SB 117-STATE COMMISSION FOR CIVIL RIGHTS  2:18:06 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SENATE BILL NO. 117 "An Act renaming the State Commission for Human Rights the Alaska State Commission for Civil Rights; relating to removal of commissioners of the Alaska State Commission for Civil Rights; relating to reports from the Alaska State Commission for Civil Rights; relating to the definition of 'employer' for the purposes of the Alaska State Commission for Civil Rights; and relating to local civil rights commissions." 2:18:28 PM JOE HAYES, Staff, Senator Scott Kawasaki, Alaska State Legislature, Juneau, Alaska, presented the sponsor statement and provided the sectional analysis for SB 117. He read the sponsor statement for SB 117: [Original punctuation provided.] "An Act renaming the State Commission for Human Rights the Alaska State Commission for Civil Rights; relating to removal of commissioners of the Alaska State Commission for Civil Rights; relating to reports from the Alaska State Commission for Civil Rights; relating to the definition of 'employer' for the purposes of the Alaska State Commission for Civil Rights; and relating to local civil rights commissions." Senate Bill 117 provides an overhaul of the Alaska State Commission on Human Rights (ASCHR, or Commission) to reflect the work and duties of the 21st century and beyond. The Commission consists of seven commissioners appointed by the governor. Their mandate is to adopt and enforce regulations related to employment discrimination because of physical and mental disabilities. A person aggrieved by an alleged discriminatory practice may file a complaint with the Commission. The Commission may investigate, hold hearings, and potentially order appropriate relief. However, in current law this protection does not extend to workers at Alaska's many nonprofit organizations. SB117 would change the name of the State Commission for Human Rights to the Alaska State Commission for Civil Rights. SB 117 adds a requirement that the governor can only remove a commissioner for cause. 2:19:40 PM MR. HAYES continued reading the sponsor statement for SB 117: Cause could include incompetence, neglect, misconduct, or public or private statements that undermine the commission's work. In current law, a commissioner can be removed for any reason. SB 117 would change the timing and method of the commission's annual report to the legislature. Instead of the week before convening, the report would be due on November 15. The report could be delivered electronically instead of requiring paper copies. SB 117 would add a defense against a discrimination claim if the employer is a religious organization and the employee is hired for a religious purpose and modifies the definition of "employer" in the ASCHR statutes to include these workers. The new provisions in SB 117 will allow the commission to perform to its highest potential and to fully assist Alaskans from both the private and non-profit sectors. As times change the need for a more robust commission is in demand. SB 117 will give the commission the leeway and latitude to fulfill its mission. 2:20:56 PM MR. HAYES read the sectional analysis for SB 117: [Original punctuation provided.] Sectional Analysis "An Act renaming the State Commission for Human Rights the Alaska State Commission for Civil Rights; relating to removal of commissioners of the Alaska State Commission for Civil Rights; relating to reports from the Alaska State Commission for Civil Rights; relating to the definition of 'employer' for the purposes of the Alaska State Commission for Civil Rights; and relating to local civil rights commissions." 2:20:57 PM MR. HAYES continued with the sectional analysis for SB 117: Sec. 1 Changes the name of the Commission to the Alaska State Commission for Civil Rights. Sec. 2 Adds a new subsection to the statute governing appointments to the commission, stipulating that the governor can only remove a commissioner for cause. Cause could include incompetence, neglect, misconduct, or public or private statements that undermine the commission's work. Sec. 3 Changes the timing and method of the commission's annual report to the legislature. Instead of the week before convening, the report would be due on November 15. Also, the report could be delivered electronically instead of requiring paper copies. Sec. 4 Adds a defense against a discrimination claim if the employer is a religious organization and the employee is hired for a religious purpose. Sec. 5 Conforming language to the change in Sec. 1, allowing municipal civil rights commissions. Sec. 6 Conforming language to the change in Sec. 1, in the definition of "commission" in the enabling statutes. Sec. 7 Changes the definition of "employer" in the commission's enabling statutes to include all employers except for nonprofit social and fraternal organizations. The change broadens coverage to employees of other nonprofit employers. Sec. 8 Conforming language to the change in Sec. 1, describing the role of the executive director. Sec. 9 Conforming language to the change in Sec. 1, describing referrals from the Select Committee on Legislative Ethics to the commission. Sec. 10 Conforming language to the change in Sec. 1, regarding the list of public officials required to make financial disclosures. Sec. 11 Conforming language to the change in Sec. 1, regarding applicability of the Administrative Procedures Act. 2:23:12 PM SENATOR GRAY-JACKSON asked whether the mandate addressing employment discrimination based on physical and mental disability also includes race and age. 2:23:31 PM MR. HAYES replied that he believes it does. 2:23:50 PM SENATOR DUNBAR asked about Section 4, AS 18.80.220(e)(1), noting it appears broader than the traditional ministerial exception. He expressed concern that, as written, it could allow religious organizations to discriminate in any position regardless of religious purpose, unlike prior practice or the narrower scope established by the U.S. Supreme Court. 2:26:05 PM MR. HAYES answered that he didn't know, however Executive Director Corbisier could answer the question. 2:26:23 PM MR. HAYES moved to slide 2 and read the following: [Original punctuation provided.] Alaska State Commission on Human Rights  • State agency that enforces the Alaska civil rights law in AS 18.80 • Seven commissioners appointed by the Governor and confirmed by the Legislature • Small staff and office in Anchorage • Statewide powers to accept and investigate complaints from individuals across all regions of the state Mission Statement:  To eliminate and prevent discrimination for all Alaskans In Alaska, it is illegal to discriminate in:  • Employment • Places of Public Accommodation • Sale or Rental of Real Property • Financing and Credit • Practices by the State or its Political Subdivisions Because of:  • Race • Color • Religion • Sex • National Origin • Disability 2:27:02 PM MR. HAYES moved to slide 3 and read the following: [Original punctuation provided.] Background: Current Jurisdiction • U.S. Equal Employment Opportunity Commission (EEOC) protects non-profit employees from discrimination if the employer has at least 15 employees • Municipal commissions, like the Anchorage Equal Rights Commission (AERC) and the Juneau Human Rights Commission (JHRC), cover non-profit employees in those communities • The State commission has no jurisdiction to accept or pursue discrimination cases brought to them by non-profit employees (This is due to language in the definition of "employer" in the ASHRC statutes, AS 18.80.300(5)) 2:27:47 PM MR. HAYES moved to slide 4, a bar graph on nonprofit workforce and coverage. He stated that Alaska has 5,600 nonprofits employing about 35,000 people, roughly 12 percent of the state's workforce, none of whom are covered under the Alaska Non- Discrimination Employment Statute. 2:28:09 PM MR. HAYES moved to slide 5 and read the following: [Original punctuation provided.] ASCHR: Annual Report  For at least the past five years, the Alaska State Commission for Human Rights (ASCHR) has stated that one of their main legislative priorities is to: "Work with the State Legislature to add non-profits to ASCHR's jurisdiction in an effort to include protections for 44,000 currently unprotected workers" 2:28:34 PM MR. HAYES moved to slide 6 and read the following: [Original punctuation provided.] What does the bill do? 1. Changes definition of "employer" to include non- profit organizations • The change in HB23 only applies to the State Commission for Human Rights [AS 18.80.300(5)] • Retains exceptions for social and fraternal organizations, and employees of religious organizations hired for a religious purpose 2. Change name of the commission to the Alaska State Commission for Civil Rights 3.New statute saying that the governor can only remove a commissioner for cause (incompetence, neglect, misconduct, etc.) 4.Change the timing of their annual report to November 15, and allow for it to be provided electronically 2:29:34 PM SENATOR YUNDT asked if he heard correctly that 12 percent of all jobs in Alaska are direct employment of a non-profit. 2:29:44 PM MR. HAYES answered yes. [CHAIR BJORKMAN announced invited testimony on SB 117.] 2:30:21 PM ROBERT CORBISIER, Executive Director, Alaska State Commission for Human Rights, Anchorage, Alaska, testified by invitation on SB 117. He said this applies to all protected classes and does not change protections in any of the five jurisdictional areas. 2:30:47 PM SENATOR GRAY-JACKSON asked if the physical attributes are broken down in statute to specify race and age. 2:31:10 PM MR. CORBISIER answered that the statute specifies physical and mental disabilities and cites existing laws where these protected classes apply.  2:31:21 PM SENATOR GRAY-JACKSON asked whether state statutes break down categories like the slide or simply list "physical" disability. 2:31:45 PM MR. CORBISIER replied that in statute it says physical or mental disability. 2:31:51 PM SENATOR GRAY-JACKSON suggested that the statute should be broken down to list all types of attributes. 2:32:12 PM MR. CORBISIER explained that he drafted the language to address Representative Josephson's past concern that a church janitor should be able to file a discrimination claim. SB 117 clarifies that only positions involving ecclesiastical services qualify for exemption, determined by reviewing job descriptions used in investigations. 2:33:33 PM SENATOR DUNBAR referenced the Hosanna-Tabor (2012) and Our Lady of Guadalupe (2020) Supreme Court cases, which expanded the ministerial exception to teachers performing some religious duties. He noted concern that these rulings allow religious institutions to bypass discrimination laws, even for non- religious roles. He used Providence Hospital as an example of a religious nonprofit managed by a Catholic order of nuns. He emphasized that Alaska's language should ensure the ecclesiastical exception is narrowly applied to genuine religious work and not so broad that it removes protections for employees of religiously affiliated but non-religious nonprofits. 2:36:42 PM MR. CORBISIER agreed that organizations like soup kitchens with a general religious mission, but no church affiliation, should not be allowed to discriminate. He noted that while Providence is a large religious nonprofit, only roles explicitly involving religious duties, such as chapel staff, should qualify for a religious exemption, not positions like physicians. 2:37:47 PM SENATOR DUNBAR answered that he agrees. 2:37:54 PM CHAIR BJORKMAN asked whether churches should be allowed to consider a job applicant's faith when hiring, noting that many in the public might find restricting that ability unacceptable. 2:39:01 PM MR. CORBISIER replied that the First Amendment and U.S. Supreme Court precedents must be respected. He said the ministerial exemption was written narrowly to protect legitimate religious roles while ensuring broader employee protections. He shared examples, such as church singers and teachers in parochial schools, where faith-based hiring is permissible due to the positions' ecclesiastical nature. 2:40:57 PM SENATOR DUNBAR noted that most related court cases involve discrimination based on disability or age claims, not religion. He explained that while it's settled law that churches may hire based on religion for ministerial roles, the more complex issue is whether religious employers can discriminate based on race or disability, areas typically protected under other laws like the Americans with Disability Act (ADA). 2:42:46 PM CHAIR BJORKMAN held SB 117 in committee.