Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/04/2014 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB166 | |
| SB167 | |
| SB189 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 166 | TELECONFERENCED | |
| *+ | SB 167 | TELECONFERENCED | |
| += | SB 189 | TELECONFERENCED | |
| += | SB 193 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 4, 2014
1:36 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator Peter Micciche, Vice Chair
Senator Donald Olson
MEMBERS ABSENT
Senator Bert Stedman
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 166
"An Act relating to nursing and to the Board of Nursing."
- HEARD & HELD
SENATE BILL NO. 167
"An Act relating to the maximum amount of uninsured and
underinsured coverage payable under multiple motor vehicle
insurance policies issued by the same insurer in the same
household."
- HEARD & HELD
SENATE BILL NO. 189
"An Act relating to an exemption from the regulation of
construction contractors."
- HEARD & HELD
SENATE BILL NO. 193
"An Act relating to bonds required for contractors."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 166
SHORT TITLE: BOARD OF NURSING; NURSES
SPONSOR(s): SENATOR(s) GIESSEL BY REQUEST
02/07/14 (S) READ THE FIRST TIME - REFERRALS
02/07/14 (S) L&C
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 167
SHORT TITLE: MULTIPLE VEHICLE INSURANCE POLICIES
SPONSOR(s): SENATOR(s) HUGGINS BY REQUEST
02/10/14 (S) READ THE FIRST TIME - REFERRALS
02/10/14 (S) L&C
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 189
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS
SPONSOR(s): LABOR & COMMERCE
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
02/25/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/25/14 (S) -- MEETING CANCELED --
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 166.
JANE CONWAY, Staff
Senator Cathy Giessel
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced the CS for SB 166 on behalf of
the sponsor.
NANCY SANDERS, PhD, Executive Administrator
Alaska State Board of Nursing
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 166.
LAURA SARCONE, Certified Nurse Midwife
Alaska Advanced Practiced Registered Nurse Alliance
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 166.
JANA SHOCKMAN, President
Alaska State Nurses Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 166.
%(7+)$5167520, Chair
Alaska State Board of Nursing
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 166.
DON HABEGER, Director
Division of Corporations, Business & Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Voiced concern with a provision in Section 3
of SB 166.
GREY MITCHELL, Assistant Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Voiced concern with certain aspects of SB
166 and answered questions related to SB 189.
ASHTON COMPTON, Staff
Senator Charlie Huggins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 167 on behalf of the sponsor.
SHELDON WINTERS, Lobbyist
State Farm Insurance
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 167.
KENTON BRINE
Property Casualty Insurance Association
Olympia, Washington
POSITION STATEMENT: Testified in support of SB 167.
STEVE RICCI, Aide
Senate Labor and Commerce Standing Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 189.
AL NAGEL, Mechanical Inspection Manager
Department of Labor and Workforce Development
Anchorage, Alaska,
POSITION STATEMENT: Answered questions and provided information
related to SB 189.
ACTION NARRATIVE
1:36:16 PM
CHAIR MIKE DUNLEAVY called the Senate Labor and Commerce
Standing Committee meeting to order at 1:36 p.m. Present at the
call to order were Senators Micciche, Olson, and Chair Dunleavy.
SB 166-BOARD OF NURSING; NURSES
1:37:02 PM
CHAIR DUNLEAVY announced the consideration of SB 166. "An Act
relating to nursing and to the Board of Nursing." He noted this
was the first hearing and there was a draft committee substitute
(CS) that incorporates changes requested by the sponsor.
1:37:24 PM
SENATOR CATHY GIESSEL, Alaska State Legislature, sponsor of SB
166, stated that the bill is analogous to a revisor's bill,
because it eliminates and updates obsolete statutes from the
Board of Nursing. These changes have been on the docket for the
Board of Nursing for at least 10 years and the board finally has
asked that they be brought forward for correction. She deferred
to her staff to discuss the proposed CS.
CHAIR DUNLEAVY asked for a motion to adopt the CS.
1:38:49 PM
SENATOR MICCICHE moved to adopt the CS for SB 166, labeled 28-
LS1010\Y, as the working document.
CHAIR DUNLEAVY objected for discussion purposes.
1:39:10 PM
JANE CONWAY, Staff, Senator Cathy Giessel, stated that Version Y
incorporates two changes. First, it rewrites the whistleblower
protection to include both the nurse that delegates a task to
another who is not educated to perform the task and the nurse
asked to perform the task that they are not educated to perform.
This is found on page 7, beginning on line 28. The second change
corrects a reference to the department of labor in the original
bill and writes out the full name of the Department of Labor and
Workforce Development. This is found on page 8, line 19.
SENATOR OLSON asked for an example of the obsolete statutes that
were deleted or rewritten.
SENATOR GIESSEL said the term vocational practical nurse is
obsolete and has been changed to licensed practical nurse. The
statute referring to a written examination is obsolete because
the examination is now computer-based. Recognition of the
Canadian licensing examination is obsolete because that exam is
no longer accepted by the board. Most of the changes to the
statutes are updates other than the whistleblower protection in
Section 15 and the qualifications for board membership in
Section 5. The latter was updated to add the practical nurse
identification and to identify the length of practice to serve
on the board. It also creates a designated seat for the advanced
nurse practitioner.
SENATOR OLSON asked if a person who has a Canadian nursing
license is able to continue to work under that license.
MS. CONWAY said the bill repeals the endorsement for nurses
completing the Canadian Nursing Association test.
SENATOR OLSON asked if this applies only to new licensees or
also to those who are already working under a Canadian nursing
license.
SENATOR GIESSEL deferred to the executive director of the Board
of Nursing.
1:43:48 PM
CHAIR DUNLEAVY asked if the bill does anything that would
prevent that from happening.
SENATOR GIESSEL said yes. The bill removes a provision in
statute that allows licensed practical nurses who are foreign
graduates to get a temporary six-month license prior to taking
the National Council Licensure Examination (NCLEX). The reason
is that about 42 percent of the foreign licensed nurses who take
the NCLEX don't pass it.
SENATOR MICCICHE asked if she had any comment on the requirement
for two separate criminal record checks to qualify as a
certified nursing assistant (CNA). It's necessary to get the
results from the first test before the second can be submitted,
which is very time-consuming. A constituent brought it to his
attention that medical facilities are finding it difficult to
fill CNA positions because of this requirement.
SENATOR GIESSEL explained that both the federal government and
the Board of Nursing require FBI background checks. The federal
government requires the check for anyone working in a Medicaid
facility and the board requires the check for licensure. The
results can't be shared. The federal law also established
barrier crimes that limit employment opportunities for certain
felonies, but the Board of Nursing doesn't have any barrier
crimes to practice at any level of nursing. The board looks at
each case individually. She deferred further explanation to the
executive administrator of the Board of Nursing.
1:47:57 PM
CHAIR DUNLEAVY removed his objection. Finding no further
objection, Version Y was adopted.
1:48:37 PM
NANCY SANDERS, PhD, Executive Administrator, Alaska State Board
of Nursing, Division of Corporations, Business, and Professional
Licensing, Department of Commerce, Community and Economic
Development (DCCED), Anchorage, Alaska, introduced herself.
SENATOR MICCICHE asked what could be done to streamline the
second background check.
DR. SANDERS replied there isn't a positive answer, because the
Board of Nursing can only share the results of their background
check with other facilities that are using it as a licensing
requirement.
SENATOR MICCICHE asked if she could conceive of separating the
CNA requirements from the general nursing requirements since
CNAs have a lower level of responsibility and training
requirements. He offered his understanding that those positions
were the most difficult to retain.
DR. SANDERS replied that has not been the experience of the
Board of Nursing. CNAs are intimately involved with the people
they care for, including those who are in their homes. In
keeping with the mission of the Board of Nursing to protect the
public, this is an important licensing category that should have
oversight. She also clarified that someone who has passed the
CNA certification examination may practice under a six-month
temporary permit while they wait for the results of the second
background check.
LAURA SARCONE, Certified Nurse Midwife representing the Alaska
Advanced Practiced Registered Nurse Alliance, Anchorage, Alaska,
stated support for SB 166. She voiced particular support for
paragraph (3) in Section 1 that designates one seat on the Board
of Nursing to an advanced nurse practitioner (ANP). That
designation contributes positively to the ongoing communication
and cooperation between the Board of Nursing and the regulated
community of advanced practice nurses, she said.
SENATOR OLSON asked where she practices midwifery.
MS. SARCONE replied she is a fulltime nurse midwife at
Southcentral Foundation in Anchorage.
SENATOR OLSON asked if she had ever practiced in rural Alaska.
MS. SARCONE said no.
1:54:54 PM
JANA SHOCKMAN, President, Alaska Nurses Association (ANA),
Anchorage, Alaska, stated support for SB 166, particularly the
formal designation of a seat for an advanced practice nurse on
the board. The nurses association recognizes that the Board of
Nursing has needed these updates for awhile, she said.
1:55:36 PM
BETH FARNSTROM, Chair, Alaska State Board of Nursing, Division
of Corporations, Business, and Professional Licensing,
Department of Commerce, Community and Economic Development
(DCCED), Anchorage, Alaska, testified in support of SB 166. She
said the board has discussed these changes for a number of years
and at its January 2014 meeting voted unanimously to work with
the legislature on this issue.
1:56:42 PM
DON HABEGER, Director, Division of Corporations, Business &
Professional Licensing, Department of Commerce, Community and
Economic Development (DCCED), raised concern with the provision
in Section 3, page 3, lines 14-15, that requires the executive
administrator of the board to hold a master's degree in nursing.
The most highly qualified RN applicant would be hired, just as
when Dr. Nancy Sanders was selected, but it would provide the
division more flexibility if the requirement wasn't in statute.
SENATOR OLSON asked how many people in Alaska hold master's
degrees in nursing.
MR. HABEGER said he didn't know, but 15,000 nurses are licensed.
SENATOR OLSON asked how many doctor of nursing degrees are held
in Alaska.
MR. HABEGER replied he only knew of Dr. Nancy Sanders.
SENATOR MICCICHE commented that the bill has clearly increased
the competency of the board and he believes that's a good idea.
He said he'd like to hear why the sponsor believes that level of
competence is important for the administrative position.
2:01:08 PM
GREY MITCHELL, Assistant Commissioner, Department of Labor and
Workforce Development (DOLWD), discussed the department's
perspective of SB 166. He said Sections [15 and 16] on pages 7
and 8 would affect the department. The new subsection (d) in
Section 16 assigns DOLWD the authority to impose a civil penalty
of up to $10,000 on a person who knowingly violates AS
08.68.279(a). DOLWD has a program to pursue similar protections
for workers who bring forward occupational, safety, and health
complaints, but the concern is that they wouldn't be able to use
their existing investigator because the position is partially
funded through the U.S. Department of Labor Occupational Safety
and Health Administration (OSHA). However, if these complaints
are minimal, as indicated through preliminary discussions with
the sponsor, DOLWD may be able to accommodate the costs with
existing staff and additional training, he said.
SENATOR OLSON questioned the advantage of having DOLWD
investigate these complaints as opposed to the current
investigative process.
MR. MITCHELL said he didn't know the current investigation
process.
SENATOR OLSON asked if DOLWD views this amendment as an
advantage.
MR. MITCHELL opined that it was an issue for the sponsor to
address.
SENATOR OLSON asked why he was opposing the amendment.
MR. MITCHELL clarified that he was merely voicing a concern.
CHAIR DUNLEAVY asked if this was an issue that would prevent the
bill from moving forward.
MR. MITCHELL said no.
2:05:23 PM
CHAIR DUNLEAVY asked the sponsor to address the two issues that
were raised.
SENATOR GIESSEL addressed the question from Section 3 about the
minimum requirement for the executive administrator of the Board
of Nursing to hold a master's degree in nursing. She explained
that the Board of Nursing regulates about 17,000 licensees or 25
percent of the professional licenses in the state. Because of
that large volume, the board delegates to the executive
administrator the authority to review license applications and
initial complaints to determine whether they rise to the level
of an investigation. The executive director has to be fully
versed in the practice of nursing at all levels because the
Board of Nursing regulates from a high school diploma to a
doctoral level.
Addressing the question about the potential pool of applicants,
she explained that an advanced nurse practitioner has to have,
at minimum, a master's degree in nursing. In this state there
are about 500 nurses who hold master's degrees and a rising
number are doctorially prepared, so there is an adequate pool of
applicants, she said.
SENATOR MICCICHE asked if an RN program was typically four or
five years.
SENATOR GIESSEL replied there is encouragement to go to a four-
year baccalaureate degree, but currently it can be either a two
or four year degree.
SENATOR MICCICHE asked if it's a one-year program to transition
from an RN four-year degree to a master's degree in nursing.
SENATOR GIESSEL confirmed there are bridge programs like that;
the University of Alaska, Anchorage program is a four-year
baccalaureate and a two-year master's degree.
CHAIR DUNLEAVY summarized that the bill increases the
qualifications for the executive administrator position and the
sponsor doesn't believe it will be difficult to find qualified
candidates.
SENATOR GIESSEL said that having been in an interview process
twice, she didn't believe there would be a problem.
SENATOR MICCICHE stated support for the requirement for the
executive administrator to have a master's degree at a minimum.
CHAIR DUNLEAVY asked the sponsor to comment on the second issue
that was raised.
SENATOR GIESSEL deferred to the executive administrator. She
worked with the Department of Law to write the section and they
encouraged assigning the authority to the Department of Labor
and Workforce Development (DOLWD). She suggested the committee
also hear from Ms. Shockman because the Alaska Nurse's
Association strongly endorsed this provision.
CHAIR DUNLEAVY asked Ms. Shockman to comment on the provision on
page 8, lines 19-21, related to DOLWD.
MS. SHOCKMAN said the ANA strongly supports the whistleblower
protection language in the bill. She provided an example to
illustrate why this is important. She explained that she is a
very experienced intensive care nurse with specialty
certifications in critical care and cardiac surgery. If her
employer were to decide, because of short-staffing, that she
should work a shift in obstetrics, it might be dangerous to a
patient. Her only training in obstetrics was generalized in
nursing school 17 years ago. The language in this section would
protect her from punitive or retaliatory actions by the employer
if she declined the assignment due to safety concerns. The ANA
believes there should be a penalty in a civil action if the
employer knowingly violates this and attempts to force a nurse
to take an assignment for which they are not trained.
SENATOR OLSON questioned how this will affect nurses' attitudes
in smaller hospitals. There may be only one trained RN on duty
with licensed practical nurses (LPNs).
MS. SHOCKMAN directed attention to page 8, line 13. It says the
nurse must report to the board the improper attempt to assign or
delegate the task, and the board will determine whether or not
the assignment was improper. It's not a matter of a nurse not
wanting to perform; it's a matter of public safety, she said.
SENATOR OLSON questioned what happens if there's nobody to
respond.
MS. SHOCKMAN said nursing occurs in a variety of environments,
and in smaller hospitals nurses tend to be less specialized.
SENATOR OLSON said his concern relates to 10-12 bed facilities
in rural Alaska that have nursing shortages. It's a disservice
to the nursing administration if a nurse declines an assignment
because he/she didn't feel like doing it, he said.
2:16:09 PM
SENATOR GIESSEL acknowledged that he made a strong point then
directed attention to paragraph (1)(A), (B), (C), and (D) in
Section 15. These four sidebars make it clear that a nurse isn't
declining an assignment because they didn't feel like doing it.
SENATOR OLSON said his issue is that the director of nursing in
a rural facility may be hesitant to assign a task if they're
worried about a whistleblower complaint and potentially a
$10,000 civil penalty.
SENATOR GIESSEL said it's a valid concern, but nurses in small
hospitals are more generalists and the board will look at the
complaint before it goes forward to a penalty.
SENATOR OLSON voiced concern that the board might not know much
about practicing in rural Alaska.
SENATOR GIESSEL reviewed the membership of the Board of Nursing
in Section 1 to allay his concerns. She stressed that the board
is very diverse and would look at a whistleblower complaint from
a rural community with an understanding of what it's like to
practice there.
2:25:09 PM
SENATOR MICCICHE pointed out that the whistleblower section was
repealed and reenacted to give it more teeth.
SENATOR GIESSEL agreed.
SENATOR OLSON asked the sponsor to list the various categories
of licenses.
SENATOR GIESSEL explained that there are certified nursing aides
(CNA), licensed practical nurses (LPN), registered nurses (RN),
and advanced nurse practitioners (ANP).
CHAIR DUNLEAVY held SB 166 in committee for further
consideration. Public testimony was open.
2:27:35 PM
At ease
SB 167-MULTIPLE VEHICLE INSURANCE POLICIES
2:29:43 PM
CHAIR DUNLEAVY reconvened the meeting and announced the
consideration of SB 167. "An Act relating to the maximum amount
of uninsured and underinsured coverage payable under multiple
motor vehicle insurance policies issued by the same insurer in
the same household."
ASHTON COMPTON, Staff, Senator Charlie Huggins, introduced SB
167 reading the following sponsor statement: [Original
punctuation provided.]
SB 167 corrects an unintended loophole in Alaska
statutes that is harmful to consumers of
Uninsured/Underinsured Motorist ("U/UIM") insurance.
Alaska, like most states, restricts the combining or
"stacking" of multiple U/UIM coverages. When a
consumer insures more than one vehicle with the same
insurer, the U/UIM coverages are not combined or
"stacked." Instead the coverage available in an
accident is the highest coverage on any one of the
vehicles. That limitation makes the coverage more
affordable, allows more consumer choice and enhances
predictability.
Our Legislature repeatedly made it clear that the
limitation on stacking applies regardless of whether
the vehicles are insured under one policy, or through
separate policies from the same insurer. Unfortunately
language adopted in 1990 as later applied created an
unintended loophole that does not consistently
accomplish the stated purpose. Under the language, if
the consumer insures the vehicles under separate
policies from the same insurer, stacking is precluded
only for the "named insured" - ironically allowing all
the other coverages to be stacked for all other
persons. There is no logical reason for this
discrepancy. It needlessly forces the consumer to pay
for "stackable" coverage that is not desired.
With a simple change in the statutory language SB 167
corrects this inconsistency and accomplishes the
following:
• Consumers will not be forced to pay for coverage
they do not want or need. Insurance rates for many
consumers will be positively influenced.
• Consumer choice and predictability will be improved
because consumers can choose a predictable level of
coverage they deem appropriate.
• Consumers who choose to insure their vehicles in
separate policies will have the same options as, and
be treated the same as, consumers who insure their
vehicles under a single policy, which was the stated
legislative intent in 1984 and 1990.
2:32:07 PM
SHELDON WINTERS, Lobbyist, State Farm Insurance, Juneau, Alaska,
stated that SB 167 is about enforcing and consistently applying
the public policy prohibiting stacking that was adopted in 1984
and amended in 1990. He explained that an unintended loophole in
the 1990 legislation was that it provided protection against
stacking for multicar policies but only partial protection for
single car policies. SB 167 corrects the discrepancy that makes
consumers pay more and the Division of Insurance approved the
language.
2:40:34 PM
KENTON BRINE, Property Casualty Insurance Association, Olympia,
Washington, voiced support for the SB 167 and offered to answer
questions.
2:41:13 PM
CYNTHIA LAMAR, Horace Mann Insurance, Springfield, Illinois,
voiced support for SB 167 and offered to answer questions.
SENATOR MICCICHE thanked Ms. Lamar for her letter and helping
the committee understand the bill.
SENATOR OLSON asked if there was a problem in Alaska that caused
this to come to the forefront.
MS. COMPTON replied both consumers and insurers were concerned.
2:42:55 PM
CHAIR DUNLEAVY announced he would hold SB 167 in committee for
further consideration. Public testimony was open.
SB 189-EXEMPTION: LICENSING OF CONTRACTORS
2:43:01 PM
CHAIR DUNLEAVY announced the consideration of SB 189. "An Act
relating to an exemption from the regulation of construction
contractors." This was the first hearing.
2:43:33 PM
STEVE RICCI, Aide, Senate Labor and Commerce Standing Committee,
stated that SB 189 resolves an issue with AS 08.18.161 that
defines the qualifications for an exemption from contractor
licensing. He explained that the issue is that a growing number
of people are abusing the "owner-builder" exemption that is
designed to allow people to build their own home, duplex,
triplex, or four-plex or a commercial building without obtaining
a contractor's license. These owner-builders are in the building
business without the benefit of licensure, insurance, or bonding
so consumers have little protection against potentially
substandard work.
Section 1, paragraph (12), on page 2, adds language that limits
the use of the exemption when the homes are intended to be sold.
This will prevent the current situation where someone can post
For Sale signs on a row of homes they're building while claiming
the exemption. He said this will protect consumers because their
recourse is limited if the builder isn't a licensed contractor.
He noted that the bill is the priority of the Alaska State
Homebuilders Association.
2:45:57 PM
SENATOR OLSON asked if there was opposition to the bill.
MR. RICCI said the packet contains one letter of opposition from
a masonry company in Fairbanks; it makes reference to the
monopolistic nature of contractors.
SENATOR OLSON asked if the intent of the bill was to help the
Alaska Homebuilders Association become a monopoly.
MR. RICCI clarified that the bill tries to close the loophole to
ensure that the intent of the current statute is followed.
SENATOR OLSON asked how often a builder has built a home for
multiple family members.
MR. RICCI suggested that the Department of Labor and Workforce
Development (DOLWD) could speak to the statistics and abuses
that have occurred.
2:47:56 PM
AL NAGEL, Mechanical Inspection Manager, Department of Labor and
Workforce Development (DOLWD), Anchorage, Alaska, offered to
answer questions.
SENATOR OLSON said that he and four others built a hanger at the
Barrow airport and he finds it reprehensible that the Alaska
Homebuilders Association is trying to get a law passed that may
adversely affect him as an owner-builder. He questioned how he
might allay the concerns of people who see this as a
monopolistic move by protected membership organizations.
MR. NAGEL replied that example would not be affected by the
bill. His reading of the bill was that it's more a matter of
preventing someone from doing that on a regular basis.
SENATOR OLSON asked if that means he couldn't build another
hanger for himself on a regular basis or add on to the existing
hanger in Barrow.
MR. NAGEL clarified that the department didn't propose the
language. He said his reading was that the first hanger wouldn't
be a problem, but an owner-builder would be limited for two
years to building just that one structure. Remodeling the hanger
wouldn't be affected by the bill.
SENATOR OLSON asked where the language came from.
MR. RICCI said the sponsor worked with the homebuilders
association to develop language that would allow DOLWD to
decipher intent. He reiterated that the focus of the legislation
was to allow reasonable exemptions for owner-builders but close
the unintended loophole.
SENATOR OLSON commented that deciphering intent reminded him of
the thought police, so he had reservations about some of the
language in the bill.
2:52:39 PM
GREY MITCHELL, Assistant Commissioner, Department of Labor and
Workforce Development (DOLWD), Juneau, Alaska, offered to answer
questions related to SB 189.
SENATOR OLSON asked if the department was in favor of the bill.
MR. MITCHELL replied DOLWD was neutral on the bill.
SENATOR OLSON asked why they hadn't taken a position one way or
the other.
MR. MITCHELL replied they may develop a position as comments
come in and the bill proceeds.
SENATOR OLSON asked if he understood the concern he was raising
that some large membership organizations could push statutory
requirements and regulations that would hamstring independently
minded people who don't have access to a contractor in rural
Alaska.
MR. MITCHELL said he didn't believe the intent was to hamstring
a true owner-builder. It's intended to separate the true owner-
builder from the people that are trying to use the exemption of
an owner-builder when they're actually acting as a contractor,
he said.
SENATOR OLSON asked how often he's seen examples of this
problem.
MR. MITCHELL deferred to Mr. Nagel who deals specifically with
enforcement, but anecdotally he knows that it happens regularly.
SENATOR OLSON commented on the cost to a private person who is
acting legitimately but has to defend himself.
2:56:33 PM
CHAIR DUNLEAVY offered his understanding that the purpose of the
bill is to limit the shadow type business whose purpose is to
churn out homes without having to adhere to the licensing,
bonding, and insurance requirements imposed on legitimate
contractors. The bill is not intended to prevent a private
person from building their own home, duplex, triplex, four-plex,
or commercial building. He asked Mr. Nagel if he had anything to
add.
MR. NAGEL reiterated that the existing language protects the
rights of a person to build his/her own home. The intent is to
protect against people acting as a general contractor when they
haven't assumed the responsibility of insurance, bonding, and
licensure. Responding to Senator Olson's question about numbers,
he said he didn't have that information, but the department has
found that in certain areas of the state individuals do
routinely build primarily residential structures without holding
licensure or insurance. "They hold themselves out to be an
owner-builder when the For Sale sign oftentimes beats the paint
drying," he said. Responding to a further question from Senator
Olson, he offered to follow up with information about the number
of unlicensed contractors that DOLWD has taken enforcement
action against. He warned that owner-builders aren't tracked in
a separate category.
SENATOR OLSON asked how many times the state has prevailed when
it has taken enforcement action.
MR. NAGEL explained that on a first or second offense the
department generally issues an administrative fine and a civil
cease-and-desist order. The criminal penalties of the current
statute are considered on a third or subsequent offense.
SENATOR OLSON commented that defending oneself from a fine
oftentimes is more expensive than paying the fine.
3:02:00 PM
At ease
3:02:18 PM
CHAIR DUNLEAVY reconvened the meeting.
SENATOR MICCICHE summarized that the essence of the bill is that
somebody who is in the building business should become a
building contractor. It doesn't change a thing for the people
who want to build their own home.
CHAIR DUNLEAVY held SB 189 for further consideration.
3:02:59 PM
There being no further business to come before the committee,
Chair Dunleavy adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:02 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 166 vsO.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB 166_version Y_CS.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166 Sponsor Statement.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB 166 Sectional Analysis.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB 166_Sectional Analysis_VersionY.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB167 ver A.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB 167 Sponsor Statement.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB193_FullText_VersionN.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Sponsor Statement.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Fiscal Note DCCED.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Support - Brice.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Support - Craig Taylor Equipment.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Support - Rain Proof.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 Support - Roger Hickel Contracting.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB 193 SupportLetter_Marsh McLennan.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 193 |
| SB189_FullText_VersionC.PDF |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_Sponsor_Statement.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189-DCCED-CBPL-02-21-14.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_OppositionLetter_IABA.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_SupportLetter_BuildersInc.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_SupportLetter_FirstNational.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_SupportLetter_KitchenBathDesign.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB189_SupportLetter_RichardCarr.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB166_FiscalNote_DCCED.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166_SupportLetter_ Evans.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166_FiscalNote_DOLWD.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166_SupportLetter_ Gillette.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166_SupportLetter_ Sanders.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB166_SupportLetter_Farnstrom.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 166 |
| SB167_FiscalNote_DCCED.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB167_SupportLetter_NAMIC.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB167_SupportLetter_Horace Mann.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB167_SupportLetter_StateFarm.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB189_SupportLetter_ChuckHoman.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB167_SupportLetter_PCI.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB189_OppositionLetter_Dalton.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |
| SB167_InfoGraphUpdated.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 167 |
| SB189_OppositionLetter_ Nenana and Goode.pdf |
SL&C 3/4/2014 1:30:00 PM |
SB 189 |