Legislature(2021 - 2022)BARNES 124

03/03/2021 05:45 PM LABOR & COMMERCE

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06:02:56 PM Start
06:04:12 PM HB36
06:44:37 PM HB30
07:11:46 PM Board of Pharmacy
07:34:52 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
*+ HB 36 MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE TELECONFERENCED
Heard & Held
*+ HB 30 WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR TELECONFERENCED
Heard & Held
+ Consideration of Governor's Appointees: TELECONFERENCED
- Kelly Lucas, Board of Dental Examiners
- Julie Endle, Board of Massage Therapists
- Catherine Hample, Board of Nursing
- James Henderson, Board of Pharmacy
- Tammy Lindemuth, Board of Pharmacy
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 3, 2021                                                                                          
                           6:03 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Zack Fields, Co-Chair (via teleconference)                                                                       
Representative Ivy Spohnholz, Co-Chair                                                                                          
Representative Calvin Schrage (via teleconference)                                                                              
Representative Liz Snyder (via teleconference)                                                                                  
Representative David Nelson (via teleconference)                                                                                
Representative James Kaufman                                                                                                    
Representative Ken McCarty                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
HOUSE BILL NO. 36                                                                                                               
"An Act relating to an application for a license to operate as a                                                                
dealer in motor vehicles; and requiring a dealer in motor                                                                       
vehicles to maintain liability and property insurance."                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 30                                                                                                               
"An  Act  relating  to  notice  of  workers'  compensation  death                                                               
benefits;  relating  to  the  payment  of  workers'  compensation                                                               
benefits in  the case of  permanent partial  impairment; relating                                                               
to  the  payment of  workers'  compensation  death benefits;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Board of Dental Examiners                                                                                                     
                                                                                                                                
     Kelly Lucas - Dillingham                                                                                                   
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
Board of Massage Therapists                                                                                                   
                                                                                                                                
     Julie Endle - Palmer                                                                                                       
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
Board of Nursing                                                                                                              
                                                                                                                                
     Catherine Hample - Wasilla                                                                                                 
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
Board of Pharmacy                                                                                                             
                                                                                                                                
     James Hendersen - Soldotna                                                                                                 
     Tammy Lindemuth - Anchorage                                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB  36                                                                                                                  
SHORT TITLE: MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                          
SPONSOR(s): REPRESENTATIVE(s) CLAMAN                                                                                            
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       L&C, FIN                                                                                               
03/03/21       (H)       L&C AT 5:45 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB  30                                                                                                                  
SHORT TITLE: WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR                                                                          
SPONSOR(s): REPRESENTATIVE(s) JOSEPHSON                                                                                         
                                                                                                                                
02/18/21       (H)       PREFILE RELEASED 1/8/21                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       L&C, FIN                                                                                               
03/03/21       (H)       L&C AT 5:45 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE MATT CLAMAN                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented HB 36.                                                                       
                                                                                                                                
SOPHIE JONAS, Staff                                                                                                             
Representative Matt Claman                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the sectional analysis for HB 36                                                               
on behalf of Representative Claman, prime sponsor.                                                                              
                                                                                                                                
JEFFERY SCHMITZ, Director                                                                                                       
Division of Motor Vehicles                                                                                                      
Department of Administration                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on HB
36.                                                                                                                             
                                                                                                                                
MARCUS WAEHLER                                                                                                                  
Alaska Automotive Dealer Association                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 36.                                                                           
                                                                                                                                
MARTIN MARTINSEN, Owner                                                                                                         
Continental Auto Group                                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 36.                                                                           
                                                                                                                                
STEVE ALLWINE, Owner                                                                                                            
Mendenhall Auto                                                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 36.                                                                           
                                                                                                                                
REPRESENTATIVE ANDY JOSEPHSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, presented HB 30..                                                                      
                                                                                                                                
ELISE SORUM-BIRK, Staff                                                                                                         
Representative Andy Josephson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 30 via a PowerPoint                                                                         
presentation on behalf of Representative Josephson, prime                                                                       
sponsor.                                                                                                                        
                                                                                                                                
CHARLES COLLINS, Director                                                                                                       
Division of Workers' Compensation                                                                                               
Department of Labor and Workforce Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB
30.                                                                                                                             
                                                                                                                                
KELLY LUCAS, Appointee                                                                                                          
Board of Dental Examiners                                                                                                       
Dillingham, Alaska                                                                                                              
POSITION  STATEMENT:   Spoke  as  an appointee  to  the Board  of                                                             
Dental Examiners.                                                                                                               
                                                                                                                                
JULIE ENDLE, Appointee                                                                                                          
Board of Massage Therapists                                                                                                     
Palmer, Alaska                                                                                                                  
POSITION  STATEMENT:   Spoke  as  an appointee  to  the Board  of                                                             
Massage Therapists.                                                                                                             
                                                                                                                                
CATHERINE HAMPLE, Appointee                                                                                                     
Board of Nursing                                                                                                                
Wasilla, Alaska                                                                                                                 
POSITION  STATEMENT:   Spoke  as  an appointee  to  the Board  of                                                             
Nursing.                                                                                                                        
                                                                                                                                
JAMES HENDERSON, Appointee                                                                                                      
Board of Pharmacy                                                                                                               
Soldotna, Alaska                                                                                                                
POSITION  STATEMENT:   Spoke  as  an appointee  to  the Board  of                                                             
Pharmacy.                                                                                                                       
                                                                                                                                
TAMMY LINDEMUTH, Appointee                                                                                                      
Board of Pharmacy                                                                                                               
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:   Spoke  as  an appointee  to  the Board  of                                                             
Pharmacy.                                                                                                                       
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
6:02:56 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  IVY  SPOHNHOLZ  called  the House  Labor  and  Commerce                                                             
Standing   Committee    meeting   to    order   at    6:02   p.m.                                                               
Representatives Spohnholz, McCarty,  Snyder (via teleconference),                                                               
Schrage  (via teleconference),  and  Nelson (via  teleconference)                                                               
were  present   at  the  call  to   order  (via  teleconference).                                                               
Representative Kaufman arrived as the meeting was in progress.                                                                  
                                                                                                                                
        HB  36-MOTOR VEHICLE DEALERS: APPLIC.; INSURANCE                                                                    
                                                                                                                                
6:04:12 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  first order  of business                                                               
would be  HOUSE BILL NO. 36,  "An Act relating to  an application                                                               
for a license to operate as a dealer in motor vehicles; and                                                                     
requiring a dealer in motor vehicles to maintain liability and                                                                  
property insurance."                                                                                                            
                                                                                                                                
6:05:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MATT  CLAMAN, Alaska  State Legislature,  as prime                                                               
sponsor,  presented  HB 36.    He  paraphrased from  the  Sponsor                                                               
Statement[hard  copy included  in  the  committee packet],  which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     The purpose  of House  Bill 36  is to  improve consumer                                                                    
     protections  for  those  purchasing motor  vehicles  by                                                                    
     strengthening  the   requirements  for   motor  vehicle                                                                    
     dealers. Under  current law, a motor  vehicle dealer in                                                                    
     Alaska  must  register  biennially by  filling  out  an                                                                    
     application that  requires an address, but  not a valid                                                                    
     telephone number.  The application must  be accompanied                                                                    
     by  a  $50  registration  fee  and  a  surety  bond  of                                                                    
     $50,000. There  is no current requirement  that dealers                                                                    
     carry liability  insurance even though  Alaska requires                                                                    
     drivers   to  have   liability   insurance  for   their                                                                    
     vehiclesand   dealers may  allow  uninsured drivers  to                                                                    
     take dealer-owned cards for a test drive.                                                                                  
                                                                                                                                
     Alaska's  current  statutory   requirements  for  motor                                                                    
     vehicle dealers are some of  the least stringent in the                                                                    
     country.   By  way   of   comparison,   here  are   the                                                                    
     requirements for  an automobile  dealership application                                                                    
     to be valid in other states:                                                                                               
                                                                                                                                
            Oregon    Chapter  822 of Oregon  State Statutes                                                                    
     provides for civil penalties for acting as a                                                                               
     vehicle dealer  without a certificate  (.005-.009), the                                                                    
     processes   of  applying   for,  and   maintaining,  an                                                                    
     automobile  dealer  license   and  related  exemptions,                                                                    
     requirements, and  privileges (.025-.042),  grounds for                                                                    
     revocation,   suspension,   or  cancellation   of   the                                                                    
     dealership certificate  (.050), and  further definition                                                                    
     of  illegal practices  and associated  penalties (.055-                                                                    
     .080).                                                                                                                     
          ? Delaware   Title 21,  Chapter 63 of the Delaware                                                                    
     State   Statutes   provides   for   proof-of   location                                                                    
     requirements  and   recordkeeping  (?   6303),  license                                                                    
     expiration and renewal  procedures (? 6304), retainment                                                                    
     of bill of  sale records for a period of  at least five                                                                    
     years (?6305),  in addition  to grounds  for revocation                                                                    
     of dealer licenses (? 6313);                                                                                               
          ? Texas    Title 14,  Subtitle A, Chapter  2301 of                                                                    
     the  state's  Occupations   Code  provides  for  public                                                                    
     interest    information   and    complaint   procedures                                                                    
     (Subchapter E), licensing  requirements (Subchapter F),                                                                    
     license expiration  and renewal (Subchapter  G), dealer                                                                    
     operations   (Subchapter   H),  grounds   for   license                                                                    
     revocation (Subchapter  N), as  well as  procedures for                                                                    
     complaint  hearings,  judicial  review,  and  penalties                                                                    
     (Subchapters O, P, and Q).                                                                                                 
                                                                                                                                
     Comparatively  speaking,   Alaska  Statutes   Title  8,                                                                    
     Chapter 66  addresses the  application form  (.040) and                                                                    
     registration  renewal  (.050);  sets the  minimum  bond                                                                    
     amount (.060),  defines allowable  action on  bonds and                                                                    
     defines  failure   to  file  a   bond  as  a   class  A                                                                    
     misdemeanor   (.070,  .080);   and  holds   the  dealer                                                                    
     responsible  for maintaining  a  record  of each  motor                                                                    
     vehicle transaction  (.320). Unlike Texas,  Oregon, and                                                                    
     Delaware,  there are  no statutes  explicitly providing                                                                    
     for a  grievance process nor grounds  for revocation of                                                                    
     the license in question.                                                                                                   
                                                                                                                                
     HB  36  aims  to   strengthen  consumer  protection  by                                                                    
     addressing two  scenarios that may create  problems for                                                                    
     both consumers and dealers:                                                                                                
                                                                                                                                
     HB  36  seeks to  provide  better  protection when  one                                                                    
     selling  dealer sells  multiple  vehicles  to a  buying                                                                    
     dealer  and receives  payment without  providing titles                                                                    
     (the titles are being held  by the bank that provides a                                                                    
     credit  line  for  purchasing  vehicles).  The  selling                                                                    
     dealer  plans  to pay  for  the  vehicles and  get  the                                                                    
     titles,  but runs  into financial  difficulties and  is                                                                    
     unable to continue making  payments. When this happens,                                                                    
     the  bank  repossesses  the vehicles  from  the  buying                                                                    
     dealer. The  buying dealer has  now lost the  money and                                                                    
     decides to  seek recompense  from the  selling dealer's                                                                    
     bond. At present, the bond  requirement under state law                                                                    
     is $50,000,  which, depending on the  type and quantity                                                                    
     of vehicles,  may be only  a fraction of what  is owed.                                                                    
     Raising the  bond amount will  help protect  the buying                                                                    
     dealer  in the  event that  the bank  repossesses their                                                                    
     new stock.                                                                                                                 
                                                                                                                                
     Another   scenario   that   this  bill   addresses   is                                                                    
     "curbstoning,"  which  is  the   act  of  selling  used                                                                    
     vehicles under  the false pretense  of being  the car's                                                                    
     owner in  order to  evade regulations that  are imposed                                                                    
     on  state-licensed automobile  dealers.  When a  dealer                                                                    
     obtains a license, they are  qualified to purchase cars                                                                    
     at "dealer only" auctions at  steep discounts. In these                                                                    
     scenarios, the  dealer is not required  to disclose the                                                                    
     fact that  they are a  licensed car dealer or  that the                                                                    
     vehicle  has   a  reconstructed  title  or   has  known                                                                    
     defects. If  deemed a personal vehicle,  the vehicle is                                                                    
     not subject to a  routine safety inspection. Often, the                                                                    
     title is not  placed in the dealer's  name, the contact                                                                    
     information provided  is not the  dealer's information,                                                                    
     or the transaction takes place  in cash, leaving little                                                                    
     paper  trail  for  the consumer  to  follow  if  issues                                                                    
     arise.  Requiring a  verified working  telephone number                                                                    
     increases the consumer's ability to locate the dealer.                                                                     
                                                                                                                                
     HB 36  would help  protect against these  two scenarios                                                                    
     by requiring  that those  registering as  motor vehicle                                                                    
     dealers include  more detailed information  about their                                                                    
     business  in  the  application,  register  a  bond  for                                                                    
     $100,000  instead of  $50,000,  and maintain  liability                                                                    
     insurance  that  covers  collisions  with  dealer-owned                                                                    
     cars.                                                                                                                      
                                                                                                                                
6:08:37 PM                                                                                                                    
                                                                                                                                
SOPHIE  JONAS, Staff,  Representative Matt  Claman, Alaska  State                                                               
Legislature, offered the  Sectional Analysis to HB  36 [hard copy                                                               
included  in the  committee packet]  on behalf  of Representative                                                               
Claman, prime  sponsor.  The  Sectional Analysis read  as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
     Section 1                                                                                                                  
     AS 08.66.030. Form of application.                                                                                         
     Adds the following  requirements to dealer registration                                                                    
     applications:                                                                                                              
     ? a valid telephone number for the business;                                                                               
     ? a statement that no  person holding a five percent or                                                                    
     greater interest in the business  has been convicted of                                                                    
     a    felony   involving    fraud,   embezzlement,    or                                                                    
     misappropriation   of   property  within   five   years                                                                    
     preceding the date of application;                                                                                         
     ?  a statement  acknowledging  that  the applicant  has                                                                    
     reviewed the requirements for workers'                                                                                     
     compensation  insurance  and   will  maintain  workers'                                                                    
     compensation insurance under AS                                                                                            
     23.30, if applicable; and                                                                                                  
        a   copy  of  the  liability   insurance  policy  in                                                                    
     compliance with section 3 of this bill.                                                                                    
                                                                                                                                
     Section 2                                                                                                                  
     AS 08.66.060. Bond.                                                                                                        
     Raises  the  amount of  the  bond  required for  dealer                                                                    
     registration applicants from $50,000 to $100,000.                                                                          
                                                                                                                                
     Section 3                                                                                                                  
     AS 08.66.085. Insurance requirements.                                                                                      
     Adds a  new section to  AS 08.66 that  requires dealers                                                                    
     maintain   public   liability   and   property   damage                                                                    
     insurance  of  not  less   than  $50,000  for  property                                                                    
     damage,  $100,000 for  injury to  a single  person, and                                                                    
     $200,000 for injury, including death,  to more than one                                                                    
     person.                                                                                                                    
                                                                                                                                
MS. JONAS concluded by inviting questions from the committee.                                                                   
                                                                                                                                
6:10:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY posed a  question to Representative Claman                                                               
about  how the  bill  would impact  private  individuals who  are                                                               
selling their  personal cars or  have several cars that  they are                                                               
selling over  a period of  time.   He asked for  clarification on                                                               
the bill's purpose.                                                                                                             
                                                                                                                                
REPRESENTATIVE  CLAMAN  responded that  the  bill  would have  no                                                               
impact on individuals making private sales.                                                                                     
                                                                                                                                
REPRESENTATIVE MCCARTY directed attention  to language on page 2,                                                               
line 7 of the bill, which read as follows:                                                                                      
                                                                                                                                
     (8)  a statement  that the  applicant has  reviewed the                                                                    
     workers'  compensation  insurance  requirements  of  AS                                                                    
     23.31   and    will   maintain    applicable   workers'                                                                    
     compensation insurance as required under AS 23.30;                                                                         
                                                                                                                                
REPRESENTATIVE MCCARTY asked for clarification.                                                                                 
                                                                                                                                
REPRESENTATIVE CLAMAN  explained that  since some people  are not                                                               
aware of  the requirement to provide  workers' compensation, this                                                               
language  would protect  employees  and ensure  that smaller  car                                                               
dealers are  aware of that  law [by requiring a  statement signed                                                               
to that effect].                                                                                                              
                                                                                                                                
6:12:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SNYDER asked  Representative Claman  if he  could                                                               
speak about  the motivation  behind one  of the  new requirements                                                               
for dealer  applications [in Section  1, paragraph (7) of  HB 36,                                                               
on page 2, lines 3-6], which read as follows:                                                                                   
                                                                                                                                
     (7) a statement  that no person holding  a five percent                                                                
     or  greater interest  in the  business has,  during the                                                                
     five-year period immediately preceding  the date of the                                                                
     application,  been  convicted  of  a  felony  involving                                                                
     fraud, embezzlement, or misappropriation of property;                                                                  
                                                                                                                                
REPRESENTATIVE CLAMAN  responded that  the interest in  this bill                                                               
came from  motor vehicle dealers.   The Motor  Dealer Association                                                               
came to his  office and expressed concerns about  people that may                                                               
be in the  motor dealer business who had  recent convictions, and                                                               
asked how to best protect consumers.   He stated that the goal in                                                               
paragraph (7) was  to make that limitation as  narrow as possible                                                               
and to ensure  that the convictions were  specifically related to                                                               
crimes  relevant  to  the  auto   business,  such  as  fraud  and                                                               
financial crimes,  that took place  in the  past five years.   He                                                               
and  his staff  thought that  five  years would  be a  reasonable                                                               
amount of time to allow someone to get back into the business.                                                                  
                                                                                                                                
6:14:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON  asked  about   the  prevalence  of  curb-                                                               
stoning.                                                                                                                        
                                                                                                                                
REPRESENTATIVE CLAMAN  shared that two of  the invited testifiers                                                               
are  car  dealers and  that  these  testifiers  will be  able  to                                                               
address that question better, but that  he knows that it goes on.                                                               
Some consumers buy  vehicles online and do not  realize that they                                                               
are purchasing from a dealer, he added.                                                                                         
                                                                                                                                
REPRESENTATIVE  NELSON  asked what  the  current  recourse is  to                                                               
those people injured by curb-stoning.                                                                                           
                                                                                                                                
REPRESENTATIVE  CLAMAN said  that  there is  no  recourse if  the                                                               
consumer doesn't know they are purchasing from a dealer.                                                                        
                                                                                                                                
REPRESENTATIVE NELSON  asked if  this would  be addressed  in the                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE CLAMAN responded that  there is a larger statutory                                                               
structure that  involves requirements  for motor  vehicle dealers                                                               
and  requirements   for  their   business,  such   as  inspection                                                               
requirements.   The  bill increases  transparency of  dealers and                                                               
the statute  applies to the  dealers as well.   He added  that he                                                               
would be happy to meet  with Representative Nelson outside of the                                                               
meeting to discuss the details  of the statutes if Representative                                                               
Nelson would like more information.                                                                                             
                                                                                                                                
6:16:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   MCCARTY  asked   about   felonies  and   whether                                                               
background checks would be mandated for all car business owners.                                                                
                                                                                                                                
REPRESENTATIVE  CLAMAN answered  no, the  bill doesn't  mandate a                                                               
background check.   There  are a limited  group of  felonies that                                                               
fit  the  description,  he said.    If  individuals  misrepresent                                                               
themselves, there are criminal penalties that would apply.                                                                      
                                                                                                                                
6:17:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN mentioned  the requirement for dealerships                                                               
to  provide the  name  and  make of  all  vehicles  handled.   He                                                               
commented  that  it   might  be  beneficial  to   hear  from  the                                                               
testifiers on that topic.                                                                                                       
                                                                                                                                
REPRESENTATIVE  CLAMAN explained  that Representative  Kaufman is                                                               
referring to  line 13,  paragraph (4) of  Section 1  and deferred                                                               
his question to a testifier on the phone, Jeffrey Schmitz.                                                                      
                                                                                                                                
REPRESENTATIVE  KAUFMAN   questioned  how  that   information  is                                                               
provided in  common practice  and whether  complying with  it has                                                               
ever been a problem.                                                                                                            
                                                                                                                                
6:19:53 PM                                                                                                                    
                                                                                                                                
JEFFERY   SCHMITZ,   Director,   Division  of   Motor   Vehicles,                                                               
Department  of Administration,  responded  that  the Division  of                                                               
Motor Vehicles (DMV) does not monitor this issue.                                                                               
                                                                                                                                
CO-CHAIR SPOHNHOLZ  asked what  the practice  is for  listing the                                                               
name and make of all  vehicles handled, and whether used vehicles                                                               
are  handled.   She  asked  how  that  is done  specifically  and                                                               
whether there is a standard practice.                                                                                           
                                                                                                                                
MR. SCHMITZ  responded that this  is a required document  that is                                                               
filled out at the time of  application by a person applying for a                                                               
dealership license.                                                                                                             
                                                                                                                                
6:21:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CLAMAN  shared   his   understanding  that   the                                                               
application in question is a short  form that is one to two pages                                                               
long,  and  that it  strikes  him  that if  he  were  a used  car                                                               
salesperson and  sold every  make and model  of car,  filling out                                                               
that application would  require pages and pages  of possible cars                                                               
that one might sell.  He asked how  it is filled in today and how                                                               
much information is required.                                                                                                   
                                                                                                                                
CO-CHAIR  SPOHNHOLZ interjected  and asked  if Mr.  Schmitz could                                                               
provide  a  sample of  the  application  form, which  might  help                                                               
inform a future conversation.                                                                                                   
                                                                                                                                
MR. SCHMITZ responded yes.                                                                                                      
                                                                                                                                
6:22:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ opened invited testimony.                                                                                    
                                                                                                                                
6:22:53 PM                                                                                                                    
                                                                                                                                
MARCUS WAEHLER,  Alaska Automotive Dealer Association,  gave some                                                               
history  of  his experience  in  the  automotive industry,  which                                                               
involved  12  years  of  purchasing  vehicles  through  auctions,                                                               
managing  inventories, seeing  vehicles through  inspections, and                                                               
12 subsequent years of working at  the helm of a small dealership                                                               
in Anchorage,  Alaska called  Red White  & Blue  Auto Sales.   He                                                               
shared  that he  began to  notice  some negative  changes in  the                                                               
industry about seven  years ago, and brought his  concerns to the                                                               
Alaska  Automotive Dealer  Association.   He  shared his  opinion                                                               
that  Alaska's   dealer  licensing  requirements  are   the  most                                                               
deficient  in  the   country.    In  Alaska,   he  explained,  an                                                               
individual  can obtain  a dealer's  license and  begin purchasing                                                               
through dealer-only auctions by  paying a $50 dollar registration                                                               
fee and  a $500  dollar bond.   He  added that  some unscrupulous                                                               
dealers will sell cars in  various states of disrepair from these                                                               
auctions  discreetly  on  Craigslist   without  having  done  any                                                               
inspections  or disclosure,  and there  is no  recourse for  this                                                               
activity.   The  unwitting consumer  doesn't know  they purchased                                                               
from a  dealer, and the  fraud is complete,  he said.   He shared                                                               
that  he goes  to these  auctions frequently  and sees  cars that                                                               
were at  an auction  posted on Craigslist  "before the  sun sets"                                                               
that same  day as private  party sales.   He estimated  that this                                                               
happens thousands of times a year.                                                                                              
                                                                                                                                
MR. WAEHLER  concluded with  a personal story  about a  woman who                                                               
had visited  his dealership recently  with a car that  she wanted                                                               
to  trade in.    He performed  an inspection  and  looked up  the                                                               
information  about the  vehicle using  an application  ("app") on                                                               
his phone  by using the  vehicle identification number  (VIN) and                                                               
found  that the  woman had  purchased the  vehicle on  Craigslist                                                               
from a private seller for $6,500  dollars.  He continued that she                                                               
had only had  the vehicle for a  few weeks and it had  a value of                                                               
about  $2,000 by  the time  she  brought it  to him.   A  further                                                               
inspection  illuminated him  to the  fact that  the oil  pressure                                                               
light  in the  engine  had  been removed,  and  according to  the                                                               
information he retrieved  using the app on his  phone, this light                                                               
had been  on when the car  went through auction.   He shared that                                                               
this  woman  was  86  years  old, and  that  this  is  a  regular                                                               
occurrence.                                                                                                                     
                                                                                                                                
6:27:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAUFMAN  directed   attention  to  the  statement                                                               
provided  to  the committee  from  the  Alaska Automobile  Dealer                                                               
Association,  which  mentions  "no  disclosure  of  reconstructed                                                               
title, no  disclosure of known  defects," and he asked  about the                                                               
process  of  a vehicle  getting  a  reconstructed  title.   If  a                                                               
vehicle is wrecked,  totaled, and sold, he asked  if that process                                                               
puts a "salvage" indication on the title.                                                                                       
                                                                                                                                
MR. WAEHLER  responded that  yes, an indication  is added  to the                                                               
title, however  there is  often a delay  in the  processing time.                                                               
He explained  that one of the  ways that this can  happen is that                                                               
the  status  of the  title  hasn't  been  changed from  clean  to                                                               
reconstructed, or  that the  title is  not readily  available and                                                               
the  unwitting  consumer doesn't  even  know  to check  for  that                                                               
information.   He gave  an example  of a couple  who came  to him                                                               
with a  vehicle they  bought at  full retail  price with  a clean                                                               
title, which  had been financed by  a bank.  When  the couple got                                                               
the title back, he continued,  they discovered that the title and                                                               
the vehicle  were both reconstructed.   The couple  purchased the                                                               
vehicle from a dealer and they  had no contact information and no                                                               
recourse.                                                                                                                       
                                                                                                                                
6:29:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  asked what  the process  is for  changing the                                                               
title to reflect  that it is reconstructed.  She  asked who bears                                                               
the responsibility for ensuring that that happens.                                                                              
                                                                                                                                
MR. WAEHLER  answered that he  thinks the DMV is  responsible for                                                               
that, but he is not sure of the exact process.                                                                                  
                                                                                                                                
6:30:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ posed the same question to Mr. Schmitz.                                                                      
                                                                                                                                
MR. SCHMITZ responded  that the DMV is informed  through a number                                                               
of  means about  the  status  of the  vehicle,  for example,  the                                                               
insurance  company could  inform the  DMV after  an accident  has                                                               
occurred, or  a consumer could  inform the  DMV.  He  shared that                                                               
once a vehicle  and a title are branded  as "reconstructed," that                                                               
brand will remain for the remainder of the life of the vehicle.                                                                 
                                                                                                                                
CO-CHAIR  SPOHNHOLZ  asked  if  someone  were  to  reconstruct  a                                                               
vehicle and  not make the  appropriate change in the  title, what                                                               
the penalty would be for that indiscretion.                                                                                     
                                                                                                                                
MR. SCHMITZ answered that he  thinks that falls into the category                                                               
of a  court case.   He  said that  the seller  of the  vehicle is                                                               
responsible  for  providing a  current  title  that reflects  the                                                               
current  state of  the  vehicle.   He  does  not  know the  legal                                                               
implications of failing to disclose that information.                                                                           
                                                                                                                                
6:32:45 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ posed  the question  again to  Representative                                                               
Claman.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  CLAMAN responded  that he  doesn't know  what the                                                               
penalty is  for falsifying information.   He said he  thinks that                                                               
there  are  requirements  in  the  statutes.      He  shared  his                                                               
understanding that  it is the  dealer's responsibility  to ensure                                                               
that the  information on  the title is  accurate, but  that small                                                               
dealers are  not required  to check  the title  for inaccuracies,                                                               
only large ones.                                                                                                                
                                                                                                                                
CO-CHAIR SPOHNHOLZ asked if Representative  Claman could bring an                                                               
answer to  that question back  to the committee meeting  the next                                                               
time it hears HB 36.                                                                                                            
                                                                                                                                
6:33:56 PM                                                                                                                    
                                                                                                                                
MR. WAEHLER  added that what  usually happens when  an individual                                                               
has a vehicle  that has been wrecked but still  has a clean title                                                               
because  a  new  title  has   not  been  processed  yet,  is  the                                                               
individual sells the  vehicle with the old clean  title and there                                                               
is  no  disclosure  of  the  wreckage.    When  that  title  gets                                                               
transferred into  the new  owner's name, that  is often  when the                                                               
reconstructed  status  gets  discovered,  he  said.    When  this                                                               
happens, there is no paper trail  that shows that the vehicle has                                                               
been reconstructed.                                                                                                             
                                                                                                                                
6:35:03 PM                                                                                                                    
                                                                                                                                
MARTIN MARTINSEN,  Owner, Continental  Auto Group, said  that his                                                               
business is in Anchorage, Alaska and  he noted that he is a board                                                               
member  of the  Alaska  Auto  dealer Association.    He began  by                                                               
answering the  earlier question about the  requirement to provide                                                               
the make  and model of all  cars sold on the  dealer application,                                                               
and  shared  that  that  pertains   only  to  new  car  franchise                                                               
dealers.; it does not pertain to  used car dealers.  He continued                                                               
by talking  about how  often curbstoning  happens, and  he agreed                                                               
that it happens  quite frequently.  He said that  in fact, former                                                               
Alaska Attorney General Ed Sniffen  said that curbstoning was one                                                               
of the largest complaints that Mr. Sniffen got.                                                                                 
                                                                                                                                
MR.  MARTINSEN gave  an example  of curbstoning  in his  personal                                                               
life in  which a  friend of  his who was  interested in  buying a                                                               
Mazda-3 went  to Mr. Martinsen for  his opinion on that  make and                                                               
model.  He said that he  shared with his friend that Mazda-3 cars                                                               
have  a great  consumer report  and  are "typically  a very  good                                                               
car."  He offered  to look up the VIN for his  friend in order to                                                               
tell  him if  there were  any  problems with  the car.   When  he                                                               
looked up  the car,  he discovered that  his dealership  had just                                                               
sold  that  exact  car  three  day earlier  at  a  dealer's  auto                                                               
auction.  Mr. Martinsen contacted  his manager about the car, and                                                               
was told  by the  manager that  the car  had a  bad transmission.                                                               
The  dealership chose  to  sell  the car  at  auction instead  of                                                               
replacing  the   transmission  because   it  would've   been  too                                                               
expensive,  and he  continued that  both the  dealership and  the                                                               
auction was  aware that the  car would be  sold "as is"  and that                                                               
there was no  warranty for it.  An individual  purchased this car                                                               
from  the auction,  and it  was on  Craigslist the  next day,  he                                                               
said.   He  reiterated that  the Office  of the  Attorney General                                                               
receives  this complaint  repeatedly, and  he shared  his opinion                                                               
that the  proposed legislation would  help add  more requirements                                                               
to the  process to  get rid of  these "shady  characters" getting                                                               
dealer licenses.                                                                                                                
                                                                                                                                
6:40:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked how  this  bill  would remedy  the                                                               
situation that Mr. Martinsen described.                                                                                         
                                                                                                                                
MR. MARTINSEN  replied that it would  not.  He stated  that there                                                               
was a  lot of  discussion about the  extent of  the requirements,                                                               
and the restrictiveness that was  determined to be appropriate is                                                               
what is  in the legislation.   He shared that there  were members                                                               
on the  board that wanted  the requirements to be  more stringent                                                               
and there  were others who  felt differently, and  the compromise                                                               
is what can be seen in the bill.                                                                                                
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked  if  car  dealers  currently  have                                                               
liability insurance.                                                                                                            
                                                                                                                                
MR.  MARTINSEN  responded that  no,  they  do  not have  to  have                                                               
liability insurance.   He commented  that Continental  Auto Group                                                               
has insurance in  order to be a franchise dealer,  but that would                                                               
be one of the additional requirements.                                                                                          
                                                                                                                                
REPRESENTATIVE MCCARTY asked for  clarity as to whether mandating                                                               
liability insurance would be the remedy.                                                                                        
                                                                                                                                
MR.  MARTINSEN   responded  yes,  absolutely.     He  added  that                                                               
curbstoning  is fraud  but it's  very difficult  to prove  it has                                                               
occurred.  The individuals committing  this fraud are able to buy                                                               
a car  from Craigslist  and sign  it over  to a  new unsuspecting                                                               
buyer without leaving a paper trail.                                                                                            
                                                                                                                                
6:43:13 PM                                                                                                                    
                                                                                                                                
STEVE  ALLWINE,   Owner,  Mendenhall   Auto,  Member   of  Alaska                                                               
Automobile Association,  Board member  of the Alaska  Auto Dealer                                                               
Association, commented that the object  of the legislation is not                                                               
to preclude people  from the auto dealer industry, it  is to make                                                               
the  requirements more  stringent to  discourage the  individuals                                                               
committing  fraud from  being able  to  enter the  industry.   He                                                               
opined that HB 36 is a  positive step in the right direction, but                                                               
it would not fix everything.                                                                                                    
                                                                                                                                
[HB 36 was held over.]                                                                                                          
                                                                                                                                
        HB  30-WORKERS' COMP: DEATH; PERM PARTIAL IMPAIR                                                                    
                                                                                                                                
6:44:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the next  order of  business                                                               
would  be HOUSE  BILL  NO.  30, "An  Act  relating  to notice  of                                                               
workers' compensation death benefits;  relating to the payment of                                                               
workers' compensation  benefits in the case  of permanent partial                                                               
impairment;  relating to  the  payment  of workers'  compensation                                                               
death benefits; and providing for an effective date."                                                                           
                                                                                                                                
6:44:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ANDY  JOSEPHSON,  Alaska  State  Legislature,  as                                                               
prime  sponsor, presented  HB 30.   He  stated that  the proposed                                                               
bill is fairly straightforward.   He shared that the catalyst for                                                               
the bill originally was his learning  about a young woman who had                                                               
died in  an electrical  accident, and  since she  did not  have a                                                               
spouse or have  children, there was no one to  sue on her behalf.                                                               
He  explained  that there  was  no  workers' compensation  remedy                                                               
under  title  AS 23.    This  situation  made him  interested  in                                                               
worker's  compensation and  researching AS  23.   He shared  that                                                               
when he  began investigating  this seven or  eight years  ago, he                                                               
discovered that Alaska's permanent  partial impairment rating had                                                               
not been updated  since the year 2000, and it  still has not been                                                               
updated  to this  day.   He  explained that  a permanent  partial                                                               
impairment rating  refers to situations  in which a  person lives                                                               
through an injury,  but has a permanent disability  rating due to                                                               
a body part  no longer functioning properly  because of permanent                                                               
injuries sustained from the accident.                                                                                           
                                                                                                                                
REPRESENTATIVE  JOSEPHSON continued  by sharing  the formula  for                                                               
what  he  referred  to  as  the  "whole  body  number"  which  is                                                               
multiplied by the  percentage of disability.  He  cited Section 2                                                               
of HB 30 on page 2:                                                                                                             
                                                                                                                                
     * Sec. 2. AS 23.30.190(a) is amended to read:                                                                            
                (a)  In   case  of  impairment   partial  in                                                                    
     character but  permanent in quality, and  not resulting                                                                    
     in  permanent  total  disability, the  compensation  is                                                                    
     $273,000   [$177,000]multiplied   by   the   employee's                                                                
     percentage  of   permanent  impairment  of   the  whole                                                                    
     person. The  percentage of permanent impairment  of the                                                                    
     whole  person is  the percentage  of impairment  to the                                                                    
     particular body part, system,  or function converted to                                                                    
     the  percentage of  impairment to  the whole  person as                                                                    
     provided under  (b) of  this section.  The compensation                                                                    
     is payable  in a single  lump sum, except  as otherwise                                                                    
     provided in AS 23.30.041,  but the compensation may not                                                                    
     be discounted for any present value considerations.                                                                        
                                                                                                                                
REPRESENTATIVE JOSEPHSON shared that  the impact of amending this                                                               
legislation is  that Alaska would  move from "something  like the                                                               
forty-fifth  [most   generous]  state"   in  terms   of  workers'                                                               
compensation, with  only four states  less generous  than Alaska,                                                               
"to  the  middle of  the  pack."    He  reiterated that  the  key                                                               
component of the bill is to update permanent partial impairment.                                                                
                                                                                                                                
6:48:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON   explained  that  he   had  originally                                                               
proposed  a  death  benefit  to  be  included  in  the  bill  for                                                               
individuals  such  as the  previously  mentioned  woman who  died                                                               
childless and  without a spouse;  however, that addition  was met                                                               
with objection during  the drafting of the bill  and was removed.                                                               
He  emphasized that  the bill  in  its current  state is  "almost                                                               
strictly" an  inflation adjustment  that updates  various numbers                                                               
in  workers' compensation  law.   He noted  that he  said "almost                                                               
strictly" because  the bill also creates  notice requirements for                                                               
death  benefits and  also for  the process  of getting  grievance                                                               
counseling.                                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOSEPHSON continued  that the  theory behind  the                                                               
bill is  the following:   if an unmarried and  childless 18-year-                                                               
old person died on a  construction worksite, the person's parents                                                               
would  have no  remedy  to the  individual's  death because  they                                                               
couldn't sue in  personal injury.  He shared  his thought process                                                               
that  the employer  should notify  their employees  that workers'                                                               
compensation  will  not  provide  anything in  the  case  of  the                                                               
employees'  death,  and  that  the   employees  should  get  life                                                               
insurance to be fully covered.                                                                                                  
                                                                                                                                
REPRESENTATIVE JOSEPHSON  directed attention to  page 3 of  HB 30                                                               
and shared that the bill  would update funeral costs from $10,000                                                               
to $12,000.   It  would also  update an  amendment that  was last                                                               
adjusted in 1968 by increasing  compensation for individuals that                                                               
were dependent upon a deceased  individual, but do not qualify as                                                               
direct descendants, from $20,000 to $150,000.                                                                                   
                                                                                                                                
6:50:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON then directed  attention to Section 5 of                                                               
the bill.   He  said currently  when a parent  dies and  leaves a                                                               
child with  no other parent  providing for the child,  under law,                                                               
the  child would  receive workers'  compensation benefits  though                                                               
age 19  and then  would get  benefits for  another four  years if                                                               
attending vocational  school or college.   Under Section  5, that                                                               
benefit would extend to individuals  who might be in the military                                                               
instead of vocational school or college.   He added that the bill                                                               
has two fiscal notes, which net  out to around $270,000 as a cost                                                               
to the state.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOSEPHSON concluded  that his  office received  a                                                               
letter from  the Alaska Municipal  League (AML) in  opposition to                                                               
the  bill; however,  he  noted  that the  last  paragraph of  the                                                               
letter states  that the  key feature of  the bill,  the permanent                                                               
partial impairment rating, should be  changed.  Not only that, he                                                               
added, but the letter states  that the rating should be inflation                                                               
proof, which is a suggestion that  is more extensive than what is                                                               
being proposed under HB 30.                                                                                                     
                                                                                                                                
6:53:14 PM                                                                                                                    
                                                                                                                                
ELISE  SORUM-BIRK, Staff,  Representative Andy  Josephson, Alaska                                                               
State Legislature, offered a PowerPoint  presentation on HB 30 on                                                               
behalf of Representative Josephson, prime  sponsor.  She began on                                                               
slide 2 of  her presentation, "Four Major Goals,"  and listed the                                                               
goals, which read as follows [original punctuation provided]:                                                                   
                                                                                                                                
        • To adjust Permanent Partial Impairment (PPI)                                                                          
          rates for inflation                                                                                                   
        • To adjust rates for funeral expenses and death                                                                        
          benefits for inflation                                                                                                
        • To ensure that workers are made aware of the                                                                          
          disparity in benefits for single and childless                                                                        
          workers                                                                                                               
        • to clarify the law relating to benefit payments                                                                       
          for orphan children after age 19                                                                                      
                                                                                                                                
MS.  SORUM-BIRK   proceeded  to   slide  3,   "Permanent  Partial                                                               
Impairment  (PPI)  rates have  not  been  adjusted for  inflation                                                               
since 2000,"  and reiterated that  PPI is based on  percentage of                                                               
the whole body.  She summarized  the slide and explained that the                                                               
method of  calculating PPI was  established in 1988 and  has only                                                               
been updated once  since then in the year 2000.   She shared that                                                               
HB  30 adjusts  the  $177,000  PPI rate  established  in 2000  to                                                               
$273,000 to account for inflation.                                                                                              
                                                                                                                                
6:55:49 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK continued  to slide 4, "'How much is  a limb worth                                                               
-ProPublica,'" which  included a  graphic from  a report  done by                                                               
ProPublica showing the comparison of how  much a limb is worth in                                                               
Alaska  compared to  the national  average based  off PPI  rates.                                                               
She  shared  that  the  graphic  is  customizable  and  committee                                                               
members  can go  to the  website to  see how  Alaska compares  to                                                               
other states.                                                                                                                   
                                                                                                                                
MS. SORUM-BIRK  moved on to slide  5, "The death benefit  paid to                                                               
non-child dependents  has not  been adjusted  in over  50 years,"                                                               
and said  that other than PPI  rates, the bill would  also update                                                               
some death benefit  rates.  She summarized the  slide, which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
        • Under AS 23.20.215(a)(4) the death benefit paid to a                                                                  
          dependent father, mother, grandchild, brother or                                                                      
          sister is a maximum of only $20,000                                                                                   
        • This amount was set in 1968                                                                                           
        • HB 30 amends this statute to adjust for inflation and                                                                 
          sets new amount at $150,000                                                                                           
                                                                                                                                
MS.  SORUM-BIRK  advanced  to  slide 6,  "Lump  sum  amounts  for                                                               
funeral expenses  and one-time payments  to widow or  widower are                                                               
updated," and  explained that there  are two more  updated dollar                                                               
amounts outlined  in Section 4  of the  bill, which are  lump sum                                                               
amounts for funeral expenses and  one-time payments to a widow or                                                               
widower  of the  deceased.   She  gave examples  from the  slide,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
        • Under AS 23.30.215(a)(1) the cap amount for                                                                           
        funeral expenses is set at a maximum of $10,000                                                                         
               - HB 30 sets new amount at $12,000                                                                               
        • Under AS 23.30.215(a)(5) the lump sum amount                                                                          
          given to a widow/widower (or child if no                                                                              
          surviving spouse) expenses is set at $5,000                                                                           
          - HB 30 adjusts this amount to $8,000                                                                                 
        • The current rates for both benefits were                                                                              
          established in 2000.                                                                                                  
                                                                                                                                
MS.  SORUM-BIRK continued  to slide  7, "Definition  of 'child,'"                                                               
and  shared that  a  child is  defined  differently for  workers'                                                               
compensation purposes.   She read the definition  from the slide,                                                               
which read as follows [original punctuation provided]:                                                                          
                                                                                                                                
        • AS 23.30.395(8) includes                                                                                              
        • "persons who are under 19"                                                                                            
        • "persons who, though 19 years of age or over, are                                                                     
          wholly dependent upon the deceased employees and                                                                      
          incapable of self-support by reason of mental or                                                                      
          physical disability"                                                                                                  
        • "persons of any age while they are attending the                                                                      
          first four years of vocational school, trade                                                                          
          school, or college"                                                                                                   
      • "persons of any age while attending high school"                                                                        
        • HB  30    creates    a   new    subsection    AS                                                                      
          23.30.215(j)that    extends   the    payment   for                                                                    
          "dependent children" (whose single parent died at                                                                     
          work) to age 23 across the board.                                                                                     
                                                                                                                                
6:59:42 PM                                                                                                                    
                                                                                                                                
MS.  SORUM-BIRK proceeded  to slide  8, "The  Elevator Paradigm,"                                                               
and  explained  that it  shows  how  few  benefits a  single  and                                                               
childless  worker   would  receive  compared  to   their  married                                                               
counterpart with children.   The slide read  as follows [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     What damages do they receive?                                                                                              
          Customer-                                                                                                             
                  • Economic damages                                                                                            
                  • Non-economic damages                                                                                        
                  • Pain and Suffering                                                                                          
                  • Loss of Consortium                                                                                          
                  • Punitive                                                                                                    
                  • Up to $1.5 million                                                                                          
                                                                                                                                
          Single childless worker -                                                                                             
                  • Funeral Expenses                                                                                            
                                                                                                                                
MS. SORUM-BIRK  moved on to slide  9, "The parent or  estate of a                                                               
single  worker with  no dependents  who dies  on the  job has  no                                                               
remedy," and shared  that Section 1 of HB  30 addresses providing                                                               
notice to  employees about the  available death benefits  and how                                                               
those  benefits  differ  for  single   childless  workers.    She                                                               
emphasized the importance of single  childless workers being made                                                               
aware of the  difference in benefits.  The slide  read as follows                                                               
[original punctuation provided]:                                                                                                
                                                                                                                                
        • Under current   law   single   workers   without                                                                      
          dependents are the only class of worker who                                                                           
          receives only funeral expenses                                                                                        
        • Parents cannot collect worker's compensation                                                                          
        • HB 30 does not add a new benefit for this class                                                                       
          of workers like previous iterations of this                                                                           
          legislation have                                                                                                      
        • HB 30 adds a new section AS 23.10.435 to provide                                                                      
          all employees with notice of a death benefits and                                                                     
          to make them aware of the lack of benefits for                                                                        
          single workers without dependents                                                                                     
                                                                                                                                
7:01:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked  what the  increases  in  workers'                                                               
compensation have been over the years.                                                                                          
                                                                                                                                
REPRESENTATIVE  JOSEPHSON interjected  that he  believes workers'                                                               
compensation has decreased, not increased.                                                                                      
                                                                                                                                
7:02:43 PM                                                                                                                    
                                                                                                                                
MS. SORUM-BIRK responded  that between 2004 and 2017  there was a                                                               
27 percent decline in the  amount spent by businesses on workers'                                                               
compensation  related  to  total   wages  paid.    Comparatively,                                                               
indemnity benefits decreased  from $0.65 to $0.38  per $100 spent                                                               
on  wages between  2004 and  2017.   Overall, indemnity  benefits                                                               
shrunk by 40.8 percent during that time period.                                                                                 
                                                                                                                                
7:03:51 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  added  that workers'  compensation  rates  have                                                               
decreased by more  than 50 percent in the last  four years, which                                                               
has been driven  by a decline in on-the-job injuries.   He shared                                                               
that Alaska is  now tenth in the nation whereas  a few years ago,                                                               
Alaska was first.                                                                                                               
                                                                                                                                
7:04:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  stated that  he just performed  an online                                                               
search  and shared  that the  search shows  Alaska as  having the                                                               
highest workers' compensation rate.                                                                                             
                                                                                                                                
CO-CHAIR SPOHNHOLZ asked for his source.                                                                                        
                                                                                                                                
REPRESENTATIVE   KAUFMAN  said   that  the   website  he   found,                                                               
"howmuch.com,   understanding    money,"   used    the   workers'                                                               
compensation  information sourced  from the  National Academy  of                                                               
Social Insurance in 2017.                                                                                                       
                                                                                                                                
7:05:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS shared  that the  number Representative  Kaufman                                                               
found was correct years ago but  is not correct anymore.  He said                                                               
that  he   would  be  happy  to   follow  up  on  this   and  get                                                               
Representative Kaufman the correct figures.                                                                                     
                                                                                                                                
7:05:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   explained    that   part   of   what                                                               
Representative Kaufman  may be referring  to is the high  cost of                                                               
medical care.   He said that HB  30 does not concern  the cost of                                                               
health  care, it  concerns  situations  of death.    Some of  the                                                               
factors  that   contribute  to  the  higher   costs  of  workers'                                                               
compensation  in  Alaska wouldn't  apply  in  this situation,  he                                                               
explained.   He added that this  bill should cost the  state some                                                               
money since the purpose of it  is to increase the amount of money                                                               
paid to people  who are permanently disabled.   He continued with                                                               
an example,  sharing that  if a  person in  Alaska lost  an index                                                               
finger while working,  the person would only get  about $5,000 in                                                               
compensation.   If an individual were  to lose an arm  in Nevada,                                                               
that person  would get $800,000,  while in Alaska the  benefit is                                                               
just over $100,000.  The median in  the country for a lost arm is                                                               
$170,000, he  said.  He  reiterated that the intended  purpose is                                                               
to address permanent disability or death.                                                                                       
                                                                                                                                
7:08:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SOHNHOLZ  thanked   Representative  Josephson  for  the                                                               
important clarification.                                                                                                        
                                                                                                                                
7:08:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON asked what the  impact to premiums would be                                                               
for workers' compensation.                                                                                                      
                                                                                                                                
MS.  SORUM-BIRK responded  that that  information is  included in                                                               
the  fiscal  note  from  the  Department  of  Labor  &  Workforce                                                               
Development that is in the packets that members received.                                                                       
                                                                                                                                
7:09:34 PM                                                                                                                    
                                                                                                                                
CHARLES  COLLINS, Director,  Division  of Workers'  Compensation,                                                               
shared that  the National Council of  Commercial Insurance (NCCI)                                                               
- the actuarial for  the State of Alaska - did a  workup on HB 30                                                               
and found  that rates would increase  by 2.9 percent if  the bill                                                               
were implemented  January 1, 2022.   He noted that on  January 1,                                                               
2021, insurance rates  had been lowered for the eighth  year in a                                                               
row by 14 percent.                                                                                                              
                                                                                                                                
7:10:59 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ announced HB 30 was held over.                                                                               
                                                                                                                                
^CONFIRMATION HEARING(S):                                                                                                       
                    CONFIRMATION HEARING(S):                                                                                
                                                                                                                              
^Board of Dental Examiners                                                                                                      
                   Board of Dental Examiners                                                                                
                                                                                                                              
^Board of Massage Therapists                                                                                                    
                  Board of Massage Therapists                                                                               
                                                                                                                              
^Board of Nursing                                                                                                               
                        Board of Nursing                                                                                    
                                                                                                                              
^Board of Pharmacy                                                                                                              
                       Board of Pharmacy                                                                                    
                                                                                                                              
7:11:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  final order  of business                                                               
would be  confirmation hearings for the  governor's appointees to                                                               
the various boards.                                                                                                             
                                                                                                                                
7:12:11 PM                                                                                                                    
                                                                                                                                
KELLY LUCAS,  Appointee, Board of  Dental Examiners,  shared that                                                               
he has  been a dentist  in Alaska for 35  years, has served  as a                                                               
public health service officer, has  served as a dental officer in                                                               
the Army  National Guard,  and has  served in  private practices.                                                               
He has served on the island  of Saint Paul, Alaska and in Naknek,                                                               
Alaska  in  collaboration with  those  cities  and boroughs,  and                                                               
currently  has  private  practices   in  Anchorage,  Naknek,  and                                                               
Dillingham.  He  stated that he thinks that  his broad experience                                                               
in these "mini dental walks of  life" brings perspective.  He has                                                               
served on the board for two years  and he shared that he plans to                                                               
serve another four with the legislature's support.                                                                              
                                                                                                                                
7:13:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opened public  testimony on  the confirmation                                                               
hearing  of  Kelly  Lucas,  appointee  to  the  Board  of  Dental                                                               
Examiners.  After  ascertaining that there was no  one who wished                                                               
to testify, she closed public testimony.                                                                                        
                                                                                                                                
7:14:11 PM                                                                                                                    
                                                                                                                                
JULIE ENDLE, Appointee, Board of  Massage Therapists, shared that                                                               
she is  currently serving as a  public board member on  the Board                                                               
of Massage.   She said that she is adept  at noticing details and                                                               
scrutinizes every  line when the  board receives  an application.                                                               
She stated that  she has been serving for a  couple of years, she                                                               
is excited  to learn more,  and she considers the  opportunity an                                                               
honor.                                                                                                                          
                                                                                                                                
7:15:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY asked how many  years Ms. Endle has served                                                               
and how many more years the appointment would allow.                                                                            
                                                                                                                                
MS. ENDLE  said that she  has served  for two years  and believes                                                               
that the appointment is for another two years.                                                                                  
                                                                                                                                
7:16:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ asked  what Ms.  Endle's interest  is in  the                                                               
board.                                                                                                                          
                                                                                                                                
MS. ENDLE responded that she loves  massage and that when she was                                                               
asked  if she  would be  interested in  serving on  a board,  the                                                               
Board  of  Massage was  one  of  the  available options.    She's                                                               
learned  that the  position  is  a lot  more  demanding than  she                                                               
originally  expected,  and she  has  learned  more about  massage                                                               
itself.   She  shared that  she is  excited to  continue learning                                                               
more.   She  added that  it was  pointed out  that the  board was                                                               
created   for  [regulation]   of   human   trafficking  and   sex                                                               
trafficking  and she  believes that  the board  has been  able to                                                               
thwart applications  of traffickers attempting to  come to Alaska                                                               
to get licensed here.                                                                                                           
                                                                                                                                
CO-CHAIR  SPOHNHOLZ   asked  about  the  change   in  regulations                                                               
relating to licensure for massage  therapists which would require                                                               
additional  licensure   for  every   practice  where   a  massage                                                               
therapist works.   She  asked what the  rationale was  for making                                                               
that change.                                                                                                                    
                                                                                                                                
MS.  ENDLE  questioned if  this  regulatory  change had  occurred                                                               
before she joined  the board.  She shared  her understanding that                                                               
in order to practice massage therapy, one must be licensed.                                                                     
                                                                                                                                
7:20:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  said  that  this  regulatory  change  is                                                               
currently being considered.    This would include a rate increase                                                               
to $300  per site  at which  a massage  therapist practices.   He                                                               
asked if she had any information about that regulatory change.                                                                  
                                                                                                                                
MS. ENDLE  responded that "per  site" applies  to establishments,                                                               
and  that the  board requires  that  the board  be notified  when                                                               
there is an establishment with a new license.                                                                                   
                                                                                                                                
REPRESENTATIVE  MCCARTY asked  whether  a  massage therapist  who                                                               
worked at  a chiropractic office one  day a week and  an athletic                                                               
club on  another would have to  pay the $300 fee  or whether each                                                               
establishment would have to pay the $300 fee.                                                                                   
                                                                                                                                
MS. ENDLE  clarified that the  establishment pays the $300.   The                                                               
licensed massage  therapists do not have  to pay the fee  if they                                                               
work in different establishments.                                                                                               
                                                                                                                                
REPRESENTATIVE MCCARTY asked if the  fee is per massage therapist                                                               
or per establishment.                                                                                                           
                                                                                                                                
MS. ENDLE responded  that the fee is per establishment.   If, for                                                               
example,  she were  to  open  up a  spa  and  employ ten  massage                                                               
therapists, she would pay $300 total, she said.                                                                                 
                                                                                                                                
7:23:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS expressed  his appreciation to Ms.  Endle and the                                                               
other board members for their work on human trafficking.                                                                        
                                                                                                                                
CO-CHAIR SPOHNHOLZ echoed Co-Chair Fields' sentiment.                                                                           
                                                                                                                                
7:23:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opened public testimony for  the confirmation                                                               
hearing  of  Julie  Endle,  appointee to  the  Board  of  Massage                                                               
Therapists.  After ascertaining that  there was no one who wished                                                               
to testify, she closed public testimony.                                                                                        
                                                                                                                                
7:24:06 PM                                                                                                                    
                                                                                                                                
CATHERINE HAMPLE,  Appointee, Board  of Nursing, shared  that she                                                               
is a registered nurse and has been  in nursing for 46 years.  She                                                               
started in  entry-level positions and got  her bachelor's degree,                                                               
completed  three master's  degrees, and  worked on  her doctorate                                                               
degree.    She  shared  that  she  likes  supporting  nurses  and                                                               
ensuring that they are practicing safely.                                                                                       
                                                                                                                                
CO-CHAIR SPOHNHOLZ asked why Ms.  Hample is interested in serving                                                               
on the board.                                                                                                                   
                                                                                                                                
MS. HAMPLE responded  that she wants to ensure that  safe care is                                                               
delivered  to  Alaskans  and  that  students  get  the  necessary                                                               
education when they go through the nursing programs.                                                                            
                                                                                                                                
CO-CHAIR SPOHNHOLZ noted that Ms.  Hample is an adjunct professor                                                               
for the School  of Nursing at the University of  Alaska and asked                                                               
what she teaches.                                                                                                               
                                                                                                                                
MS. HAMPLE replied  that she was, but is now  teaching at Charter                                                               
College.  She  said she teaches topics such  as pharmacy, bedside                                                               
nursing, critical care, and medical surgery.                                                                                    
                                                                                                                                
CO-CHAIR SPOHNOLZ asked if Ms. Hample was doctor.                                                                               
                                                                                                                                
MS. HAMPLE responded in the affirmative.                                                                                        
                                                                                                                                
CO-CHAIR SPOHNHOLZ  referred to  Dr. Hample  as such,  and stated                                                               
that she tries to recognize people's education when possible.                                                                   
                                                                                                                                
7:25:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY asked  Ms. Hample  to share  any concerns                                                               
she may have regarding the board.                                                                                               
                                                                                                                                
MS. HAMPLE  responded that she  thinks the board is  doing really                                                               
well but needs  an executive director.  The search  has begun for                                                               
candidates for that position, and  she explained that other board                                                               
members  are currently  performing  the duties  of the  executive                                                               
director in the meantime.                                                                                                       
                                                                                                                                
7:26:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opened public  testimony on  the confirmation                                                               
hearing of Catherine  Hample, appointee to the  Board of Nursing.                                                               
After ascertaining that  there was no one who  wished to testify,                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
7:27:17 PM                                                                                                                    
                                                                                                                                
JAMES HENDERSON, Appointee, Board of  Pharmacy, said that he is a                                                               
working pharmacist  and graduated  from pharmacy school  in 1995.                                                               
He worked  for a pharmacy  in Soldotna,  Alaska, for a  number of                                                               
years and then  purchased a pharmacy in Soldotna  that serves the                                                               
Kenai Peninsula which  he runs to this day.   He shared that he's                                                               
been on the board for the past few  years and wants to be able to                                                               
continue to  serve on  the board  and keep  the people  of Alaska                                                               
safe and do his civic duty.                                                                                                     
                                                                                                                                
7:28:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  asked if  Mr. Henderson could  share some                                                               
concerns   he  has   regarding  pharmacy   and  distribution   of                                                               
medication.                                                                                                                     
                                                                                                                                
MR. HENDERSON  explained that  some of the  things the  board has                                                               
been working  on are  the controlled  substance issue  and opioid                                                               
abuse.  He shared that they  have been adjusting to the impact of                                                               
COVID-19  and that  they are  working on  making it  possible for                                                               
technicians  to  administer   vaccines,  including  the  COVID-19                                                               
vaccines.                                                                                                                       
                                                                                                                                
7:30:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opened public  testimony on  the confirmation                                                               
hearing for James Henderson, appointee  to the Board of Pharmacy.                                                               
After ascertaining that  there was no one who  wished to testify,                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
7:30:57 PM                                                                                                                    
                                                                                                                                
TAMMY  LINDEMUTH, Appointee,  Board of  Pharmacy, explained  that                                                               
she has served on  a public seat for three years  on the Board of                                                               
Pharmacy and that this is  a renomination for another four years.                                                               
She  said that  she has  a  science degree  and has  worked as  a                                                               
medical language  specialist in  various fields  for the  past 25                                                               
years.   It's  been "a  treat"  to be  able  to help  out in  the                                                               
medical field  in this capacity,  she said.   Some of  her duties                                                               
have included  helping out  with the  opioid epidemic,  being the                                                               
chair  of  the  Controlled   Substance  Advisory  Committee,  and                                                               
learning  what  Alaska  is  doing  in order  to  make  the  state                                                               
healthier and safer.                                                                                                            
                                                                                                                                
7:32:21 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ asked  Ms. Lindemuth  what  motivated her  to                                                               
serve on the board.                                                                                                             
                                                                                                                                
MS. LINDEMUTH said she wanted to  help out and make a difference.                                                               
She said  it brings her  a sense of purpose  to feel like  she is                                                               
helping in the opioid epidemic.                                                                                                 
                                                                                                                                
CO-CHAIR SPOHNHOLZ agreed that the  board has done important work                                                               
particularly on the prescription  monitoring program and that she                                                               
is appreciative of  the work and progress they have  been able to                                                               
make.                                                                                                                           
                                                                                                                                
7:33:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  opened public  testimony on  the confirmation                                                               
hearing of Tammy  Lindemuth, appointee to the  Board of Pharmacy.                                                               
After ascertaining that  there was no one who  wished to testify,                                                               
she closed public testimony.                                                                                                    
                                                                                                                                
7:33:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  clarified that  Ms. Hample had  completed her                                                               
studies  in pursuing  a  doctorate  in nursing  but  has not  yet                                                               
completed  her dissertation,  and is  therefore not  officially a                                                               
doctor at this time.                                                                                                            
                                                                                                                                
[The confirmations  of Catherine  Hample, appointee to  the Board                                                               
of  Nursing,  Kelly  Lucas,  appointee to  the  Board  of  Dental                                                               
Examiners;  Julie  Endle,  appointee  to  the  Board  of  Massage                                                               
Therapists; and  James Henderson and Tammy  Lindemuth, appointees                                                               
to the Board of Pharmacy, were treated as held over.]                                                                           
                                                                                                                                
7:34:52 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
7:35 p.m.                                                                                                                       
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
Tammy Lindemuth Board Application.pdf HL&C 3/3/2021 5:45:00 PM
HL&C Confirmations 2021
James Henderson Board Application.pdf HL&C 3/3/2021 5:45:00 PM
HL&C Confirmations 2021
Catherine Hample resume.pdf HL&C 3/3/2021 5:45:00 PM
HL&C CONFIRMATIONS 2021
Julie Endle Board Application.pdf HL&C 3/3/2021 5:45:00 PM
HL&C CONFIRMATIONS 2021
Kelly Lucas Board Application.pdf HL&C 3/3/2021 5:45:00 PM
HL&C CONFIRMATIONS 2021
HB 36 Sectional Analysis v. A 2.23.2021.pdf HL&C 3/3/2021 5:45:00 PM
HL&C 3/12/2021 3:15:00 PM
HB 36
HB 36 Sponsor Statement 2.23.2021.pdf HL&C 3/3/2021 5:45:00 PM
HL&C 3/12/2021 3:15:00 PM
HB 36
HB 36 3.2.21.PDF HL&C 3/3/2021 5:45:00 PM
HL&C 3/12/2021 3:15:00 PM
HB 36
HB 36 Fiscal Note DOA-DMV 2.26.21.pdf HL&C 3/3/2021 5:45:00 PM
HL&C 3/12/2021 3:15:00 PM
HB 36
HB 36 Testimony - Received as of 2.23.2021.pdf HL&C 3/3/2021 5:45:00 PM
HL&C 3/12/2021 3:15:00 PM
HB 36
HB 30 Presentation Labor and Commerce 2.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB30 version A.PDF HL&C 3/3/2021 5:45:00 PM
HB 30
HB30 Sectional Analysis 2.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB 30 Fiscal Notes DOLWD-WC 1.21.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB30 Fiscal Note DOA-DRM 2.26.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB 30 Supporting Document- ProPublica Graphic- How Much is a Limb Worth 2.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB 30 Supporting Document- ProPublica Graphic- Alaska v National Average 2.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB 30 WCRI Death Benefits By State 2.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB030 Supporting Document - PPI by State 02.23.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
Letter of Opposition - AMLJIA, 3.3.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB 30 Letter of Support - AFL-CIO 3.3.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30
HB30 Sponsor Statement 3.3.21.pdf HL&C 3/3/2021 5:45:00 PM
HB 30