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**
        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.]                                                                                       

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