04/05/2023 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB83 | |
| SB85 | |
| SB45 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 83 | TELECONFERENCED | |
| *+ | SB 85 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 5, 2023
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 83
"An Act relating to professional licensing; relating to
temporary licenses for some professions; and providing for an
effective date."
- HEARD & HELD
SENATE BILL NO. 85
"An Act relating to record checks for certain employees of the
Department of Revenue; relating to permanent fund dividends; and
providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 45
"An Act relating to insurance; relating to direct health care
agreements; and relating to unfair trade practices."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 83
SHORT TITLE: PROFESSIONAL LICENSING; TEMP PERMITS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/24/23 (S) READ THE FIRST TIME - REFERRALS
02/24/23 (S) L&C, FIN
03/06/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/06/23 (S) Heard & Held
03/06/23 (S) MINUTE(L&C)
03/29/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/29/23 (S) Heard & Held
03/29/23 (S) MINUTE(L&C)
03/31/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/31/23 (S) <Bill Hearing Canceled>
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 85
SHORT TITLE: PERM FUND; EMPLOYMENT; ELIGIBILITY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/24/23 (S) READ THE FIRST TIME - REFERRALS
02/24/23 (S) L&C, FIN
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 45
SHORT TITLE: DIRECT HEALTH AGREEMENT: NOT INSURANCE
SPONSOR(s): WILSON
01/25/23 (S) READ THE FIRST TIME - REFERRALS
01/25/23 (S) HSS, L&C
02/07/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/07/23 (S) Heard & Held
02/07/23 (S) MINUTE(HSS)
02/09/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/09/23 (S) Heard & Held
02/09/23 (S) MINUTE(HSS)
02/21/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/21/23 (S) Scheduled but Not Heard
02/23/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/23/23 (S) Moved CSSB 45(HSS) Out of Committee
02/23/23 (S) MINUTE(HSS)
02/24/23 (S) HSS RPT CS 1DP 4NR SAME TITLE
02/24/23 (S) DP: WILSON
02/24/23 (S) NR: TOBIN, KAUFMAN, GIESSEL, DUNBAR
03/27/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/27/23 (S) Heard & Held
03/27/23 (S) MINUTE(L&C)
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SYLVAN ROBB, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Gave a recap of SB 83.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the summary of changes from
version A to version S of SB 83.
FADIL LIMANI, Deputy Commissioner
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Introduced SB 85 on behalf of the
administration.
COREY BIGELOW, Operations Manager
Permanent Fund Dividend Division
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 85.
SCOTT STAIR, Investigations Manager
Criminal Investigations Unit
Department of Revenue (DOR)
POSITION STATEMENT: Answered questions about SB 85.
RICH BERKOWITZ, representing self
POSITION STATEMENT: Testified in support of SB 85.
RALPH MIRSKY, Chief Executive Officer
SeaLink Inc.
Ketchikan, Alaska
POSITION STATEMENT: Testified in support of SB 85.
SENATOR DAVID WILSON, District N
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 45.
JASMINE MARTIN, Staff
Senator David Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a recap of SB 45.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions about SB 45.
ACTION NARRATIVE
1:33:32 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:33 p.m. Present at the
call to order were Senators Merrick, Gray-Jackson, Bishop,
Dunbar, and Chair Bjorkman.
SB 83-PROFESSIONAL LICENSING; TEMP PERMITS
1:34:37 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 83
"An Act relating to professional licensing; relating to
temporary licenses for some professions; and providing for an
effective date."
He stated that this is the third hearing of this bill and Sylvan
Robb will provide a recap.
1:35:03 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development, Juneau, Alaska, offered a recap of SB 83.
She stated that this bill allows the department to issue a
temporary license for 180 days to an individual who currently
holds a license in good standing in another U.S. or Canadian
jurisdiction.
CHAIR BJORKMAN advised that in previous bill hearings the
division informed the committee that in its current form, the
bill fails to comply with federal regulations because it lacks
the proper language to address military courtesy licenses. The
proposed committee substitute addresses this issue. He solicited
a motion.
1:36:37 PM
SENATOR BISHOP moved to adopt the committee substitute (CS) for
SB 83, work order 33-GS1614\S, as the working document.
CHAIR BJORKMAN objected for purposes of discussion. He asked Mr.
Jackson to explain the changes in the CS.
1:37:06 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented the summary of changes
from version A to version S of SB 83, paraphrasing from the
following statement:
[Original punctuation provided.]
The draft proposed CS before members for consideration
addresses a gap in the bill. That being military
courtesy licenses.
The changes made in the CS will bring Alaska into
conformation with Federal Code- 50 U.S.C. 4025a (Sec.
19, 10 Veterans Auto and Education Improvement Act of
2022).
The changes made by the CS begin in sec. 2 which can
be found on page 3, line 9 and continuing to page 5.
Following this change, there are numerous conforming
changes which replace the term "Temporary Military
Courtesy" license with simply "Military Courtesy"
license. Also, the term "military servicemember" is
introduced to replace the term "active duty member".
On page 4, lines 13-18 and 24-28 amending paragraphs
(4) and (5) requiring a licensee must remain in good
standing with the original licensing authority and
complies with continuing education requirements.
In section 4 on page 5, language is added specifying
that these military courtesy licenses are valid for
the duration that the service members is under
official orders, under (a) of this section or 180
days, which ever is longer.
There are additional conforming changes found in
sections 4 and 6 regarding the terms military courtesy
license and military servicemember.
In new section 7, found on page 6, we align the
definition of a "military service member to that of
the definition found in 50 U.S.C 3911.
The remaining section of the bill are then renumbered.
The next change is found in the new section 29, on
page 15, lines 9-15 where the regulations annulled by
the bill are listed.
The following sections are renumbers and conforming
changes are made to the sections listed in the two
effective date clauses (30 & 31)
1:39:57 PM
CHAIR BJORKMAN removed his objection. Finding no further
objection, version S of SB 83 was adopted as the working
document and held in committee.
1:40:56 PM
At ease.
SB 85-PERM FUND; EMPLOYMENT; ELIGIBILITY
1:42:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 85 "An Act relating to record
checks for certain employees of the Department of Revenue;
relating to permanent fund dividends; and providing for an
effective date."
He asked Mr. Limani and Mr. Bigelow to introduce the bill.
1:43:12 PM
FADIL LIMANI, Deputy Commissioner, Department of Revenue (DOR),
Anchorage, Alaska, introduced SB 85 on behalf of the
administration speaking to the following:
SB 85 - Bill Overview
An Act relating to record checks for certain employees
of the Department of Revenue; relating to permanent
fund dividends
• The proposed legislation provides statutory
authority to collect fingerprints for the purpose of
conducting background checks on DOR employees
including contractors that may have access to
personal identifiable information (PII).
• Allows merchant mariners attending qualified
vocational programs to qualify for an allowable
absence from the state for eligibility purposes.
• Adds a new subsection to AS 43.23.008 to define the
term "education on a full-time basis" for the
purposes of calculating allowable absences for
students receiving secondary or postsecondary
education, vocational, professional, or other
specific education.
• Amends AS 43.23.140(d) to allow the division to use
electronic notice of levy for individuals who are
subjected to a court order or writ for the
collection of a debt.
1:45:24 PM
COREY BIGELOW, Operations Manager, Permanent Fund Dividend
Division, Juneau, Alaska, paraphrased the sectional analysis for
SB 85:
[Original punctuation provided.]
Sectional Analysis
Senate Bill 85 Perm Fund; Employment; Eligibility
Sections 1, 2, and 5: Amends AS 12.62 and AS 43.23 to
authorize the Department of Revenue to collect
fingerprints for completion of a national criminal
history record check for the purpose of determining
suitability for employment. The amendment to AS 12.62
authorizes the Department of Public Safety to conduct
national criminal history checks for division
employees.
Section 3: Amends AS 43.23.008(a) to allow merchant
mariners attending qualified vocational programs to
qualify for an allowable absence from the state for
eligibility purposes.
Section 4: Adds a new subsection to AS 43.23.008 to
define the term "education on a full-time basis" for
the purposes of calculating allowable absences for
students receiving secondary or postsecondary
education, vocational, professional, or other specific
education. The proposed definition would allow the
division to include intra-academic year holidays and
breaks, but not summer breaks, in the full-time
education calculation, as opposed for separately
calculating holidays and breaks under the current
iteration of the statute.
Section 6: Amends AS 43.23.140(d) to allow the
division to use electronic notice of levy for
individuals who are subjected to a court order or writ
for the collection of a debt. Currently, the division
is required to provide notice of levy via mail,
despite the consent of many applicants to receive
electronic notices.
Section 7: Adds transitional regulation language.
Section 8: Adds immediate effective date language.
Section 9: Adds otherwise effective date language as
of 1/1/2024.
1:49:33 PM
SENATOR BISHOP asked Mr. Bigelow to expound on the background
check.
MR. BIGELOW deferred the question to Mr. Stair, Investigations
Manager.
1:50:17 PM
SCOTT STAIR, Investigations Manager, Criminal Investigations
Unit, Department of Revenue (DOR), answered questions about SB
85. He replied that the background check currently looks back
ten years, but the department is trying to reduce it to five
years.
1:51:15 PM
CHAIR BJORKMAN opened public testimony on SB 85.
1:51:46 PM
RICH BERKOWITZ, representing self, stated support for SB 85
which will help individuals attending certain merchant marine
vocational programs to remain eligible for the permanent fund
dividend (PFD) during absences from the state. He said he had
worked on behalf of U.S. flag vessel operators, including those
in Alaska, since 1995 to recruit, train, and place Alaskan
youth, Natives, and others to work as deep-sea mariners. He
shared a brief history of partnering with the state that
resulted in the hire of more than 800 Alaskans in mariner jobs.
He said Alaskans initially weren't interested in attending the
esteemed mariner school in Maryland because it would risk their
PFD benefits, but in 1999 the legislature passed a law to ensure
that Alaskan mariners would qualify for the PFD while attending
this training, provided they met all the other qualifications.
Their time training and time at sea were considered an allowable
absence. However, in 2017 the PFD administration changed the
definition of qualified vocational training which
unintentionally eliminated the training program in Maryland as a
qualified program. He said the PFD administration recognizes the
unintended consequence and supports this bill to return to the
pre-2017 allowable absence provisions for mariners. He urged the
committee to support SB 85.
1:56:10 PM
CHAIR BJORKMAN stated he would hold public testimony open on SB
85.
1:56:28 PM
At ease.
CHAIR BJORKMAN reconvened the meeting and continued public
testimony.
1:57:09 PM
RALPH MIRSKY, Chief Executive Officer, SeaLink Inc., Ketchikan,
Alaska, agreed with Mr. Berkowitz that it was unfair for
merchant mariners enrolled in a bona fide sea farers school not
to receive a permanent fund dividend. He noted that his company
was responsible for recruiting the bulk of the 800 Alaskans that
Mr. Berkowitz mentioned.
1:59:41 PM
SENATOR BISHOP asked Mr. Bigelow whether he had a running total
of the number of mariners denied a permanent fund dividend from
2017 until today.
MR. BIGELOW answered it was fewer than 20 each year.
SENATOR BISHOP calculated that the total was approximately 125
over five years.
2:00:57 PM
SENATOR GRAY-JACKSON asked whether SB 85 was retroactive.
MR. BIGELOW answered no; it is effective from 2024 forward.
SENATOR GRAY-JACKSON recommended making the bill retroactive.
[CHAIR BJORKMAN held SB 85 in committee with public testimony
open.]
2:01:59 PM
At ease.
SB 45-DIRECT HEALTH AGREEMENT: NOT INSURANCE
2:03:15 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 45 "An Act relating to
insurance; relating to direct health care agreements; and
relating to unfair trade practices."
He asked Senator Wilson and Ms. Martin to provide a recap of the
bill.
2:03:45 PM
SENATOR DAVID WILSON, District N, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 45, deferred to Ms. Martin to
provide a recap.
2:03:57 PM
JASMINE MARTIN, Staff, Senator David Wilson, Alaska State
Legislature, Juneau, Alaska, gave a recap of SB 45. She stated
that this bill allows Alaskans and their healthcare providers to
enter into direct healthcare agreements and specifies that these
agreements are not insurance.
2:04:36 PM
CHAIR BJORKMAN solicited public testimony on SB 45 and found
there was none.
2:05:05 PM
At ease.
2:07:21 PM
CHAIR BJORKMAN reconvened the meeting and asked Ms. Wing-Heier
whether the Division of Insurance regulates similar agreements
for subscription services in the state.
2:07:56 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development, Anchorage, Alaska,
stated that the division currently does not have any direct
healthcare agreements under its purview.
CHAIR BJORKMAN asked whether the Division of Insurance regulates
prepaid agreements.
MS. WING-HEIER answered yes; the legislature gave the division
oversight of those agreements about 2015. The division refers to
them as "insurance lite" because they do not meet the definition
of an insurance company. There are no actuaries, no audited
financials, and the agreements lack the resources, capital or
surplus that the division would look for with insurance
companies. The division takes consumer complaints and has the
consumers register to establish open communication.
CHAIR BJORKMAN asked what the similarities are between air
ambulance agreements and the direct healthcare concept.
MS. WING-HEIER answered that the division doesn't get involved
in day-to-day operations but she doubts there are many
similarities. She explained that the division worked to ensure
that the language complies with statutes. The service is similar
to insurance because it is a prepaid product for which
healthcare service would be performed in exchange for the
premium.
2:10:52 PM
CHAIR BJORKMAN opened public testimony on SB 45; he found none
and closed public testimony.
CHAIR BJORKMAN held SB 45 in committee.
2:11:31 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:11 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 83 Draft Proposed CS ver S.pdf |
SL&C 4/5/2023 1:30:00 PM |
|
| SB 85 ver A.PDF |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Transmittal Letter 02.23.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Sectional Analysis 02.24.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Fiscal Note-DOR-PFD-02.22.23.PDF |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Presentation to SL&C by DOR 04.05.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Public Testimony-Letter_AK State Chamber 04.3.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Public Testimony-Letter_Cindy Spanyers 03.21.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Public Testimony-Letter_Matson 03.22.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |
| SB 85 Handout-Maritime Career.org_Presented by Rich Berkowitz 04.05.23.pdf |
SL&C 4/5/2023 1:30:00 PM |
SB 85 |