Legislature(2023 - 2024)BARNES 124

01/19/2024 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 119 MARIJUANA TAX TELECONFERENCED
Moved CSHB 119(L&C) Out of Committee
-- Invited & Public Testimony --
+= HB 186 VOLUNTEER LABOR COMPLIANCE OFFICER PRGM TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        January 19, 2024                                                                                        
                           3:16 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. 119                                                                                                              
"An Act relating to marijuana taxes; and providing for an                                                                       
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 119(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 186                                                                                                              
"An Act relating to volunteer labor compliance officers; and                                                                    
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 119                                                                                                                  
SHORT TITLE: MARIJUANA TAX                                                                                                      
SPONSOR(s): RULES BY REQUEST                                                                                                    
                                                                                                                                
03/17/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/17/23       (H)       L&C, FIN                                                                                               
03/24/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/24/23       (H)       <Bill Hearing Canceled>                                                                                
03/31/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/31/23       (H)       Heard & Held                                                                                           
03/31/23       (H)       MINUTE(L&C)                                                                                            
04/24/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/24/23       (H)       <Bill Hearing Rescheduled to 04/26/23>                                                                 
04/26/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/26/23       (H)       Heard & Held                                                                                           
04/26/23       (H)       MINUTE(L&C)                                                                                            
08/17/23       (H)       L&C AT 3:00 PM ANCH LIO DENALI Rm                                                                      
08/17/23       (H)       -- Rescheduled to 09/14/23 --                                                                          
09/14/23       (H)       L&C AT 3:00 PM ANCH LIO DENALI Rm                                                                      
09/14/23       (H)       -- Rescheduled from 08/17/23 --                                                                        
11/16/23       (H)       L&C AT 2:00 PM ANCH LIO DENALI Rm                                                                      
11/16/23       (H)       VOLUNTEER LABOR COMPLIANCE OFFICER PRGM                                                                
12/05/23       (H)       L&C AT 2:00 PM ANCH LIO DENALI Rm                                                                      
01/19/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 186                                                                                                                  
SHORT TITLE: VOLUNTEER LABOR COMPLIANCE OFFICER PRGM                                                                            
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
05/03/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
05/03/23       (H)       L&C, FIN                                                                                               
11/16/23       (H)       L&C AT 2:00 PM ANCH LIO DENALI Rm                                                                      
11/16/23       (H)       <Bill Hearing Canceled>                                                                                
12/05/23       (H)       L&C AT 2:00 PM ANCH LIO DENALI Rm                                                                      
12/05/23       (H)       Heard & Held                                                                                           
12/05/23       (H)       MINUTE(L&C)                                                                                            

01/19/24 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER CODY RICE, Staff House Majority Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented economic modeling for HB 119. JOAN WILSON, Director Alcohol and Marijuana Control Office Anchorage, Alaska POSITION STATEMENT: Testified during the hearing on HB 119. LACY WILCOX, Operator Top Hat Cannabis Juneau, Alaska POSITION STATEMENT: Testified in support of HB 119. RYAN TUNSETH, President Alaska Marijuana Industry Association Kenai, Alaska POSITION STATEMENT: Testified in support of HB 119. BAILEY STUART, Chief Operations Officer Green Jar and Stuart Consulting Palmer, Alaska POSITION STATEMENT: Testified in support of HB 119. TRAVOR HAYNES, Owner Good Cannabis Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. THOMAS AZZARELLA, Director Alaska Children's Trust Alaska After School Network Anchorage, Alaska POSITION STATEMENT: Expressed concern about HB 119. GEORGE PIERCE, representing self Kasilof, Alaska POSITION STATEMENT: Testified in support of HB 119. BRANDON EMMETT, Co-Chair Governor's Advisory Task Force on Recreational Marijuana Fairbanks, Alaska POSITION STATEMENT: Testified in support of HB 119. SARENA HACKENMILLER, Staff Representative Jesse Sumner Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented HB 186 on behalf of Representative Sumner, prime sponsor. CHRIS DIAMOND, Representative Western States Regional Council of Carpenters Los Angeles, California POSITION STATEMENT: Provided background on HB 186. GABE SHADDY FARNSWORTH, Representative Western States Regional Council of Carpenters Los Angeles, California POSITION STATEMENT: Provided background on HB 186. ACTION NARRATIVE 3:16:28 PM CHAIR JESSE SUMNER called the House Labor and Commerce Standing Committee meeting to order at 3:16 p.m. Representatives Saddler, Prax, Wright, Ruffridge, Sumner, and Carrick were present at the call to order. HB 119-MARIJUANA TAX 3:17:20 PM CHAIR SUMNER announced that the first order of business would be HOUSE BILL NO. 119, "An Act relating to marijuana taxes; and providing for an effective date." [Due to technical difficulties the above section was not on the recording but was reconstructed from the committee secretary's log notes.] 3:17:33 PM REPRESENTATIVE RUFFRIDGE moved to adopt the proposed committee substitute (CS) to HB 119, Version 33-LS0636\U, Radford, 12/7/23, as a working document. There being no objection, Version U is before the committee. 3:18:05 PM CODY RICE, Staff, House Majority, Alaska State Legislature, addressed prices and how much demand can change based on price. He described how a reduction in taxes could result in a reduction in price and would likely drive a change in demand. In addition, he said he spoke to industry to ascertain what would be passed on to the consumer if industry taxes are changed. He explained that a 10 percent reduction in retail price is a conservative estimate, and that the estimated change in demand would be a 17 percent increase; an increase in demand due to a lower price. He pointed to the right side of the "Cover" tab in the the Marijuana Tax Change Analysis document [included in committee packet] and said three of the different tax change scenarios would generate more revenue than the status quo tax program. 3:20:59 PM REPRESENTATIVE SADDLER requested clarification on the estimated tax revenue chart and what the sales growth is from. MR. RICE explained that the graph shows estimated tax revenue and that the gray line denotes the new tax forecast, and the blue line is the forecast under the proposed tax system. 3:22:01 PM REPRESENTATIVE PRAX commented that his concern is reducing the illicit marijuana market, and he asked whether the illicit market was factored in the estimations. MR. RICE replied that it is not; if the price of legal cannabis goes down, theory suggests that it would take market share from the black market as it is seen as a premium product. He said if it were cheaper, it would be more competitive and buyers would more often choose to purchase legal cannabis. REPRESENTATIVE PRAX inquired as to whether there is data that quantifies the illicit market. MR. RICE responded that it is difficult to get good quantitative black-market data; the model shown is somewhat conservative. 3:24:07 PM REPRESENTATIVE SADDLER requested clarification regarding the status quo growth figure of $1.4 million dollars that is shown on the top right of the cover tab. MR. RICE explained that the $1.4 million figure was the net difference from status quo tax over the period of fiscal year 2023 (FY 23) to FY 30. He said it would be reasonable to expect that the number would grow over time. In response to a follow- up question, he explained that the figure represents a cumulative total over the years. REPRESENTATIVE SADDLER questioned whether the change in retail price was within the purview of the legislature. MR. RICE answered no, and that the retail price is set by the free market. He explained that there are elements that contribute to the subjectivity of the analysis, but the numbers are a conservative estimate in a free and robust market. REPRESENTATIVE SADDLER asked whether the change in retail price is in output, whereas the new sales tax is an input in the model. MR. RICE responded that the change in retail price as an input, as it is a driver for the model and can change depending on the scenario. 3:27:24 PM JOAN WILSON, Director, Alcohol and Marijuana Control Office (AMCO), shared that she met and spoke with licensed marijuana cultivators and limited growers. Many of the conversations occurred during the process of issuing tax violations, which is when the license holders explained how onerous the tax burden was; it was to the point that the only sound economic choice was to surrender their license. She noted that there are 478 licensed businesses in Alaska, of which 248 are held by standard and limited cultivators. As of December 8, 2023, 12 current licensees are delinquent on taxes in ranges from $750 to $110,000, coming to a total of $332,549 in delinquent taxes. She detailed that, since 2020, 29 cultivators have gone out of business, and whose cumulative taxes owed were $3 million; 8 of the licenses expired in 2023, 11 in 2022, and 10 in 2020. She relayed that 61 percent of the surrendered licenses were from standard cultivators. She highlighted that the businesses that have stayed open have contributed to the economy, with over 6,000 Alaskans having marijuana handlers permits, providing the state with $29.5 million in excise taxes in 2023. She said the marijuana control board will take action against licensees who are delinquent on taxes, and that of the 12 licenses on the December report, AMCO will file 11 accusations to revoke the licenses. She said that HB 119 provides the legislature the ability to adjust tax rates, and advised that a lower tax burden would help many of the licensees continue to operate. 3:32:40 PM REPRESENTATIVE RUFFRIDGE questioned why the adjustment from cultivation tax alone to retail tax might help the tax payment be on time and not delinquent. MS. WILSON responded that, when taxing at the cultivator level, that is the first transaction. She explained that cultivators typically choose whether to pay their taxes, pay their electricity, or pay their employees; eventually, they make the choice to not pay their taxes. She said that retail shops are not borrowing against their tax liability to the level cultivators are. 3:34:17 PM CHAIR SUMNER opened public testimony on HB 119. 3:34:48 PM LACY WILCOX, Owner/Operator, Top Hat Cannabis, explained that she employs 10 Alaskans at a competitive wage with retirement and health benefits; however, after seven years her cultivation is still operating at a loss due to an unsustainable tax structure. She spoke of the need for reform so that the cannabis industry can continue to exist in Alaska and urged support of HB 119. 3:36:39 PM RYAN TUNSETH, President, Alaska Marijuana Industry Association, expressed support of HB 119, explaining that it's about protecting Alaska's nascent cannabis industry and the revenue generated, thus protecting Alaska jobs and reducing or eliminating black market sales. He said there is some concern that 6 percent is too high, with 3 percent being the suggested amount, but he still supports HB 119, as well as the policy changes made on the bill. 3:38:55 PM BAILEY STUART, Chief Operations Officer, Green Jar Cannabis Retailers and Stuart Consulting, said she has seen firsthand the burden the current tax structure has placed on the cannabis industry, and how it has affected consumers, jobs, and the state of Alaska. She stated that, as excise taxes stand, and with the possibility of the federalization of marijuana, most cannabis will be imported, and the taxes will not go to the state. She pointed out that many cultivators are operating at a loss due to the tax burden. As a retailer, she feels taxes should be on the product's value. She stated support for HB 119. 3:40:39 PM TRAVOR HAYNES, Owner, Good Cannabis, testified in support of HB 119. He and his wife own Good Cannabis in Fairbanks where they employ 30 people. He explained that the cannabis tax structure is one of the highest tax rates of any state, which creates an artificial price floor; keeps the consumer costs high; puts undue burden on cultivators; and ensures a thriving black market. He pointed out that, in Oregon, flower marijuana is being sold wholesale at $50 an ounce, whereas in Alaska, the cultivator is paying $50 in taxes per ounce of flower. He stressed that marijuana accounts for over 70 percent of all value created by Alaska's agriculture industry and reiterated that the tax regime is causing cultivators to go out of business. He urged members to approve HB 119. 3:42:43 PM THOMAS AZZARELLA, Director, Alaska Children's Trust, Alaska After School Network, relayed the trust's concern about HB 119. He asked the committee to look at how taxes are structured and the amount of money that goes toward addiction prevention. He explained what percentage of the cannabis taxes go to programs that include marijuana education, addiction treatment, after school programs, suicide prevention, and recidivism. The marijuana education treatment fund supports 39 Alaska communities. Changes in the cannabis tax structure would affect the programs. 3:45:31 PM GEORGE PIERCE, representing self, spoke in favor of HB 119. He explained that a person can go to the black market and buy marijuana for less than half what it costs at a store. He pointed out that the state gets no tax dollars from black market marijuana sales. He suggested that raising the taxes on mining and on the oil and gas companies is a better source of revenue than mom and pop cannabis businesses. He urged members to approve HB 119. 3:47:45 PM BRANDON EMMETT, Co-Chair, Governor's Advisory Task Force on Recreational Marijuana, stated the task force supports HB 119. 3:48:19 PM CHAIR SUMNER, after ascertaining there was no one further wishing to testify, closed public testimony on HB 119. 3:48:29 PM REPRESENTATIVE RUFFRIDGE moved to report HB 119, Version 33- LS0636\U, Radford, 12/7/23, out of committee with individual recommendations and the accompanying fiscal notes. 3:48:48 PM REPRESENTATIVE CARRICK objected for the purpose of discussion. She thanked the task force and the folks in this industry who spoke in favor of this tax restructure. She pointed out the importance of supporting Alaska's industries and small businesses and how restructuring the tax will help fight black market cannabis. She removed her objection. 3:50:23 PM CHAIR SUMNER announced there being no further objection, CSHB 119(L&C) was reported out of the House Labor and Commerce Standing Committee. 3:50:29 PM The committee took an at-ease from 3:50 p.m. to 3:54 p.m. HB 186-VOLUNTEER LABOR COMPLIANCE OFFICER PRGM 3:54:37 PM CHAIR SUMNER announced that the final order of business would be HOUSE BILL NO. 186, "An Act relating to volunteer labor compliance officers; and providing for an effective date." CHAIR SUMNER explained that he is a homebuilder, and during his time in the industry he has seen many unfortunate incidents that could potentially be addressed by this type of legislation. In the private construction industry cash pay and misclassification of employees as independent contractors is pretty rampant, and this is something that the legislature should take a look at. 3:55:38 PM SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska State Legislature, introduced HB 186 on behalf of Representative Sumner, prime sponsor. The bill would establish a volunteer labor compliance officer program which would help address some of the difficulties Alaska construction workers face because of wage theft. She stated that the construction industry is a vital part of Alaska's economy. While many employers uphold fair labor practices, there are those who engage in exploitative behaviors that undermine workers' rights and jeopardize their well-being. She recounted a number of ways contractors exploit their workers, avoiding just treatment and affecting worker's compensation. To address this state and national issue, HB 186 proposes the establishment of a volunteer labor compliance officer program. The program would enhance worker protection, promote compliance of Alaska's labor laws, and foster a fair and competitive industry environment. The program will empower more workers with knowledge of their wage-related rights. Trained volunteers will visit worksites and conduct interviews, noting potential violations and encouraging proactive adherence to labor standards. 3:59:31 PM MS. HACKENMILLER presented the sectional analysis for HB 186 [included in the committee packet], which read as follows [original punctuation provided]: HB 186 Volunteer Labor Compliance Officer Program Sectional Analysis Section 1: Adds new Article to AS 23.05 directing the Department of Labor and Workforce Development to create a Volunteer Labor Compliance Officer Program for said volunteers to inspect construction sites in order to document compliance with state labor laws. The Department of Labor and Workplace Development through the Volunteer Labor Compliance Officer Program will ensure the state has a roster of qualified individuals to inspect constructions sites by providing the proper training, safety equipment, granting them the authority to enter a worksite and inspect records outlined in AS 23.05.100. The Department will also outline regulations for volunteers such as ID badges, required safety equipment, as well as specifying the insurance coverage needed by volunteers. Article 6 adds new statues to AS 23.05 outlining powers and duties of the volunteer labor compliance officer. These powers and duties include the ability to access and inspect a construction site on behalf of the department and initiate labor compliance investigation, require volunteers to visibly display the Dept. issued ID card and wear the required safety equipment on site, email a report of the Department visit within 48 hours, document that the officer is covered by workers compensation, and maintain required confidentiality. A volunteer labor compliance is not allowed to be a state employee, issue citations or enforce state labor laws. While conducting the investigation the volunteer is not allowed to wear attire of any other organization other than the department, disparage the employer, organize, or promote or display insignia for any other entity or organization, or preform any type of work outside the scope of the volunteer labor compliance officer while acting the capacity of a volunteer labor compliance officer. Article 6 also adds statues to AS 23.05 outlining to the department the requirements a potential candidate must fill to be a volunteer labor compliance officer, and the ability to permanently revoke a volunteer's badge in certain instances. Section 2: Provides an immediate effective date. 4:02:02 PM REPRESENTATIVE PRAX asked how objectivity and equal treatment could be ensured under the law. MS. HACKENMILLER responded that HB 186 includes a conflict-of- interest provision; however, the regulations will be determined by the Department of Labor and Workforce Development (DLWD), which will find a fair and equitable way to ensure the conflicts of interests are acceptable by the industry. REPRESENTATIVE PRAX requested clarification that the issue would be addressed by regulations. 4:03:05 PM CHAIR SUMNER explained that the legislature shouldn't administer in fine detail, but HB 186 directs DLWD to create regulations to that effect. 4:03:36 PM REPRESENTATIVE SADDLER noted that HB 186 seems to envision deputizing private citizens to enforce state regulations and laws. He asked whether there are other instances in state government where the inspection and applications of regulations and laws are outsourced to private individuals. CHAIR SUMNER gave the example of a tip line for poor drivers and suggested that there are other examples where members of the community would like to help enforce laws especially considering there are not adequate employees or money to cover all areas of the state. He said there are a significant number of rural projects, so it is envisioned that this would allow community members to help with the enforcement of the laws. REPRESENTATIVE SADDLER asked whether the notations of violations would be anonymous. CHAIR SUMNER responded that would be a good question for DLWD as to whether it takes anonymous tips. He said he would provide Representative Saddler's office with a copy of the wage and hour report form. 4:05:44 PM REPRESENTATIVE CARRICK questioned whether there was anything in HB 186 to prevent a volunteer compliance officer from being paid, for example: a competing construction company wants to send its employee to do compliance work with private contractors. She asked if the company would be allowed to do that. CHAIR SUMNER posited that the DLWD would have sideboards in the regulations so that one company could not send its employees to a competitor in an abusive manner. REPRESENTATIVE CARRICK asked what compels the Department of Labor and Workforce Development to set up provisions around the program creation. She commented that there were some gray areas in the language. 4:07:46 PM REPRESENTATIVE RUFFRIDGE explained that he wanted to better understand the qualifications in Section 1 for the compliance officer. In the initial introduction to the bill there was a lot to do with wage theft, but the qualifications in the bill seem more focused on construction experience and safety orientation. He questioned whether the volunteer compliance officers would be doing an accounting of the books or looking at employee paychecks. 4:08:41 PM MS. HACKENMILLER said she could not answer the question at that time but will provide the information to Representative Ruffridge's office. 4:09:12 PM CHAIR SUMNER asked invited testifiers to speak. 4:09:49 PM CHRIS DIAMOND, Representative, Western States Regional Council of Carpenters, began his testimony by defining worker misclassification, human trafficking of laborers, and construction industry tax fraud. He explained that these problems affect the Alaska construction industry. 4:11:35 PM GABE SHADDY FARNSWORTH, Representative, Western States Regional Council of Carpenters, spoke about his background in the construction industry and his personal experiences of wage theft. He cited the Century Foundation which found that 14.6 percent of Alaska construction workers were victims of wage theft or misclassification, which resulted in an estimated $4.7 million dollars in unpaid overtime wages, as well as $23 million in lost tax revenue in 2021. He said this is a major issue in Alaska, and there are not enough resources to enforce existing wage and hours laws in the industry. He stated that HB 186 is a creative and cost-effective approach to maximize state resources, namely, wage and hour investigators, through leveraging voluntary wage and compliance officers. 4:14:18 PM MR. DIAMOND added that there is an economic boom coming to the construction industry in Alaska with the federal Infrastructure Investment and Jobs Act, which is going to be put towards public projects all over Alaska. He explained that the state currently does not have resources to ensure fair treatment of workers; currently Alaska does not have enough contractors or workforce, and outside contractors will come up and potentially use unscrupulous practices. MR. FARNSWORTH said that, in terms of the conflict-of-interest question, HB 186 addresses that issue. He acknowledged that the bill was somewhat sparce in how the department would implement the program. He noted that the bill does contain a provision that the gives the department the ability to terminate the volunteer's badge. MR. DIAMOND commented that the idea is to follow current department rules and regulations on how information can be gathered and how to submit the information to the department. MR. FARNSWORTH pointed out that the fiscal note includes a coordinator between the department and the volunteers, with the department providing oversight. 4:18:48 PM REPRESENTATIVE SADDLER questioned whether the organizations, like the brotherhoods or unions, carry out any of the services that might be performed by the proposed voluntary compliance officers. MR. DIAMOND answered that, as a member of the carpenters union, he has visited union and non-union job sites where workers have reported various issues with wage theft. He said that he cannot file a claim on the worker's behalf, but the worker has to file the claim. He offered scenarios of the challenges workers face in this regard, like not working on the next project if they report problems. REPRESENTATIVE SADDLER asked for clarification regarding whether he or other union representatives could file claims, and if so, how it would work. MR. DIAMOND explained that, as a union representative, he was not able to perform that function, and if a member doesn't want to answer questions, they don't have to. He said that if a contractor asks him to leave, he will leave. He pointed out that this differs from wage and hour investigators whose questions need to be answered because they are protecting public money. 4:20:50 PM REPRESENTATIVE PRAX observed that the focus of the testimony was on public projects. He shared his experience in working for a private company, and there was always a union contractor, and for state projects there would be a project manager. He commented on the difficulty in removing the conflict of interest. He asked whether a project manager could be required for each construction project whose duties would include wage and hour monitoring. MR. FARNSWORTH said he had no problem with having one of a construction company's staff whose job would include checking the work that is performed and ensuring enforcement. REPRESENTATIVE PRAX clarified that the hypothetical staff member would be part of the state's condition of the contract, and that the state be allowed to check whether the company is following wage laws. MR. FARNSWORTH responded that the contractor is required to submit a certified payroll to the Wage and Hour Office. Typically, a wage and hour technician examines the reports and looks for discrepancies. Some of the work requires "boots on the ground" to witness certain types of violations. If there was a requirement in the statute for public projects to have a wage and hour enforcer, that would be a great idea; it would not, however, cover private construction. 4:26:14 PM MR. DIAMOND commented that, in such a case, it should be a state employee rather than someone affiliated with the contractor or company. MR. FARNSWORTH followed up that it is a good idea but would be very expensive. 4:26:57 PM REPRESENTATIVE WRIGHT shared his experience working with Davis Bacon wages and expressed his approval of HB 186. He agreed that having a wage and hour investigator on site all the time would be very expensive. He recalled employer training, documentation that the employees understand their rights, and random compliance visits. 4:28:22 PM REPRESENTATIVE RUFFRIDGE referred to language on page 2, line 9, of HB 186, which addresses the powers and duties of a volunteer compliance officer. He then drew attention to page 3, line 14, describing the compliance officer's qualifications. He said he was not sure that five years of construction experience and the completion of a 10-hour Occupational Safety and Health Administration (OSHA) workshop would qualify someone to perform a relatively detailed check. MR. DIAMOND explained that there would be DLWD training to ensure officers would be following department guidelines. 4:30:20 PM MR. FARNSWORTH pointed out a section in the bill that addressed training by the department. He said that the five-year requirement is needed for them to identify the work that workers are doing. 4:31:31 PM REPRESENTATIVE SADDLER asked Mr. Diamond and Mr. Farnsworth how their organizations view the status of Alaska's enforcement and compliance of labor laws. MR. DIAMOND responded that his organization continually asks for more oversight and enforcement. He said the state of Alaska currently does not have the capacity to check all the job sites for compliance. REPRESENTATIVE SADDLER observed that a person who qualifies as a volunteer compliance officer would be more likely to take a job with wages and benefits. 4:33:05 PM MR. FARNSWORTH explained that there would be some retired construction workers as well as other interested individuals but conceded that it is a point well taken. 4:34:34 PM CHAIR SUMNER announced that HB 186 was held over. 4:34:48 PM ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:35 p.m.

Document Name Date/Time Subjects
HB186 Fiscal Note B.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
ASHBA_Opposition Letter to HB 186_1.18.2024.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Stuart Consulting Public Comment HB 119 HL&CC.pdf HL&C 1/19/2024 3:15:00 PM
HB 119
Reason Comments for AK House Labor Commerce 01-19-24 HB 119.pdf HL&C 1/19/2024 3:15:00 PM
HB 119
2024 opposition to HB 186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB 186 Letter.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Alliance Comments HB 186 2024.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
BCTC - HB 186 Letter of Support.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Support Letter - Josh Bolton.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
KC support for HB186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
SKMBT_C22024012211210.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Letter in Support of Alaska House Bill 186 of the 33rd Legislature.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Eklutna Construction Support Letter HB186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Alaska Commercial Contractors Support Letter HB186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Spearpoint Construction Letter of Support HB186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Marijuana Tax Changes Analysis 01.12.24.xlsx HL&C 1/19/2024 3:15:00 PM
HB 119
HB186 Support Letters.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Support Letter - Joshua Bolton.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Support Letter - Margo Brown.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
UBC Support of HB 186.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
UA Local 375 - HB 186 letter of support.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
Hickel Construction - HB 186 letter of support.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Alaska Electric Support Letter.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 - Letter of Support - Juneau Building Traces Council.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Excel Construction - Letter of Support.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
AOGA HB 186 Letter of opposition 01 30 24.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
020124 Letter of Support for HB 186 - Volunteer Compliance Officer.pdf HL&C 1/19/2024 3:15:00 PM
HB 186
HB186 Article - Labor Trafficking in SD.pdf HL&C 1/19/2024 3:15:00 PM
HB 186