Legislature(2013 - 2014)BELTZ 105 (TSBldg)
03/20/2014 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB193 | |
| SB183 | |
| SB189 | |
| SB156 | |
| SB190 | |
| SB99 | |
| Confirmation Hearings | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 193 | TELECONFERENCED | |
| += | SB 189 | TELECONFERENCED | |
| += | SB 190 | TELECONFERENCED | |
| += | SB 156 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
| *+ | SB 183 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 20, 2014
1:31 p.m.
MEMBERS PRESENT
Senator Mike Dunleavy, Chair
Senator Peter Micciche, Vice Chair
Senator Donald Olson
Senator Bert Stedman
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
CONFIRMATION HEARINGS
Alaska State Board of Public Accountancy
Leslie Schmitz - Anchorage
- CONFIRMATION ADVANCED
Alcoholic Beverage Control Board
Robert Klein - Anchorage
Marvin Yoder - Palmer
- CONFIRMATIONS ADVANCED
State Board of Registration for Architects, Engineers, and
Land Surveyors
Donald (John) Christensen - Seward
Brian Hanson - Anchorage
Luanne Urfer - Anchorage
- CONFIRMATIONS ADVANCED
Board of Barbers and Hairdressers
Jeannine Jabaay - Anchorage
Derrick Slaughter - Anchorage
Glenda Ledford - Wasilla
- CONFIRMATIONS ADVANCED
Big Game Commercial Services Board
Gene Peltola - Bethel
Michele Metz - Douglas
- CONFIRMATIONS ADVANCED
Board of Chiropractic Examiners
Christine Hill - Anchorage
Dr. Walter Campbell - Palmer
- CONFIRMATIONS ADVANCED
Board of Dental Examiners
Dr. Thomas Wells - Anchorage
- CONFIRMATION ADVANCED
Fishermen's Fund Advisory and Appeals Council
Larry Bartman - Manokotak
- CONFIRMATION ADVANCED
Alaska Gasline Development Corporation Board of Directors
Albert Bolea - Big Lake
Dave Cruz - Wasilla
Drue Pearce - Anchorage
Richard Rabinow - Houston
John Burns - Fairbanks
- CONFIRMATIONS ADVANCED
Alaska Labor Relations Agency
Willard Askren - Big Lake
Dr. Lynne Curry - Anchorage
- CONFIRMATIONS ADVANCED
Board of Marine Pilots
Richard Erickson - Ketchikan
- CONFIRMATION ADVANCED
Board of Marital and Family Therapy
JoAnn Young - Anchorage
- CONFIRMATION ADVANCED
Board of Certified Direct-Entry Midwives
Jennifer Swander - Seward
- CONFIRMATION ADVANCED
Board of Nursing
Erin Evans - Eagle River
Mary (Jennie) Grimwood - Cordova
Carrie Miller - Juneau
- CONFIRMATIONS ADVANCED
Board of Examiners in Optometry
Dr. Damien Delzer - Fairbanks
Eric Lingle - Douglas
- CONFIRMATIONS ADVANCED
Board of Pharmacy
William Altland - Craig
Anne Gruening - Juneau
- CONFIRMATIONS ADVANCED
State Physical Therapy and Occupational Therapy Board
Dr. Ilona Farr - Anchorage
Dr. Joseph Kennedy - Nome
Mary (Melissa) Robinson - Moose Pass
- CONFIRMATIONS ADVANCED
Board of Professional Counselors
Lyn Tashea - Anchorage
Stephanie Johnson - Nome
- CONFIRMATIONS ADVANCED
Board of Certified Real Estate Appraisers
David Derry - Kenai
Alfred Ferrara - Anchorage
- CONFIRMATIONS ADVANCED
Real Estate Commission
Cynthia Cartledge - Anchorage
- CONFIRMATION ADVANCED
Regulatory Commission of Alaska
Robert Pickett - Wasilla
- CONFIRMATION ADVANCED
Board of Social Work Examiners
Laura Thiesen - Glennallen
Danielle LaFon - Fairbanks
Tina Walter - Kenai
- CONFIRMATIONS ADVANCED
Board of Veterinary Examiners
Dr. Teresa Beck - Palmer
Dr. James Hagee - Chugiak
- CONFIRMATIONS ADVANCED
Workers' Compensation Appeals Commission
Philip Ulmer - Eagle River
- CONFIRMATION ADVANCED
Alaska Workers' Compensation Board
Julie Duquette - Fairbanks
David Kester - Anchorage
Michael O'Connor - Anchorage
Donna Phillips - Girdwood
Mark Talbert - Wasilla
Zebulon Woodman - Fairbanks
- CONFIRMATIONS ADVANCED
SENATE BILL NO. 193
"An Act relating to bonds required for contractors."
- HEARD & HELD
SENATE BILL NO. 183
"An Act extending the termination date of the emerging energy
technology fund and grant program."
- HEARD & HELD
SENATE BILL NO. 189
"An Act relating to an exemption from the regulation of
construction contractors."
- HEARD & HELD
SENATE BILL NO. 156
"An Act relating to direct-entry midwives."
- MOVED SB 156 OUT OF COMMITTEE
SENATE BILL NO. 190
"An Act permitting a guide-outfitter to delegate certain guide
services to a person who is not licensed by the Big Game
Commercial Services Board."
- MOVED CSSB 190(L&C) OUT OF COMMITTEE
SENATE BILL NO. 99
"An Act correcting a reference to the Alaska Industrial
Development and Export Authority revolving fund; limiting the
use of the Alaska Industrial Development and Export Authority
sustainable energy transmission and supply development fund for
certain loans and loan guarantees and allowing the development
fund to be used as security for a bond guarantee; and amending
the definition of 'qualified energy development.'"
- MOVED CSSB 99(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 193
SHORT TITLE: CONTRACTORS: BONDS; LICENSING
SPONSOR(s): SENATOR(s) MICCICHE
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
02/27/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/27/14 (S) -- MEETING CANCELED --
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/04/14 (S) Scheduled But Not Heard
03/11/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/11/14 (S) -- MEETING CANCELED --
03/13/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/14 (S) Scheduled But Not Heard
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 189
SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS
SPONSOR(s): LABOR & COMMERCE
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
02/25/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/25/14 (S) -- MEETING CANCELED --
03/04/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/04/14 (S) Heard & Held
03/04/14 (S) MINUTE(L&C)
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 190
SHORT TITLE: DELEGATION OF GUIDE-OUTFITTER DUTIES
SPONSOR(s): HUGGINS
02/21/14 (S) READ THE FIRST TIME - REFERRALS
02/21/14 (S) L&C
03/11/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/11/14 (S) -- MEETING CANCELED --
03/13/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/14 (S) Heard & Held
03/13/14 (S) MINUTE(L&C)
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 156
SHORT TITLE: DIRECT-ENTRY MIDWIVES
SPONSOR(s): KELLY
02/05/14 (S) READ THE FIRST TIME - REFERRALS
02/05/14 (S) L&C
03/11/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/11/14 (S) -- MEETING CANCELED --
03/13/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/14 (S) Heard & Held
03/13/14 (S) MINUTE(L&C)
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 99
SHORT TITLE: AIDEA: DEVELOPMENT LOANS
SPONSOR(s): MCGUIRE
04/05/13 (S) READ THE FIRST TIME - REFERRALS
04/05/13 (S) L&C
02/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/18/14 (S) Heard & Held
02/18/14 (S) MINUTE(L&C)
02/27/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/27/14 (S) -- MEETING CANCELED --
03/13/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/13/14 (S) Scheduled But Not Heard
03/18/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/18/14 (S) -- MEETING CANCELED --
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 183
SHORT TITLE: EXTEND EMERGING ENERGY TECHNOLOGY FUND
SPONSOR(s): SENATOR(s) MCGUIRE
02/19/14 (S) READ THE FIRST TIME - REFERRALS
02/19/14 (S) L&C
03/20/14 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
MINDY ROWLAND, Staff
Senator Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 193 on behalf of the sponsor.
ED SNIFFEN, Assistant Attorney General
Civil Division
Consumer Protection Unit
Department of Law
Anchorage, Alaska
POSITION STATEMENT: Stated support for SB 193.
ALAN WILSON, Legislative Chair
Alaska State Homebuilding Association (ASHA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 193.
JESSE LOGAN, Staff
Senator Lesil McGuire
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to SB 183 on
behalf of the sponsor.
EMILY FORD, Public Outreach Liaison
Alaska Energy Authority (AEA)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 183.
ALAN WILSON, Legislative Chair
Alaska State Homebuilding Association (ASHA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 189.
PATRICK DALTON, representing himself
Delta Junction, Alaska
POSITION STATEMENT: Testified in opposition to SB 189.
GARNET BROWN, President
Ketchikan Homebuilders Association (KHA)
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SB 189.
JESS HALL representing himself
Palmer, Alaska
POSITION STATEMENT: Testified in support of SB 189.
HEATHER SHADDUCK, Staff
Senator Pete Kelly
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information on SB 156 on behalf of
the sponsor.
GARY ZEPP, Staff
Senator Charlie Huggins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced the CS for SB 190.
THOR STACEY, Lobbyist
Alaska Professional Hunters Association (APHA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 190.
CAPTAIN BERNARD CHASTAIN, Alaska Wildlife Troopers
Department of Public Safety
Anchorage, Alaska
POSITION STATEMENT: Answered questions related to SB 190.
JOE WANT, representing himself
Fairbanks, Alaska
POSITION STATEMENT: Offered support and a suggestion on SB 190.
JESSE LOGAN, Staff
Senator Lesil McGuire
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced the CS for SB 99 on behalf of the
sponsor.
TED LEONARD, Executive Director
Alaska Industrial Development and Export Authority (AIDEA)
Anchorage, Alaska
POSITION STATEMENT: Discussed AIDEA's process as it relates to
SB 99.
JAMES SULLIVAN
Southeast Alaska Conservation Council (SEACC)
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to the CS for SB 99.
KEN COLLISON, Chief Operating Officer
Ucore Rare Metals Inc.
POSITION STATEMENT: Provided supporting testimony for the CS for
SB 99.
ACTION NARRATIVE
1:31:09 PM
VICE CHAIR MICCICHE called the Senate Labor and Commerce
Standing Committee meeting to order at 1:31 p.m. Present at the
call to order were Senators Micciche, Stedman, and Chair
Dunleavy.
SB 193-CONTRACTORS: BONDS; LICENSING
1:31:44 PM
VICE CHAIR MICCICHE announced the consideration of SB 193."An
Act relating to bonds required for contractors." This was the
first hearing.
1:32:02 PM
MINDY ROWLAND, Staff, Senator Micciche, Alaska State
Legislature, Juneau, Alaska, introduced SB 193 on behalf of the
sponsor speaking to the following sponsor statement:
AS 08.18.071 requires contractors operating in Alaska
to file a license bond with the Department of
Commerce, Community and Economic Development. The
purpose of the bond is not only to ensure the
contractor has financial resources to pay tax and
other obligations, it is established in order to
provide the public an avenue to seek recourse in the
event there is negligent or improper work or breach of
contract. It also helps provide protection to the
business community to help contractors and vendors
collect upon default for unpaid work or equipment
rental. The statute is an important component of
Alaska's consumer protection laws. The bond amounts
were established in 1982 and have not been updated
since. The current level of$10,000 for general
contractors and $5,000 for specialty contractors is
too low and is no longer providing the intended public
protection. In many cases, the recoverable amount is
not worth the legal and other costs associated with
pursing a claim against a bond.
SB 193 proposes to increase the license bond amounts
to the following:
General Contractors $25,000
General Contractors only residential $20,000
Mechanical or Specialty Contractors $10,000
Contractors performing minimal work $ 5,000
The construction industry, which will be impacted by
this legislation, brought forth the recommendation to
make an adjustment in the bond amounts. Given the
increase in inflation over the last 30 years, the
industry felt an increase was long overdue. Purchasing
a bond generally costs a small percentage of the total
amount of coverage, thus providing a significant
benefit to the public and other businesses in relation
to the small cost increase as a result of this
legislation.
SB 193 also corrects a loophole in the statute. All
professional contractors are required to be licensed
and file a bond. A notable exemption is that the law
does not intend to impose license and bond requirement
upon non-professional contractors such as family
members, friends, neighbors, etc., who get paid for a
small amount of work. However, current law allows work
under $10,000 to be exempt and this wording has
allowed individuals who sell themselves as
professionals to avoid the statutory licensure
requirements. In these cases, the public has no
recourse against unlicensed and unbonded contractors.
The bill corrects this by establishing a very modest
bond level for those professional contractors
performing work on projects less than $10,000. Non-
professional handymen are still exempt from the
license and bond requirements under the definition
provided in AS 08.18.171(4), which states
"'contractor' means a person who, in the pursuit of an
independent business...." This language is not
intended to include a person undertaking a small
project for a friend or relative.
She reported no outright opposition to the bill.
1:35:26 PM
VICE-CHAIR MICCICHE named the people available to testify.
ED SNIFFEN, Assistant Attorney General, Civil Division, Consumer
Protection Unit, Department of Law, stated that DOL likes the
changes incorporated in SB 193. It provides an inflation
adjustment of the bonding amounts that have been in statute
since 1982. Hopefully the increased bond amounts will result in
more consumers holding contractors accountable if their work is
faulty.
ALVIN NAGEL, Mechanical Inspection Manager, Division of Labor
Standards and Safety, Department of Labor and Workforce
Development (DOLWD), said he was available to answer questions
related to SB 193.
1:37:45 PM
ALAN WILSON, Legislative Chair, Alaska State Homebuilding
Association (ASHA), Juneau, Alaska, stated that the Board of
Directors of ASHA supports SB 193. They see it as an
inflationary adjustment, he said.
VICE-CHAIR MICCICHE announced that he would hold SB 193 in
committee for further consideration. Public testimony was open.
SB 183-EXTEND EMERGING ENERGY TECHNOLOGY FUND
1:39:06 PM
VICE-CHAIR MICCICHE announced the consideration of SB 183."An
Act extending the termination date of the emerging energy
technology fund and grant program." This was the first hearing.
JESSE LOGAN, Staff, Senator Lesil McGuire, Alaska State
Legislature, Juneau, Alaska, sponsor of SB 183, introduced the
legislation on behalf of the sponsor speaking to the following
sponsor statement: [Original punctuation provided.]
The Alaska Sustainable Energy Act of 2010 established
the Emerging Energy Technology Fund (EETF). The Alaska
Energy Authority (AEA) administers the fund and the
Alaska Center for Energy and Power (ACEP) performs
data collection. Together with a matching grant from
the Denali Commission, the fund made $8.9 million
available to develop emerging energy technologies in
Alaska.
EETF grants are for demonstration projects of
technologies that have a reasonable expectation of
becoming commercially viable within five years. An
EETF technology is one that promotes, enhances, or
expands the diversity of available energy supply
sources or means of transmission, increases energy
efficiency, or reduces negative energy-related
environmental effects. Energy technologies can include
technologies related to renewable sources of energy,
conservation of energy, enabling technologies,
efficient and effective use of hydrocarbons and
integrated systems. Projects from Round 1 saw an
impressive diversity. Priority is given to Alaska
businesses, utilities, non-profits, tribal or local
governments or other organizations.
Projects can either:
· Test emerging energy technologies or methods of
conserving energy
· Improve an existing technology
· Deploy an existing technology that has not
previously been demonstrated in the state.
The EETF is not an angel fund, but rather an
opportunity for the state of Alaska to support
projects that are near commercialization and that can
help communities who are facing increasing energy
costs. This is not a fund for projects that are in the
research and development phase, but a program that
creates synergy with the business community and the
State of Alaska to create an environment for economic
growth.
It is for these reasons that I have introduced SB 183
with the sole intention of extending the program which
still has considerable funding available under the
original appropriation and the Denali Commission's
generous match.
1:40:09 PM
EMILY FORD, Public Outreach Liaison, Alaska Energy Authority
(AEA), Anchorage, Alaska, explained that the Emerging Energy
Technology Fund provides an infusion of capital for projects
that anticipate being commercially viable within five years. The
EETF supports renewable projects, energy conservation, energy
efficiency, hydrocarbons, and integrated systems. The enabling
legislation was passed in 2010 with a January 1, 2015 sunset
date, and SB 183 would extend the sunset to January 1, 2020. She
noted that the packets contained summaries and funding amounts
of the initial projects and the status of the next steps.
SENATOR STEDMAN stated support for the legislation.
1:42:19 PM
VICE-CHAIR MICCICHE found no questions or testimony and
announced he would hold SB 183 in committee. Public testimony
was open.
SB 189-EXEMPTION: LICENSING OF CONTRACTORS
1:42:39 PM
VICE-CHAIR MICCICHE announced the consideration of SB 189. "An
Act relating to an exemption from the regulation of construction
contractors." [This was the second hearing and public testimony
was open.]
1:43:55 PM
ALAN WILSON, Legislative Chair, Alaska State Homebuilding
Association (ASHA), said that SB 189 closes a loophole that
affects builders across the state. The problem is that some
people in the state are building homes under the homeowner
exemption when they're actually contractors. This puts
legitimate contractors who are licensed, bonded, and purchase
insurance at a disadvantage. Consumer safety is also potentially
affected when work is done without proper licensing.
SENATOR STEDMAN asked Mr. Wilson if he supports the bill.
MR. WILSON confirmed he did support SB 189.
1:46:02 PM
PATRICK DALTON, representing himself, Delta Junction, Alaska,
said he was a contractor testifying in opposition to SB 189. He
cited three problems with the bill. First, he believes that this
problem could be addressed by local government in each
jurisdiction. The second problem is availability; when
contractors aren't available, the job will get done anyway.
Finally, the bill infringes on individual rights and protects
contractors more than the individual property owner.
1:51:17 PM
GARNET BROWN, President, Ketchikan Homebuilders Association
(KHA), Ketchikan, Alaska, stated that KHA supports SB 189 as
well as the right for a person to build their own home. However,
if they're doing it as a speculative endeavor they need to
follow the building codes, including hiring licensed plumbers
and electricians. It's a matter of safety. He noted that the
bill provides just a minor change to existing law that says a
person cannot build a house for speculative reasons and sell it
within two years unless it's a financial hardship.
VICE-CHAIR MICCICHE clarified that the bill doesn't talk about
hardship. Paragraph (12) in Section 1 says the owner has to
demonstrate that the sale would not circumvent the requirements
under the chapter.
1:53:55 PM
JESS HALL representing himself, Palmer, Alaska, testified in
support of SB 189. He recapped the problem and observed that the
statute is so vague it makes it difficult to enforce. The
language in the bill will clarify the meaning of both an
owner/builder and a contractor.
1:55:41 PM
VICE-CHAIR MICCICHE closed public testimony and announced he
would hold SB 189 in committee for further consideration.
1:56:08 PM
At ease
SB 156-DIRECT-ENTRY MIDWIVES
1:57:39 PM
VICE-CHAIR MICCICHE reconvened the meeting and announced the
consideration of SB 156. "An Act relating to direct-entry
midwives."
1:57:54 PM
HEATHER SHADDUCK, Staff, Senator Pete Kelly, Alaska State
Legislature, Juneau, Alaska, said she introduced SB 156 during
the previous meeting and public testimony was taken. She noted
the professionals who were available to answer questions and
that the packets contained a letter from Don Habeger in response
to questions that were raised last hearing. He reported that all
but one of the licensed midwives live on the road system and she
lives in Sandy, Utah. He also reported that there are state
licensing exemptions for employees of tribal health programs.
VICE-CHAIR MICCICHE closed public testimony.
1:59:37 PM
At ease
2:04:56 PM
VICE-CHAIR MICCICHE reconvened the meeting and noted that
Senator Olson had joined the committee.
SENATOR OLSON asked Ms. Shadduck to remind him of the changes.
MS. SHADDUCK explained that the bill allows updates and required
practices to be placed in regulation instead of statute. It also
adds a requirement that a midwife must be licensed for two years
and attend 50 births in order to be a preceptor. It also repeals
the cultural traditions.
SENATOR OLSON asked if the board supported the bill.
MS. SHADDUCK confirmed that both the Board of Certified Direct-
Entry Midwives and the Midwives Association of Alaska support
the bill. She reiterated her explanation of Mr. Habeger's
letter.
SENATOR OLSON asked if the rural care providers had voiced
concern with the bill.
MS. SHADDUCK offered her understanding that the Alaska Native
Tribal Health Consortium (ANTHC) said there was no reason to
oppose the bill because tribal organizations are exempt.
VICE-CHAIR MICCICHE found no further questions or comments and
solicited a motion.
2:07:07 PM
SENATOR STEDMAN moved to report SB 156 from committee with
individual recommendations and attached fiscal note(s).
VICE-CHAIR MICCICHE announced that without objection, SB 156 was
reported from the Senate Labor & Commerce Committee.
SB 190-DELEGATION OF GUIDE-OUTFITTER DUTIES
2:07:23 PM
VICE-CHAIR MICCICHE announced the consideration of SB 190."An
Act permitting a guide-outfitter to delegate certain guide
services to a person who is not licensed by the Big Game
Commercial Services Board." This was the second hearing. He
noted the new committee substitute (CS), Version N.
2:07:55 PM
GARY ZEPP, Staff, Senator Charlie Huggins, Alaska State
Legislature, Juneau, Alaska said the proposed committee
substitute (CS) for SB 190 addresses the concerns expressed
about delegating guide services to unlicensed personnel and the
unintended consequences of using the term "delegate." The
changes resulted in a title change, but the concept of the
original bill was not changed.
2:08:20 PM
SENATOR STEDMAN moved to adopt the work draft CS for SB 190,
labeled 28-LS1466\N, as the working document. He then objected
for purposes of an explanation.
MR. ZEPP deferred to Thor Stacy to describe the changes in
detail.
2:09:00 PM
THOR STACEY, Lobbyist, Alaska Professional Hunters Association
(APHA), Juneau, Alaska, stated that APHA strongly supports the
concept of SB 190 and believes the CS provides better wording
than the original draft. He explained that the bill creates an
exemption for duties described under the definition of guiding
for unlicensed persons to do packing
SENATOR STEDMAN asked for an explanation of the changes in the
CS.
MR. STACEY explained that in Section 1 subsection (a) the duties
that can be delegated were expanded to include packing trophies
and packing camping equipment. The language in subsection (b)
was modified to clarify that the unlicensed person assists in
providing guide service and that an assistant guide could also
be a mentor in the trainee relationship. On page 2 the language
relating to being licensed in a specific game management unit
was deleted because it doesn't apply to assistant guides.
2:11:55 PM
SENATOR STEDMAN removed his objection.
VICE CHAIR MICCICHE found no further objection and announced
that Version N was adopted.
MR. ZEPP said the CS doesn't change the intent of the original
bill to allow unlicensed personnel to perform certain guide
service tasks for compensation.
SENATOR OLSON asked if there was opposition to the bill.
MR. ZEPP said no. The CS addressed the only concern that was
expressed.
SENATOR OLSON asked if the bill had unanimous support among
guides.
MR. STACEY replied the guides unanimously agree about the need
for packers.
2:13:58 PM
VICE CHAIR MICCICHE opened public testimony.
CAPTAIN BERNARD CHASTAIN, Alaska Wildlife Troopers, Department
of Public Safety, Anchorage, Alaska, said he was available to
answer question.
SENATOR OLSON asked for assurance that he wouldn't hear from
guides in his area who were being harassed by wildlife troopers
about packers.
CAPTAIN CHASTAIN confirmed that the bill would alleviate the
issue the Troopers have had with packers.
SENATOR OLSON asked if there was any gray area.
CAPTAIN CHASTAIN said the bill makes it very clear what duties
can and cannot be conducted by licensed and unlicensed
personnel.
2:15:59 PM
JOE WANT, representing himself, Fairbanks, Alaska, stated that
his concerns about not being able to delegate authority were
ameliorated. The only remaining concern was to make certain that
the use of the term "delegate" on page 1, line 7, didn't cause
problems.
VICE CHAIR MICCICHE closed public testimony. Finding no further
questions, he solicited a motion.
2:17:07 PM
SENATOR STEDMAN moved to report CS for SB 190, Version N, from
committee with individual recommendations and attached fiscal
note(s).
VICE CHAIR MICCICHE announced that without objection CSSB
190(L&C) was reported from the Senate Labor & Commerce
Committee.
SB 99-AIDEA: DEVELOPMENT LOANS
2:17:30 PM
CHAIR DUNLEAVY announced the consideration of SB 99."An Act
correcting a reference to the Alaska Industrial Development and
Export Authority revolving fund; limiting the use of the Alaska
Industrial Development and Export Authority sustainable energy
transmission and supply development fund for certain loans and
loan guarantees and allowing the development fund to be used as
security for a bond guarantee; and amending the definition of
'qualified energy development.'" He noted that this was the
second hearing and there was a new committee substitute (CS).
2:17:51 PM
SENATOR STEDMAN moved to adopt CS for SB 99, labeled 28-
LS0741\C, as the working document and then objected for an
explanation.
2:18:07 PM
JESSE LOGAN, Staff, Senator Lesil McGuire, Alaska State
Legislature, Juneau, Alaska, sponsor of SB 99, summarized that
SB 99 corrects a few ambiguities in the SETS fund that was
created in 2012. The CS makes two changes to the original bill.
Language on page 2, lines 4-5, directs that the transfer of
funds between other funds within AIDEA is done by a vote of the
members. This constitutes an action of the board within AIDEA.
The second change found on page 3, lines 14-25, authorizes AIDEA
to issue bonds for up to $145 million for the infrastructure and
construction costs of the Bokan-Dotson Ridge Rare Earth Element
Project.
SENATOR STEDMAN removed his objection.
VICE CHAIR MICCICHE found no further objection and announced
that Version C was adopted. He asked if there were any
amendments.
2:19:13 PM
SENATOR STEDMAN moved to adopt Amendment 1, labeled 28-
LS0741\C.1.
AMENDMENT 1
OFFERED IN THE SENATE
TO: CSSB 99 ( ), Draft Version "C"
Page 1, line 8, following "project":
Insert "and the Niblack project"
Page 3, following line 21:
Insert a new bill section to read:
"* Sec. 6. The uncodified law of the State of
Alaska is amended by adding a new section to read:
LEGISLATIVE APPROVAL; NIBLACK PROJECT. (a) The Alaska
Industrial Development and Export Authority may issue
bonds to finance the infrastructure and construction
costs of the Niblack project. The Niblack project
includes a mineral processing mill, associated dock,
and loading and related infrastructure facilities at
the Gravina Island Industrial Complex, as well as
infrastructure at the project site on Prince of Wales
Island. The mineral processing mill, associated dock,
and loading and related infrastructure facilities at
the Gravina Island Industrial Complex, as well as
infrastructure at the project site on Prince of Wales
Island, shall be owned and operated by the authority
or financed under AS 44.88.172. The principal amount
of the bonds provided by the authority for the Niblack
project may not exceed $125,000,000 and may include
the costs of issuing bonds considered reasonable and
appropriate by the Alaska Industrial Development and
Export Authority.
(b) This section constitutes legislative approval
required by AS 44.88.095(g)."
VICE CHAIR MICCICHE objected for discussion purposes.
SENATOR STEDMAN read Amendment 1.
2:20:44 PM
SENATOR OLSON asked if the amendment affects the amount of money
that AIDEA would encumber for the project.
SENATOR STEDMAN replied he wasn't aware that it would but would
defer further comment to AIDEA.
SENATOR OLSON asked if AIDEA was in favor of the amendment.
SENATOR STEDMAN suggested he pose the question to AIDEA but his
understanding was that they did favor it.
2:21:57 PM
TED LEONARD, Executive Director, Alaska Industrial Development
and Export Authority (AIDEA), Anchorage, Alaska, said AIDEA
believes that it has the capacity to fund both Bokan Mountain
and Niblack. Funding is based on the revenues of the projects so
this would not affect AIDEA's capacity to fund other projects.
2:23:11 PM
SENATOR OLSON asked for assurance that the amendment would not
affect the amount that would be encumbered by AIDEA for these
two projects.
MR. LEONARD said he didn't believe it would.
SENATOR OLSON asked if AIDEA was in favor of the amendment.
MR. LEONARD answered yes and added that it could have a positive
economic impact for the areas of Ketchikan and Prince of Wales.
2:24:33 PM
PATRICK SMITH President, Heatherdale Resources Ltd., owner of
the Niblack Project on Prince of Wales, offered to answer
questions.
VICE-CHAIR MICCICHE removed his objection and opened public
testimony. Version C was before the committee.
2:25:55 PM
JAMES SULLIVAN, Southeast Alaska Conservation Council (SEACC),
Juneau, Alaska, said his prepared comments were to the CS that
included Bokan Mountain but he'd try to incorporate the
amendment to include the Niblack Project since it was closely
related. He stated the following:
Bokan Mountain venture is near an abandon uranium mine
and has been conducting exploration activities since
2006. It was April 30, 2013 that the Bloomberg
Business Week noted that in the most recent audit
report filed by Ucor, the auditor gave an unqualified
opinion expressing doubt that the company can continue
as a going concern. Their most recent, the 2013
annual, has not been released or was not as of last
week when I checked. But it's our belief that they
will get a very similar report from their auditor.
Ucore has not put out a final economic assessment
report showing that the project is even economically
viable. Work to date has documented an inferred
resource of rare earth mineralization at the Bokan
Mountain property. This legislation proposes owning a
mine - or financing - that is not finished in its
speculation process. Investors have not joined Ucore
so why is the state of Alaska? The question begs - Is
the state propping up a company that can't make it in
the real market?
As for the comments that I didn't have prepared for
the Niblack, but I want to put on the record that it
was just this past summer that Niblack announced
publicly that they were pulling back and putting
everything on hold. This is due to, I believe, the
fact that they're not able to find investors to help
them bring this mine to viability. I think it is very
concerning that we're proposing buying into a mine
that isn't finished with its speculation process, that
hasn't gone through the permitting process. There is
an inherent conflict of interest. And yes I understand
the capabilities of AIDEA and I don't want my comments
in any way to disparage AIDEA, which I believe has put
up a great track record over the last couple of
decades. But this is a departure in our feeling on
what AIDEA has done in the past with mostly
infrastructure dealings and support through revenue
bonds to help mines and other industrial activities
within the state of Alaska. This is highly speculative
and we believe that before you put the state of Alaska
and before we start using public money, we should get
a better understanding of where they are in the
speculation process and if they are actually viable.
There is no reason to think that if we wait that we're
doing damage in any way.
2:29:34 PM
SENATOR OLSON said it was his understanding that the rare earth
elements (REE) from Bokan Mountain would be competing against
those coming out of China. He questioned whether it wasn't
better for the environment to rely on U.S. mining practices
rather than the relatively unregulated practices in China.
MR. SULLIVAN said SEACC was concerned with China's mining
practices and was aware of the potential for a successful mine
on Prince of Wales. The point is that the state should wait
until the project proves that it is economically viable before
it steps in to offer help. The project isn't at that point and
it's incumbent on the legislature not to get into the
speculation fever.
2:32:12 PM
SENATOR OLSON asked if it's true that the project has no
permits.
MR. SULLIVAN replied they have permits for the exploration
process, but none to create a mine.
2:32:41 PM
VICE-CHAIR MICCICHE asked Mr. Leonard to describe AIDEA's
process to assure the committee that it doesn't hand out money
to companies that can't prove fitness.
MR. LEONARD explained that SB 99 was a bond application to allow
AIDEA to move forward if the due diligence process proves that
the mine is feasible. The due diligence process verifies that
the mine is feasible, that it has all the required permits, and
that investors are willing to invest. AIDEA can't go to the bond
market until all the questions are answered and a regional
advisory has looked at the social, economic, and environmental
impact of the mine. By statute, AIDEA can't move forward until
it can show a financing plan that will pay for the bonds that
are issued as well as any costs.
2:35:31 PM
KEN COLLISON, Chief Operating Officer, Ucore Rare Metals Inc.,
stated that Ucore will be doing a feasibility study this year
for assurance that the project is economic and something that
investors would support. Ucor came to the legislature this year
because it may have to make down payments on some of the large
equipment that has 18-24 month lead times on delivery. Waiting
until next year could potentially delay the project.
SENATOR STEDMAN stressed that allowing these projects to go
through AIDEA for some underwritten and preferential treatment
in the bond market increases the probability of one or both of
them going forward. Reasons to support these projects are that
the environmental concerns are much less than anything that's
done in China, access to REEs in the U.S. addresses a national
defense concern, and the projects create much needed jobs. He
suggested that this was an effort to replicate the successful
model that AIDEA used for the Red Dog mine in Senator Olson's
district. It's good public policy to support both projects if
AIDEA's due diligence process proves them feasible, he said.
2:39:02 PM
SENATOR OLSON expressed reservation with committing resources
for projects that might not go forward.
SENATOR STEDMAN suggested that Mr. Leonard clarify the timeline
of the due diligence process.
VICE-CHAIR MICCICHE asked Mr. Leonard to discuss how AIDEA might
participate early and more heavily later if a mine like these
was found to be economic.
2:40:23 PM
MR. LEONARD restated that for full financing AIDEA would need to
have all the final details of construction, permitting, and
economic assessments completed before starting the due
diligence. In this process AIDEA would verify that stockholders
were interested in investing in a portion of the mine and
determine how much AIDA was willing to finance. He noted that in
the past that's been limited to hard assets like the mill and
the road. He reiterated that AIDEA would not be able to issue
any of the $145 million in bonds until all the questions were
answered and the social, economic, and environmental impact
studies were finished and the full mine was able to move forward
through operations.
He advised that AIDEA does have the ability to finance pre-
development with much smaller loans if they believe that a
project should move forward and they want to support the
feasibility analysis of the project. This would be done through
AIDEA's development finance program, not issuance of bonds. He
assured the committee that AIDEA would not invest bond proceeds
into a project that was piecemealed together.
SENATOR OLSON expressed satisfaction with the explanation.
2:44:55 PM
SENATOR STEDMAN moved to report CS for SB 99, Version C as
amended, from committee with individual recommendations and
attached fiscal note(s).
VICE-CHAIR MICCICHE announced that without objection, CSSB
99(L&C) moved from the Senate Labor & Commerce Committee.
^Confirmation Hearings
CONFIRMATION HEARINGS
2:45:15 PM
VICE-CHAIR MICCICHE announced the next order of business would
be confirmation hearings. He stated that pursuant to AS
39.05.080 the following names were referred to the Senate Labor
and Commerce Committee for a hearing, recommendation, and
report:
Alaska State Board of Public Accountancy
Leslie Schmitz - Anchorage
Alcoholic Beverage Control Board
Robert Klein - Anchorage
Marvin Yoder - Palmer
State Board of Registration for Architects, Engineers, and Land
Surveyors
Donald (John) Christensen - Seward
Brian Hanson - Anchorage
Luanne Urfer - Anchorage
Board of Barbers and Hairdressers
Jeannine Jabaay - Anchorage
Derrick Slaughter - Anchorage
Glenda Ledford - Wasilla
Big Game Commercial Services Board
Gene Peltola - Bethel
Michele Metz - Douglas
Board of Chiropractic Examiners
Christine Hill - Anchorage
Dr. Walter Campbell - Palmer
Board of Dental Examiners
Dr. Thomas Wells - Anchorage
Fishermen's Fund Advisory and Appeals Council
Larry Bartman - Manokotak
Alaska Gasline Development Corporation Board of Directors
Albert Bolea - Big Lake
Dave Cruz - Wasilla
Drue Pearce - Anchorage
Richard Rabinow - Houston
John Burns - Fairbanks
Alaska Labor Relations Agency
Willard Askren - Big Lake
Dr. Lynne Curry - Anchorage
Board of Marine Pilots
Richard Erickson - Ketchikan
Board of Marital and Family Therapy
JoAnn Young - Anchorage
Board of Certified Direct-Entry Midwives
Jennifer Swander - Seward
Board of Nursing
Erin Evans - Eagle River
Mary (Jennie) Grimwood - Cordova
Carrie Miller - Juneau
Board of Examiners in Optometry
Dr. Damien Delzer - Fairbanks
Eric Lingle - Douglas
Board of Pharmacy
William Altland - Craig
Anne Gruening - Juneau
State Physical Therapy and Occupational Therapy Board
Dr. Ilona Farr - Anchorage
Dr. Joseph Kennedy - Nome
Mary (Melissa) Robinson - Moose Pass
Board of Professional Counselors
Lyn Tashea - Anchorage
Stephanie Johnson - Nome
Board of Certified Real Estate Appraisers
David Derry - Kenai
Alfred Ferrara - Anchorage
Real Estate Commission
Cynthia Cartledge - Anchorage
Regulatory Commission of Alaska
Robert Pickett - Wasilla
Board of Social Work Examiners
Laura Thiesen - Glennallen
Danielle LaFon - Fairbanks
Tina Walter - Kenai
Board of Veterinary Examiners
Dr. Teresa Beck - Palmer
Dr. James Hagee - Chugiak
Workers' Compensation Appeals Commission
Philip Ulmer - Eagle River
Alaska Workers' Compensation Board
Julie Duquette - Fairbanks
David Kester - Anchorage
Michael O'Connor - Anchorage
Donna Phillips - Girdwood
Mark Talbert - Wasilla
Zebulon Woodman - Fairbanks
2:52:23 PM
VICE-CHAIR MICCICHE opened public testimony on the foregoing
appointments and stated that written testimony would be entered
into the record.
VICE-CHAIR MICCICHE found no testimony or comments from members
and solicited a motion.
2:53:07 PM
SENATOR STEDMAN moved to advance the foregoing names [to the
full body of the legislature] for further consideration.
VICE-CHAIR MICCICHE announced that without objection, the names
would be forwarded.
2:53:55 PM
There being no further business to come before the committee,
Vice-Chair Micciche adjourned the Senate Labor & Commerce
meeting at 2:53 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 183 Version A.pdf |
SL&C 3/20/2014 1:30:00 PM |
SB 183 |
| SB 183 Sponsor Statement.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SB183-DCCED-AEA-03-17-14.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SB 183- Supporting Document- EETF Fund Award Project Write Ups 11 16 12.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SB 183- Supporting Document- EETF Award News Release 11 16 12.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SB 183- Supporting Document- EETF Round 1 Project Status Updates - Feb 2014 (2).pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SLA2014_Senate L&C_Confirmations.doc |
SL&C 3/20/2014 1:30:00 PM |
Confirmation Hearings |
| SB99_OppositionLetter_Claus.pdf |
SL&C 3/20/2014 1:30:00 PM |
SB 99 |
| SB183_AEA Project Status Updates_Feb 2014.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |
| SB183_AEA_EETF Presentation.pdf |
SL&C 3/20/2014 1:30:00 PM SL&C 3/27/2014 1:30:00 PM |
SB 183 |