Legislature(2023 - 2024)BARNES 124
04/17/2024 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Department of Labor and Workforce Development Commissioner | |
| HB187 | |
| HB313 | |
| HB394 | |
| HB325 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 325 | TELECONFERENCED | |
| *+ | HB 375 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | HB 187 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HJR 27 | TELECONFERENCED | |
| += | HB 313 | TELECONFERENCED | |
| += | HB 394 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 17, 2024
3:18 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Ashley Carrick
Representative Zack Fields
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Department of Labor and Workforce Development
Cathy Muoz - Juneau
- CONFIRMATION(S) ADVANCED
HOUSE BILL NO. 187
"An Act relating to utilization review entities; exempting
certain health care providers from making preauthorization
requests for certain services; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 313
"An Act relating to the calculation of the regulatory cost
charge for public utilities and pipeline carriers; and providing
for an effective date."
- MOVED CSHB 313(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 394
"An Act relating to the Regulatory Commission of Alaska and
regulation of the service of natural gas storage and liquefied
natural gas import facilities; relating to records of the
Regulatory Commission of Alaska; relating to rates established
by the Regulatory Commission of Alaska; and providing for an
effective date."
- MOVED CSHB 394(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 325
"An Act relating to business license fees; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 375
"An Act prohibiting certain restrictions based on the energy
source of a motor vehicle."
- BILL HEARING RESCHEDULED TO 4/22/24
HOUSE JOINT RESOLUTION NO. 27
Supporting trade policies for the United States that hold China,
Russia, and other countries accountable, reward leadership in
clean production standards, reward superior environmental
performance, support economic development, and support the
rebuilding of supply chains in the United States.
- BILL HEARING RESCHEDULED TO 4/22/24
PREVIOUS COMMITTEE ACTION
BILL: HB 187
SHORT TITLE: PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS
SPONSOR(s): REPRESENTATIVE(s) SUMNER
05/03/23 (H) READ THE FIRST TIME - REFERRALS
05/03/23 (H) HSS, L&C
02/15/24 (H) HSS AT 3:00 PM DAVIS 106
02/15/24 (H) Heard & Held
02/15/24 (H) MINUTE(HSS)
03/14/24 (H) HSS AT 3:00 PM DAVIS 106
03/14/24 (H) Heard & Held
03/14/24 (H) MINUTE(HSS)
03/21/24 (H) HSS AT 3:00 PM DAVIS 106
03/21/24 (H) <Bill Hearing Canceled>
03/26/24 (H) HSS AT 3:00 PM DAVIS 106
03/26/24 (H) Heard & Held
03/26/24 (H) MINUTE(HSS)
04/04/24 (H) HSS AT 3:00 PM DAVIS 106
04/04/24 (H) Moved HB 187 Out of Committee
04/04/24 (H) MINUTE(HSS)
04/08/24 (H) L&C AT 3:15 PM BARNES 124
04/08/24 (H) <Pending Referral>
04/10/24 (H) DISCHARGE FROM HSS PASSED 22/18
04/11/24 (H) HSS RPT 3DP 2NR
04/11/24 (H) DP: SUMNER, MCCORMICK, RUFFRIDGE
04/11/24 (H) NR: FIELDS, MINA
04/17/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 313
SHORT TITLE: PUBLIC UTILITY REGULATORY COST CHARGE
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/09/24 (H) READ THE FIRST TIME - REFERRALS
02/09/24 (H) L&C, FIN
03/25/24 (H) L&C AT 3:15 PM BARNES 124
03/25/24 (H) Heard & Held
03/25/24 (H) MINUTE(L&C)
03/29/24 (H) L&C AT 3:15 PM BARNES 124
03/29/24 (H) -- MEETING CANCELED --
04/05/24 (H) L&C AT 3:15 PM BARNES 124
04/05/24 (H) -- MEETING CANCELED --
04/08/24 (H) L&C AT 3:15 PM BARNES 124
04/08/24 (H) Heard & Held
04/08/24 (H) MINUTE(L&C)
04/17/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 394
SHORT TITLE: RCA REGULATE NATURAL GAS STORAGE FACILITY
SPONSOR(s): RESOURCES
03/20/24 (H) READ THE FIRST TIME - REFERRALS
03/20/24 (H) RES, L&C
04/01/24 (H) RES AT 1:00 PM BARNES 124
04/01/24 (H) <Bill Hearing Rescheduled to 04/03/24>
04/03/24 (H) RES AT 1:00 PM BARNES 124
04/03/24 (H) Heard & Held
04/03/24 (H) MINUTE(RES)
04/05/24 (H) RES AT 1:00 PM BARNES 124
04/05/24 (H) Moved HB 394 Out of Committee
04/05/24 (H) MINUTE(RES)
04/08/24 (H) RES RPT 4DP 3AM
04/08/24 (H) DP: SADDLER, MCCABE, WRIGHT, MCKAY
04/08/24 (H) AM: ARMSTRONG, MEARS, DIBERT
04/08/24 (H) L&C AT 3:15 PM BARNES 124
04/08/24 (H) Scheduled but Not Heard
04/15/24 (H) L&C AT 3:15 PM BARNES 124
04/15/24 (H) Heard & Held
04/15/24 (H) MINUTE(L&C)
04/17/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 325
SHORT TITLE: BUSINESS LICENSE FEES
SPONSOR(s): MINA
02/14/24 (H) READ THE FIRST TIME - REFERRALS
02/14/24 (H) L&C, FIN
04/03/24 (H) L&C AT 3:15 PM BARNES 124
04/03/24 (H) <Bill Hearing Rescheduled to 04/05/24>
04/05/24 (H) L&C AT 3:15 PM BARNES 124
04/05/24 (H) -- MEETING CANCELED --
04/17/24 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
CATHY MUÑOZ, Commissioner Designee, Appointee
Department of Labor and Workforce Development
Juneau, Alaska
POSITION STATEMENT: Testified as appointee as commissioner of
the Department of Labor & Workforce Development.
DON ETHERIDGE, Lobbyist
American Federation of Labor - Congress of Industrial
Organizations
Juneau, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Cathy Muñoz as commissioner of the Department of Labor &
Workforce Development.
REBECCA CARRILLO, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Cathy Muñoz as commissioner of the Department of Labor &
Workforce Development.
JIMMY EP, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Cathy Muñoz as commissioner of the Department of Labor &
Workforce Development.
TAYA BARO, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Cathy Muñoz as commissioner of the Department of Labor &
Workforce Development.
TOM BOUTIN, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in support of the appointment of
Cathy Muñoz as commissioner of the Department of Labor &
Workforce Development.
SARENA HACKENMILLER, Staff
Representative Jesse Sumner
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 187 on behalf of
Representative Sumner, prime sponsor.
JEFF DAVIS, Former President
Premera Blue Cross Blue Shield of Alaska
Wenatchee, Washington
POSITION STATEMENT: Gave invited testimony on HB 187.
PAM VENTGEN, Executive Director
Alaska State Medical Association
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony on HB 187.
JOHN KELLY, Chief Executive Officer
Alaska Air Group
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony on HB 187.
JARED KOSIN, President/CEO
Alaska Hospital & Healthcare Association
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony on HB 187.
ROBERT DOYLE, Chair
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
313; responded to a question from Representative Saddler on
Amendment 3 to HB 394.
BECKI ALVEY, Advisory Section Manager
Regulatory Commission of Alaska
Anchorage, Alaska
POSITION STATEMENT: Answered a question from Representative
Saddler during the hearing on HB 313.
REPRESENTAIVE TOM MCKAY
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the bill sponsor, the House
Resources Standing Committee, on which he serves as chair,
answered questions related to HB 394.
TREVOR JEPSON, Staff
Representative Tom McKay
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the bill sponsor, the House
Resources Standing Committee, on which Representative McKay
serves as chair, answered questions related to HB 394.
JOHN SIMS, President
Enstar National Gas
Anchorage, Alaska
POSITION STATEMENT: Answered a question from Representative
Saddler related to Amendment 3 to HB 394.
REPRESENTATIVE GENEVIEVE MINA
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, introduced HB 325 to the
committee.
REMINGTON PINELL, Staff
Representative Genevieve Mina
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Genevieve Mina,
prime sponsor, read the summary of changes for the proposed CS
for HB 325, Version S.
SYLVAN ROBB, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
325, Version S.
ACTION NARRATIVE
3:18:26 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:18 p.m. Representatives
Saddler, Prax, Wright, Carrick, Ruffridge, and Sumner were
present at the call to order. Representative Fields arrived as
the meeting was in progress.
^CONFIRMATION HEARING(S):
^Department of Labor and Workforce Development Commissioner
CONFIRMATION HEARING(S):
Department of Labor and Workforce Development Commissioner
3:18:54 PM
CHAIR SUMNER announced that the first order of business would be
a confirmation hearing on the governor's appointee for
commissioner of the Department of Labor & Workforce Development.
3:19:13 PM
CATHY MUÑOZ, Commissioner Designee, Appointee, Department of
Labor and Workforce Development (DLWD), began by giving her
history as a commissioner with DLWD and shared her personal
history in Alaska. She shared her academic qualifications and
her history as both a businesswoman and politician in Juneau and
spoke about how she challenged the department to train and learn
new things, citing an ad campaign that was performed under her
supervision in 2023. She added her experience working with the
Department of Education and Early Development (DEED) to put more
teachers in communities.
3:26:45 PM
REPRESENTATIVE FIELDS thanked Commissioner Designee Muoz for
her work.
3:27:09 PM
REPRESENTATIVE CARRICK asked about the challenges and
opportunities Commissioner Designee Muoz faced.
COMMISSIONER MUOZ said that DLWD is working on doing a cost
study to look at ways to make more people eligible for state-
sponsored child care.
3:29:05 PM
REPRESENTATIVE PRAX asked how Commissioner Designee Muoz has
been involved in citizenship assistance.
COMMISSIONER MUOZ answered that the department has recently
been involved in advocating for foreign rural workers' visas and
explained the role that she played in forwarding that advocacy.
3:30:41 PM
REPRESENTATIVE WRIGHT gave thanks to Commissioner Designee Muoz
for her time at the hearing.
3:31:19 PM
CHAIR SUMNER opened public testimony on the confirmation hearing
of the governor's appointee for commissioner of the Department
of Labor & Workforce Development.
3:31:34 PM
DON ETHERIDGE, Lobbyist, American Federation of Labor - Congress
of Industrial Organizations (AFL-CIO), testified in support of
the appointment of Cathy Muoz as Commissioner of the Department
of Labor & Workforce Development. He began by giving a personal
history of his relationship with Commissioner Designee Muoz and
attested to her character and ability to perform in the role for
which she is reapplying.
3:32:45 PM
REBECCA CARRILLO, representing self, testified in support of the
appointment of Cathy Muoz as Commissioner of the Department of
Labor & Workforce Development. She began by advocating for
Commissioner Muoz' good moral character and work as
commissioner designee of the department. She explained how
Commissioner Muoz' philosophy of inclusion and tolerance are
echoed in the mission and vision of work being done by DLWD
under her supervision.
3:35:52 PM
REPRESENTATIVE WRIGHT said he would take Ms. Carillo's words
into consideration.
3:36:11 PM
REPRESENTATIVE RUFFRIDGE thanked Ms. Carrillo for her service to
the State of Alaska.
3:36:35 PM
JIMMY EP, representing self, testified in support of the
appointment of Cathy Muoz as commissioner of the Department of
Labor & Workforce Development. He said that Commissioner
Designee Muoz has been a "pillar" for the Filipino community in
Alaska and spoke to her efforts in the recognition and uplifting
of all around her in her community. He said that her attributes
of "warmth, kindness, and genuine passion for fostering unity
and friendship" will continue to make her a great commissioner
of DLWD.
3:39:56 PM
TAYA BARO, representing self, testified in support of the
appointment of Cathy Muoz as commissioner of the Department of
Labor & Workforce Development. She began her remarks by saying
that Commissioner Designee Muoz is "all about hiring Alaskans."
She attested to Commissioner Designee Muoz' work as a public
servant and a leader who uplifted and enhanced opportunities for
all individuals in Alaska and emphasized that Commissioner
Designee Muoz is the "right person for the job."
3:44:02 PM
TOM BOUTIN, representing self, testified in support of the
appointment of Cathy Muoz as commissioner of the Department of
Labor & Workforce Development. He said the department is seldom
in the news, but has "essential responsibility." He gave a list
of qualities and attributes that are [desirable] in a would-be
commissioner of any executive department and emphasized that
Commissioner Designee Muoz has those traits.
3:45:33 PM
CHAIR SUMNER, after ascertaining there was no one else who
wished to testify, closed public testimony.
3:45:56 PM
The committee took an at-ease from 3:45 p.m. to 3:46 p.m.
3:46:04 PM
CHAIR SUMNER stated that the House Labor and Commerce Standing
Committee has reviewed the qualifications of the governor's
appointee and recommends that the following name be forwarded to
a joint session for consideration: Cathy Muoz, Commissioner of
the Department of Labor & Workforce Development. He said that
signing the report regarding appointments to boards and
commissions in no way reflects an individual member's approval
or disapproval of the appointee, and the nomination is merely
forwarded to the full legislature for confirmation or rejection.
3:46:38 PM
The committee took an at-ease from 3:46 to 3:50 p.m.
HB 187-PRIOR AUTH EXEMPT FOR HEALTH PROVIDERS
3:50:35 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 187, "An Act relating to utilization review
entities; exempting certain health care providers from making
preauthorization requests for certain services; and providing
for an effective date."
3:51:01 PM
SARENA HACKENMILLER, Staff, Representative Jesse Sumner, Alaska
State Legislature, on behalf of Representative Sumner, prime
sponsor, gave the sponsor statement for HB 187 [included in the
committee packet], which read as follows [original punctuation
provided]:
HB 187 aims to reduce the wait time for certain
health care services by exempting health care
providers from making preauthorization requests for
said services.
Currently, Alaskans who need certain health care
services must wait days and even weeks at a time to
get pre-authorized to receive health care services
because of the processing time between the health care
provider and insurance companies. This bill would help
Alaskans receive health care services immediately,
especially health care services that could save their
lives.
This bill would create a utilization review
entity that may evaluate whether a health care
provider continues to qualify for an exemption if
during the most recent 12-month period, the
utilization review entity has approved or would
approve at least 80% of the prior authorization
requests submitted by the health care provider for
that health care service.
The Health Care provider is not required to
request an exemption to qualify for an exemption. A
utilization review may not deny or reduce payment for
a health care service that is exempted.
Other states with prior authorization exemptions
have seen increased frequency of patients who receive
the health care services they need expediently.
This bill will help Alaskans receive fast,
efficient, and quality healthcare when they need it
without waiting for a preauthorization process that
could cause their health to decline even more.
3:53:18 PM
JEFF DAVIS, Former President, Premera Blue Cross Blue Shield of
Alaska, began invited testimony by giving his history of working
in Alaska's health insurance industry and sharing what problems
he thinks might be solved by HB 187. He said that currently
patients are bearing the cost of unnecessary prior authorization
in the form of delays in care. He said the original goals of
prior authorization were well meaning but because of unchecked
expansion have grown ineffective. He said the issue is the fact
that there are a huge number of prior authorization requests
that are denied initially by the payer. He shared his belief
that HB 187 would restore the balance between patients,
physicians, and health insurance providers.
4:00:38 PM
PAM VENTGEN, Executive Director, Alaska State Medical
Association, began her invited testimony on HB 187 by explaining
that when a prior authorization request is denied it must be
appealed, which can delay adequate and timely care to a patient.
She said that in the case of a denial, either a nurse or a
physician assistant may request the prior authorization appeal,
both of whom must educate the prior authorization request
reviewer on new technologies that affect the appeal which
further takes time away from care to the patient.
4:03:31 PM
JOHN KELLY, Chief Executive Officer, Alaska Air Group, began
invited testimony on HB 187 by giving an example of someone who
was diagnosed with a disease and was affected by the
complexities of insurance and delays in their prior
authorization request. He said that prior authorization has
gone awry and emphasized that the time used in the review and
appeals process is harmful to patients in the form of delayed
and lost time.
4:11:19 PM
JARED KOSIN, President/CEO, Alaska Hospital & Healthcare
Association (AHHA), began invited testimony by noting that AHHA
is in strong support of HB 187. He said that currently, prior
authorization is causing major delays with patient care that is
at times detrimental to their quality of life, and HB 187 would
help to alleviate some of the downfalls of the current prior
authorization process.
4:13:56 PM
CHAIR SUMNER announced that HB 187 was held over.
HB 313-PUBLIC UTILITY REGULATORY COST CHARGE
4:14:16 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 313, "An Act relating to the calculation of the
regulatory cost charge for public utilities and pipeline
carriers; and providing for an effective date." [The committee
adopted Amendment 1 to HB 313 at the hearing on 4/8/24.]
4:14:35 PM
CHAIR SUMNER moved to adopt Amendment 3 to HB 313, as amended,
labeled 33-GH2516\A.4, Walsh, 4/12/24, which read as follows:
Page 1, line 2, following "carriers;":
Insert "exempting utilities that furnish
residential waste collection services in competitive
markets from regulation;"
Page 2, following line 4:
Insert a new bill section to read:
"* Sec. 2. AS 42.05.711 is amended by adding a new
subsection to read:
(w) A utility that furnishes collection and
disposal service of garbage, refuse, trash, or other
waste material to residential customers in an area
where two or more utilities are competing to furnish
identical service is exempt from the provisions of
this chapter."
Renumber the following bill sections accordingly.
REPRESENTATIVE CARRICK objected.
4:14:38 PM
The committee took an at-ease from 4:14 p.m. to 4:16 p.m.
4:15:50 PM
CHAIR SUMNER explained that Amendment 3 would exempt certain
local utilities from tax in the name of stimulating competition.
He gave an example of his hometown that utilized such tax
exemptions to stimulate economic growth.
4:16:56 PM
REPRESENTATIVE FIELDS commented that he is supportive of
Amendment 3.
4:17:14 PM
REPRESENTATIVE CARRICK asked how Amendment 3 would affect areas
without competing trash collection companies.
4:17:42 PM
CHAIR SUMNER directed the question to Robert Doyle.
4:18:18 PM
ROBERT DOYLE, Chair, Regulatory Commission of Alaska, gave a
list of communities that the proposed amendment would affect and
said that it is possible for both of the utilities to provide
the service regardless of the proposed exemption and added his
belief that "competition is the ultimate form of regulation."
4:19:54 PM
REPRESENTATIVE PRAX asked why the proposed amendment would be
limited to residential markets and not commercial markets.
CHAIR SUMNER replied that commercial markets aren't regulated in
the same way that residential markets are regulated.
REPRESENTATIVE PRAX asked if the Regulatory Commission of Alaska
(RCA) would have to deregulate if another company were to come
into play.
CHAIR SUMNER explained that he does not recommend complete
deregulation, but it might be important in certain areas.
REPRESENTATIVE PRAX asked about the initial regulation of a
company and how it affects its success.
CHAIR SUMNER answered that under the current Alaska statutes,
residential trash collection companies under a certain size are
exempt from certain regulations imposed on [larger] commercial
trash collection companies.
4:21:57 PM
REPRESENTATIVE SADDLER asked if the RCA currently identifies
individual utility service areas.
4:22:23 PM
MR. DOYLE said that the RCA does require a regulatory definition
for how utility service areas are defined.
4:22:51 PM
BECKI ALVEY, Advisory Section Manager, Regulatory Commission of
Alaska, in further response, explained that the RCA does not
define specific areas in statute, rather each utility works
under a certificate that allows it to operate in a specific
service area.
4:23:47 PM
REPRESENTATIVE SADDLER asked whether a utility could change its
service area to avoid regulation.
MR. DOYLE responded that if there were two companies in the
Matanuska-Susitna ("Mat-Su") Valley, the RCA would investigate.
In response to a follow-up question, he explained that the term
"identical service" is a term limited to residential waste
collection services.
4:27:01 PM
CHAIR SUMNER clarified that the legislative intent of HB 313 is
not to monopolize a small service area or to squander a smaller
utility provider.
REPRESENTATIVE CARRICK removed her objection. There being no
further objection, Amendment 3 was adopted.
4:27:59 PM
The committee took an at-ease from 4:27 p.m. to 4:28 p.m.
4:28:17 PM
REPRESENTATIVE WRIGHT moved to report HB 313, as amended, out of
committee with individual recommendations and attached fiscal
notes.
4:28:42 PM
REPRESENTATIVE RUFFRIDGE objected.
REPRESENTATIVE RUFFRIDGE opined that the ability to increase the
regulatory cost charge is not appropriate.
4:29:07 PM
A roll call vote was taken. Representatives Prax, Saddler,
Wright, Carrick, Fields, and Sumner voted in favor of reporting
HB 313, as amended, out of committee with individual
recommendations and attached fiscal notes. Representative
Ruffridge voted against it. Therefore, CSHB 313(L&C) was
reported out of the House Labor and Commerce Standing Committee
by a vote of 6-1.
4:29:42 PM
The committee took a brief at-ease at 4:29 p.m.
4:29:48 PM
CHAIR SUMNER clarified that CSHB 313(L&C) had been reported out
of committee.
4:29:58 PM
The committee took an at-ease from 4:29 p.m. to 4:32 p.m.
HB 394-RCA REGULATE NATURAL GAS STORAGE FACILITY
4:31:04 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 394, "An Act relating to the Regulatory
Commission of Alaska and regulation of the service of natural
gas storage and liquefied natural gas import facilities;
relating to records of the Regulatory Commission of Alaska;
relating to rates established by the Regulatory Commission of
Alaska; and providing for an effective date."
4:31:22 PM
The committee took an at-ease from 4:31 p.m. to 4:32 p.m.
4:32:31 PM
REPRESENTATIVE CARRICK moved to adopt Amendment 1 to HB 394,
labeled 33-LS1441\U.1, Nauman, 4/4/24, which read as follows:
Page 1, lines 2 - 3:
Delete "relating to records of the Regulatory
Commission of Alaska;"
Page 2, line 27, through page 3, line 4:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 17 - 27:
Delete all material.
Renumber the following bill sections accordingly.
4:32:49 PM
REPRESENTATIVE WRIGHT objected.
4:32:53 PM
REPRESENTATIVE CARRICK explained that Amendment 1 would remove
the confidentiality requirement of HB 394 and cited her
questions to the RCA during the previous bill hearing as reason
for the proposed amendment.
4:34:08 PM
REPRESENTATIVE WRIGHT asked for the opinion of the bill sponsor.
4:34:24 PM
REPRESENTAIVE TOM MCKAY, Alaska State Legislature, on behalf of
the bill sponsor, the House Resources Standing Committee, on
which he serves as chair, deferred the answer regarding HB 394
to Trevor Jepson.
4:34:43 PM
TREVOR JEPSON, Staff, Representative Tom McKay, Alaska State
Legislature, on behalf of the bill sponsor, the House Resources
Standing Committee, on which Representative McKay serves as
chair, explained that there is currently a petition process that
a company has to apply for to receive confidentiality of
financial records. He said that the bill sponsor strongly
opposes Amendment 1 and warned that the proposed legislation
would be "moot, null, and void" if Amendment 1 were to pass.
4:35:28 PM
A roll call vote was taken. Representatives Carrick and Fields
voted in favor of Amendment 1 to HB 394. Representatives
Saddler, Wright, Prax, Ruffridge, and Sumner voted against it.
Therefore, Amendment 1 failed to be adopted by a vote of 2-5.
4:35:57 PM
CHAIR SUMNER moved to adopt Amendment 2 to HB 394, labeled 33-
LS1441\U.2, Nauman, 4/4/24, which read as follows:
Page 1, line 2:
Delete "and liquefied natural gas import
facilities"
Page 1, line 7:
Delete "AS 42.05.711(q), (s), and (w)"
Insert "AS 42.05.711(q) and (s)"
Page 3, lines 16 - 18:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
4:36:11 PM
TREVOR JEPSON said that Amendment 2 would allow for certain dual
jurisdiction liquified natural gas (LNG) import facilities. In
response to a question from Representative Saddler, he indicated
that [Representative McKay's staff] had not found any further
information regarding dual regulatory authority.
4:37:48 PM
REPRESENTATIVE FIELDS observed that Amendment 2 was "better
written" and "more concise."
CHAIR SUMNER stated that he would withdraw Amendment 2, then
announced that without objection, it was so ordered.
4:38:11 PM
The committee took a brief at-ease at 4:38 p.m.
4:38:40 PM
CHAIR SUMNER moved to adopt Amendment 3 to HB 394, labeled 33-
LS1441\U.3, Nauman, 4/4/24, which read as follows:
Page 1, lines 2 - 4:
Delete "and liquefied natural gas import
facilities; relating to records of the Regulatory
Commission of Alaska; relating to rates established by
the Regulatory Commission of Alaska; and providing for
an effective date"
Page 1, line 7:
Delete ", (s), and (w)"
Insert "and (s)"
Page 2, line 3, through page 3, line 4:
Delete all material.
Renumber the following bill sections accordingly.
Page 3, lines 16 - 18:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 27:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, line 29:
Delete all material.
REPRESENTATIVE WRIGHT objected for the purpose of discussion.
4:39:01 PM
REPRESENTATIVE MCKAY stated support for Amendment 3.
MR. JEPSON said that Amendment 3 would clarify language that
should've already be considered.
4:39:35 PM
REPRESENTATIVE WRIGHT removed his objection.
REPRESENTATIVE SADDLER objected for the purpose of discussion.
4:40:08 PM
REPRESENTATIVE SADDLER inquired as to how any given federal
authority might play a role in the cost of LNG and asked for an
example of a facility where federal authority is included in the
facilities cost calculations.
MR. JEPSON responded that he did not currently have an answer to
those questions.
4:41:16 PM
ROBERT DOYLE, Chair, Regulatory Commission of Alaska, said he
would need to research to answer Representative Saddler's
question.
REPRESENTATIVE SADDLER clarified that he would like to know the
downstream effects of Amendment 3 but added that he was "fairly
satisfied."
4:42:21 PM
JOHN SIMS, President, Enstar National Gas, told Representative
Saddler that he couldn't answer his question at the time and
made clear that ENSTAR Natural Gas Company is in support of
Amendment 3.
4:43:37 PM
REPRESENTATIVE SADDLER removed his objection. There being no
further objection, Amendment 3 was adopted.
4:43:51 PM
REPRESENTATIVE FIELDS moved to adopt Amendment 4 to HB 394, as
amended, labeled 33-LS1441\U.4, Nauman, 4/4/24, which read as
follows:
Page 1, lines 3 - 4:
Delete "relating to rates established by the
Regulatory Commission of Alaska;"
Page 2, lines 3 - 26:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 16:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE WRIGHT objected.
4:44:08 PM
REPRESENTATIVE FIELDS explained that Amendment 4 would help to
keep the costs of stored gas low for a utility by changing the
fair market value language in HB 394.
REPRESENTATIVE MCKAY pointed out that HB 394 would cover all gas
and emphasized that the price of gas is too unpredictable to
justify the "fair market value" language in HB 394. He stated
opposition to Amendment 4.
REPRESENTATIVE FIELDS explained the proposed amendment using a
hypothetical example.
REPRESENTATIVE MCKAY deferred the question to Mr. Doyle and
commented that it is not his intention to oversell stored gas
under HB 394.
4:47:44 PM
CHAIR SUMNER summarized Amendment 4 and invited Mr. Doyle to
speak to it.
4:48:28 PM
MR. DOYLE said that he agrees with the bill sponsor that gas
prices are established through long term contracts which are not
influenced by exogenous events.
4:49:32 PM
REPRESENTATIVE SADDLER asked Mr. Doyle what the RCA includes in
its definition of costs associated with the term "oil and gas
fields."
MR. DOYLE answered by using an example of how a long-term gas
storage contract might be conducted and further gave context to
his answer by explaining the process that a contract goes
through to come to fruition.
REPRESENTATIVE SADDLER asked if the value of the oil and gas
itself in the field is not worth more than the acquisition cost.
CHAIR SUMNER explained that the combined cost of the cushion gas
and the working gas would be comparable to the other rates and
shared his belief that the price would fluctuate by "market
magicians."
4:52:48 PM
MR. JEPSON said that the fair market value language relates only
to assets of oil and gas companies, not the gas itself.
4:53:52 PM
A roll call vote was taken. Representatives Fields and Carrick
voted in favor of Amendment 4 to HB 394. Representatives
Saddler, Prax, Wright, Ruffridge, and Sumner voted against it.
Therefore, Amendment 4 failed to be adopted by a vote of 2-5.
4:54:15 PM
REPRESENTATIVE FIELDS moved Amendment 5 to HB 394, as amended,
labeled 33-LS1441\U.8, Nauman, 4/17/24, which read as follows:
Page 1, lines 3 - 4:
Delete "relating to rates established by the
Regulatory Commission of Alaska;"
Page 2, lines 3 - 26:
Delete all material.
Renumber the following bill sections accordingly.
Page 4, lines 9 - 16:
Delete all material.
Renumber the following bill sections accordingly.
REPRESENTATIVE SADDLER objected.
4:54:27 PM
REPRESENTATIVE FIELDS explained that Amendment 5 would give the
RCA the authority to review data and records related to
confidentiality of gas prices and sales.
4:55:09 PM
The committee took an at-ease from 4:55 p.m. to 5:00 p.m.
5:00:16 PM
REPRESENTATIVE MCKAY stated that Amendment 5 is not necessary.
REPRESENTATIVE FIELDS asked Mr. Doyle if the proposed
legislation would need Amendment 5.
5:01:02 PM
MR. DOYLE responded that the way HB 394 is currently written is
sufficient to give the RCA the authority to review financial
records as necessary.
5:01:58 PM
REPRESENTATIVE FIELDS [moved to] withdraw Amendment 5. [There
being no objection, Amendment 5 was withdrawn.]
5:02:10 PM
REPRESENTATIVE RUFFRIDGE moved to report HB 394, as amended, out
of committee with individual recommendations and the
accompanying fiscal notes.
REPRESENTATIVE CARRICK objected.
5:02:30 PM
A roll call vote was begun and subsequently voided.
5:02:57 PM
The committee took an at-ease from 5:02 p.m. to 5:03 p.m.
5:03:05 PM
A roll call vote was taken. Representatives Wright, Saddler,
Prax, Ruffridge, and Sumner voted in favor of reporting HB 394,
as amended, out of committee with individual recommendations and
the accompanying fiscal notes. Representatives Carrick and
Fields voted against it. Therefore, CSHB 394(L&C) was reported
out of the House Labor and Commerce Standing Committee by a vote
of 5-2.
5:03:52 PM
CHAIR SUMNER announced that HB 375 would not be heard until
Monday.
HB 325-BUSINESS LICENSE FEES
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 325, "An Act relating to business license fees;
and providing for an effective date."
5:04:14 PM
REPRESENTATIVE RUFFRIDGE moved to adopt the proposed committee
substitute (CS) for HB 325, Version 33-LS1090\S, Nauman, 4/2/24,
as the working document. There being no objection, Version S
was before the committee.
5:04:42 PM
REPRESENTATIVE GENEVIEVE MINA, Alaska State Legislature, as
prime sponsor, introduced HB 325 to the committee.
5:05:06 PM
REMINGTON PINELL, Staff, Representative Genevieve Mina, Alaska
State Legislature, on behalf of Representative Mina, prime
sponsor, began by reading the sectional analysis for Version S
[included in committee packet], which read as follows [original
punctuation provided]:
Section 1: Removes "investigation fees" as a fee type
that is set in regulation by the department for
professional licenses.
Section 2: Removes the definition of "regulatory
costs" from AS 08.01.065(c).
Section 3: The definition of "regulatory costs" is
relocated to this section with an added clarification
that "regulatory costs" does not include disciplinary
investigations or actions involving unlicensed
practice or legal and actual costs associated with
complaints, hearings, mediation, and settlement.
Sections 4-10 make conforming changes:
Section 4: Removes reference to fees for
investigations.
Section 5: Removes reference to investigation fees
for massage therapists.
Sections 6 & 7: Removes reference to investigation
fees for marine pilots.
Section 8: Replaces investigation fees with evaluation
fees for nursing home administrators. This is for
clarity, as "investigation" means "evaluation" in this
context.
Section 9: Replaces investigation fees with evaluation
fees for pharmacists and pharmacies. This is for
clarity, same as Section 8.
Section 10. Replaces investigation fees with
evaluation for veterinarians. This is for clarity,
same as Section 8.
Section 11: HB 325 Version B specified that all first-
time business license fees would be set at $0. HB 325
Version S removes this and instead adds a new
subsection specifying a new exemption for paying the
full business fee: if a business is a sole
proprietorship, and that sole proprietor receives
public assistance, then the fee is $0.
Section 12. Sets the effective date to July 1, 2024
5:07:01 PM
REPRESENTATIVE MINA explained that Version S aims to strengthen
Alaska's economy by empowering economically disadvantaged
Alaskans to receive public benefits to pursue entrepreneurial
endeavors. She said that currently, business license fees in
Alaska are prohibitive for some Alaskans and emphasized that HB
325, Version S, is specific to Alaskans who already receive some
sort of public benefit.
5:10:06 PM
REPRESENTATIVE SADDLER asked how the proposed business license
price would increase levels of entrepreneurship in Alaska.
REPRESENTATIVE MINA said that Version S would waive the business
license fee of $50 altogether for qualified individuals. In
response to a follow-up question, she said she believed that
added bureaucracy could be an impediment to those wishing to
start a business.
5:12:31 PM
REPRESENTATIVE CARRICK asked what the cost of a business license
was during the COVID-19 pandemic.
REPRESENTATIVE MINA explained that business license fees were
waived altogether during the pandemic.
5:13:23 PM
SYLVAN ROBB, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community &
Economic Development, (DCCED), confirmed that Representative
Mina's answer was correct and explained that business license
fees in Alaska were waived entirely from April 3, 2020, through
January 31, 2023.
5:13:58 PM
REPRESENTATIVE CARRICK asked whether the number of licenses
increased during the pandemic.
MS. ROBB said she would follow up with an answer later.
5:14:28 PM
REPRESENTATIVE PRAX inquired about the fiscal note associated
with HB 325.
MS. ROBB responded that while the division handles itself
through business license fees, the majority of its funding comes
from the general fund.
5:15:31 PM
CHAIR SUMNER announced that HB 325, Version S, was held over.
5:15:53 PM
The committee took an at-ease from 5:15 p.m. to 5:17 p.m.
5:17:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:17 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Cathy Munoz Resume DOLWD_Redacted.pdf |
HL&C 4/17/2024 3:15:00 PM |
|
| HB 375 Sponsor Statement 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| HB 375 Sectional Analysis 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| HB 375 Fiscal Note 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM STRA 5/7/2024 1:30:00 PM STRA 5/9/2024 9:00:00 AM |
HB 375 |
| Letter to HHSS in follow up to 3.26.2024 hearing.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| A.4.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 313 |
| HB 187 Premera Letter.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 AK Medical Association Testimony.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 AHIP Comments AK.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 Fiscal Note DCCED.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 Letter from AETNA.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 187 ANTHC Support.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| Letter to House HSS regarding IRO 021624.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Sectional Analysis Version A.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Letter of Support - AHHA.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Sponsor Statement.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 State Law Chart.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Version A.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB187 Survey Data.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 187 |
| HB 375 Fiscal Note 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB 375 Sponsor Statement 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB 375 Sectional Analysis 4.15.24.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 375 |
| HB394 Amendments.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |
| U.8.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |
| U.9.pdf |
HL&C 4/17/2024 3:15:00 PM |
HB 394 |