license  is                                                               
higher than  other occupations  in other states.  He said  HB 277                                                               
would eliminate  licensing requirements for  certain professions.                                                               
He said it would be  beneficial for out-of-state licensed workers                                                               
coming to  Alaska. He  said that the  state is  currently keeping                                                               
workers from working  through a burden of licensing,  and that HB
277, Version B, is the first step towards remedying that.                                                                       
                                                                                                                                
6:09:56 PM                                                                                                                    
                                                                                                                                
DONNA ARDUIN,  Staff, Representative Ben Carpenter,  Alaska State                                                               
Legislature, on  behalf of  the House  Special Committee  on Ways                                                               
and Means,  prime sponsor, gave  a sectional analysis on  HB 277,                                                               
Version  B, [included  in the  committee packet].  She began  her                                                               
sectional  analysis   on  Section  2,  which   would  affect  the                                                               
centralized  licensing statute  currently governing  licensing in                                                               
Alaska.  She  said  there  are  a  few  exceptions  to  universal                                                               
reciprocity, those  being federal licenses. She  moved to Section                                                               
9  of  the  sectional  analysis, which  proposed  to  remove  the                                                               
licensing  requirements for  construction  and carpenters'  jobs.                                                               
She  continued  to  Section 13,  which  would  remove  collection                                                               
agencies from statute.  She touched on Sections 29  and 38, which                                                               
would remove optometrists licensing  and the taxidermy licensing.                                                               
She  continued Section  52,  which said  provided  that a  person                                                               
holding a license under current  reciprocity credentials would be                                                               
allowed to  retain that license under  a given date by  the bill.                                                               
She said the rest of the bill is conforming language.                                                                           
                                                                                                                                
6:14:29 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 6:14 p.m. to 6:14 p.m.                                                                       
                                                                                                                                
6:14:57 PM                                                                                                                    
                                                                                                                                
MS. ARDUIN began a PowerPoint  presentation [hardcopy included in                                                               
the  committee  packet].  The  first   two  slides  explain  that                                                               
reducing state level licensure may  be among the lines of easiest                                                               
fixes to  bring more workers  to Alaska.  She said that  it would                                                               
take a  multi-faceted approach to  recruit and retain  workers in                                                               
the  state  of Alaska.  She  said  that  currently, there  are  a                                                               
particular  amount of  lower  income and  entry  level jobs  that                                                               
require licensing which  deters workers. She said that  HB 190 is                                                               
a good  pair to HB  277 because  it would immediately  remove the                                                               
cost and time burden of licensing.                                                                                              
                                                                                                                                
6:19:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GROH asked  if there was a  fiscal note associated                                                               
with Version B.                                                                                                                 
                                                                                                                                
CHAIR CARPENTER directed the question to Sylvan Robb.                                                                           
                                                                                                                                
6:19:38 PM                                                                                                                    
                                                                                                                                
SYLVAN   ROBB,  Director,   Division   of  Corporation   Business                                                               
Professional   Licensing   (DCBPL),   Department   of   Commerce,                                                               
Community,  and  Economic  Development (DCCED),  in  response  to                                                               
Representative  Groh,  explained  that  there is  a  fiscal  note                                                               
posted for  the original version  of the  bill, but there  is not                                                               
one for the CS that was  adopted in committee today. She said the                                                               
original fiscal note was not conclusive.                                                                                        
                                                                                                                                
6:20:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TILTON asked how many  licensures are in the state                                                               
of  Alaska  currently and  how  many  would  be removed  by  this                                                               
legislation.  She  further  inquired   whether  the  backlogs  on                                                               
licenses are  up to date and  if the high costs  of investigation                                                               
are included in HB 277, Version B.                                                                                              
                                                                                                                                
6:22:09 PM                                                                                                                    
                                                                                                                                
MS.  ROBB responded  that currently  the  division only  licenses                                                               
professions as  allowed under current  statute, and that  it does                                                               
not license  certain professions that  would be covered  under HB
277, Version B.                                                                                                                 
                                                                                                                                
6:23:22 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER asked Ms. Robb  to explain the difference between                                                               
a professional license and an occupational license.                                                                             
                                                                                                                                
MS.   ROBB   explained   that   though   the   terms   are   used                                                               
interchangeably,  they   are  not  the   same.  She   added  that                                                               
occupational licenses include trades.                                                                                           
                                                                                                                                
CHAIR CARPENTER, in response  to Representative Tilton's previous                                                               
question about how many occupations  would be affected by HB 277,                                                               
asked Ms.  Robb if she'd  had a chance  to make an  assessment on                                                               
that.                                                                                                                           
                                                                                                                                
MS. ROBB said that a few  occupations would be affected, but some                                                               
are in  a bit  of a  gray area  with what  would happen  to their                                                               
licensing.                                                                                                                      
                                                                                                                                
6:25:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TILTON  reiterated her question about  the backlog                                                               
of renewal  of licensures  and whether  those backlogs  have been                                                               
brought up to date.                                                                                                             
                                                                                                                                
MS.  ROBB  replied that  DCBPL  is  doing  much better  with  the                                                               
licensure  backlog, and  that the  pandemic greatly  impacted its                                                               
ability to  review and issue  licenses. She said that  wait times                                                               
have greatly improved since then.                                                                                               
                                                                                                                                
CHAIR CARPENTER asked if there is still a backlog of applicants.                                                                
                                                                                                                                
MS.  ROBB  said that  the  question  is  hard to  answer  because                                                               
licenses  take  some  time  to  process.  The  division  runs  45                                                               
different   licensing  programs   that   each   have  their   own                                                               
denominations and tiers of licensing and professions.                                                                           
                                                                                                                                
6:28:51 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER asked how many  of the current licensees are able                                                               
to work during their license's adjudication process.                                                                            
                                                                                                                                
MS. ROBB answered  that the majority of  professions that require                                                               
licensure aren't able  to work until they are  licensed. She said                                                               
some professions, such as nursing,  allow for a temporary license                                                               
to  work while  their permanent  license is  being processed  and                                                               
they are working to meet full requirements.                                                                                     
                                                                                                                                
6:30:42 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER  asked what the  number of temporary  licenses in                                                               
Alaska currently is.                                                                                                            
                                                                                                                                
MS. ROBB  replied that there  are only temporary  license options                                                               
for professions  where the time  to process and obtain  a license                                                               
is longer than standard.                                                                                                        
                                                                                                                                
6:31:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TILTON  asked if  the professions with  high costs                                                               
of investigations were to be  eliminated, how much money would be                                                               
saved.                                                                                                                          
                                                                                                                                
MS. ROBB answered  that DCBPL can get  Representative Tilton that                                                               
figure in  the future. She added  that usually, a higher  cost of                                                               
licensing is directly related to the high cost of investigation.                                                                
                                                                                                                                
6:34:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD  asked if  there  was  a waiting  list  on                                                               
military spouses' licenses.                                                                                                     
                                                                                                                                
MS.  ROBB said  in the  previous legislature,  a bill  was passed                                                               
that  created  temporary military  licenses  for  a multitude  of                                                               
professions.  She said  in January  2023, the  Federal Government                                                               
passed a  law about  military spouses, and  that the  language in                                                               
federal statue is  contained in the governor's bill.  She said in                                                               
the meantime there is a place  on DCBPL's website to reach out to                                                               
the division directly to get  a license processed on an expedited                                                               
basis.                                                                                                                          
                                                                                                                                
6:37:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  asked if there  is a waiting list  for any                                                               
military spouse waiting to be licensed.                                                                                         
                                                                                                                                
MS. ROBB  answered that there  are currently no  military spouses                                                               
on the waiting list.                                                                                                            
                                                                                                                                
REPRESENTATIVE ALLARD asked  if the license would  take less than                                                               
30 days to get.                                                                                                                 
                                                                                                                                
MS. ROBB confirmed  that is correct and emphasized  that there is                                                               
no one currently waiting for a military spouse's license.                                                                       
                                                                                                                                
6:38:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE asked  how many  people would  investigate                                                               
complaints  and  issues  with  a license  holder  and  who  would                                                               
enforce the license holder's compliance.                                                                                        
                                                                                                                                
MS. ROBB  said that  the DCCED  and the  Department of  Labor and                                                               
Workforce   Development  (DLWD)   partner  together,   but  their                                                               
investigation  unit works  on a  complaint basis  with regard  to                                                               
unlicensed practices.                                                                                                           
                                                                                                                                
6:40:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCABE  asked  how   many  people  are  currently                                                               
working in the investigation unit [of DCCED or DLWD].                                                                           
                                                                                                                                
MS.  ROBB said  there are  currently 21  certified investigators,                                                               
and 5  additional paralegals employed  by the  investigation unit                                                               
[of DCCED or DLWD].                                                                                                             
                                                                                                                                
6:41:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY asked why the  state wouldn't want to license                                                               
collection agents if  the current application and  process to get                                                               
licensed as a collection agent is fair and understandable.                                                                      
                                                                                                                                
MS.  ARDUIN  referenced  the sectional  analysis  and  said  that                                                               
collection  agencies  were  chosen  to be  removed  on  the  bill                                                               
because 20  other states don't  have a licensing  requirement for                                                               
it.                                                                                                                             
                                                                                                                                
CHAIR CARPENTER  pondered what value it  is for the state  to ask                                                               
the same question that a business owner should ask.                                                                             
                                                                                                                                
REPRESENTATIVE  GRAY  said that  the  employer  must also  assert                                                               
their moral character to become  a collection agent, and asked if                                                               
it would be the intent to  move the responsibility from the state                                                               
to municipalities and boroughs.                                                                                                 
                                                                                                                                
6:46:10 PM                                                                                                                    
                                                                                                                                
CHAIR CARPENTER  said the intention of  the bill is not  to shift                                                               
the costs to municipalities, but  if the state no longer provides                                                               
the service of licensure, then  municipalities should pay for the                                                               
service if they want it.                                                                                                        
                                                                                                                                
6:46:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON asked  how  many entities  a person  would                                                               
have to go through to be able to go into business.                                                                              
                                                                                                                                
CHAIR CARPENTER deflected the question to Ms. Robb.                                                                             
                                                                                                                                
MS.  ROBB  said   that  she  doesn't  know   how  many  different                                                               
municipalities  require  a  business   license,  but  a  business                                                               
license is required in the state of Alaska per statute.                                                                         
                                                                                                                                
6:47:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON  remarked  that  there  are  an  excessive                                                               
number of hoops to jump through.                                                                                                
                                                                                                                                
6:48:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ALLARD  commented that she is  concerned about the                                                               
type of licensing that would be  axed by the bill. She asked more                                                               
frankly if debt collectors will have to be licensed.                                                                            
                                                                                                                                
6:49:32 PM                                                                                                                    
                                                                                                                                
MS.  ARDUIN  responded  that  any  licensing  requirements  being                                                               
removed do not remove or  affect any regulatory requirements, and                                                               
that the bill only addresses occupational licenses.                                                                             
                                                                                                                                
6:51:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GRAY asked  what agency  would make  sure that  a                                                               
hypothetical  applicant  to become  a  debt  collector is  not  a                                                               
criminal if the license is eliminated.                                                                                          
                                                                                                                                
MS. ARDUIN gave the question to Ms. Robb.                                                                                       
                                                                                                                                
MS. ROBB  said that because  the DCBPL is  funded by the  fees of                                                               
licensees, it  would deem those  cases non-jurisdictional  and be                                                               
deferred to the Department of Law.                                                                                              
                                                                                                                                
6:53:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TILTON  thanked Ms.  Arduin for  her clarification                                                               
on the question of occupational licensing.                                                                                      
                                                                                                                                
6:54:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ALLARD said  she  appreciates the  clarification,                                                               
but  she disagrees  with removing  the licensing  requirement for                                                               
collection agencies.                                                                                                            
                                                                                                                                
6:55:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCABE  said he thinks  there should be  a process                                                               
for vetting those who are already licensed.                                                                                     
                                                                                                                                
REPRESENTATIVE ALLARD said  her point is that  someone could have                                                               
the  ability  to  ask  who  someone is  and  vet  them,  and  she                                                               
reiterated concern over the proposed removal of he licensure.                                                                   
                                                                                                                                
MS. ARDUIN said that the bill  raises the issue of what the value                                                               
of the license itself is.                                                                                                       
                                                                                                                                
6:57:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY asked  about  Section 25  of the  sectional                                                               
analysis and  offered to meet off  the record about that  part of                                                               
the bill.                                                                                                                       
                                                                                                                                
MS. ARDUIN  said that there  would be  a lot of  language removed                                                               
under Version B.   The universal reciprocity  statute would allow                                                               
for universal reciprocity in  certain professions already defined                                                               
in statute. She said Version  B would add a universal reciprocity                                                               
section to Title 8.                                                                                                             
                                                                                                                                
MS. ARDUIN,  in response to Representative  McKay, explained that                                                               
any place  in statute where  professions listed in the  bill have                                                               
some kind  of reciprocity is  being eliminated and replaced  by a                                                               
universal reciprocity section in HB 277 Version B.                                                                              
                                                                                                                                
7:01:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCKAY said  that  it is  especially difficult  to                                                               
register as an  engineer in Alaska. He highlighted  that while an                                                               
Alaska engineer might  have more steps to take,  someone from out                                                               
of  state  could begin  work  in  Alaska immediately  because  of                                                               
reciprocity. He also  spoke on Section 51 of  Version B, relating                                                               
to  hairstylists and  barbers.  He  said that  the  costs of  the                                                               
licenses and  related education/training  could be saved  if this                                                               
licensure were to be eliminated by HB 277, Version B.                                                                           
                                                                                                                                
7:03:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GRAY said he  supports removing unnecessary burden                                                               
on workers but is concerned  about the issue of collection agents                                                               
not being licensed.                                                                                                             
                                                                                                                                
[HB 277 was held over.]                                                                                                         

Document Name Date/Time Subjects
HB 277 Ver A.PDF HW&M 3/20/2024 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 277
CS HB 277 Ver B.pdf HW&M 3/20/2024 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 277
HB 277 Sectional Analysis Ver B.pdf HW&M 3/20/2024 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 277
HB 277 Sponsor Statement Ver B.pdf HW&M 3/20/2024 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 277
HB 277 Presentation.pdf HW&M 3/20/2024 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 277
HB0109A.PDF HW&M 3/27/2023 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HB 109
HB 109 Sectional analysis.pdf HW&M 3/22/2023 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 109
HB 109 Bill Sponsor Statement.pdf HW&M 3/22/2023 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 109
HB 109 Presentation.pdf HW&M 3/22/2023 6:00:00 PM
HW&M 4/3/2024 6:00:00 PM
HW&M 4/15/2024 6:00:00 PM
HB 109