Legislature(2025 - 2026)BELTZ 105 (TSBldg)
03/25/2025 01:30 PM Senate COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| SB26|| SB102 | |
| SB111 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 26 | TELECONFERENCED | |
| += | SB 102 | TELECONFERENCED | |
| += | SB 111 | TELECONFERENCED | |
SB 111-DIGITAL PRODUCT REPAIR
1:42:00 PM
CHAIR MERRICK reconvened the meeting and announced the
consideration of SENATE BILL NO. 111 "An Act relating to the
diagnosis, maintenance, and repair of products that use digital
electronics to operate; adding an unlawful act to the Alaska
Unfair Trade Practices and Consumer Protection Act; and
providing for an effective date."
CHAIR MERRICK said this is the second hearing of SB 111 in the
Senate Community and Regional Affairs Committee. She invited the
bill sponsor to comment on the bill before opening public
testimony.
1:42:19 PM
SENATOR DUNBAR said his intention is to introduce an amendment
at the next hearing, noting that some public testimony may
reference medical products that will be addressed in that
amendment. He said his office has received a number of emails
containing claims which are not connected to what the bill
actually does. SB 111 does not limit the ability of shops to
sell parts, though that has been cited as a critique. He said
the goal is to protect consumers, owners, and both independent
and licensed repair shops by ensuring broader access to
products. He noted that amendments will be presented in future
hearings.
1:43:23 PM
CHAIR MERRICK opened public testimony on SB 111.
1:43:45 PM
ALLEN SCHAEFFER, Executive Director, Engine Technology Forum,
Frederick, Maryland, testified in opposition to SB 111. He said
among Engine Technology Forum members are "on and off" [road]
manufacturers of engines and equipment. He said SB 111 is overly
broad and would result in unintended consequences, particularly
by facilitating illegal tampering with emissions controls. He
used off-road engines and equipment as an example.
MR. SCHAEFFER explained that for the past 10 years, the
Environmental Protection Agency (EPA) has required new off-road
engines and equipment to meet near-zero emissions under the
federal Clean Air Act. Since 2014, engines have used advanced
computer systems to manage combustion and rely on multiple
emission-control technologies, such as oxidation catalysts,
particulate filters, and selective catalytic reduction systems,
to meet the standard.
1:44:52 PM
MR. SCHAEFFER emphasized that right to repair legislation like
SB 111 is unnecessary. He said manufacturers have responded to
customer requests and entered into memoranda of understanding
(MOUs) in the agricultural sector to provide tools and training
needed to service these systems safely and responsibly. He
expressed that these efforts are working.
MR. SCHAEFFER cautioned that SB 111 would increase air pollution
in Alaska by enabling tampering with emissions systems. He noted
that parts of Alaska are already in non-attainment for fine
particle emissions. He observed that some operators dislike the
EPA requirements because newer tractors are more complex, more
expensive, and sometimes perceived as less powerful. As a
result, some individuals deliberately or accidentally bypass or
disable emissions systems to save costs or boost performance.
MR. SCHAEFFER cited EPA enforcement actions as evidence that
tampering is widespread. He referenced a July 2023 consent
agreement and final order against a Fairbanks company, which
paid a $117,000 penalty for installing 55 defeat devices and
tampering with emissions controls on heavy-duty vehicles.
MR. SCHAEFFER expressed his belief that for these reasons,
SB 111 would harm Alaska and the environment and urged the
committee to reject the bill.
1:46:35 PM
CHUCK WINTERS, President, Airport Equipment Rentals, Inc. - John
Deere Dealership, Soldotna, Alaska, testified in opposition to
SB 111 in its current form. He stated that his company has
operated in Alaska since 1986. It has provided rental, sales,
and support for construction, road building, bridge, utility,
and heavy-duty handheld equipment. He said the business employs
Alaskans in six locations and sustains many good-paying careers.
He expressed concern that SB 111 would financially harm his
business and jeopardize the prosperity of its employees.
MR. WINTERS argued the expectations that SB 111 will serve as a
quick fix for product support needs are misguided. He explained
that the bill's mandate on service parts pricing would undermine
longstanding contracts with original equipment manufacturer
(OEM) partners such as John Deere and others. He emphasized that
the company has made significant investments in customer support
resources, maintaining inventory, application expertise, timely
technical support, and consistent standards for product support.
MR. WINTERS said it is unreasonable for the State to mandate the
sale of repair parts to independent providers and customers at
the most favorable price offered to dealers. He explained such
requirements would undercut dealerships, revenue expectations,
and destabilize their annual budgets.
MR. WINTERS said he could delve deep into each one of these
points, emphasizing as currently written, SB 111 is "an
absolutely awful bill" for his company, its OEM partners, and
many other businesses across Alaska. He expressed appreciation
for the committee's time.
1:49:32 PM
KELLY DROOP, Alaska Regional Manager, Pape Kenworth Alaska,
Anchorage, Alaska, testified in opposition to SB 111. She stated
that Pape Kenworth operates semi-truck dealerships in Anchorage
and Fairbanks, supporting customers from Dutch Harbor to Prudhoe
Bay. The company also operates Ditch Witch West and material
handling dealerships in Alaska, providing utility equipment and
Hyster and Yale lift trucks across many industries. She
cautioned that SB 111 would have far-reaching, unintended
consequences for customer service and safety in utility,
construction, agriculture, warehousing, and aerial reach
equipment sectors.
MS. DROOP explained that dealerships are obligated by
manufacturers to meet high standards for parts, training, and
customer support. In her 35-year career, she has seen equipment
advance to the point where digital and electronic expertise is
essential to maintain fleets safely and effectively. She
emphasized that Pape Kenworth carries millions of dollars in
parts inventory and invests heavily in employee training. She
said this allows the company to actively support remote and
local customers with the software tools, parts, and expertise
that they need. She said the company helps troubleshoot and
repair over the phone and in person to provide customers with
the tools, expertise, and technical support needed to maximize
fleet uptime.
1:50:52 PM
MS. DROOP argued that it is unprecedented to legislate that
manufacturers provide wholesale pricing directly to independent
repair providers and customers who do not bear the same
obligations as a dealer network. She warned that mandating
wholesale pricing would cause irreparable financial damage to
dealerships, which provide warranty services, technical
expertise, and local availability of parts. She said such damage
would ultimately harm customers by undermining the
sustainability of dealer networks.
MS. DROOP urged SB 111 be amended to exclude off-road vehicles
and other forms of equipment, stating that protecting Alaska's
dealerships is essential to keeping them open and supporting
Alaskans.
1:51:37 PM
SENATOR DUNBAR asked whether Pape Kenworth would sell to
independent repair shops if it did not have to charge wholesale
prices and what the markup would be.
MS. DROOP replied that Pape Kenworth already does so. She
explained that customers and independent repair shops purchase
software, licensing, and tools to connect to trucks and
equipment, as well as parts from Pape Kenworth. She said the
market largely drives those sales, as shops have the option to
purchase from other dealerships based on price and availability,
both critical factors in Alaska where shipping delays are
common.
1:52:32 PM
SENATOR DUNBAR asked whether there are any cases where Pape
Kenworth does not share software with independent repair shops.
MS. DROOP responded that independent repair shops can purchase
Pape Kenworth's software to install on their laptops and connect
to equipment. That is already available.
1:53:10 PM
SCOTT MUGRAGE, President, Alaska Farm Bureau, Delta Junction,
Alaska, testified in opposition to SB 111. He stated that the
right to repair has been a longstanding issue for farmers, and
the Farm Bureau sought private-sector solutions. In 2023, the
American Farm Bureau signed a memorandum of understanding (MOU)
with John Deere, a historic step, to ensure farmers and ranchers
could repair their tractors and other equipment. Other MOUs were
signed with Case New Holland (CNH), AGCO, Kubota, and CLAAS,
covering about three-quarters of the U.S. agricultural machinery
market.
MR. MUGRAGE said the MOUs allow manufacturers to protect
intellectual property while ensuring farmers and independent
repair shops can make reasonable repairs. They provide access to
diagnostics, repair codes, manufacturer manuals, product guides,
and diagnostic tools, as well as assistance in ordering parts.
He emphasized that when equipment breaks during Alaska's short
growing season, major disruptions happen on the farm, which is
why it is essential for timely repairs. Farmers must have the
freedom to choose where repairs are made to control costs.
MR. MUGRAGE stressed that Alaskan farmers are often thousands of
miles from equipment dealers, making travel impractical. For
this reason, access to repair tools and resources is vital.
1:56:03 PM
ROSE FELICIANO, Executive Director for Washington and the
Northwest, TechNet, Seattle, Washington, testified in opposition
to SB 111. She said TechNet opposes the bill because the
definition of digital product is incredibly broad. The bill
defines it as product that depends for its functioning, in
whole or in part, on digital electronics embedded in or attached
to the product. She explained that most other states that have
right to repair legislation have focused on consumer electronic
products or they have focused on agricultural equipment. She
said SB 111 is drafted way beyond those categories. She stated
the wording of SB 111 could actually apply to systems running
the electrical grid, critical infrastructure, and a wide range
of products. She identified this as TechNet's primary concern.
MS. FELICIANO noted that a number of states have passed right to
repair legislation. The Consumer Technology Association (CTA)
and TechNet developed model legislation that she believes
specifically addresses consumer electronics. She expressed
willingness to work with lawmakers on that narrower focus. She
emphasized TechNet's opposition to SB 111 in its current form,
reiterating that the digital product definition is so expansive
it covers far more than cell phones or tractors.
1:57:52 PM
SENATOR DUNBAR asked whether she sent TechNet's narrower
definition to his office.
MS. FELICIANO replied that she would send the language that CTA
and TechNet developed.
1:58:30 PM
DUSTIN BRIGHTON, Director, Repair Done Right Coalition,
Fayetteville, Arkansas, testified in opposition to SB 111. He
explained that the Repair Done Right Coalition is composed of
companies, organizations, and individuals committed to ensuring
products are repaired and maintained in a safe, private, and
authorized manner. It opposes SB 111 because the bill mandates
original equipment manufacturers of digital electronic equipment
make tools, parts, and documentation available to third-party
repair providers. He argued this would create physical safety
risks and threaten the security and privacy of Alaskans.
MR. BRIGHTON emphasized that original equipment manufacturers
(OEMs) already provide safe, secure, and affordable repair
options through authorized networks. He said mandating companies
outsource repair services to third parties, undermines
manufacturers' ability to guarantee product safety and security.
He noted that many companies now offer consumer-friendly repair
programs, but cited studies raising concerns about third-party
repairs. A 2021 study by the University of Guelph found that
personal data from computers was accessed in at least 50 percent
of cases when serviced by third-party repair shops. Similarly, a
2024 UL Solutions white paper found that 88 percent of
aftermarket battery brands failed to meet regional safety
standards. He said these findings highlight the risks of relying
on unverified repair providers and demonstrate why consumers are
safer when repairs are performed with manufacturer-provided
equipment and services. Manufacturers should be able to ensure
that products are repaired by professionals whom they trust and
whom they know will go about the repair with safety and security
as the top priority.
MR. BRIGHTON affirmed his organizations dedication to working
with lawmakers to promote digital safety but rejects unwarranted
intervention which could compromise cybersecurity in Alaska.
2:00:55 PM
ERIC WAREHAM, Vice President of Government Affairs, North
American Equipment Dealers Association, Kansas City, Missouri,
testified in opposition to SB 111. He stated that memoranda of
understanding (MOUs) between the American Farm Bureau Federation
and manufacturers have been in place for two years. These
agreements are reassessed every six months, making them "living
documents" that can be updated more readily than legislation. He
explained that the MOUs include a complaint portal, available to
Farm Bureau members and non-members, through which individuals
can raise concerns. He noted that only two complaints have been
filed in the past two years, both resolved to his knowledge.
MR. WAREHAM observed that, because of these MOUs, states such as
New York, Oregon, California, and Minnesota have exempted off-
road equipment from right to repair laws due to added safety and
emissions concerns. He referenced AS 45.45.870(c), which
contains an exemption for motor vehicles, highlighting the
longstanding basis for such provisions.
MR. WAREHAM reiterated the Association's position that it wants
MOUs to work as a private-sector solution. He piggybacked onto
the comments about stocked inventory, stating that legislation
disincentivizing dealers from stocking parts would have the
opposite of its intended effect. He explained that the purpose
of SB 111 is to reduce downtime for producers and farmers.
However, reducing dealer incentives to carry inventory would
instead increase downtime, particularly in Alaska, where access
to parts is critical. Parts can be ordered, but they will not be
on hand.
2:03:14 PM
KATIE REILLY, Vice President, Environmental Affairs and Industry
Sustainability, Consumer Technology Association, Arlington,
Virginia, testified in opposition to SB 111. She said the
Consumer Technology Association (CTA) is the trade association
representing the U.S. consumer technology industry and includes
manufacturers of devices covered under this bill. She addressed
areas of concern with SB 111 and the definition of "digital
product, which include:
• The bill has broad and vague language.
• The bill is extremely misaligned with the industry stance on
repair.
• The bill's language will create confusion for producers.
• The bill does not ensure reasonable accommodation for
industries while ensuring that consumers and independent
repair shops can make repairs without substantially
compromising safety and security concerns. She noted that
other states have recognized this and put it into law.
• The definition of digital productis very broad
[indiscernible audio].
• The bill lacks clear parameters for providing documentation,
tools, and parts in line with what manufacturers supply to
authorized repair providers.
• It does not contain sufficient consumer protection and
enforcement provisions through a private right of action.
2:04:36 PM
MS. REILLY emphasized that most right to repair bills focus on
providing consumers with options to repair products. By
contrast, SB 111 extends far beyond typical consumer products
and provides little accommodation for manufacturers that have
invested in supporting consumers as well as independent and
authorized repair providers.
MS. REILLY noted that CTA and TechNet developed model bill
language. She urged the committee not to move SB 111 forward.
2:05:24 PM
DYANI CHAPMAN, State Director, Alaska Environment, Anchorage,
Alaska, testified in support of SB 111. She said Alaska
Environment is a statewide nonprofit focused on clean air,
water, and open space. She stated that the ability to repair
electronics, from cell phones to dishwashers to tractors,
provides broad benefits. From an environmental perspective,
repair reduces E-waste, one of the world's fastest growing waste
streams, which contains toxic materials. She cautioned that
rural landfills in Alaska [indiscernible audio] expose
communities and wildlife to hazardous substances from broken
electronics.
MS. CHAPMAN said that repair also lowers pollution created by
manufacturing new products. She said if all Alaskans extended
the average lifespan of their televisions by one year, it would
reduce pollution equivalent to taking 1,127 cars off the road.
She said repair saves Alaskans money, referencing a study that
estimated repair saved families an average of $382 annually per
household.
2:06:32 PM
MS. CHAPMAN emphasized that manufacturer repair is often
inaccessible in Alaska. More than one-third of Alaskans,
including all residents of Fairbanks and Juneau, live over 100
miles from an authorized Apple repair center. All Alaskans live
over 500 miles from an authorized Maytag or Lenovo service
provider, with the nearest in Seattle. She said this lack of
access applies to many other products as well.
MS. CHAPMAN said SB 111 would allow Alaskans to make local
communities more resilient by using local businesses and talent
to keep devices running, rather than relying on global supply
chains to constantly deliver new goods. She encouraged the
committee to pass SB 111.
2:07:34 PM
DARBI GOTTLIEB, Director, State Government and Regional Affairs,
AdvaMed, Phoenix, Arizona, testified on SB 111 with support for
an amendment to exempt medical devices. She said AdvaMed is the
largest trade association representing the medical technology
industry, with more than 600 members spanning the full spectrum
of health technology innovators and manufacturers.
MS. GOTTLIEB expressed appreciation to the sponsor and staff for
their openness in working with the medical technology industry
on this issue. She emphasized that patient safety is AdvaMed's
top priority. She explained that medical devices are heavily
regulated by the Food and Drug Administration (FDA), and their
repair, whether an MRI machine or an insulin pump, is much
different from repairing consumer devices such as cell phones or
computers, particularly because patient care and safety could be
impacted.
MS. GOTTLIEB said AdvaMed looks forward to working with the
sponsor's office on amendment language to exempt federally
regulated medical devices and align Alaska's right to repair
legislation with laws across the country.
2:08:55 PM
MARK OURADA, Director, State Government Affairs, National
Electrical Manufacturer's Association, Arlington, Virginia,
testified with concerns about SB 111. He said his Association is
part of the Repair Done Right Coalition and outlined a threefold
rationale for its concerns:
• Security risks of giving unauthorized users access to
technical information.
• Safety risks associated with certain types of unauthorized
repair.
• Threats to intellectual property.
MR. OURADA acknowledged that SB 111 contains a section on trade
secrets but raised concerns about how copyright issues would be
addressed. He noted that access to software code poses a threat
to manufacturers' intellectual property.
MR. OURADA raised concerns with the bill's definition section.
He drew on his experience as a former legislator and said he is
keenly aware of unintended consequences. He cautioned that the
terms "digital product" and "manufacturer" are drafted so
broadly that they could encompass nearly anything. He questioned
whether the legislation was ever intended to cover business-to-
business products, grid infrastructure, or medical equipment. He
urged the committee to tighten up SB 111 before it is reported
from committee.
2:11:04 PM
MATTHEW TOTTY, representing self, Anchorage, Alaska, testified
in support of SB 111 as a heavy equipment technician
specializing in material handling equipment. He said his
perspective comes from personal experience, noting that it is
often difficult in Alaska to maintain and repair equipment in
the private sector and in government services. He explained
that, in some cases, manufacturers have no in-state dealers even
though their equipment is used in Alaska. In these cases, a
technician must be flown in with their computer; he
characterized this as unreasonable.
MR. TOTTY expressed his belief that there needs to be reasonable
access. He acknowledged the concerns from testifiers about
granting too much access, stating that some limits may be
appropriate. He expressed his belief, however, that the general
purpose of this bill is sound.
2:12:28 PM
KYLE LIEBMAN, Director of Service, Ditch Witch West, Portland,
Oregon, testified in opposition to SB 111. He said that he
oversees the service for 14 dealership locations on the web,
including Alaska. Ditch Witch West provides underground utility
equipment and related services, offering parts and whole goods
for underground construction equipment, maintenance and warranty
repairs, trained service technicians and parts personnel, on
site parts delivery, and repair services.
MR. LIEBMAN expressed strong opposition to SB 111, stating the
bill would jeopardize the company's financial viability in
Alaska. He explained that requiring manufacturers to sell parts
to the public at wholesale prices would undermine the dealer
network and impair its ability to provide essential services. He
further warned that granting unrestricted access to machine
operation software would create significant safety risks.
Untrained individuals could alter or disable critical safety
parameters, leading to unsafe working conditions.
MR. LIEBMAN said different machines are equipped with a variety
of service and safety features designed to protect operators and
those in the vicinity of the machines. These features include
hydraulic systems over-pressure protections, limitations on
electrical functions, safety sensors that prevent machine
operation when the operator is not present, safety sensors that
disable moving parts during maintenance and repairs, and
electrical strike detection to prevent electrocution while
operating the machine. If tampered with, these systems could
expose operators and bystanders to serious hazards. He said the
integrity of these safety systems is critical to prevent
accidents and assure safe operation in the field.
MR. LIEBMAN emphasized that fair margins on parts are essential
to sustaining service locations and compensating skilled
personnel. These employees are vital to ensuring the ongoing
support provided to Alaskan customers. He expressed his belief
that SB 111 compromises the ability of Ditch Witch to operate
safely, fairly, and sustainably and undermines the safety and
success of customers and community.
2:15:05 PM
SENATOR DUNBAR asked about "fair margin" on parts and goods.
MR. LIEBMAN replied that if Ditch Witch were required to sell at
wholesale pricing, the same rate it receives from its
manufacturer, there would be no margin left to support services
or operations.
2:16:15 PM
IVAN HAZELTON, representing self, Juneau, Alaska, testified in
support of SB 111. He said, as a 32-year skilled information
tech who has repaired computers and other equipment at the
University of Alaska, the ability to repair equipment in Alaska
is vital for many reasons. [Indiscernible audio] He strongly
supports this legislation and the right to repair.
2:18:02 PM
CHAIR MERRICK closed public testimony on SB 111.
[SB 111 was held in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 111 Public Testimony - packet 03.24.2025.pdf |
SCRA 3/25/2025 1:30:00 PM |
SB 111 |
| SB102 SB26 Public Testimony - Lynn Willis.pdf |
SCRA 3/25/2025 1:30:00 PM |
SB 26 SB 102 |
| SB 26 Supporting Document time changes.pdf |
SCRA 3/25/2025 1:30:00 PM |
SB 26 |
| SB 111 Public Testimony - packet 03.25.2025.pdf |
SCRA 3/25/2025 1:30:00 PM |
SB 111 |
| SB 111 Public Testimony - Google.pdf |
SCRA 3/25/2025 1:30:00 PM |
SB 111 |