Legislature(2017 - 2018)CAPITOL 106
04/18/2017 05:15 PM House ENERGY
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| HB206 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
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= bill was previously heard/scheduled
| *+ | HB 206 | TELECONFERENCED | |
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ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ENERGY
April 18, 2017
5:17 p.m.
MEMBERS PRESENT
Representative Adam Wool, Chair
Representative Ivy Spohnholz, Vice Chair
Representative Matt Claman
Representative Dean Westlake
Representative DeLena Johnson
Representative Jennifer Johnston
Representative George Rauscher
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 206
"An Act relating to an exemption for low-voltage projects from
contractor requirements; and relating to an exemption from
electrical administrator requirements."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 206
SHORT TITLE: EXEMPTION: CONTRACTORS, ELECTRICAL ADMIN.
SPONSOR(s): REPRESENTATIVE(s) TALERICO
03/31/17 (H) READ THE FIRST TIME - REFERRALS
03/31/17 (H) ENE, L&C
04/11/17 (H) ENE AT 10:15 AM CAPITOL 17
04/11/17 (H) -- MEETING CANCELED --
04/18/17 (H) ENE AT 5:15 PM CAPITOL 106
WITNESS REGISTER
REPRESENTATIVE DAVE TALERICO
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 206 as prime sponsor.
ELIJAH VERHAGEN, Staff
Representative Dave Talerico
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of HB 206 on behalf of
the bill sponsor, Representative Talerico.
SARA CHAMBERS, Deputy Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: During the hearing of HB 206, provided
testimony representing the Department of Commerce, Community &
Economic Development.
DEBORAH KELLY, Director
Division of Labor Standards & Safety
Department of Labor & Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: During the hearing of HB 206, provided
testimony representing the Department of Labor & Workforce
Development.
TOM BRADY
Microcon
Wasilla, Alaska
POSITION STATEMENT: During the hearing of HB 206, offered
comments regarding Sec. 2 of the legislation.
JOE ASHCRAFT
Ketchikan, Alaska
POSITION STATEMENT: During the hearing of HB 206, testified as
to his experience.
WILL JOHNSON
Alaska Satellite Internet
Fairbanks, Alaska
POSITION STATEMENT: During the hearing of HB 206, offered
concern.
CRAIG MAPES
Tenakee Springs, Alaska
POSITION STATEMENT: During the hearing of HB 206, offered
concern.
BRIAN ASHTON
Wrangell, Alaska
POSITION STATEMENT: During the hearing of HB 206, offered
support for the legislation.
WALTER ROBINSON
International Brotherhood of Electrical Workers 1547
Nenana, Alaska
POSITION STATEMENT: During the hearing of HB 206, testified in
opposition.
ACTION NARRATIVE
5:17:16 PM
CHAIR ADAM WOOL called the House Special Committee on Energy
meeting to order at 5:17 p.m. Representatives Wool, Johnston,
Johnson, Westlake, Rauscher, Spohnholz, and Claman were present
at the call to order.
HB 206-EXEMPTION: CONTRACTORS, ELECTRICAL ADMIN.
5:17:47 PM
CHAIR WOOL announced that the only order of business would be
HOUSE BILL NO. 206, "An Act relating to an exemption for low-
voltage projects from contractor requirements; and relating to
an exemption from electrical administrator requirements."
5:18:18 PM
REPRESENTATIVE DAVE TALERICO, Alaska State Legislature,
described that new satellite internet technology may provided
new potentials to Alaska's rural schools and villages. In
December 2016, the "Gen 5" satellite was launched over Texas and
two of the spot beams on Gen 5 are pointed toward Alaska. It
appears that, at some point in time, Alaska may receive
satellite internet into Alaska's remote locations at about 25
megabits per second wherein, currently, some rural areas are at
five and six megabits. The intent of the bill is to make sure
there are not a lot of restrictions on the satellite installers,
"in particularly, if something crossed over where it looked like
maybe it -- it covered these people that would do the
installations or people that could maintain them. In
particularly in our rural communities to see if there would be
issues with them getting hooked up or them being able to
maintain those."
REPRESENTATIVE TALERICO advised there are two regulations that
make installing the internet satellites reasonably cost
prohibitive, especially in the rural areas. He pointed out that
"originally HB 206 seeks to exempt" the satellite internet
installers who perform that work from the cost of paying for and
obtaining the handyman license. Currently, he explained, the
installers have a requirement to be trained and certified by FCC
regulations before they perform an installation or make
adjustments to the satellite, and the bill language exempts
satellite installers from paying and having an electrical
administrator oversee their installations. These are all low
voltage projects that do not involve any household current or
high voltage, he explained, and the only thing they actually
involve is the plugging in of an appliance into a wall outlet.
It is not electrical work, per se, that a certified electrician
would be performing, he described.
5:22:09 PM
REPRESENTATIVE TALERICO noted that people have concerns as to
whether the legislation was "going outside of the realm and
everything." He explained that he is working with the
Department of Labor & Workforce Development (DOLWD), and the
Department of Commerce, Community & Economic Development (DCCED)
as to "what can we really do here" because the departments have
concerns that if this bill is not worded correctly, it would
exempt people from doing things they should not be doing such
as, climbing up poles and getting close to high power wires.
There was also the question of the "handyman license provides
for coverage for liability, they have a low amount of bonding
that they get." He pointed out that handymen perform "all kinds
of things" but if they drilled a hole in someone's home and hit
a waterpipe or an electrical line, there would be a way to cover
the damage. He said he is crafting language with those
departments' suggestions to narrow the focus and make people
more comfortable with the language moving forward. Alaska, he
noted, is behind the curve when technology hits and advancing to
satellite technology would move Alaska closer to the curve. He
advised that education and students' ability to stay connected
is his priority intent, stressing the importance of continued
attention on the issues. He related that the House Special
Committee on Energy was probably all in agreement that distance
delivery education is desperately needed out there and commented
that within the House Education Standing Committee there was
much discussion about equalizing Alaska's education and giving
the same opportunities to people in remote areas as are
available in some of the urban centers. He said his take is
that the urban centers "would be more than happy to do distance
delivery education if the technology was in place."
5:25:33 PM
CHAIR WOOL pointed out that this bill is a work in progress and
that he did not want to hammer on a bunch of details that
possibly would not be included in the final product. He related
that a high-level overview of the bill would be appreciated.
5:25:58 PM
ELIJAH VERHAGEN, Staff, Representative Dave Talerico, Alaska
State Legislature, advised that HB 206 has two exemptions, as
follows: [Section 1, Sec. 08.18.161(8)] page 2, line 11, has the
"re-added exemption that used to be in there all the way until
2014," and the wording was change, as follows: "work on a low
voltage project" wherein previously this was an exemption of
"under $10,000 for all work -- all construction work." The
intent of this bill is the tremendous opportunity to deliver
broadband to rural areas and schools, approximately 19 volts for
the cables. The sponsor specifically included the language "low
voltage projects under one or more contracts where the aggregate
price or the total price is $10,000 or less," he explained, and
an amendment is being crafted to shrink the $10,000 limit down
to roughly $2,000. Wherein, he advised, if something went wrong
the consumer would be protected and it would be on a small scale
under $2,000. However, he commented, the majority of satellite
installations are approximately $500, and in small rural areas a
service provider would train local individuals and get them up
to FCC regulations, and they would be certified before providing
satellite installation because they do not want to "mess up the
entire satellite." In the event that trained individual
performed "a lousy job" on one customer's project, word of mouth
would spread, and the individual would no longer be hired, he
said.
5:22:31 PM
MR. VERHAGEN referred to HB 206, [Sec. 2, AS 08.40.190(b)(12)]
page 4, line 12, and advised that the second exemption refers to
the list of exemptions from requiring electrical administrators
oversight of a project, "[(12)] installation, maintenance, and
repair of low voltage telecommunications, broadband
transmission, and video services." He then referred to page 3,
line 30, and advised that "(7) the installation, maintenance,
and repair of fire alarms, intrusion alarm, or other low voltage
signaling systems of 48 volts" is exempted. He explained that
the sponsor believes that "this is very similar to that
exemption" because it is 56 volts or less and defined by the
National Electrical Code (NEC). He explained that the installer
plugs into the receptacle they will eventually plug the
transmitter into, and if the outlet is wired incorrectly, they
cease the project and the customer would have to get a licensed
electrician to fix the outlet or fit it themselves. The
oversight of an electrical administrator is obsolete in the mind
of the sponsor because the installers are dealing with low
voltage and, he reiterated, the sponsor is crafting an amendment
to fix loopholes or unintended consequences.
5:32:00 PM
MR. VERHAGEN, in response to Chair Wool, agreed that he was
solely discussing satellite systems, and the intent conveyed was
simply for broadband satellite receivers.
CHAIR WOOL commented that there were discussions about other
types of low voltage systems, such as fire alarms, nurse call
systems, or something similar, and this was for residential or
small commercial.
REPRESENTATIVE TALERICO agreed, and he said language is being
crafted to bring to the committee wherein it is clearly defined
"where the system would be."
5:32:51 PM
REPRESENTATIVE JOHNSON expressed concern that hazardous or
classified sites might be exempted.
MR. VERHAGEN replied that the concerns are not necessarily
dealing with satellite broadband internet but deal with "messing
with the power grid." In the event there are unintended
consequences in this bill because of that issue, the amendment
would clarify it and it may include the word "wireless" because
this broadband transmission satellite is wireless and not
plugged into the main power grid that is high voltage and
dangerous. The amendment, he offered, will reflect that the
sponsor is not trying to open this up to other areas, in that it
is primarily for wireless broadband internet.
5:34:11 PM
REPRESENTATIVE CLAMAN asked whether the receivers today would
receive a satellite system if they were available, and whether
they were small, medium, or large sized receivers. Also, he
noted that he questions asking anyone in rural or urban Alaska
to install anything of any significance for less than $10,000.
REPRESENTATIVE TALERICO advised that the dish is sometimes as
large as a 48-inch, but typically, the dish is approximately 30-
inches and is plugged into the house. He said he had been told
that the installations cost approximately $500.
CHAIR WOOL opined that sometimes they are subsidized "because
they know you are going to have a service you pay every month,"
similar to buying a printer for $40, except the ink is $50.
5:36:41 PM
REPRESENTATIVE SPOHNHOLZ asked the cost of a handyman license.
MR. VERHAGEN opined that in a two-year period, a person would
pay $400 for a handyman license, on top of a $50 per year
business license, and bonding insurance for up to $5,000. The
installers will be trained by Hughes Net, Microcom, Direct TV,
or others, and must be certified by the FCC and receive a
certification number before they are allowed to " ever mess with
the satellites." Another hurdle for rural Alaskans is requiring
them to pay an additional $500 to receive a handyman license,
except that license entails things not related to satellite
installation whatsoever, which is the reason for the exemption
for low voltage projects.
5:38:20 PM
REPRESENTATIVE SPOHNHOLZ asked whether there would be enough
work for a person to perform this service exclusively, and not
just become the "handy people" in rural communities.
REPRESENTATIVE TALERICO responded that the rural economy is
different than what he is accustomed and believes this is an
"additional thing" someone would do together with their
subsistence lifestyle. He offered that subsequent to the
installation there would be service on the system, and the work
evolving from this legislation would be more on the part-time
side.
5:39:49 PM
REPRESENTATIVE SPOHNHOLZ surmised that Representative Talerico
was crafting an amendment to narrow the focus more clearly to
solely exempt the satellite installers as opposed to a broader
exemption
REPRESENTATIVE TALERICO answered that the concern was that there
would be unlicensed and unbonded linemen crawling up on poles.
That is not the intention and, he described, this is more like
working on separate standalone systems bringing the 19-volt wire
in, and not being part of an electrical grid.
5:41:23 PM
REPRESENTATIVE SPOHNHOLZ asked whether the installers would be
able to help schools obtain broadband access as well.
REPRESENTATIVE TALERICO replied that as the language is narrowed
down, a lot of it will depend upon the actual system "they
choose to install."
Typically, he said, in the event the school wants to "do
something large" it would probably be accomplished via contract
and take more than one person to handle the equipment. He
commented that not necessarily every student in his district
attends the public school because they are in locations where
public school is not available. His hope, he offered, is that
at some point those students would be able to stay connected and
have that interaction with the rest of the state as far as their
education.
MR. VERHAGEN added that some of the providers have advised that
they will develop an "education or school package" for rural
schools and offer a special deal.
5:44:52 PM
SARA CHAMBERS, Deputy Director, Division of Corporations,
Business, and Professional Licensing (DCBPL), Department of
Commerce, Community & Economic Development (DCCED), was
available for testimony and questions.
5:44:57 PM
DEBORAH KELLY, Director, Division of Labor Standards & Safety,
Department of Labor & Workforce Development (DOLWD), was
available for testimony and questions.
5:45:06 PM
MS. CHAMBERS related that she is looking forward to continuing
to work with the sponsor and the committee to move the language
toward the sponsor's intent. She related that this legislation
falls within the Department of Commerce, Community & Economic
Development (DCCED) statutes, but she works closely with the
DOLWD because it has electrical and mechanical expertise and it
also works on enforcement with her department. She referred to
HB 206, Section 1, and advised it is the construction contractor
exemption which would exempt the stated work from having any
construction contractor license, and she offered concern from
the consumer protection standpoint of exemption from licensure.
She explained that for general contractors, specialty
contractors, and handymen, there are no rigorous education
requirements. The focus is on having a registration of that
license type and making sure the person is properly bonded and
insured if they have employees. The rigors are not large, she
described, but to pay the fee for a general contractor or a
handyman is $235 every two years, the bonding for a handyman is
$5,000 wherein the fee is two percent to four percent, and the
general contractor bond is $20,000. She offered that it is a
couple of hundred dollars per year to be a handyman when "you
are all in," and any handyman installer who performs any
handyman work under $10,000 regardless of what it is, if its
repair effecting the structure of a home, for example, a
contractor license would be required.
5:48:13 PM
CHAIR WOOL surmised that the $10,000 threshold is for a handyman
license and above that amount a general contractors license is
required and commented that a handyman license is contractor's
license.
MS. CHAMBERS offered that it is a contractor license for that
smaller dollar threshold, anything above that amount would
require a general, a specialty, or a general with a residential
endorsement license.
CHAIR WOOL surmised that up until 2014, the $10,000 and below
figure was exempt from any licensure, and this is a recent
addition.
MS. CHAMBERS agreed, and she said the legislature made that
change in 2014.
CHAIR WOOL offered a scenario of a carpenter performing small
jobs living in rural Alaska, and 2014 rolls along requiring that
for this type of work under $10,000, a license would be
required. He asked whether her division was tracking how many
people were getting these licenses.
MS. CHAMBERS answered absolutely and said there was a
misunderstanding that any work under $10,000 was exempt. She
explained that if it was covered in a license, for example,
carpentry work requires a specialty contractor license, so even
if someone was hanging crown molding in a home, they would need
a specialty contractor license under state law.
5:50:00 PM
REPRESENTATIVE RAUSCHER asked that Ms. Chambers explain the
confines of a subcontractor or specialty license.
MS. CHAMBERS explained that the specialty contractor license can
take up to three specialties, and a long list of specialties has
been developed over the years. These are special jobs wherein
someone might have two or three specialties, such as hanging
drywall, but not contracting to build a home. Beyond the three
specialties, she explained, a person would need a general
contractor license, and noted that specialty contractors cannot
bid for their own projects, a general contractor would have to
bid.
5:51:27 PM
CHAIR WOOL noted that a handyman does not have a performance
test of knowledge, wherein they basically just sign up, obtain a
bond, and they are qualified. In the event the person is a
specialty contractor, asked whether there is a performance or
knowledge test.
MS. CHAMBERS replied that the only areas of testing in the
construction contractor field is if residences are being built.
The electrical, mechanical, and administrator license types are
cousins to the construction contractor license type and do
require testing with a far more extensive education experience,
such as journeyman or certificate of fitness. She said that for
a construction contractor, "if you want to build a home that's
the only testing. You can build all the buildings you want and
not have any performance measures."
5:52:25 PM
REPRESENTATIVE RAUSCHER asked whether she meant building homes
as a business for other people.
MS. CHAMBERS answered that Representative Rauscher was exactly
correct, there are quite a few exemptions and one exemption is
if the person is building their own home.
MS. CHAMBERS offered that was the extent of her testimony with
the final remark that this not a performance-based type of
license, but the bonding does provide an element of protection
for consumers to have recourse through the department's
investigative procedures should something go awry outside the
realm of licensure. She added that that was one of the reasons
the department believes contractor licensure is important for
satellite installers as it currently stands in the bill.
5:53:50 PM
MS. KELLY mentioned that there are EA exemptions related to this
type of work already, such as, manufacture, maintenance and
repair of electrical equipment, and electric work under $5,000
in communities of under 500 people or remote communities. She
explained that the EA is a public safety measure in order to be
certain the person supervising the work understands the code
because there are real dangers associated with electrical
installations, including those low voltage electrical
installations because they do not exist in a vacuum. She
related that the manner in which this bill is written will
affect a broader range of work than intended and creates a
substantial public safety concern, not just an electrical
concern but a structural concern as well. The department is
working with the sponsor to address these public safety concerns
because the bill allows people working on or around the high
voltage power grid to then bring an electrical connection from
that grid into a home or business, she stressed.
5:55:49 PM
CHAIR WOOL surmised that if it is a population under 500 people
or a remote community and the cost does not exceed $5,000, "so
what the bill sponsor said earlier was say, under $2,000 and in
rural communities only" would be exempt from the electrical
administrator (EA) based on the current exemptions.
MS. KELLY responded that she was unsure whether the sponsor was
talking about making a specific rural exemption for the EA, but
the $2,000 requirement was related to HB 206 Section 1, and Sec.
2 does not have an associated dollar amount.
5:56:43 PM
MS. CHAMBERS referred to Sec. 2, and advised it would modify AS
08.40.190(b), which is the rural exemption stating the specifics
that would exempt rural communities from needing that electrical
exemption.
[Public testimony was opened.]
5:57:35 PM
TOM BRADY, Microcon, referred to HB 206, Sec. 2, and advised it
deals with the installation of satellite broadband, satellite
video, and other broadband services. He called the committee's
attention to AS 08.40.005, and said it gives the purpose of the
electrical safety program in Alaska. This statute, he
explained, is supposed to protect the safety of people (audio
difficulties) from the danger of improperly installed electrical
wiring and equipment by providing procedures to assure the
public that that persons responsible for making electrical
installations are qualified, and secondly that (audio
difficulties) persons are qualified. He pointed to AS 08.40.200
and said that electrical wiring means and includes: wiring,
fixtures, conduits, appliances, devices, equipment, overhead or
underground wiring systems, or other equipment in connection
with the general distribution or utilization of electrical
energy. Satellite equipment cabling, he said, is not used for
the general distribution and use of electrical energy, so it
would appear that the satellite broadband industry and
television industry did not follow Alaska's statutes. He
explained that this came about approximately 18 months ago the
DOLWD and DCCED advised "us of potential violations" of Alaska's
contracting law, 12 AAC 21.260, dealing with communications
contractors. In 2008, the DOLWD in consult with the DCCED
redefined the satellite television industry as being of the
audio-visual industry, and he related that that is a
redefinition that the audio-visual industry did not recognize or
understand. This bill clarifies that the satellite television,
broadband industry and the wireless broadband industry, would
not fall under AS 08.40.005 and its subsequent sections. The
satellite television broadband industry to a certain extent is
self-regulating in that the major service providers have
specific training and certification programs for its field
workforce of employees, contractors, and independent retailers,
he explained. In addition, he advised, the National Satellite
Broadcasting and Communications Association conducts
certification programs on behalf of service providers for
residential and commercial installations, which is supplemented
by online training with Direct TV, Dish Network, Myoset, and
Hughes Networks. He related that they are not trying to avoid
regulations (audio difficulties) contractor license rule in the
State of Alaska, they are saying that any regulatory structure
must have a clear public purpose and be appropriate,
enforceable, and reviewed on a recurring basis (audio
difficulties) small business. The specific requirement for an
electrical administrator (EA) in inside and outside
communications is (audio difficulties) small business and (audio
difficulties) do the job involved. He said he would address a
comment from DOLWD regarding extending the energy grid into the
home, "We don't do that, we're not allowed to do that, we're not
qualified to do that. We work only with the distribution of
video and broadband services and the associated equipment
provided by the service provider."
6:01:54 PM
CHAIR WOOL asked the voltage of satellite, and also the
amperage.
MR. BRADY responded that currently the highest voltage used in
satellite television and satellite broadband is 29 DC volts and
approximately 1.5 amps.
6:02:47 PM
JOE ASHCRAFT offered that he was speaking from Yakutat and had
installed approximately 60 Hughes Nets and they were working
well. He related there was misinformation regarding [schools]
and said that unless Hughes Net takes the Fair Access Policy
(FAB) - the cap limits on these off, it would not be viable for
a school because it works so fast. Right now, he said, "we're
talking 40 megs down or so with Hughes Net trying to match the
broadband definition from the FCC of 25 megs going forward." He
explained that a school of 10-20 students may use up the 550
gigs available for the month within a few days and then it goes
back down to a slow speed - slower than the KU Band that most of
the schools have currently which are "un-fab." For the most
part, the system is low voltage and not much danger, except in
areas with lightening, such as around Pelican, because
lightening and other access current can build in some of those
places. He opined, that for some of these people, trained,
untrained, or do their own, somebody needs to oversee and train
them well. He then related an anecdote about a woman in Hoonah
with many dishes on her roof that eventually it ruined her roof.
He does think there should be regulation, but it stands that the
person hiring subcontractors would monitor what they do, audit
the installations, and make sure the consumer was not put out
money-wise for poor installations. The Hughes Net dishes are
.98, a little less than a meter, there will be some with 1.2-
meters used on the edges of these signals to try to get a
signal. He related that last year the state required him to
install a 2.4-meter dish at a construction site, it took quite a
while to get that dish to the construction site and at a large
expense. The 1.2-meter dish had worked fine for the three
months prior to the installation of the 2.4-meter dish, and the
new dish worked approximately a percentage point better. He
suggested that the industry sit down with the representatives to
brainstorm because technology is moving fast, wherein in 2-3
years "One Web" will be available for students and everyone all
over the world and will dispel any need for an electrical
administrator.
6:07:25 PM
MR. ASHCRAFT, in response to Chair Wool, answered that he is a
dealer from Ketchikan and has performed installations for
approximately 30 years.
CHAIR WOOL asked whether $2,000 would cover most of the
installations.
MR. ASHCRAFT said that it depends upon the dish wherein an
install of an "I Direct System" with a 2.4-meter dish is usually
around $1,200, and GCI does the same thing for approximately
$2,500. He then explained the various charges and related that
$2,000 is a good figure.
6:09:15 PM
WILL JOHNSON, Alaska Satellite Internet, explained his
background with Hughes Net, operating the flight school in
Bethel and training local pilots.
CHAIR WOOL asked Mr. Johnson to speak to the bill at hand.
MR. JOHNSON advised that Alaska Satellite Internet now partners
with over 400 installers in rural areas with "more active
customers than anyone in the nation." He assured the committee
that the exemptions for electrical administrator are unworkable
and "you will absolutely kill the deal to require an electrical
administrator," and also will kill it with bonding and
licensing. He explained that the application alone will turn
installers in the bush away, and he is trying to remove
obstacles that prevent local people from installing these
systems. As to the installations, he said, over the years they
have not had a problem with ruining houses or roofs or
electrocuting people because none of this has ever happened. He
pointed out that home schooling is a big deal in the bush and
they do not have internet, but the kids at school have internet.
He said, "If we continue on the course we're going, I'm going to
have to shut down my business, tell all those installers good-
bye - there'll be no more work for them." His installers have
advised him that they will not do the licensing and bonding due
to the expense, especially because they only install possibly 3-
10 systems per year, and Mr. Johnson wants them available to
service the systems. He said that the other model is where
installers from "the big city" are sent out at an enormous
expense and install "a whole bunch of them at once," except if a
system breaks down no one will come out from the city to service
that system. He stressed that he likes Native installers.
6:15:00 PM
MR. JOHNSON, in response to Chair Wool, reiterated that he has
400 installers in rural Alaska and has installed thousands of
systems. He then mentioned that he only wants one business
model because he can't have six different business models for
each region.
CHAIR WOOL asked whether Mr. Johnson had said that for all of
his installers, if they had to get a handyman license, register
with the state, and get bonded, that it would be a hurdle they
would not cross.
MR. JOHNSON answered that it is a "bridge too far," for the
average rural person because it economically does not make sense
with the limited money they have, the limited money they will
receive from the installations, and it would also be a
"nightmare for him to comply with, and it's -- it's just not
going happen." He pointed out that anyone who feels differently
is not familiar with the conditions in the villages.
MR. JOHNSON, in response to Chair Wool, advised that he does not
know a single person with a handyman's license and all this does
is make people break the law.
6:16:44 PM
CRAIG MAPES surmised that the issue is the need for local
installers due to the difficulty of installers from Juneau only
being available for a short period of time. The lack of
installers caused him to suggest to a distributor that he would
become an installer, and while on his way to becoming an
installer, realized there is a stumbling (audio difficulties)
license, but easier than a lot of people out there. He
explained that he is a retired school teacher, taught
construction for decades, built many houses in Alaska, and is
certainly qualified and able to get a handyman license. Except,
he said, he does not want a handyman license to just install a
system in his home and a few neighbors, nor can he afford the
bond to perform this simple task. As far as safety, he noted
that the first thing he learned in his national curriculum with
Hughes Net training was (audio difficulties) plug a simple
voltage tester into an outlet in the home and if there is any
indication that the power is not (audio difficulties) the
installation stops at that point and the homeowner has to get a
licensed person to repair it. The system is essentially the
same as plugging in a toaster wherein the installer mounts the
dish under stringent standards, runs the wire to the home and
plugs into a modem to an AC outlet that has nothing to do with
high voltage or electrical wiring. He reiterated that this is
about having local people available to perform this service, and
it would be an economic and realistic burden for him to go
through the hoops and expense to become a licensed contractor
and buy the bond. He related the importance of crafting
regulations so local people in villages can receive
communication services, and while he certainly understands and
supports the reasons for electrical safety codes, it would be
best for local installers to install the satellite systems and
help many people "because it is kind of a big deal."
6:22:15 PM
CHAIR WOOL asked whether he was currently undergoing the
training from Hughes Net, or had completed the training.
MR. MAPES responded that he completed the online portion and is
about to complete his hands-on training to become an installer.
CHAIR WOOL asked whether he has to pay for the training.
MR. JOHNSON advised that there is basically no charge for the
training, but in his case, he has to get himself from where he
lives to the training site at his own expense.
CHAIR WOOL asked whether he knows anyone in Tenakee Springs with
a handyman license.
MR. MAPES answered that he does not know whether anyone has a
handyman license is or is a licensed contractor.
6:23:51 PM
BRIAN ASHTON advised he is a dealer for Hughes Net, helped
introduce Hughes Net into Alaska approximately 10 years ago, and
he supports this legislation. He described that he is a strong
advocate of living in rural Alaska being raised in Hoonah and
living in Wrangell, and the importance for the rural communities
to have trained local people to install and actually service the
systems. He then demonstrated the actual product for the
committee and how it works. The cost of the equipment is $600,
and if the system is not installed properly it could actually
stress the satellite and make it work harder. Until now, he
said, they have been operating with a 15-year old satellite,
Generation 2 technology, providing up to 2 megabits per second,
and with the new satellite there is a guarantee of a minimum of
25 megabits per second. Alaska basically "missed out on"
Generation 3 and 4 satellites because they were in the East with
the bigger markets. The goal is a good program training rural
individual how to install and provide service to this system,
not only is it needed for reliability and quickness of service,
but also to preserve technology jobs in these rural communities.
When it comes to protecting property, it entails a hole to push
"this through the wall" and applying caulking to seal it up, and
he has not had one complaint in 30 years, he said. Mr. Ashton
referred to the comment that the current plans do not work for
Alaska's school systems and advised that he is working with
Hughes Net and its parent company to put together a plan that
will work for rural schools.
6:30:46 PM
WALTER ROBINSON, International Brotherhood of Electrical Workers
1547, advise he is a 17-year electrician working around the
state in low and medium voltage systems, licensed through the
State of Alaska as an electrical journeyman thereby passing
required tests pertaining to the National Electric Code, and is
in opposition to HB 206. These standards, he explained, have
been set in place because it does not matter the voltage rate on
a system, but rather what the system does, and he sees no reason
to lower the standards required by the state to have the work
performed by a company that does not hold an electrical
administrator's license. He offered that this will open the
door for other low voltage systems that are life safety
(indisc.) without an electrical administrative license. This
bill "targets products under $10,000 and rural Alaska projects,"
and he pointed out that Alaska's rural schools are the last
place to cut corners, and that electrical systems need to be
installed in a safe and professional manner. The only way to
ensure this happens is by using qualified licensed people and
the work overseen by a person holding an electrical
administrator's license. He related that rather than putting
Alaskans at risk, there should be a strengthening of
certification requirements. His problem is not with the
satellite disk installation, he pointed out, it is that this
bill opens up all low voltage systems and there needs to be a
way to narrow down the scope of this bill.
6:32:30 PM
CHAIR WOOL commented that this bill is a work in progress and
the bill will be before the committee in the future.
[HB 206 was held over.]
6:33:00 PM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Energy meeting was adjourned at 6:33 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 206 - Legislation - Ver D 3.31.17.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| HB 206 - Sectional Analysis 3.31.17.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| HB 206 - Sponsor Statement 3.31.17.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| HB206 - Fiscal Note - DCCED-CBPL-04-07-17.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| HB 206 - Letters of Support.PDF |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| HB 206 Amendment D.1 - 4.18.17.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |
| Amendment D.3 - HB 206.pdf |
HENE 4/18/2017 5:15:00 PM |
HB 206 |