Legislature(2023 - 2024)BARNES 124

03/17/2023 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 91 PUBLIC EMPLOYEES' UNION DUES DEDUCTIONS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 85 PROFESSIONAL LICENSING; TEMP PERMITS TELECONFERENCED
Moved CSHB 85(L&C) Out of Committee
-- Public Testimony --
+= HB 63 REPEAL WORKERS' COMP APPEALS COMMISSION TELECONFERENCED
<Bill Hearing Canceled>
*+ HB 99 DISCRIMINATION: GENDER ID.;SEXUAL ORIENT. TELECONFERENCED
Heard & Held
+= HB 86 MONEY TRANSMISSION; VIRTUAL CURRENCY TELECONFERENCED
Heard & Held
+= HB 87 PERM FUND; EMPLOYMENT; ELIGIBILITY TELECONFERENCED
<Bill Hearing Canceled>
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 17, 2023                                                                                         
                           3:15 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jesse Sumner, Chair                                                                                              
Representative Justin Ruffridge, Vice Chair                                                                                     
Representative Mike Prax                                                                                                        
Representative Dan Saddler                                                                                                      
Representative Stanley Wright                                                                                                   
Representative Ashley Carrick                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Zack Fields                                                                                                      
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 86                                                                                                               
"An Act relating to the  business of money transmission; relating                                                               
to  money  transmission  licenses,  licensure  requirements,  and                                                               
registration through  the Nationwide Multistate  Licensing System                                                               
and Registry; relating  to the use of virtual  currency for money                                                               
transmission;  relating to  authorized delegates  of a  licensee;                                                               
relating  to acquisition  of control  of a  license; relating  to                                                               
record  retention  and  reporting requirements;  authorizing  the                                                               
Department of  Commerce, Community,  and Economic  Development to                                                               
cooperate  with   other  states   in  the  regulation   of  money                                                               
transmission;  relating to  permissible investments;  relating to                                                               
violations and  enforcement of money transmission  laws; relating                                                               
to  money transmission  license exemptions;  relating to  payroll                                                               
processing  services; repealing  currency exchange  licenses; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 85                                                                                                               
"An  Act   relating  to   professional  licensing;   relating  to                                                               
temporary  licenses for  some professions;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 85(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 99                                                                                                               
"An  Act  relating to  and  prohibiting  discrimination based  on                                                               
sexual orientation or gender identity or expression."                                                                           
                                                                                                                                
     - BILL HEARD & HELD                                                                                                        
                                                                                                                                
HOUSE BILL NO. 91                                                                                                               
"An Act relating  to deduction of labor  or employee organization                                                               
dues or  service fees from  the pay of certain  public employees;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
HOUSE BILL NO. 63                                                                                                               
"An Act  repealing the Workers' Compensation  Appeals Commission;                                                               
relating  to decisions  and orders  of the  Workers' Compensation                                                               
Appeals Commission; relating to  superior court jurisdiction over                                                               
appeals  from  Alaska   Workers'  Compensation  Board  decisions;                                                               
repealing  Rules  201.1,  401.1,   and  501.1,  Alaska  Rules  of                                                               
Appellate  Procedure, and  amending Rules  202(a), 204(a)  - (c),                                                               
210(e),  601(b), 602(c)  and  (h), and  603(a),  Alaska Rules  of                                                               
Appellate Procedure; and providing for an effective date."                                                                      
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
HOUSE BILL NO. 87                                                                                                               
"An Act  relating to record  checks for certain employees  of the                                                               
Department of Revenue; relating  to permanent fund dividends; and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 86                                                                                                                   
SHORT TITLE: MONEY TRANSMISSION; VIRTUAL CURRENCY                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/27/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/23       (H)       L&C, FIN                                                                                               
03/08/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/08/23       (H)       Heard & Held                                                                                           
03/08/23       (H)       MINUTE(L&C)                                                                                            
03/17/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 85                                                                                                                   
SHORT TITLE: PROFESSIONAL LICENSING; TEMP PERMITS                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/27/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/27/23       (H)       L&C, FIN                                                                                               
03/08/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/08/23       (H)       Heard & Held                                                                                           
03/08/23       (H)       MINUTE(L&C)                                                                                            
03/10/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/10/23       (H)       Heard & Held                                                                                           
03/10/23       (H)       MINUTE(L&C)                                                                                            
03/17/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 99                                                                                                                   
SHORT TITLE: DISCRIMINATION: GENDER ID.;SEXUAL ORIENT.                                                                          
SPONSOR(s): ARMSTRONG                                                                                                           
                                                                                                                                
03/08/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/23       (H)       L&C, CRA, JUD                                                                                          
03/15/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/15/23       (H)       <Bill Hearing Canceled>                                                                                
03/17/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
ROBERT SCHMIDT, Director                                                                                                        
Division of Banking and Securities                                                                                              
Department of Commerce, Community, and Economic Development                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  On behalf of the sponsor, House Rules by                                                                 
request of the governor, co-presented the sectional analysis for                                                                
HB 86 in a PowerPoint presentation and answered questions.                                                                      
                                                                                                                                
TRACY RENO, Examinations Chief                                                                                                  
Division of Banking and Securities                                                                                              
Department of Commerce, Community, and Economic Development                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  On behalf of the sponsor, House Rules by                                                                 
request of the governor, co-presented the sectional analysis for                                                                
HB 86 in a PowerPoint presentation and answered questions.                                                                      
                                                                                                                                
SYLVAN ROBB, Director                                                                                                           
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community, and Economic Development                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions on HB 85.                                                                             
                                                                                                                                
ERICK CORDERO GIORGANA                                                                                                          
Alaska Policy Forum                                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing on HB 85.                                                                 
                                                                                                                                
REPRESENTATIVE JENNIE ARMSTRONG                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   As prime sponsor, introduced HB  99 and co-                                                             
presented    a     PowerPoint,    titled    "HB     99:    LGBTQ+                                                               
Nondiscrimination."                                                                                                             
                                                                                                                                
TRISTAN WALSH, Staff                                                                                                            
Representative Jennie Armstrong                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:    On behalf  of  Representative  Armstrong,                                                           
prime sponsor,  co-presented a PowerPoint, titled  "HB 99: LGBTQ+                                                               
Nondiscrimination."                                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:15:34 PM                                                                                                                    
                                                                                                                                
CHAIR JESSE SUMNER  called the House Labor  and Commerce Standing                                                             
Committee  meeting  to  order  at   3:15  p.m.    Representatives                                                               
Carrick,  Wright,  Ruffridge,  Prax,  Saddler,  and  Sumner  were                                                               
present at the call to order.                                                                                                   
                                                                                                                                
           HB 86-MONEY TRANSMISSION; VIRTUAL CURRENCY                                                                       
                                                                                                                                
3:16:17 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  first order of business would be                                                               
HOUSE BILL  NO. 86,  "An Act  relating to  the business  of money                                                               
transmission; relating to  money transmission licenses, licensure                                                               
requirements, and registration  through the Nationwide Multistate                                                               
Licensing System  and Registry;  relating to  the use  of virtual                                                               
currency   for  money   transmission;   relating  to   authorized                                                               
delegates of a licensee; relating  to acquisition of control of a                                                               
license;   relating    to   record   retention    and   reporting                                                               
requirements; authorizing the  Department of Commerce, Community,                                                               
and Economic  Development to cooperate  with other states  in the                                                               
regulation  of   money  transmission;  relating   to  permissible                                                               
investments;  relating to  violations  and  enforcement of  money                                                               
transmission  laws;   relating  to  money   transmission  license                                                               
exemptions;  relating to  payroll processing  services; repealing                                                               
currency  exchange  licenses;  and  providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:16:44 PM                                                                                                                    
                                                                                                                                
ROBERT  SCHMIDT, Director,  Division of  Banking and  Securities,                                                               
Department of  Commerce, Community, and Economic  Development, on                                                               
behalf of  the sponsor, House  Rules by request of  the governor,                                                               
co-presented the  sectional analysis  for HB  86 in  a PowerPoint                                                               
presentation [hard copy included in the committee packet].                                                                      
                                                                                                                                
3:17:00 PM                                                                                                                    
                                                                                                                                
TRACY  RENO,   Examinations  Chief,   Division  of   Banking  and                                                               
Securities,  Department  of  Commerce,  Community,  and  Economic                                                               
Development,   co-presented   the   sectional   analysis   in   a                                                               
PowerPoint.  On  slide 2, she gave a brief  overview of the goals                                                               
of  the proposed  legislation, which  included repealing  and re-                                                               
enacting language to adopt  the [Money Transmission Modernization                                                               
Act],  which   was  written  by  money   transmitters  and  state                                                               
regulators  over   a  two-year  period.     Other  goals  include                                                               
coordination  with other  states  in  regulation, licensing,  and                                                               
supervision;   reducing   the   regulatory   burden   on   Alaska                                                               
businesses;   protecting   Alaska   consumers;   ensuring   money                                                               
transmitters are well run and  compliant; and acting at the state                                                               
level to prevent preemption by  the federal government.  On slide                                                               
3, she  stated that the  bill is  based on the  Money Transmitter                                                               
Model  Law ("Model  Law"),  which  is expected  to  be passed  or                                                               
introduced by 40 states by the end of 2024.                                                                                     
                                                                                                                                
MS.  RENO continued  to slide  4 and  slide 5.   She  stated that                                                               
Section 1  of the proposed legislation  would modernize licensure                                                               
requirements; add  Model Law language for  the burgeoning virtual                                                               
currency industry;  allow DCCED  to coordinate with  other states                                                               
in regulation, licensing, and  supervision; standardize the types                                                               
of  activities  which are  subject  to  licensing; and  modernize                                                               
safety and  soundness requirements  for money transmission.   She                                                               
stated  that  Section  2  through  Section  4  would  modify  the                                                               
requirements for licensure applications.   She continued to slide                                                               
6 and  stated that  Section 5 of  the proposed  legislation would                                                               
repeal  and reenact  AS 06.55.106,  modifying language  regarding                                                               
license renewal.   She explained  that the cost of  renewal would                                                               
be  based  on   the  volume  of  money  moved   through  a  money                                                               
transmitter.   She stated that  Section 6 would add  new sections                                                               
to  AS  06.55   to  provide  for  background   checks  for  money                                                               
transmitters, and Section 7 would  add new provisions to AS 06.55                                                               
to account for business involving virtual currency.                                                                             
                                                                                                                                
3:23:20 PM                                                                                                                    
                                                                                                                                
MS.  RENO  continued to  slide  9,  stating  that Section  8  and                                                               
Section  9 would  repeal and  reenact AS  06.55.301 and  amend AS                                                               
06.55.302  to conform  to the  Model Law.   A  licensee would  be                                                               
allowed to sign  a written contract to have an  individual act as                                                               
a delegate on  his/her behalf.  She stated that  Section 10 would                                                               
repeal   and  reenact   AS  06.55.401   to  provide   details  on                                                               
examinations  and reduce  the regulatory  burden by  accepting an                                                               
examination performed by  another state.  Sections  11 through 15                                                               
would  repeal  and  reenact  AS 06.55.403  and  AS  06.55.404  to                                                               
require  quarterly  reports and  access  of  such information  by                                                               
DCCED.   She said that  Section 16  and Section 17  would require                                                               
records  to  be kept  for  five  years,  while Section  18  would                                                               
require licensees to comply with  federal law on matters of money                                                               
laundering reports.   She stated that Section  19 through Section                                                               
28 would  repeal and  reenact, or  amend, AS  06.55.407-412, 501,                                                               
and 502 to provide for  greater consistency between state statute                                                               
and the Model Law.                                                                                                              
                                                                                                                                
3:26:27 PM                                                                                                                    
                                                                                                                                
MS. RENO continued  to slide 14 through slide 16  and stated that                                                               
Section  29  would  create  credit,  securities,  and  net  worth                                                               
requirements to AS 06.55, making  licensees demonstrate net worth                                                               
as  part of  their  application.   She  said  Section 30  through                                                               
Section 37  would amend the  penalties for  regulatory violations                                                               
relating to money services in AS  06.55.  She stated that Section                                                               
38,  Section  39,  and  Section   42  would  amend  the  criminal                                                               
penalties, and Section 40 and  Section 41 would classify currency                                                               
exchange as  a form of  money transmission, eliminating  the need                                                               
for a second license.                                                                                                           
                                                                                                                                
3:28:20 PM                                                                                                                    
                                                                                                                                
MS.  RENO moved  to slide  17 through  slide 20  and stated  that                                                               
Section  43 would  create certain  exceptions, including  payroll                                                               
processing.   Section 44  would allow  the department  to require                                                               
documentation demonstrating the stated  exception.  She said that                                                               
Section  45 and  Section 46  would require  licensees to  provide                                                               
customers with  notices of how  to file a complaint,  should they                                                               
have  one.   If done  by telephone,  she said,  Section 47  would                                                               
require the determination  of the state of the  transaction.  She                                                               
continued  that  Section  48 through  Section  50  would  require                                                               
receipt availability,  timely transmission of funds,  and outline                                                               
of refunds consistent with the Model Law.                                                                                       
                                                                                                                                
3:30:39 PM                                                                                                                    
                                                                                                                                
MS.  RENO moved  to slide  21 through  slide 24  and stated  that                                                               
Section 54  through Section  62 would  modify definitions  of the                                                               
terms of  control to  be consistent  with the  Model Law.   These                                                               
terms  include money  transmission,  payment instrument,  person,                                                               
state,  and stored  value.    She stated  that  Section 63  would                                                               
create  a short  title for  the  bill, Section  64 would  require                                                               
background checks  for money transmitters and  money transmission                                                               
employment, and Section 65 would  list repealed statutes rendered                                                               
unnecessary  by  the  legislation.   She  said  that  Section  66                                                               
through Section 70  would create effective dates and  a period of                                                               
transition for new regulations.                                                                                                 
                                                                                                                                
3:32:42 PM                                                                                                                    
                                                                                                                                
MR. SCHMIDT continued  to slide 25 and slide 26  and gave a brief                                                               
overview  of  the  money  transmission  volume  in  Alaska.    He                                                               
reiterated that the proposed legislation  is important because it                                                               
would  protect consumers,  reduce  regulatory  burden, and  place                                                               
states on  the same  playing field without  the need  for federal                                                               
intervention.                                                                                                                   
                                                                                                                                
3:34:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX asked why this  type of legislation should be                                                               
handled at  the state  level rather than  the federal  level, and                                                               
whether  individual states  could change  certain aspects  of the                                                               
legislation.                                                                                                                    
                                                                                                                                
MR.  SCHMIDT answered  that  states still  could  have their  own                                                               
statutes.   He stated that both  the industry and states  have an                                                               
interest in  solving the  issue without  the intervention  of the                                                               
federal government because of their proximity to the consumer.                                                                  
                                                                                                                                
3:36:22 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER questioned how there  would be an assurance that the                                                               
funds are available if a transaction is across state lines.                                                                     
                                                                                                                                
MR.  SCHMIDT answered  that money  transmitters would  have daily                                                               
transmission liability, which would be reported to DCCED.                                                                       
                                                                                                                                
MS.  RENO  added that  the  Division  of Banking  and  Securities                                                               
conducts  multi-state  examinations  to  ensure  regulations  are                                                               
being followed.                                                                                                                 
                                                                                                                                
CHAIR  SUMNER asked  if money  being held  in other  states could                                                               
create jurisdictional issues.                                                                                                   
                                                                                                                                
MR. SCHMIDT  answered that bonding requirements  and examinations                                                               
are designed to prevent such occurrences.                                                                                       
                                                                                                                                
3:39:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  asked whether the  proposed legislation                                                               
would create new types of licenses.                                                                                             
                                                                                                                                
MR. SCHMIDT  answered that  it would  not; however,  some license                                                               
types will be  combined into a single license.   In response to a                                                               
follow-up question,  he stated that  the regulatory  burden would                                                               
be reduced by  using the same regulations  for money transmission                                                               
from state  to state.   In response  to a follow-up  question, he                                                               
stated that new regulations would be created.                                                                                   
                                                                                                                                
3:41:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK questioned the  number of states which are                                                               
using or plan to use the  Model Law.  He questioned whether there                                                               
is a similarity in the wording to HB 86.                                                                                        
                                                                                                                                
MR. SCHMIDT answered  that 40 states have passed  or are planning                                                               
to  introduce  similar  legislation, with  Arizona's  legislation                                                               
nearly identical to HB 86.   In response to a follow-up question,                                                               
he expressed  the opinion that DCCED  would be a better  place to                                                               
enact these regulations, rather than the federal government.                                                                    
                                                                                                                                
3:44:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WRIGHT asked  how a  money transmission  could be                                                               
determined to be fraudulent.                                                                                                    
                                                                                                                                
MS.   RENO  answered   that   money   transmitters  may   receive                                                               
information  which  indicates fraud,  and  it  must act  on  such                                                               
information  if  it is  reasonably  believed  to  be fraud.    In                                                               
response to a  follow-up question, she said that  everything in a                                                               
fraud investigation is well documented.                                                                                         
                                                                                                                                
3:47:05 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced HB 86 was held over.                                                                                     
                                                                                                                                
           HB 85-PROFESSIONAL LICENSING; TEMP PERMITS                                                                       
                                                                                                                                
3:47:25 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE BILL  NO. 85, "An  Act relating to  professional licensing;                                                               
relating  to   temporary  licenses  for  some   professions;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
3:47:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  adopt Amendment  1 to  HB 85,                                                               
labeled 33-GH1614\A.1, Bergerud, 3/13/23, which read as follows:                                                                
                                                                                                                                
     Page 1, line 10:                                                                                                           
     Delete "or territory of the United States or province                                                                      
     or territory of Canada"                                                                                                    
                                                                                                                                
There being no objection, Amendment 1 to HB 85 was adopted.                                                                     
                                                                                                                                
3:48:09 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:48 p.m. to 3:49 p.m.                                                                       
                                                                                                                                
3:49:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX moved to reconsider Amendment 1 to HB 85.                                                                   
                                                                                                                                
3:49:46 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:49 p.m. to 3:50 p.m.                                                                       
                                                                                                                                
3:50:13 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Prax, Ruffridge,                                                               
Saddler,  Wright,   Carrick,  and   Sumner  voted  in   favor  of                                                               
reconsideration   of  Amendment   1  to   HB   85.     Therefore,                                                               
reconsideration of Amendment  1 to HB 85 was passed  by a vote of                                                               
6-0.                                                                                                                            
                                                                                                                                
3:51:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  objected to  Amendment 1 for  the purpose                                                               
of discussion.                                                                                                                  
                                                                                                                                
REPRESENTATIVE RUFFRIDGE explained that  Amendment 1 would remove                                                               
the provision  allowing a temporary  license to be offered  to an                                                               
individual from a state in which  a license for the occupation is                                                               
not required.                                                                                                                   
                                                                                                                                
REPRESENTATIVE SADDLER removed his objection.                                                                                   
                                                                                                                                
3:52:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX objected to Amendment  1.  He stated that the                                                               
goal of  the bill would be  to allow qualified people  to work in                                                               
the  state without  having  to go  through  a longer  application                                                               
process.                                                                                                                        
                                                                                                                                
3:53:05 PM                                                                                                                    
                                                                                                                                
SYLVAN ROBB,  Director, Division  of Corporations,  Business, and                                                               
Professional  Licensing, Department  of Commerce,  Community, and                                                               
Economic  Development,   stated  that  the  bill   would  require                                                               
documentation which proves an individual  meets the standards set                                                               
forth by the state to receive a temporary license.                                                                              
                                                                                                                                
3:53:48 PM                                                                                                                  
                                                                                                                              
REPRESENTATIVE CARRICK asked  for an example of  an occupation in                                                               
a scenario where this would be applicable.                                                                                      
                                                                                                                                
MS. ROBB responded  that massage therapists require  a license in                                                               
45  states,  while  naturopaths  require a  license  in  only  20                                                               
states.    In   response  to  a  follow-up   question,  she  said                                                               
naturopaths require licensure in Alaska.                                                                                        
                                                                                                                                
3:54:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  expressed the  belief that  the amendment                                                               
would protect the people of Alaska,  because it would be a burden                                                               
to request the division to  judge another state's qualifications,                                                               
when the state may not have similar licensing as Alaska.                                                                        
                                                                                                                                
3:55:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked whether  the amendment would  allow an                                                               
individual to  work sooner if  this individual had  the necessary                                                               
qualification from a state without licensing.                                                                                   
                                                                                                                                
MS. ROBB answered that such  an individual would need a temporary                                                               
license  to begin  working sooner  than they  would otherwise  be                                                               
able to.   She added that  the amendment would remove  the option                                                               
for such an individual to receive a temporary license.                                                                          
                                                                                                                                
3:57:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  commented that Amendment 1  would still                                                               
allow for  temporary licenses  to be  issued to  individuals from                                                               
jurisdictions which  require licensing.   He  expressed agreement                                                               
with Representative Saddler's point,  that asking the division to                                                               
evaluate unlicensed individuals would be a difficult task.                                                                      
                                                                                                                                
3:59:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX maintained his objection to Amendment 1.                                                                    
                                                                                                                                
A roll call vote was  taken.  Representatives Ruffridge, Saddler,                                                               
Wright, Carrick, and  Sumner voted in favor of Amendment  1 to HB
85.  Representative Prax voted  against it.  Therefore, Amendment                                                               
1 was adopted by a vote of 5-1.                                                                                                 
                                                                                                                                
4:00:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved to adopt  Amendment 2 to HB 85, as                                                               
amended, labeled 33-GH1614\A.2, Bergerud,  3/13/23, which read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, line 3, following "state;":                                                                                        
          Insert "or"                                                                                                           
                                                                                                                                
     Page 2, lines 4 - 7:                                                                                                       
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subparagraph accordingly.                                                                           
                                                                                                                                
4:00:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  objected.   She asked  whether references                                                               
to Canadian jurisdictions would  be removed throughout the entire                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE RUFFRIDGE answered yes.                                                                                          
                                                                                                                                
4:01:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  asked whether Canadian  jurisdictions had                                                               
significantly  different  requirements   than  those  within  the                                                               
United States.                                                                                                                  
                                                                                                                                
MS. ROBB expressed uncertainty.                                                                                                 
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  answered  that  certain  licenses  for                                                               
medical  professions  differ  significantly in  certain  aspects,                                                               
such as testing.                                                                                                                
                                                                                                                                
4:04:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER commented  that  asking  the division  to                                                               
evaluate   Canadian   jurisdictional    requirements   would   be                                                               
challenging and expressed his support for the amendment.                                                                        
                                                                                                                                
4:04:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked whether  territories of the  U.S. have                                                               
less rigorous licensure requirements.                                                                                           
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE   answered   that   U.S.   territories                                                               
generally have close requirements to those of the states.                                                                       
                                                                                                                                
4:05:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK maintained her objection.                                                                                
                                                                                                                                
A roll  call vote  was taken.   Representatives  Prax, Ruffridge,                                                               
Wright, Saddler, and  Sumner voted in favor of Amendment  2 to HB
85,  as  amended.    Representative  Carrick  voted  against  it.                                                               
Therefore, Amendment 2 was adopted by a vote of 5-1.                                                                            
                                                                                                                                
4:06:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to adopt  Amendment 3 to HB  85, as                                                               
amended, labeled 33-GH1614\A.3, Bergerud,  3/13/23, which read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 2, lines 24 - 26:                                                                                                     
     Delete "The department may consider an application and                                                                     
         grant a temporary license before obtaining any                                                                         
     resulting report."                                                                                                         
                                                                                                                                
4:06:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  objected for  the purpose  of discussion.                                                               
She requested an explanation of the amendment.                                                                                  
                                                                                                                                
REPRESENTATIVE  SADDLER expressed  the  opinion  that a  criminal                                                               
background  check should  take  place before  the  issuance of  a                                                               
temporary license.                                                                                                              
                                                                                                                                
4:07:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK asked  whether waiting  for a  background                                                               
check would be a hindrance to the intent of the bill.                                                                           
                                                                                                                                
MS. ROBB expressed the opinion that  it would.  She said that the                                                               
division  issues  full  licenses to  individuals  while  awaiting                                                               
background  checks  and added  licenses  could  be revoked  if  a                                                               
negative result was returned.   She stated that many other states                                                               
also  require  background  checks,  and  individuals  from  these                                                               
jurisdictions  would  have  gone through  a  previous  background                                                               
check.   She added that  the only  temporary license issued  to a                                                               
profession requiring a background check is for nurses.                                                                          
                                                                                                                                
4:11:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  asked what types of  criminal activity would                                                               
cause an individual to be disqualified.                                                                                         
                                                                                                                                
MS. ROBB  answered that it varies  between different professions.                                                               
She said  that typically,  there would  need to  be some  type of                                                               
correlation  between the  crime  and the  occupation,  such as  a                                                               
certified public accountant committing embezzlement.                                                                            
                                                                                                                                
4:12:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER questioned, if there  are few causes for a                                                               
denial  of  license  issuance,  what is  the  purpose  of  having                                                               
criminal background checks for nurses.                                                                                          
                                                                                                                                
MS. ROBB answered that it  encourages truthfulness on the license                                                               
application.                                                                                                                    
                                                                                                                                
4:13:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE commented that  he would not support the                                                               
amendment  because of  the potential  harm  to the  cause of  the                                                               
bill.                                                                                                                           
                                                                                                                                
4:14:30 PM                                                                                                                    
                                                                                                                                
A  roll call  vote was  taken.   Representative Saddler  voted in                                                               
favor  of Amendment  3 to  HB  85, as  amended.   Representatives                                                               
Wright, Carrick,  Prax, Ruffridge,  and Sumner voted  against it.                                                               
Therefore, Amendment 3 failed by a vote of 1-5          .                                                                       
                                                                                                                                
4:15:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  moved to adopt  Amendment 4 to HB  85, as                                                               
amended, labeled 33-GH1614\A.4, Bergerud,  3/14/23, which read as                                                               
follows:                                                                                                                        
                                                                                                                                
     Page 1, line 10:                                                                                                           
     Delete "or province or territory of Canada"                                                                                
                                                                                                                                
4:15:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  objected for  the purpose  of discussion.                                                               
She requested an explanation of the amendment.                                                                                  
                                                                                                                                
REPRESENTATIVE SADDLER  stated that  Amendment 4 would  allow the                                                               
department  to  extend  the  length   of  temporary  licenses  if                                                               
necessary.   It would create  consistency with  military courtesy                                                               
licenses.   In  response to  a follow-up  question, he  said that                                                               
there would be no priority between  the department and any of the                                                               
occupational licensing boards.                                                                                                  
                                                                                                                                
4:17:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   RUFFRIDGE  requested   a   description  of   the                                                               
licensing process and which boards issue licenses.                                                                              
                                                                                                                                
MS. ROBB  answered that  the processes  for the  different boards                                                               
vary,  with  some doing  their  own  in-depth review  of  certain                                                               
candidates based on  responses to certain questions.   She stated                                                               
that the  division requires  documentation from  any convictions,                                                               
along with other necessary paperwork, such as test scores.                                                                      
                                                                                                                                
4:20:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  commented that  the amendment  would only                                                               
apply  to extensions  for temporary  licenses  which already  had                                                               
been approved.                                                                                                                  
                                                                                                                                
4:21:03 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Saddler, Wright,                                                               
and Sumner  voted in favor of  Amendment 4 to HB  85, as amended.                                                               
Representatives Prax,  Ruffridge, and  Carrick voted  against it.                                                               
Therefore, Amendment 4 failed by a vote of 3-3.                                                                                 
                                                                                                                                
4:21:45 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER opened public testimony on HB 85.                                                                                  
                                                                                                                                
4:22:02 PM                                                                                                                    
                                                                                                                                
ERICK  CORDERO   GIORGANA,  Alaska  Policy  Forum,   stated  that                                                               
approximately  one  quarter of  the  jobs  in the  United  States                                                               
require  some type  of occupational  licensure.   He stated  that                                                               
moving to another state is  difficult and requiring an individual                                                               
to requalify  for a license  which he/she may already  possess in                                                               
another state is unnecessary.   He argued that reducing licensing                                                               
barriers  would help  low-income  workers, increase  competition,                                                               
and have a positive effect on the economy.                                                                                      
                                                                                                                                
4:23:56 PM                                                                                                                    
                                                                                                                                
CHAIR  SUMNER,  after ascertaining  there  was  no one  else  who                                                               
wished to testify, closed public testimony on HB 85.                                                                            
                                                                                                                                
4:24:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved  to report HB 85,  as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying  fiscal  notes.   There  being  no  objection,  CSHB
85(L&C) was reported  from the House Labor  and Commerce Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
4:24:39 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:24 p.m. to 4:25 p.m.                                                                       
                                                                                                                                
        HB 99-DISCRIMINATION: GENDER ID.;SEXUAL ORIENT.                                                                     
                                                                                                                                
4:25:30 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  final order of business would be                                                               
HOUSE  BILL  NO.   99,  "An  Act  relating   to  and  prohibiting                                                               
discrimination based on sexual orientation  or gender identity or                                                               
expression."                                                                                                                    
                                                                                                                                
4:25:53 PM                                                                                                                    
                                                                                                                                
JENNIE ARMSTRONG, Alaska State  Representative, as prime sponsor,                                                               
introduced  HB 99  and presented  the PowerPoint  titled "HB  99:                                                               
LGBTQ+  Nondiscrimination"  [hard   copy  included  in  committee                                                               
packet].  Pointing  to slide 2, she stated  that Alaska currently                                                               
allows  discrimination   based  on  sexual   orientation,  gender                                                               
expression, and  gender identity,  and the  bill would  align the                                                               
state  with  a  previous  Supreme   Court  decision  ruling  that                                                               
discrimination   based    on   these   factors    is   inherently                                                               
discrimination  based  on  sex.     She  offered  that  religious                                                               
organizations  would  not be  affected  by  the change,  and  the                                                               
Alaska Commission  on Human  Rights does  not oversee  schools or                                                               
education.   She said that  this commission  oversees employment,                                                               
housing,    financing,   government    practices,   and    public                                                               
accommodation.                                                                                                                  
                                                                                                                                
4:28:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ARMSTRONG continued  to slide  3 through  slide 5                                                               
and  expressed  the  opinion  that   discrimination  is  bad  for                                                               
business  and the  economy.   She said  that Alaska  has seen  10                                                               
years of  outmigration, and she argued  preventing discrimination                                                               
would make Alaska  a better place to raise a  family.  She stated                                                               
that the  proposed legislation would place  Alaska into alignment                                                               
with  major Alaskan  employers and  Fortune 500  companies.   She                                                               
stated  that a  statewide solution  is required  because not  all                                                               
communities have  the legal  authority to  pass nondiscrimination                                                               
ordinances.                                                                                                                     
                                                                                                                                
4:31:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ARMSTRONG continued  to slide  6 through  slide 9                                                               
and  stated that  Alaska ranks  25th for  the number  of same-sex                                                               
couples  per 1,000  households.    She said  that  73 percent  of                                                               
people surveyed  in Anchorage have  reported hiding  their sexual                                                               
orientation or  gender identity.   Nearly half of  those surveyed                                                               
reported workplace harassment due to  these factors.  She pointed                                                               
out the  U.S. Supreme Court  ruled in Bostock v.  Clayton County,                                                             
590  U.S. 644  (2020),  that these  forms  of discrimination  are                                                               
discrimination against  sex as a  whole.  She continued  to slide                                                               
10 and slide 11 and stated  that sex is a protected class against                                                               
discrimination  under the  Alaska  Commission  for Human  Rights.                                                               
She stated  that HB 99  would codify these  protections, aligning                                                               
with  the U.S.  Supreme Court  ruling.   She  explained that  the                                                               
attorney  general   and  Alaska  Department  of   Law  held  that                                                               
legislation would be necessary to enact those changes in Alaska.                                                                
                                                                                                                                
4:36:22 PM                                                                                                                    
                                                                                                                                
TRISTAN  WALSH,  Staff,  Representative Armstrong,  Alaska  State                                                               
Legislature,  on   behalf  of  Representative   Armstrong,  prime                                                             
sponsor, co-presenting  the PowerPoint,  moved to  slide 12.   He                                                               
stated that  HB 99 would  update the definition of  "sex" [found]                                                               
in  AS 18.80.300  to include  "sexual orientation,  gender, [and]                                                               
identity or gender  expression."  He explained  that the proposed                                                               
legislation would align the state  with the U. S. Supreme Court's                                                               
ruling.  He also pointed out  other similar cases and laws in the                                                               
county.    He  explained  how the  definitions  in  the  proposed                                                               
legislation  would  be  expanded,   directing  attention  to  the                                                               
complications concerning sexual orientation  and gender, as it is                                                               
"innate  and can't  be changed."    He stated  that the  proposed                                                               
legislation also would make conforming  changes to the definition                                                               
of "blockbusting" in reference to real estate.                                                                                  
                                                                                                                                
[HB 99 was held over.]                                                                                                          
                                                                                                                                
4:39:16 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:39 p.m.                                                                                                                       

Document Name Date/Time Subjects
3 HB99 Ver B Sectional Analysis 3.8.2023.pdf HL&C 3/17/2023 3:15:00 PM
HB 99
1 HB99 Ver B Sponsor Statement 3.8.2023.pdf HL&C 3/17/2023 3:15:00 PM
HB 99
2 HB99 Ver B.PDF HL&C 3/17/2023 3:15:00 PM
HB 99
8 HB 99 Ver A House Labor and Commerce Committee PPT 3.15.2023.pdf HL&C 3/17/2023 3:15:00 PM
HB 99
7 HB99 Ver B Supporting Document-Bostock Briefing Paper-ASCHR July 2022.pdf HCRA 4/11/2023 8:00:00 AM
HL&C 3/17/2023 3:15:00 PM
HB 99
6 HB99 Ver B Supporting Document-Williams Insitute 2015 Alaska Data.pdf HCRA 4/11/2023 8:00:00 AM
HL&C 3/17/2023 3:15:00 PM
HB 99
Fiscal Note B HB99.pdf HL&C 3/17/2023 3:15:00 PM
HB 99
HB086 DBS MTMA Sectional Powerpoint H L&C 03.17.23.pdf HL&C 3/17/2023 3:15:00 PM
HB 86
4 HB99 Ver B Supporting Document- Letter of Support from Native Movement.pdf HCRA 4/11/2023 8:00:00 AM
HL&C 3/17/2023 3:15:00 PM
HB 99
Letters of Support HB 99.pdf HCRA 4/11/2023 8:00:00 AM
HL&C 3/17/2023 3:15:00 PM
HB 99
HB99 Letter of Opposition.pdf HCRA 4/11/2023 8:00:00 AM
HL&C 3/17/2023 3:15:00 PM
HB 99