03/19/2021 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic | 
|---|---|
| Start | |
| Confirmation Hearings | |
| SB87 | |
| SB45 | |
| SB11 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 87 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 11 | TELECONFERENCED | |
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 19, 2021                                                                                         
                           1:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Joshua Revak                                                                                                            
Senator Gary Stevens                                                                                                            
Senator Elvi Gray-Jackson                                                                                                       
Senator Roger Holland, Vice Chair                                                                                               
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARINGS                                                                                                           
                                                                                                                                
Board of Marital & Family Therapy                                                                                             
Richard Clampitt - Palmer                                                                                                       
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Board of Registration for Architects, Engineers & Land Surveyors                                                              
Catherine Fritz - Juneau                                                                                                        
Randall Rozier - Fairbanks                                                                                                      
                                                                                                                                
     - CONFIRMATIONS ADVANCED                                                                                                   
                                                                                                                                
Marijuana Control Board                                                                                                       
Christopher Jaime - Fairbanks                                                                                                   
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Alcoholic Beverage Control Board                                                                                              
David Koch - Anchorage                                                                                                          
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
Board of Examiners in Optometry                                                                                               
Michael Mavencamp - Fairbanks                                                                                                   
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
SENATE BILL NO. 87                                                                                                              
"An Act relating  to credit for reinsurance; and  providing for an                                                              
effective date."                                                                                                                
                                                                                                                                
     - MOVED SB 87 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 45                                                                                                              
"An Act  raising the minimum age  to purchase, sell,  exchange, or                                                              
possess tobacco,  a product containing nicotine,  or an electronic                                                              
smoking  product;  relating  to transporting  tobacco,  a  product                                                              
containing nicotine,  or an  electronic smoking product;  relating                                                              
to  the taxation  of electronic  smoking  products; and  providing                                                              
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSSB 45(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
SENATE BILL NO. 11                                                                                                              
"An Act relating  to community property and to  community property                                                              
trusts; and providing for an effective date."                                                                                   
                                                                                                                                
     - MOVED SB 11 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  87                                                                                                                  
SHORT TITLE: REINSURANCE; CREDITS                                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/22/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/21       (S)       L&C                                                                                                    
03/08/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/08/21       (S)       Heard & Held                                                                                           
03/08/21       (S)       MINUTE(L&C)                                                                                            
03/19/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  45                                                                                                                  
SHORT TITLE: AGE FOR NICOTINE/E-CIG; TAX E-CIG.                                                                                 
SPONSOR(s): STEVENS                                                                                                             
                                                                                                                                
01/25/21       (S)       PREFILE RELEASED 1/15/21                                                                               
01/25/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/21       (S)       L&C, FIN                                                                                               
02/19/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/19/21       (S)       Heard & Held                                                                                           
02/19/21       (S)       MINUTE(L&C)                                                                                            
03/01/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/01/21       (S)       Heard & Held                                                                                           
03/01/21       (S)       MINUTE(L&C)                                                                                            
03/19/21       (S)       L&C AT  1:30 PM BELTZ 105 (TSBldg)                                                                     
                                                                                                                                
BILL: SB  11                                                                                                                  
SHORT TITLE: COMMUNITY PROPERTY TRUSTS                                                                                          
SPONSOR(s): SENATOR(s) BEGICH                                                                                                   
                                                                                                                                
01/22/21       (S)       PREFILE RELEASED 1/8/21                                                                                
01/22/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/21       (S)       L&C, JUD                                                                                               
03/10/21       (S)       L&C AT  1:30 PM BELTZ 105 (TSBldg)                                                                     
03/10/21       (S)       -- Testimony  <Invitation Only> --                                                                     
03/12/21       (S)       L&C AT  1:30 PM BELTZ 105 (TSBldg)                                                                     
03/12/21       (S)       Heard & Held                                                                                           
03/12/21       (S)       MINUTE(L&C)                                                                                            
03/19/21       (S)       L&C AT  1:30 PM BELTZ 105 (TSBldg)                                                                     
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RICHARD CLAMPITT, Appointee                                                                                                     
Board of Marital & Family Therapy                                                                                               
Department of Commerce, Community  and Economic Development                                                                     
Palmer, Alaska                                                                                                                  
POSITION STATEMENT: Testified as appointee to the Board of                                                                    
Marital & Family Therapy.                                                                                                       
                                                                                                                                
CATHERINE FRITZ, Appointee                                                                                                      
Board of Registration for Architects, Engineers & Land Surveyors                                                                
Department of Commerce, Community  and Economic Development                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified for reappointment to the Board of                                                               
Registration for Architects, Engineers,  & Land Surveyors.                                                                      
                                                                                                                                
RANDALL ROZIER, Appointee                                                                                                       
Board of Registration for Architects, Engineers & Land Surveyors                                                                
Department of Commerce, Community  and Economic Development                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified as appointee to the Board of                                                                    
Registration for Architects, Engineers,  & Land Surveyors.                                                                      
                                                                                                                                
CHRISTOPHER JAIME, Appointee                                                                                                    
Marijuana Control Board                                                                                                         
Department of Commerce, Community  and Economic Development                                                                     
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified for reappointment to the Marijuana                                                              
Control Board.                                                                                                                  
                                                                                                                                
DAVID KOCH, Appointee                                                                                                           
Alcoholic Beverage Control Board                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION  STATEMENT:  Testified  as  appointee  to  the  Alcoholic                                                            
Beverage Control Board.                                                                                                         
                                                                                                                                
MICHAEL MAVENCAMP, Appointee                                                                                                    
Board of Examiners in Optometry                                                                                                 
Department of Commerce, Community and Economic Development                                                                      
Fairbanks, Alaska                                                                                                               
POSITION  STATEMENT:  Testified  as  appointee  to  the  Board  of                                                            
Examiners in Optometry.                                                                                                         
                                                                                                                                
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community, and Economic Development                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed the answers to  questions committee                                                            
members  asked when  she  visited their  offices  after the  first                                                              
hearing on SB 87.                                                                                                               
                                                                                                                                
MELODIE WILTERDINK, Staff                                                                                                       
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:  Explained  the  changes from  version  B  to                                                            
version W of SB 45.                                                                                                             
                                                                                                                                
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community, and Economic Development                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided information  and answered  questions                                                            
related to SB 45.                                                                                                               
                                                                                                                                
TOM BEGICH, Alaska                                                                                                              
State Legislature                                                                                                               
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 11                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:32 PM                                                                                                                    
CHAIR MIA COSTELLO  called the Senate Labor and  Commerce Standing                                                            
Committee meeting to  order at 1:30 p.m. Present at  call to order                                                              
were Senators  Gray-Jackson, Stevens,  Revak, and Chair  Costello.                                                              
Senator Holland joined the committee soon thereafter.                                                                           
                                                                                                                                
She reviewed the agenda.                                                                                                        
                                                                                                                                
^Confirmation Hearings                                                                                                          
                     CONFIRMATION HEARINGS                                                                                  
               Board of Marital & Family Therapy                                                                            
Board of Registration for Architects Engineers & Land Surveyors                                                             
                    Marijuana Control Board                                                                                 
                Alcoholic Beverage Control Board                                                                            
                Board of Examiners in Optometry                                                                             
                                                                                                                                
1:32:08 PM                                                                                                                    
CHAIR   COSTELLO   announced   the   consideration   of   Governor                                                              
Appointees  for   boards  and   commissions.  She  asked   Richard                                                              
Clampitt to  introduce himself,  give a  brief explanation  of his                                                              
background, and his interest in serving on the board.                                                                           
                                                                                                                                
1:32:32 PM                                                                                                                    
RICHARD CLAMPITT,  Appointee, Board  of Marital &  Family Therapy,                                                              
Department  of   Commerce,  Community  and   Economic  Development                                                              
(DCCED), Palmer,  Alaska, related that he's lived  in Alaska since                                                              
1993 and  decided to pursue a  second career as a  therapist after                                                              
retiring  from the  Alaska  Air National  Guard.  He received  his                                                              
license as a professional  counselor in 2009 and his  license as a                                                              
family and  marriage therapist in  2010. He currently  serves both                                                              
occupations as a  supervisor for those wishing  to become licensed                                                              
in  Alaska.  He resides  and  practices  in  Palmer. He  said  the                                                              
pandemic  has been challenging  but it  presented the  opportunity                                                              
to use  telehealth to provide services.  He hopes to  take lessons                                                              
learned over  the past year to  contribute to lasting  change that                                                              
will provide increased services to all Alaskans.                                                                                
                                                                                                                                
CHAIR COSTELLO  asked what  major issues he  expects to face  as a                                                              
board member.                                                                                                                   
                                                                                                                                
MR. CLAMPITT  said  he believes  it is making  sure that  Alaskans                                                              
are  protected   with  high  quality  and   well-trained  licensed                                                              
professionals who are able to carry out their missions.                                                                         
                                                                                                                                
1:35:34 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
Richard  Clampitt  to  the  Board of  Marital  &  Family  Therapy;                                                              
finding none, she closed public testimony.                                                                                      
                                                                                                                                
CHAIR COSTELLO  asked Catherine  Fritz to introduce  herself, give                                                              
a  brief  explanation  of  her experience,  and  her  interest  in                                                              
serving  on  the  State  Board   of  Registration  for  Architects                                                              
Engineers, & Land Surveyors.                                                                                                    
                                                                                                                                
1:36:33 PM                                                                                                                    
CATHERINE FRITZ,  Appointee, Board of Registration  for Architects                                                              
Engineers,  & Land  Surveyors, Department  of Commerce,  Community                                                              
and  Economic Development  (DCCED),  Juneau,  Alaska, stated  that                                                              
she has  been a registered  architect since  1990 and worked  as a                                                              
government architect  in Juneau  throughout her career.  She noted                                                              
her prepared  statement in the packets.  She said she  is standing                                                              
for reappointment and  has found the work to be  rich but sobering                                                              
when  trying  to  understand  the   regulatory  complexities  that                                                              
govern  the practice  of  architects, engineers,  land  surveyors,                                                              
and landscape  architecture. She would  like to continue  to serve                                                              
to continue to help  the board get a strategic plan  in place that                                                              
reflects the  values of the  department and the  considerations of                                                              
the   professions,   primarily   health,   safety,   and   welfare                                                              
regulation.                                                                                                                     
                                                                                                                                
1:39:10 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
Catherine   Fritz  to  the   State  Board   of  Registration   for                                                              
Architects Engineers,  & Land Surveyors; finding  none, she closed                                                              
public testimony.                                                                                                               
                                                                                                                                
CHAIR  COSTELLO  asked Randall  Rozier  to introduce  himself  and                                                              
tell the  committee  about his interest  in serving  on the  State                                                              
Board   of  Registration   for   Architects   Engineers,  &   Land                                                              
Surveyors.                                                                                                                      
                                                                                                                                
1:39:48 PM                                                                                                                    
RANDALL ROZIER,  Appointee, Board  of Registration for  Architects                                                              
Engineers,  & Land  Surveyors, Department  of Commerce,  Community                                                              
and Economic Development  (DCCED), Fairbanks, Alaska,  stated that                                                              
he  has been  practicing  for more  than  15 years  and  now is  a                                                              
principle in one  of the larger architectural firms  in Alaska. He                                                              
said he was honored  to be nominated and looks  forward to serving                                                              
and believes it  is an important responsibility. He  said he hopes                                                              
to offer a fresh perspective and a long-term outlook.                                                                           
                                                                                                                                
CHAIR COSTELLO thanked him for being willing to serve.                                                                          
                                                                                                                                
1:42:24 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
Randall Rozier to  the State Board of Registration  for Architects                                                              
Engineers,  & Land  Surveyors;  finding  none, she  closed  public                                                              
testimony.                                                                                                                      
                                                                                                                                
CHAIR COSTELLO  asked Christopher  Jaime to introduce  himself and                                                              
tell  the  committee   about  his  interest  in   serving  on  the                                                              
Marijuana Control Board.                                                                                                        
                                                                                                                                
1:43:03 PM                                                                                                                    
CHRISTOPHER   JAIME,    Appointee,   Marijuana    Control   Board,                                                              
Department  of   Commerce,  Community  and   Economic  Development                                                              
(DCCED), Fairbanks,  Alaska, stated  that he  has lived  in Alaska                                                              
for 27  years and  been employed  as a  trooper in both  divisions                                                              
for 20 years.  He is grateful  for the reappointment to  the board                                                              
of this  fairly new industry,  and he appreciates  the opportunity                                                              
to apply his  perspective as the public safety  representative. He                                                              
related  that he  respects  that  the people  of  Alaska voted  to                                                              
legalize marijuana  and he  bases his  decisions on board  matters                                                              
on  public  safety,  the effects  of  licensed  establishments  on                                                              
communities,  and common  sense. He  is proud  to be  part of  the                                                              
board  to  try  to  balance  public  safety  with  entrepreneurial                                                              
success.  He emphasized  that he  has not  received any  direction                                                              
from the Department  of Public Safety (DPS) or  the administration                                                              
on  topics that  have  or  may come  before  the board.  He  looks                                                              
forward to continuing his work on the board.                                                                                    
                                                                                                                                
CHAIR  COSTELLO  observed  that  his  resume  reflects  his  broad                                                              
experience.                                                                                                                     
                                                                                                                                
1:44:41 PM                                                                                                                    
SENATOR  GRAY-JACKSON expressed  appreciation  that  he would  not                                                              
let his  personal views on marijuana  affect his decisions  on the                                                              
board.                                                                                                                          
                                                                                                                                
1:45:15 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
Christopher Jaime  to the Marijuana  Control Board;  finding none,                                                              
she closed public testimony.                                                                                                    
                                                                                                                                
CHAIR  COSTELLO asked  David Koch  to introduce  himself and  tell                                                              
the  committee about  his  interest in  serving  on the  Alcoholic                                                              
Beverage Control Board.                                                                                                         
                                                                                                                                
1:45:50 PM                                                                                                                    
DAVID   KOCH,  Appointee,   Alcoholic   Beverage  Control   Board,                                                              
Department  of   Commerce,  Community  and   Economic  Development                                                              
(DCCED), Anchorage,  Alaska, stated  that he served  the Anchorage                                                              
Police Department  for 40 years, starting in  a non-sworn capacity                                                              
and  retiring as  a captain  in 2019.  He currently  serves as  an                                                              
investigator for  the FBI Background Unit. He  said he volunteered                                                              
for  this  position and  the  governor  selected  him as  the  law                                                              
enforcement  representative.  He   has  no  ties  to  the  alcohol                                                              
industry and  looks forward to serving  the citizens of  Alaska in                                                              
this capacity.                                                                                                                  
                                                                                                                                
1:48:00 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
David  Koch  to  the Alcoholic  Beverage  Control  Board;  finding                                                              
none, she closed public testimony.                                                                                              
                                                                                                                                
CHAIR COSTELLO  asked Michael Mavencamp  to introduce  himself and                                                              
tell the committee  about his interest in serving on  the Board of                                                              
Examiners in Optometry.                                                                                                         
                                                                                                                                
1:48:25 PM                                                                                                                    
MICHAEL  MAVENCAMP, Appointee,  Board of  Examiners in  Optometry,                                                              
Department  of   Commerce,  Community  and   Economic  Development                                                              
(DCCED),  Fairbanks,  Alaska,  stated   that  he  is  a  life-long                                                              
Alaskan who  graduated from optometry  school in 2005.  He started                                                              
as an  optometrist in 2006  and became  a partner in  the business                                                              
in 2014. He  said he feels it is  time to give back  to the career                                                              
that has  given him so  much. Thus, his goal  is to serve  on this                                                              
board.                                                                                                                          
                                                                                                                                
1:49:19 PM                                                                                                                    
CHAIR  COSTELLO  opened public  testimony  on the  appointment  of                                                              
Michael  Mavencamp  to  the  Board   of  Examiners  in  Optometry;                                                              
finding none, she closed public testimony.                                                                                      
                                                                                                                                
CHAIR COSTELLO  noted the issues  facing the health  care industry                                                              
and thanked him for being willing to serve.                                                                                     
                                                                                                                                
1:49:49 PM                                                                                                                    
SENATOR HOLLAND stated  that in accordance with  AS 39.05.080, the                                                              
Senate  Labor   and  Commerce  Standing  Committee   reviewed  the                                                              
following  and  recommends  the  appointments be  forwarded  to  a                                                              
joint session for consideration:                                                                                                
                                                                                                                                
Board of Marital & Family Therapy                                                                                             
Richard Clampitt - Palmer                                                                                                       
                                                                                                                                
Alcoholic Beverage Control Board                                                                                              
David Koch - Anchorage                                                                                                          
                                                                                                                                
Board of Registration for Architects, Engineers & Land Surveyors                                                              
Randall Rozier - Fairbanks                                                                                                      
Catherine Fritz - Juneau                                                                                                        
                                                                                                                                
Marijuana Control Board                                                                                                       
Christopher Jaime - Fairbanks                                                                                                   
                                                                                                                                
Board of Examiners in Optometry                                                                                               
Michael Mavencamp - Fairbanks                                                                                                   
                                                                                                                                
Signing  the   reports  regarding   appointments  to   boards  and                                                              
commissions  in no way  reflects individual  members' approval  or                                                              
disapproval  of   the  appointees;  the  nominations   are  merely                                                              
forwarded to the full legislature for confirmation or rejection.                                                                
                                                                                                                                
1:50:48 PM                                                                                                                    
CHAIR COSTELLO found no objection and the names were forwarded.                                                                 
                                                                                                                                
                   SB 87-REINSURANCE; CREDITS                                                                               
                                                                                                                                
1:50:53 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of  SENATE BILL  NO.                                                              
87,  "An Act  relating to  credit for  reinsurance; and  providing                                                              
for an effective date."                                                                                                         
                                                                                                                                
She advised  that the purpose  of the second  hearing of SB  87 is                                                              
to have  Lori Wing-Heier, Director  of the Division  of Insurance,                                                              
go  over  the  questions  members asked  when  she  visited  their                                                              
offices after  the first hearing  and the answers she  provided in                                                              
writing.                                                                                                                        
                                                                                                                                
1:51:52 PM                                                                                                                    
LORI WING-HEIER,  Director, Division  of Insurance,  Department of                                                              
Commerce,   Community,   and  Economic   Development,   Anchorage,                                                              
Alaska,  stated that  the two  questions that  arose from  meeting                                                              
with committee members were:                                                                                                    
                                                                                                                                
     1) Q.  Does the Division  of Insurance monitor  both the                                                                   
     original  company that  insures a home  and the  company                                                                   
     that  covers  the  reinsurance  to  be  sure  there  are                                                                   
     sufficient funds to cover the insured property?                                                                            
     A. Yes, the division monitors both.                                                                                        
     2. Q. Are there any organizations opposed to SB 87?                                                                        
     A. No, the division is not aware of any opposition to                                                                      
     SB 87.                                                                                                                     
                                                                                                                                
CHAIR COSTELLO  asked her to give  a brief recap of what  the bill                                                              
does and what other states are doing in this area.                                                                              
                                                                                                                                
MS.  WING-HEIER stated  that all  states eventually  will adopt  a                                                              
bill similar  to SB  87. She  said the  Federal Insurance  Office,                                                              
which came  out of the Dodd-Frank  Act, entered into  an agreement                                                              
with  the European  Union and  the United  Kingdom about  solvency                                                              
standards   for   insurance   companies.   Because   the   federal                                                              
government  is  not the  regulator  of  insurance, each  state  is                                                              
required  to   adopt  legislation   similar  to  this   bill.  The                                                              
timeframe  for adopting  the legislation  is five  years and  will                                                              
expire in September 2022.                                                                                                       
                                                                                                                                
MS.  WING-HEIER related  that  insurance  companies typically  buy                                                              
reinsurance behind  policies they sell consumers.  This limits the                                                              
primary  insurer's  loss  in  the  event of  a  large  claim.  For                                                              
example, for a  $1 million home, the primary  insurer may reinsure                                                              
half  that amount.  As the  regulator, the  Division of  Insurance                                                              
will look  to see that  the insurance company  is carrying  the $1                                                              
million on their  balance sheet and has adequate  capital to cover                                                              
the full  $1 million.  The insurance company  is asking  to reduce                                                              
the  credit by  $500,000 if  they buy  reinsurance. The  agreement                                                              
authorizes that  provided the US,  the European Union, and  the UK                                                              
all have agreed to the same solvency metrics.                                                                                   
                                                                                                                                
1:54:52 PM                                                                                                                    
CHAIR COSTELLO  opened public  testimony on  SB 87; finding  none,                                                              
she closed  public testimony  on SB 87  and solicited the  will of                                                              
the committee.                                                                                                                  
                                                                                                                                
1:55:19 PM                                                                                                                    
SENATOR HOLLAND  moved to  report SB  87, work order  32-GS1584\A,                                                              
from  committee  with  individual   recommendations  and  attached                                                              
fiscal note(s).                                                                                                                 
                                                                                                                                
1:55:37 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection  and SB  87  passed from  the                                                              
Senate Labor and Commerce Standing Committee.                                                                                   
                                                                                                                                
1:55:44 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            SB 45-AGE FOR NICOTINE/E-CIG; TAX E-CIG.                                                                        
                                                                                                                                
1:59:17 PM                                                                                                                    
CHAIR   COSTELLO  reconvened   the  meeting   and  announced   the                                                              
consideration of SENATE  BILL NO. 45, "An Act  raising the minimum                                                              
age to  purchase, sell,  exchange, or  possess tobacco,  a product                                                              
containing nicotine,  or an  electronic smoking product;  relating                                                              
to  transporting tobacco,  a product  containing  nicotine, or  an                                                              
electronic   smoking  product;   relating  to   the  taxation   of                                                              
electronic  smoking  products;  and  providing  for  an  effective                                                              
date."                                                                                                                          
                                                                                                                                
She  said this  is the  third hearing  in  this committee,  public                                                              
testimony is closed, and there is a committee substitute (CS).                                                                  
                                                                                                                                
1:59:58 PM                                                                                                                    
SENATOR HOLLAND moved  to adopt the Committee Substitute  (CS) for                                                              
SB 45, work order 32-LS0311\W, as the working document.                                                                         
                                                                                                                                
2:00:32 PM                                                                                                                    
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
2:00:48 PM                                                                                                                    
MELODIE  WILTERDINK, Staff,  Senator  Mia  Costello, Alaska  State                                                              
Legislature, Juneau,  Alaska explained the changes  from version B                                                              
to version W of SB 45, paraphrasing the following document:                                                                     
                                                                                                                                
     Sec. 10   AS  21.96, Page 5, Lines 29-31,  Page 6, Lines                                                               
     1-11                                                                                                                   
     Is amended  by adding a  new subsection AS  21.96.055 to                                                                   
     require  manufacturers  of electronic  smoking  products                                                                   
     sold in  Alaska to file a  bond of $10,000,000  with the                                                                   
     Division   of   Insurance    on   the   condition   that                                                                   
     manufacturers  must promise  to  pay monetary  judgments                                                                   
     related  to  product  liability in  the  state.  Persons                                                                   
     having  claims  against an  electronic  smoking  product                                                                   
     manufacturer required  to file a bond may  bring suit on                                                                   
     the bond  for failure  to pay  a liability described  in                                                                   
     AS 21.96.055.                                                                                                              
                                                                                                                                
     Sec. 17  AS 43.50.320, Page 8, Lines 11-16                                                                             
     Is amended  by adding a  new subsection AS  43.50.320(i)                                                                   
     to  prohibit  the distribution  of  flavored  electronic                                                                   
     smoking   products  and   electronic  smoking   products                                                                   
     designed   or  packaged   so  as  not   to  be   clearly                                                                   
     recognizable as a tobacco product.                                                                                         
                                                                                                                                
     Sec. 22  AS 43.50.350, Page 11, Lines 14-20                                                                            
     Is  amended   to  insert  an  exception,   described  in                                                                   
     Section  23, to  the depositing  of  tax collected  into                                                                   
     the general  fund, which may be used by  the legislature                                                                   
     to   make  appropriations   for   health  care,   health                                                                   
     research, heal promotion, and health education.                                                                            
                                                                                                                                
     Sec. 23  AS 43.50.350, Page 11, Lines 21-25                                                                            
     Is  amended to  add  a new  subsection  AS 43.50.350  to                                                                   
     direct tax  collected on electronic smoking  products to                                                                   
     be accounted  for separately and may be  appropriated by                                                                   
     the  legislature  to provide  for  education,  programs,                                                                   
     and  advertising related  to the  hazards of  electronic                                                                   
     smoking products.                                                                                                          
                                                                                                                                
     Sec. 26  AS 43.50.390, Page 12, Lines 14-23                                                                            
     Is  amended  to  update  the  definition  of  electronic                                                                   
     smoking product  to clarify that an "electronic  smoking                                                                   
     device"  includes  all parts,  excluding  batteries  and                                                                   
     battery chargers when sold separately.                                                                                     
                                                                                                                                
     Sec. 31  AS 45.50.471(b), Page 16, Lines 3-6                                                                           
     Is amended  by adding  a new  paragraph to prohibit  the                                                                   
     marketing  of  electronic  smoking  devices  to  persons                                                                   
     under 21 years of age.                                                                                                     
                                                                                                                                
MS.  WILTERRDINK advised  that the  title was  updated to  reflect                                                              
the changes.                                                                                                                    
                                                                                                                                
2:04:20 PM                                                                                                                    
CHAIR  COSTELLO   removed  her   objection;  finding   no  further                                                              
objection, version W of SB 45 was adopted.                                                                                      
                                                                                                                                
She asked Ms.  Wing-Heier to explain the bill  section relating to                                                              
posting a  bond and the precedence  in Alaska for  these companies                                                              
to carry  a certain type of  liability policy when  doing business                                                              
in the state.                                                                                                                   
                                                                                                                                
She  also noted  the  conceptual amendment  for  the committee  to                                                              
consider.                                                                                                                       
                                                                                                                                
2:05:08 PM                                                                                                                    
LORI WING-HEIER,  Director, Division  of Insurance,  Department of                                                              
Commerce,   Community,   and  Economic   Development,   Anchorage,                                                              
Alaska, stated  that SB 45 asks  for a bond to guarantee  that the                                                              
manufacturer  of  e-cigarettes  has the  capital,  character,  and                                                              
capacity to  perform. For example,  a bond protects  the homeowner                                                              
against liens  on their house  if their building  contractor fails                                                              
to pay  bills associated  with building that  house. If  the bills                                                              
are unpaid,  the homeowner  would make a  claim against  the bond.                                                              
By comparison, a  liability policy insures against  damages in the                                                              
event of injury.                                                                                                                
                                                                                                                                
In the  instance of SB  45, she advised  that if the  committee is                                                              
looking for  damages caused  to people over  age 21 because  of e-                                                              
cigarettes, it would  be asking for a general  liability policy to                                                              
cover  injuries  or  diseases  associated  with the  use  of  that                                                              
product. She  noted that the  precedence for this  was established                                                              
several years  ago when  the legislature required  Uber to  file a                                                              
certificate  of  insurance  with the  division  showing  liability                                                              
coverage. She recalled it was a $10 million policy.                                                                             
                                                                                                                                
SENATOR GRAY-JACKSON asked for the cost of a $10 million bond.                                                                  
                                                                                                                                
MS. WING-HEIER  offered  to do some  research  and follow  up with                                                              
the information.                                                                                                                
                                                                                                                                
SENATOR GRAY-JACKSON said it wasn't necessary.                                                                                  
                                                                                                                                
CHAIR  COSTELLO summarized  her understanding  that the  liability                                                              
policy is backing  the ability to do business in  the state. Those                                                              
businesses would  file a commercial general liability  policy with                                                              
the division.  She asked Ms.  Wing-Heier to discuss  the precedent                                                              
set with Uber for this type of policy and how it would work.                                                                    
                                                                                                                                
MS.  WING-HEIER explained  that  if Uber  is in  an accident,  the                                                              
injured party could  ask the division, as the  certificate holder,                                                              
who to  contact to  file a claim.  Policies under  SB 45  would be                                                              
the same.  The policyholders  would update  and file annually  and                                                              
the division  would be able to  tell consumers, in the  event they                                                              
wanted  to file  a claim  against  the manufacturer,  who has  the                                                              
manufacturer's liability insurance in the state of Alaska.                                                                      
                                                                                                                                
CHAIR COSTELLO asked  the members if they were  comfortable with a                                                              
conceptual amendment  in [Section 10]  to replace the  term "bond"                                                              
with   "commercial  general   liability   policy"   where  it   is                                                              
appropriate.                                                                                                                    
                                                                                                                                
2:09:40 PM                                                                                                                    
SENATOR HOLLAND moved  Conceptual Amendment 1 to  replace the term                                                              
"bond"  with  "commercial  general liability  policy"  in  Section                                                              
[10].                                                                                                                           
                                                                                                                                
CHAIR COSTELLO  clarified that the  amendment is in Section  10 of                                                              
the bill, and it amends Title 21.                                                                                               
                                                                                                                                
2:10:14 PM                                                                                                                    
CHAIR COSTELLO found  no objection and Conceptual  Amendment 1 was                                                              
adopted.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO noted who was available to answer questions.                                                                     
                                                                                                                                
2:10:54 PM                                                                                                                    
SENATOR STEVENS,  speaking as sponsor, expressed  appreciation for                                                              
the Committee Substitute  and what it does to  help children today                                                              
who are jeopardized by nicotine addiction.                                                                                      
                                                                                                                                
CHAIR COSTELLO thanked  the sponsor for allowing  the committee to                                                              
improve an already great bill.                                                                                                  
                                                                                                                                
2:11:51 PM                                                                                                                    
SENATOR HOLLAND  sympathized with the  people who worry  about the                                                              
tax  and those  who use  vaping  instead of  tobacco products.  He                                                              
said  he carefully  looked into  changing  the tax  but could  not                                                              
find a reason to do so at this time.                                                                                            
                                                                                                                                
SENATOR GRAY-JACKSON  stated that she has always  supported age 21                                                              
the 75 percent tax on e-cigarettes.                                                                                             
                                                                                                                                
CHAIR  COSTELLO stated  that  she believes  it  is important  that                                                              
some of the changes  in the CS mimic the federal  law. It reflects                                                              
the spirit  of what the  federal government  is doing in  terms of                                                              
marketing  e-products  to  young  people.  She  said  it  is  also                                                              
important that  a provision in  the bill calls  for the tax  to be                                                              
calculated  separately so a  legislature in  the future  could use                                                              
those  funds to  educate  young  people about  the  dangers of  e-                                                              
cigarettes.                                                                                                                     
                                                                                                                                
2:14:58 PM                                                                                                                    
SENATOR HOLLAND  moved to report  the committee substitute  for SB
45,  work  order  32-LS0311\W  as  amended,  from  committee  with                                                              
individual recommendations and attached fiscal note(s).                                                                         
                                                                                                                                
2:15:17 PM                                                                                                                    
CHAIR COSTELLO  found no objection  and CSSB 45(L&C),  as amended,                                                              
was  reported  from   the  Senate  Labor  and   Commerce  Standing                                                              
Committee.                                                                                                                      
                                                                                                                                
                SB 11-COMMUNITY PROPERTY TRUSTS                                                                               
                                                                                                                                
2:15:48 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of  SENATE BILL  NO.                                                              
11,  "An Act  relating  to  community  property and  to  community                                                              
property trusts; and providing for an effective date."                                                                          
                                                                                                                                
2:15:57 PM                                                                                                                    
TOM BEGICH, Alaska  State Legislature, Juneau, Alaska,  Sponsor of                                                              
SB  11,  stated  that  he  presented  the  bill  last  Friday  and                                                              
explained  that it  corrects  an ambiguity  in  the Community  and                                                              
Property  Trust   Act  of  1998  and  achieves   the  intent  that                                                              
community property trusts include appreciation.                                                                                 
                                                                                                                                
CHAIR COSTELLO listed who was available to answer questions.                                                                    
                                                                                                                                
2:17:10 PM                                                                                                                    
CHAIR COSTELLO  opened public  testimony on  SB 11; finding  none,                                                              
she solicited the will of the committee.                                                                                        
                                                                                                                                
2:17:32 PM                                                                                                                    
SENATOR HOLLAND  moved to  report SB  11, work order  32-LS0132\I,                                                              
from  committee  with  individual   recommendations  and  attached                                                              
fiscal note(s).                                                                                                                 
                                                                                                                                
2:17:51 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection  and SB  11  passed from  the                                                              
Senate Labor and Commerce Standing Committee.                                                                                   
                                                                                                                                
SENATOR BEGICH thanked  the chair and the committee  for its swift                                                              
consideration  of the bill.  He characterized  it as a  small bill                                                              
that will have important ramifications.                                                                                         
                                                                                                                                
2:19:04 PM                                                                                                                    
There  being no  further business  to come  before the  committee,                                                              
Senator  Costello   adjourned  the   Senate  Labor   and  Commerce                                                              
Standing Committee meeting at 2:19 p.m.                                                                                         
| Document Name | Date/Time | Subjects | 
|---|---|---|
| SLAC GOV Appointee Richard Clampitt Board Application Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE MFT RICHARD CLAMPITT | 
            
| SLAC GOV Appointee Richard Clampitt Resume Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE MFT RICHARD CLAMPITT | 
            
| SLAC GOV Appointee Catherine Fritz Resume Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE AELS CATHERINE FRITZ | 
            
| SLAC GOV Appointee Catherine Fritz Personal Statement.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE AELS CATHERINE FRITZ | 
            
| SLAC GOV Appointee Randall Rozier Board Application Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE AELS RANDALL ROZIER | 
            
| SLAC GOV Appointee Christopher Jaime Resume Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE MCB CHRISTOPHER JAIME | 
            
| SLAC GOV Appointee David Koch Board Application Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE ABCB DAVID KOCH | 
            
| SLAC Gov Appointee David Koch Personal Statement.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE ABCB DAVID KOCH | 
            
| SLAC GOV Appointee Michael Mavencamp Board Application Redacted.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SLAC GOV APPOINTEE BEO MICHAEL MAVENCAMP | 
            
| SB 87 SLAC Answers to Members' Questions.pdf | 
                    
HL&C       4/12/2021 3:15:00 PM SL&C 3/19/2021 1:30:00 PM  | 
                
                    
SB  87 | 
            
| CSSB 45 Version W.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| CSSB 45 Explanation of Changes 3.19.21.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| SB 45 Support Aaron Kusano.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| SB 45 Support Andrea Thomas.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| SB 45 Support Johna Beech.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| SB 45 Support Kristen McDonald.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 | 
            
| SB 45 Support Robin Minard.pdf | 
                    
SL&C       3/19/2021 1:30:00 PM | 
                
                    
SB  45 |