ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        January 31, 2024                                                                                        
                           3:17 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Jesse Sumner, Chair                                                                                              
Representative Justin Ruffridge, Vice Chair                                                                                     
Representative Mike Prax                                                                                                        
Representative Dan Saddler                                                                                                      
Representative Stanley Wright                                                                                                   
Representative Ashley Carrick                                                                                                   
Representative Zack Fields                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 159                                                                                                              
"An Act  relating to registered  interior designers  and interior                                                               
design; establishing requirements for  the practice of registered                                                               
interior  design; renaming  the State  Board of  Registration for                                                               
Architects,  Engineers, and  Land  Surveyors the  State Board  of                                                               
Registration  for Design  Professionals;  relating  to the  State                                                               
Board  of  Registration  for Design  Professionals;  relating  to                                                               
liens  for   labor  or  materials  furnished;   relating  to  the                                                               
procurement  of interior  design services;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
     - MOVED CSHB 159(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 100                                                                                                              
"An Act relating to teacher and public employee leave."                                                                         
                                                                                                                                
     - MOVED CSHB 100(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 254                                                                                                              
"An  Act relating  to liability  for  publishing or  distributing                                                               
pornography to minors on the Internet."                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 273                                                                                                              
"An  Act relating  to the  power  of the  Alaska Housing  Finance                                                               
Corporation to make or purchase mortgage loans."                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 37                                                                                                              
"An Act establishing the crime of airbag fraud."                                                                                
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 89(FIN)                                                                                
"An  Act  relating  to   tobacco,  tobacco  products,  electronic                                                               
smoking  products, nicotine,  and  products containing  nicotine;                                                               
raising  the  minimum  age  to  purchase,  exchange,  or  possess                                                               
tobacco, a product containing nicotine,  or an electronic smoking                                                               
product;  relating to  the tobacco  use  education and  cessation                                                               
fund;  relating to  the taxation  of electronic  smoking products                                                               
and vapor products; and providing for an effective date."                                                                       
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 159                                                                                                                  
SHORT TITLE: REGISTER INTERIOR DESIGNERS                                                                                        
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
04/14/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/14/23       (H)       L&C, FIN                                                                                               
05/10/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/10/23       (H)       -- MEETING CANCELED --                                                                                 
05/12/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/12/23       (H)       <Bill Hearing Canceled>                                                                                
01/22/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/22/24       (H)       <Bill Hearing Rescheduled to 01/24/24>                                                                 
01/24/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/24/24       (H)       <Bill Hearing Rescheduled to 01/26/24>                                                                 
01/26/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/26/24       (H)       -- MEETING CANCELED --                                                                                 
01/29/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/29/24       (H)       -- MEETING CANCELED --                                                                                 
01/31/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 100                                                                                                                  
SHORT TITLE: PAID FAMILY LEAVE INSURANCE PLAN                                                                                   
SPONSOR(s): ARMSTRONG                                                                                                           
                                                                                                                                
03/08/23       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/08/23       (H)       L&C, EDC                                                                                               
04/07/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/07/23       (H)       -- MEETING CANCELED --                                                                                 
04/10/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/23       (H)       <Bill Hearing Canceled>                                                                                
05/01/23       (H)       L&C AT 3:15 PM BARNES 124                                                                              
05/01/23       (H)       Heard & Held                                                                                           
05/01/23       (H)       MINUTE(L&C)                                                                                            
12/05/23       (H)       L&C AT 2:00 PM ANCH LIO DENALI Rm                                                                      
12/05/23       (H)       Heard & Held                                                                                           
12/05/23       (H)       MINUTE(L&C)                                                                                            
01/17/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/17/24       (H)       Heard & Held                                                                                           
01/17/24       (H)       MINUTE(L&C)                                                                                            
01/31/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 254                                                                                                                  
SHORT TITLE: PROHIBIT PORNOGRAPHY TO MINORS                                                                                     
SPONSOR(s): VANCE                                                                                                               
                                                                                                                                
01/16/24       (H)       PREFILE RELEASED 1/12/24                                                                               
01/16/24       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/16/24       (H)       L&C, JUD                                                                                               
01/31/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 273                                                                                                                  
SHORT TITLE: AHFC MAKE/PURCHASE MORTGAGE LOANS                                                                                  
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/18/24       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/24       (H)       L&C                                                                                                    
01/29/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
01/29/24       (H)       -- MEETING CANCELED --                                                                                 
01/31/24       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SARENA HACKENMILLER, Staff                                                                                                      
Representative Justin Ruffridge                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Read the summary of changes to HB 159 on                                                                 
behalf of Representative Ruffridge, prime sponsor.                                                                              
                                                                                                                                
CATHERINE FRITZ, Chair                                                                                                          
Alaska Board of Registration for Architects, Engineers, and Land                                                                
Surveyors                                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
LARRY CASH, Architect                                                                                                           
RIM Architects                                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
CHARLES BETTISWORTH, representing self                                                                                          
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
JASON GAMACHE, representing self                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
JOHN WEIR, President/Principal Registered Architect                                                                             
MCGA Explorer Design                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
MATTHEW BARUSCH, Government Relations and Advocacy                                                                              
Council for Interior Design Qualification                                                                                       
Alexandria, Washington                                                                                                          
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
BRIAN MEISNER, representing self                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
DANA NUNN, Chair                                                                                                                
American Society of Interior Designers, Alaska Chapter                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
COLIN MAYNARD, Legislative Committee Chair                                                                                      
Alaska Professional Design Council                                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
BARBARA CASH, representing self                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
HARLEY HIGHTOWER, representing self                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
MARY KNOPF, representing self                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
RITA TROMETTER, representing self                                                                                               
North Pole, Alaska                                                                                                              
POSITION STATEMENT:  Testified in opposition of HB 159.                                                                       
                                                                                                                                
ELIZABETH JOHNSTON, representing self                                                                                           
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
PAUL BARIL, representing self                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in opposition to HB 159.                                                                       
                                                                                                                                
DAVID GAMEZ, representing self                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 159.                                                                          
                                                                                                                                
JASON FLOYD, representing self                                                                                                  
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified against HB 159.                                                                                
                                                                                                                                
SYLVAN ROBB, Director                                                                                                           
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
159.                                                                                                                            
                                                                                                                                
REPRESENTATIVE JENNIE ARMSTRONG                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, answered questions on HB                                                               
100.                                                                                                                            
                                                                                                                                
TRISTAN WALSH, Staff                                                                                                            
Representative Jennie Armstrong                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Assisted in answering questions during the                                                               
hearing on HB 100 on behalf of Representative Armstrong, prime                                                                  
sponsor.                                                                                                                        
                                                                                                                                
REPRESENTATIVE SARAH VANCE                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, introduced HB 254.                                                                     
                                                                                                                                
BOB BALLINGER, Staff                                                                                                            
Representative Sarah Vance                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Read the  sectional analysis for HB  254 on                                                             
behalf of Representative Vance, prime sponsor.                                                                                  
                                                                                                                                
ADAM CRUM, Commissioner                                                                                                         
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Presented HB  273  on behalf  of the  bill                                                             
sponsor, House Rules by request of the governor.                                                                                
                                                                                                                                
STACY BARNES, Director                                                                                                          
Alaska Housing Finance Corporation                                                                                              
Department of Revenue                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing on HB 273.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:17:43 PM                                                                                                                    
                                                                                                                                
CHAIR JESSE SUMNER  called the House Labor  and Commerce Standing                                                             
Committee meeting to order at  3:17 p.m. Representatives Saddler,                                                               
Prax, Wright, Carrick, Fields, Ruffridge  and Sumner were present                                                               
at the call to order.                                                                                                           
                                                                                                                                
               HB 159-REGISTER INTERIOR DESIGNERS                                                                           
                                                                                                                                
[Contains discussion of SB 73 AND SB 126.]                                                                                      
                                                                                                                                
3:18:24 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  first order of business would be                                                               
HOUSE  BILL NO.  159,  "An Act  relating  to registered  interior                                                               
designers and interior design;  establishing requirements for the                                                               
practice of registered interior  design; renaming the State Board                                                               
of  Registration for  Architects, Engineers,  and Land  Surveyors                                                               
the  State  Board  of   Registration  for  Design  Professionals;                                                               
relating  to   the  State  Board   of  Registration   for  Design                                                               
Professionals;  relating   to  liens   for  labor   or  materials                                                               
furnished;  relating  to  the   procurement  of  interior  design                                                               
services; and providing for an effective date."                                                                                 
                                                                                                                                
3:18:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  adopt the  proposed committee                                                               
substitute  (CS)  for  HB   159,  Version  33-LS0745\S,  Gunther,                                                               
1/25/24, as a working document.                                                                                                 
                                                                                                                                
3:18:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SUMNER objected for the purpose of discussion.                                                                   
                                                                                                                                
3:19:07 PM                                                                                                                    
                                                                                                                                
SARENA  HACKENMILLER,  Staff,  Representative  Jesse  Sumner,  on                                                               
behalf of  Representative Justin  Ruffridge, prime sponsor  of HB                                                               
159, gave  the summary of  changes within version S  [included in                                                               
the   committee  packet],   which  read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Sections 1-2. No change.                                                                                                   
                                                                                                                                
    Old   Sections   3-4    deleted.   Following   sections                                                                     
     renumbered.                                                                                                                
                                                                                                                                
     Sections 3-18 renumbered.                                                                                                  
                                                                                                                                
     Old Section 19 deleted.                                                                                                    
                                                                                                                                
     New Section 19 through 23 renumbered.                                                                                      
                                                                                                                                
       Section 24. Renumbered, adds "construction" as an                                                                        
     exempt activity under subsection 08.48.311(8).                                                                             
                                                                                                                                
     Sections 25-26 renumbered.                                                                                                 
                                                                                                                                
      Section 27. Renumbered, adds interior designer as a                                                                       
    professional    service    to   the    definition    of                                                                     
     "registrant.                                                                                                               
                                                                                                                                
       Section 28. Renumbered, updates subsection numbers                                                                       
     from 24 to 27, 25 to 28.                                                                                                   
                                                                                                                                
     Sections 29-38 renumbered.                                                                                                 
                                                                                                                                
     Section 39. Updates effective date to July 1, 2024.                                                                        
                                                                                                                                
3:21:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  asked  whether   there  is  a  sectional                                                               
analysis.                                                                                                                       
                                                                                                                                
MS. HACKENMILLER  offered to follow  up to provide  the sectional                                                               
analysis.                                                                                                                       
                                                                                                                                
3:22:27 PM                                                                                                                    
                                                                                                                                
CHAIR  SUMNER removed  his  objection.   There  being no  further                                                               
objection, Version S was before the committee.                                                                                  
                                                                                                                                
3:22:44 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER opened public testimony on HB 159.                                                                                 
                                                                                                                                
3:23:00 PM                                                                                                                    
                                                                                                                                
CATHERINE  FRITZ,   Chair,  Alaska  Board  of   Registration  for                                                               
Architects, Engineers, and Land Surveyors,  shared that she is an                                                               
architect  by  profession  and  had  submitted  personal  written                                                               
testimony but will  be speaking on behalf of the  Alaska Board of                                                               
Registration  for  Architects,   Engineers,  and  Land  Surveyors                                                               
(AELS).  She  relayed that the board took two  actions during its                                                               
May 2023  meeting: recommended against adding  interior design to                                                               
its responsibilities,  and suggested  amendments to  SB 73.   She                                                               
said that while SB 73 now  differs from HB 159, many sections are                                                               
the same.   She advised  that passage of  SB 126 had  changed the                                                               
board  make-up and  solved  an issue  related  to electrical  and                                                               
mechanical engineer board  seats.  She talked  about the Interior                                                               
Design  Working Group,  and said  that,  in spring  of 2022,  the                                                               
board  requested   that  a  working  group   of  Alaska  interior                                                               
designers  and  architects  be formed  to  collaboratively  study                                                               
interior  design regulation  and  bring  forth possible  options.                                                               
She said she served as an  architect on the working group, and in                                                               
February 2023, a  special AELS board meeting was  held to discuss                                                               
interior  design regulation  where three  regulatory models  were                                                               
offered:  one, which  is  within  HB 159  and  SB  73; two,  that                                                               
interior design be  exempt from 0848, which  would allow interior                                                               
designers to  work independently  while clarifying that  they are                                                               
not  practicing architecture;  and three,  to establish  interior                                                               
designer in another section of occupational licensing statute.                                                                  
                                                                                                                                
3:26:37 PM                                                                                                                    
                                                                                                                                
LARRY  CASH, Architect,  RIM Architects,  said he  is a  licensed                                                               
architect and  has worked in Alaska  for 46 years.   He explained                                                               
that the U.S.  Department of Defense (DoD) and the  U.S. Corps of                                                               
Engineers  (CoE) now  require that  an interior  designer provide                                                               
services  on DoD  and  CoE projects,  and in  Alaska,  they be  a                                                               
registered  interior designers.    He said  given the  increasing                                                               
number of military  projects in Alaska, and  if this registration                                                               
is not  available to Alaska  citizens, the  work will have  to be                                                               
contracted   to   registered   designers   outside   of   Alaska.                                                               
Currently, Alaska architects hire  interior designers who are not                                                               
registered and do  not stamp the documents they  prepare, but the                                                               
architect does,  thereby putting  all the  professional liability                                                               
on  the  architect.   He  pointed  out that  credentialed  Alaska                                                               
interior designers  provide services  that affect  public health,                                                               
safety,  and welfare;  they want  to  have the  option to  become                                                               
registered  professionals  who  are   required  to  stamp,  sign,                                                               
certify,  and be  legally accountable  for their  work.   He said                                                               
that  HB  159  accomplishes  this, and  enhances  the  safety  of                                                               
buildings in Alaska, something he  agrees with.  He urged members                                                               
to pass HB 159.                                                                                                                 
                                                                                                                                
3:28:41 PM                                                                                                                    
                                                                                                                                
CHARLES BETTISWORTH,  representing self, shared that  he has been                                                               
a  registered architect  in  the state  for over  40  years.   He                                                               
voiced  his support  for  HB 159.   He  explained  that, when  an                                                               
architect hires an unregistered  interior designer, the architect                                                               
assumes all liability for that designer's work.                                                                                 
                                                                                                                                
3:30:13 PM                                                                                                                    
                                                                                                                                
JASON  GAMACHE,   representing  self,  said  he   is  a  licensed                                                               
architect  and   business  owner  of  an   architecture  firm  in                                                               
Anchorage.  He  stated that he supports passage of  HB 159, as it                                                               
is in  the best interest of  the design community and  the people                                                               
they create the spaces for.                                                                                                     
                                                                                                                                
3:31:01 PM                                                                                                                    
                                                                                                                                
JOHN   WEIR,  President/Principal   Registered  Architect,   MCGA                                                               
Explorer Design,  stated that  he is  in support  of HB  159, and                                                               
said that DoD projects require registered interior designers.                                                                   
                                                                                                                                
3:31:47 PM                                                                                                                    
                                                                                                                                
MATTHEW BARUSCH,  Government Relations and Advocacy,  Council for                                                               
Interior Design  Qualification, said the council  administers the                                                               
national certification  exam that  is required for  licensure and                                                               
registration of  interior designers  in the  U.S. and  Canada; it                                                               
supports HB 159  for the same reason as it  administers the test:                                                               
it  helps  protect public  health,  safety,  and welfare  through                                                               
oversight  with qualified  practitioners.    He informed  members                                                               
that  they  also  submitted  a  joint  statement  from  the  four                                                               
national  regulatory associations  for  design  professions.   He                                                               
urged members to support the bill.                                                                                              
                                                                                                                                
3:32:58 PM                                                                                                                    
                                                                                                                                
BRIAN MEISNER, representing  self, said HB 159 is  good and could                                                               
attract  families to  Alaska.   He asked  members to  support the                                                               
bill.                                                                                                                           
                                                                                                                                
3:33:30 PM                                                                                                                    
                                                                                                                                
DANA NUNN, Chair, American Society  of Interior Designers, Alaska                                                               
Chapter,  said  that   HB  159  and  SB   73  propose  reasonable                                                               
regulation  to  protect public  health,  safety,  and welfare  by                                                               
establishing  professional registration  for interior  designers.                                                               
She said  the bill would  allow those  who have been  educated on                                                               
codes, and  have experience  in state  planning and  design, pass                                                               
the  three-part  exam.    She  stressed  that  HB  159  does  not                                                               
negatively  impact architects,  as they  can continue  to provide                                                               
interior design services.                                                                                                       
                                                                                                                                
3:35:06 PM                                                                                                                    
                                                                                                                                
COLIN MAYNARD,  Legislative Committee Chair,  Alaska Professional                                                               
Design  Council, shared  that he  is  a retired  state of  Alaska                                                               
civil  structural   engineer,  and   has  worked   42-years  with                                                               
architects  and interior  designers.   He  said  the tenet,  that                                                               
licensure  is  for  protecting public  safety  by  verifying  the                                                               
education and  experience of applicants, was  bolstered after his                                                               
8 years  on licensing board  for architects, engineers,  and land                                                               
surveyors.    He  advised   members  that  national  registration                                                               
organizations place interior  designers on the same  plane as the                                                               
other  design  professions, as  their  work  also affects  public                                                               
health, safety, and welfare.  He urged members to pass HB 159.                                                                  
                                                                                                                                
3:36:08 PM                                                                                                                    
                                                                                                                                
BARBARA  CASH, representing  self,  shared that  she  has been  a                                                               
member  of  the joint  ASIB  and  AIA  working  group and  is  an                                                               
interior designer.   She urged members to support  HB 159 because                                                               
ensuring interior design that affects  public safety is regulated                                                               
through  licensure is  good for  Alaska. She  explained that  the                                                               
bill would  allow all  designers to  continue practicing  as they                                                               
are, provided  that services that  affect public  health, safety,                                                               
and welfare  are done  under direct  supervision of  a registered                                                               
architect or  registered interior  designer.   She said  the bill                                                               
saves costly  additional oversight by architects,  gives interior                                                               
designers responsibility  for their  own work, and  ensures those                                                               
designers are qualified.  She asked members to pass HB 159.                                                                     
                                                                                                                                
3:37:37 PM                                                                                                                    
                                                                                                                                
HARLEY HIGHTOWER, representing self, shared  that he is a retired                                                               
architect with 60 years of  experience in Alaska.  He recommended                                                               
that members pass HB 159.                                                                                                       
                                                                                                                                
3:38:45 PM                                                                                                                    
                                                                                                                                
MARY KNOPF, representing  self, said she is  an interior designer                                                               
and  member  of the  joint  ASIB  and  AIA  working group.    She                                                               
stressed that, under  HB 159, residential design  would remain as                                                               
is in current statute; it would expand options for non-                                                                         
registered  designers  to  work  throughout  the  state  on  non-                                                               
structural  interior  design  projects,  as  they  do  currently,                                                               
through  working   with  an  architect  or   registered  interior                                                               
designer.                                                                                                                       
                                                                                                                                
3:39:42 PM                                                                                                                    
                                                                                                                                
RITA  TROMETTER, representing  self,  informed  members that  she                                                               
submitted testimony voicing opposition to HB 159.                                                                               
                                                                                                                                
3:40:22 PM                                                                                                                    
                                                                                                                                
ELIZABETH JOHNSTON, representing self,  informed members that she                                                               
is  a  registered  professional electrical  and  fire  protection                                                               
engineer and  was appointed  to the  State Board  of Registration                                                               
for  Archetects, Engineers,  and Marine  Surveyors.   She advised                                                               
that her testimony is her own  and should not reflect a consensus                                                               
of the board.   She asked members to pass HB  159.  She explained                                                               
that  the  bill  separates  and   dedicates  the  mechanical  and                                                               
electrical engineer seats on the board,  as a prior change to the                                                               
boards  make-up  clarified  that   a  Mechanical  and  Electrical                                                               
Engineer can  simultaneously serve on  the board by using  one of                                                               
the  different  open  seats;  the prior  change  did  not  create                                                               
separate seats[ for each distinct  field of practice.  She stated                                                               
that  the  technical knowledge  on  the  board  is relied  on  to                                                               
enforce  responsible practice.   She  recommended two  changes to                                                               
the bill:  the scope  of practice  is too  lengthy and  should be                                                               
simplified  to align  with National  Council for  Interior Design                                                               
Qualification  (NCIDQ) definition  of practice;  second, interior                                                               
designers  should  be  excluded  from provision  for  license  by                                                               
comity,  as there  are not  enough  systems in  place to  compare                                                               
Alaska registers with  those of another state.   She stressed the                                                               
importance of interior designers.                                                                                               
                                                                                                                                
3:42:27 PM                                                                                                                    
                                                                                                                                
PAUL BARIL,  representing self, shared  that he is an  AIA member                                                               
and registered  architect in Alaska,  as well as owner  of Vision                                                               
Architecture.   He said  he is  in opposition to  HB 159,  as the                                                               
legislation has  unnecessary and  confusing elements  to it.   He                                                               
shared that  he is part of  the ASIB working group,  who has been                                                               
working  with  interior   designers.    He  said   the  level  of                                                               
registration and  what designers would  be allowed to do  is what                                                               
is confusing  to people.   He added  that, while  they understand                                                               
that the  designers want  to be registered,  it is  possible, but                                                               
some changes need to be made to the bill.                                                                                       
                                                                                                                                
3:44:01 PM                                                                                                                    
                                                                                                                                
DAVID GAMEZ, representing self, said  that he is a licensed civil                                                               
engineer  in  Anchorage,  as  well as  president  of  the  Alaska                                                               
Professional Design Council.   He conveyed support of  HB 159, as                                                               
interior designers shape interior  spaces, which impacts life and                                                               
safety.  He  said licensure ensures that  interior designers meet                                                               
education,  experience,  and  examination  standards.    He  said                                                               
passage of  the bill grants  qualified designers the  autonomy to                                                               
practice  their profession  and stamp  their own  designs in  the                                                               
state.  He urged passage of HB 159.                                                                                             
                                                                                                                                
3:45:06 PM                                                                                                                    
                                                                                                                                
JASON FLOYD,  representing self, shared  that he has  a freelance                                                               
design  company   that  works   in  partnership   with  qualified                                                               
builders; everything his company  does is submitted as conceptual                                                               
work.     Further,  their  clients  are   informed  that,  before                                                               
performing a  building project, they  should first  seek guidance                                                               
and a stamp from a qualified  engineer or architect.  He said the                                                               
bill is  overreaching and would artificially  restrict supply, as                                                               
many  of  their  clients  do  not  have  access  to  high-quality                                                               
conceptual design services locally on  the peninsula.  He pointed                                                               
out that he  has yet to see examples of  health and safety crisis                                                               
in  the state  when it  comes to  interior design.   He  stressed                                                               
opposition to the bill as the  language is too broad; while he is                                                               
not  against licensure  and testing,  boards and  commissions are                                                               
set  up to  protect the  public, not  necessarily to  promote the                                                               
profession.                                                                                                                     
                                                                                                                                
3:47:03 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER,  after ascertaining that  there was no  one further                                                               
wishing to testify, closed public testimony on HB 159.                                                                          
                                                                                                                                
3:47:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  sought confirmation from Ms.  Fritz about                                                               
the  AELS  board  being  opposed   to  adding  interior  designer                                                               
registration to its list of responsibilities.                                                                                   
                                                                                                                                
MS. FRITZ answered that's correct.                                                                                              
                                                                                                                                
REPRESENTATIVE CARRICK asked  why the board is  opposed, since HB                                                               
159 is cost neutral.                                                                                                            
                                                                                                                                
MS.   FRITZ  responded   that  the   objections  come   from  the                                                               
appropriateness of interior  design being on a  board whose focus                                                               
is health, safety, and welfare.                                                                                                 
                                                                                                                                
REPRESENTATIVE  CARRICK inquired  as to  whether interior  design                                                               
registration duties should be assigned to different board.                                                                      
                                                                                                                                
MS. FRITZ answered that the board,  in May, relayed that there is                                                               
a different  way to regulate  interior design, and that  it isn't                                                               
the board's call to  do that.  She said HB 159 is  not a bill the                                                               
AELS board  came forward with or  was consulted about.   She said                                                               
the board entertained  two alternatives: one was  to add interior                                                               
design to the  list of exemptions, so it is  clear that designers                                                               
are  not practicing  architecture; second,  was putting  interior                                                               
designers in a different area  of professional regulation.  These                                                               
two alternatives  were not acted  on, however, as the  board felt                                                               
it was not in their purview to do so.                                                                                           
                                                                                                                                
3:51:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  noted  the  DoD  requirement  about  DoD                                                               
projects requiring  registered interior designers.   He asked Ms.                                                               
Fritz what she knows about  this requirement and whether it would                                                               
be a compelling reason to register interior designers or not.                                                                   
                                                                                                                                
MS. FRITZ  answered that, speaking  as an individual and  not the                                                               
board,  some  federal agencies  strongly  suggest  that there  be                                                               
someone  on the  team who  has NCIDQ  certification; this  is not                                                               
required,  as  all  interior  design firms  do  work  on  federal                                                               
projects now without being registered  in Alaska.  She added that                                                               
there are only two states that register interior designers.                                                                     
                                                                                                                                
3:54:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER, regarding  military construction, said he                                                               
is  unsure  if Alaska  construction  has  been inhibited  by  the                                                               
absence  of interior  designers.   He pointed  out that  the bill                                                               
does   not  prohibit   licensed  professionals   from  practicing                                                               
interior  design  work.    He asked  about  the  overlap  between                                                               
interior designers and architects.                                                                                              
                                                                                                                                
MS. FRITZ  answered that there has  been no evidence of  the need                                                               
of HB 159, and  that the bill grew out of a  group of people with                                                               
advanced education  experience wanting  to be recognized  to work                                                               
in a  realm that is  similar to architecture  in some ways.   She                                                               
explained  that   the  bill  does  not   restrict  architects  or                                                               
engineers from  what they already  do; architecture  is holistic,                                                               
and interiors are specific limited  portions of the interior of a                                                               
building.                                                                                                                       
                                                                                                                                
3:56:23 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER noted that public testimony is still open.                                                                         
                                                                                                                                
3:56:40 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
3:57:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  moved to  report CSHB 159,  Version 33-                                                               
LS0745\S,  Gunther, 1/25/24,  out  of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes,  and to allow                                                               
Legislative Legal to make conforming changes.                                                                                   
                                                                                                                                
3:57:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER objected for the purpose of discussion.                                                                  
                                                                                                                                
3:57:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  asked Chair Sumner about  how the working                                                               
group came together during the interim.                                                                                         
                                                                                                                                
CHAIR SUMNER deferred to his staff.                                                                                             
                                                                                                                                
3:58:47 PM                                                                                                                    
                                                                                                                                
MS. HACKENMILLER said the working  group for HB 159 was organized                                                               
on the  Senate side.  She  said the work group's  findings are in                                                               
the most recent version of the bill.                                                                                            
                                                                                                                                
REPRESENTATIVE CARRICK commented that  she has heard from several                                                               
professionals about the value of HB  159.  She asked how the bill                                                               
would  work in  practice.   She  said that,  while  she does  not                                                               
intend  to  object  to  the  bill  today,  she  would  like  more                                                               
information and committee discussion.                                                                                           
                                                                                                                                
4:00:31 PM                                                                                                                    
                                                                                                                                
The committee took  an at-ease from 4:00 p.m. to 4:02 p.m.                                                                      
                                                                                                                                
4:01:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX said  he wants  to hear  more about  how the                                                               
AELS board works.                                                                                                               
                                                                                                                                
4:02:41 PM                                                                                                                    
                                                                                                                                
SYLVAN  ROBB, Director,  Department  of  Commerce, Community  and                                                               
Economic  Development,  Division  of Corporations,  Business  and                                                               
Professional Licensing, asked that the question be re-stated.                                                                   
                                                                                                                                
REPRESENTATIVE  PRAX  asked about  the  concern  that having  two                                                               
interior designers would affect the AELS board's makeup.                                                                        
                                                                                                                                
MS. ROBB  deferred questions about the  board to its chair.   She                                                               
noted that the AELS board is the largest board with 11 members.                                                                 
                                                                                                                                
REPRESENTATIVE PRAX  said that,  with such  a large  board, there                                                               
might be  quorum issues.   He asked  whether boards of  this size                                                               
are delayed due to lack of quorum.                                                                                              
                                                                                                                                
MS. ROBB  answered that they  do meet quorum, but  scheduling for                                                               
so many people is challenging.                                                                                                  
                                                                                                                                
4:05:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  stressed that HB 159  is complicated, and                                                               
in order to make a decision,  one has to understand the interplay                                                               
of professional  responsibilities.  He  said he'd like  more time                                                               
to study the bill.                                                                                                              
                                                                                                                                
4:05:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  asked Ms.  Fritz about  new subsections                                                               
within the  committee substitute  on page  13, section  25, which                                                               
read:                                                                                                                           
                                                                                                                                
     The  requirement  to  be   registered  as  an  interior                                                                    
     designer under  this chapter only  applies to  a person                                                                    
     who  practices an  aspect of  interior design  that the                                                                    
     board  has   determined  affects  the   public  health,                                                                    
     safety, or welfare.                                                                                                        
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE  questioned  how an  interior  designer                                                               
affects public health, safety, or welfare.                                                                                      
                                                                                                                                
MS.  FRITZ  answered  that  the board  is  concerned  about  that                                                               
section;  it would  leave the  board  to make  the definition  of                                                               
health, safety, and  welfare through regulation.   She added that                                                               
it affects  how the board  works, what its  role is, and  what it                                                               
does.                                                                                                                           
                                                                                                                                
4:08:15 PM                                                                                                                    
                                                                                                                                
A roll  call vote  was taken.   Representatives  Prax, Ruffridge,                                                               
Saddler,  Wright,  Carrick, Fields,  and  Chair  Sumner voted  in                                                               
favor  of   reporting  HB  159,  Version   33-LS0745\S,  Gunther,                                                               
1/25/24,  out  of  committee.   Therefore,  CSHB  159  (L&C)  was                                                               
reported out of  the House Labor and  Commerce Standing Committee                                                               
by a vote of 7-0.                                                                                                               
                                                                                                                                
4:09:12 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:09 p.m. to 4:12 p.m.                                                                       
                                                                                                                                
            HB 100-PAID FAMILY LEAVE INSURANCE PLAN                                                                         
                                                                                                                                
4:12:18 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE  BILL  NO. 100  "An  Act  relating  to teacher  and  public                                                               
employee leave."                                                                                                                
                                                                                                                                
4:12:34 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER  advised that amendment 1  will not be offered.   He                                                               
moved  to adopt  amendment 2  to HB  100, labeled  33-LS0480\B.5,                                                               
Klein, 1/25/24, which read as follows:                                                                                          
                                                                                                                                
     Page 3, line 4:                                                                                                            
     Delete "maximum"                                                                                                           
                                                                                                                                
     Page 3, lines 8 - 13:                                                                                                      
     Delete all material and insert:                                                                                            
     "(2)   not less than six  weeks of family leave  for an                                                                    
     enrolled   employee   of  a   participating   political                                                                    
     subdivision of the state or  of a participating private                                                                    
     employer or for an employee  enrolled in a family leave                                                                    
     insurance plan through the purchasing pool."                                                                               
                                                                                                                                
     Page 3, line 24:                                                                                                           
     Delete "maximum"                                                                                                           
                                                                                                                                
     Page 6, lines 11 - 13:                                                                                                     
     Delete all material and insert:                                                                                            
     "Sec.   23.10.760.   Bargaining.  Notwithstanding   any                                                                    
     provision of AS 23.40.070  - 23.40.260 to the contrary,                                                                    
     if  an  agreement between  an  employer  subject to  AS                                                                    
     23.40.070  -  23.40.260   and  an  employee  bargaining                                                                    
     organization does  not contain  provisions at  least as                                                                    
     beneficial to  the employee as the  provisions provided                                                                    
     by  AS  23.10.700 -  23.10.790,  the  provisions of  AS                                                                    
     23.10.700 - 23.10.790 apply."                                                                                              
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected for the purpose of discussion.                                                                
                                                                                                                                
CHAIR  SUMNER explained  that the  amendment specifies  "not less                                                               
than 6  weeks of family  leave" and allows bargaining  for family                                                               
leave.                                                                                                                          
                                                                                                                                
4:13:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER pointed  out that  Amendment 2  creates a                                                               
floor, and asked if there is  language in the bill that creates a                                                               
ceiling on the length of family leave.                                                                                          
                                                                                                                                
CHAIR SUMNER  answered that  HB 100,  without Amendment  2, would                                                               
set the ceiling  between 6 and 12 weeks for  an enrolled employee                                                               
of a participating private employer.                                                                                            
                                                                                                                                
4:13:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  expressed  support for  Amendment  2  and                                                               
suggested  that  the drafters  intended  to  say that  the  state                                                               
couldn't  have  leave  at  less than  the  floor;  the  amendment                                                               
clarifies that 6 weeks is the floor.                                                                                            
                                                                                                                                
4:14:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  sought confirmation  that the  maximum is                                                               
12 weeks for private enrollees and 18 for public enrollees.                                                                     
                                                                                                                                
CHAIR SUMNER answered that the  amendment introduces a floor of 6                                                               
weeks, as well as allows bargaining.                                                                                            
                                                                                                                                
REPRESENTATIVE SADDLER asked  whether there is a cap  on time off                                                               
in the bill.                                                                                                                    
                                                                                                                                
CHAIR SUMNER responded,  "I assume it wouldn't be 54  weeks."  He                                                               
said it would be an element to bargain.                                                                                         
                                                                                                                                
4:15:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JENNIE ARMSTRONG,  Alaska  State Legislature,  as                                                               
prime sponsor  of HB  100, answered that  the bill  maintains the                                                               
18-week  ceiling for  the state;  the amendment  only applies  to                                                               
section 2 under political subdivisions.                                                                                         
                                                                                                                                
4:15:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked what  the maximum allowable time off                                                               
is.                                                                                                                             
                                                                                                                                
4:16:02 PM                                                                                                                    
                                                                                                                                
TRISTAN  WALSH, Staff,  Representative  Jennie Armstrong,  Alaska                                                               
State Legislature,  on behalf of Representative  Armstrong, prime                                                               
sponsor, explained that  Amendment 2 applies to page  2, lines 8-                                                               
13  of   HB  100   and  would  create   a  floor   for  political                                                               
subdivisions, private employers, and  individuals.  He pointed to                                                               
page 3  of the bill  and said it  would leave the  state employee                                                               
pool as is.                                                                                                                     
                                                                                                                                
4:17:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX  pointed out that,  if the bill is  passed as                                                               
amended,  there would  be a  ceiling  for state  employees and  a                                                               
floor for municipal employees.  He  asked what there would be for                                                               
private employers.                                                                                                              
                                                                                                                                
CHAIR SUMNER  explained that the  amendment deletes  "maximum" on                                                               
page 3,  line 24.   He offered that no  change is being  made for                                                               
private employers.                                                                                                              
                                                                                                                                
REPRESENTATIVE  PRAX  sought  confirmation   as  to  whether  the                                                               
committee is  establishing a floor for  political subdivisions of                                                               
the state.                                                                                                                      
                                                                                                                                
CHAIR SUMNER responded that there  already would be a floor under                                                               
HB 100.                                                                                                                         
                                                                                                                                
4:18:39 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS  answered Representative  Prax's  question                                                               
and pointed  to page 3, line  8-13; if the state  determined that                                                               
19, 20, or  24 weeks are more beneficial  in retaining employees,                                                               
the plan would allow for that as part of the bargaining.                                                                        
                                                                                                                                
REPRESENTATIVE  PRAX asked  whether the  bill requires  political                                                               
sub-division participation.                                                                                                     
                                                                                                                                
REPRESENTATIVE  FIELDS answered  that  it would  be optional  for                                                               
political sub-divisions.                                                                                                        
                                                                                                                                
4:21:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE WRIGHT asked whether this would affect childcare.                                                                
                                                                                                                                
REPRESENTATIVE ARMSTRONG answered that there  is a child care and                                                               
elder care crisis, with the  biggest crunch being infant care; if                                                               
there are more parents that can  stay home, there would be relief                                                               
on that crunch.                                                                                                                 
                                                                                                                                
4:22:01 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE cited Section  1, subsection (b) on page                                                               
3, which read as follows:                                                                                                       
                                                                                                                                
     A family leave insurance plan may not impose a minimum                                                                     
         duration of family leave for wage replacement                                                                          
     coverage.                                                                                                                  
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  opined that,  even with  this language,                                                               
the bill nonetheless  indicates imposing a minimum  duration.  He                                                               
surmised  that the  subsection directs  that the  leave insurance                                                               
plan may not go under 6 weeks.                                                                                                  
                                                                                                                                
CHAIR SUMNER concurred  and explained that the  employer does not                                                               
need to participate, but if they  did, the leave floor would be 6                                                               
weeks.                                                                                                                          
                                                                                                                                
4:23:07 PM                                                                                                                    
                                                                                                                                
MR.  WALSH added  that subsection  (b) is  speaking to  whether a                                                               
plan enforces mandatory leave.                                                                                                  
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  asked whether  the language  applies to                                                               
minimum duration of the plan.   He inquired whether, if he had to                                                               
only take one day of family leave, he could do so.                                                                              
                                                                                                                                
MR. WALSH answered, "that's correct."                                                                                           
                                                                                                                                
4:24:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  removed his objection.   There being no                                                               
further objection, Amendment 2 was adopted.                                                                                     
                                                                                                                                
4:24:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CARRICK   moved  to  Amendment  3,   labeled  33-                                                               
LS0480\B.1, Klein/ A. Radford, 1/12/24, which read as follows:                                                                  
                                                                                                                                
     Page 7, line 7, following "adoption":                                                                                      
     Insert "or foster care"                                                                                                    
                                                                                                                                
     Page 8, line 1:                                                                                                            
     Delete "or adoption"                                                                                                       
     Insert ", [OR] adoption, or foster care"                                                                                   
                                                                                                                                
     Page 8, line 18, following "adoption":                                                                                     
     Insert "or foster care"                                                                                                    
                                                                                                                                
     Page 9, line 7:                                                                                                            
     Delete "or adoption"                                                                                                       
     Insert ", [OR] adoption, or foster care"                                                                                   
                                                                                                                                
     Page 9, line 14, following "adoption":                                                                                     
     Insert "or foster care"                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE objected for the purpose of discussion.                                                                
                                                                                                                                
REPRESENTATIVE  CARRICK explained  that Amendment  3 addresses  a                                                               
gap between  the Alaska Family  Leave Act and the  federal Family                                                               
Medical Leave Act,  which allows foster parents to  take leave to                                                               
spend time with new foster children.                                                                                            
                                                                                                                                
4:25:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE  removed his objection.   There being no                                                               
further objection, Amendment 3 was adopted.                                                                                     
                                                                                                                                
4:25:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE RUFFRIDGE moved to report  HB 100, as amended, out                                                               
of   committee   with    individual   recommendations   and   the                                                               
accompanying fiscal notes.                                                                                                      
                                                                                                                                
4:25:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PRAX objected  for the purpose of  discussion.  He                                                               
asked if there will be actuarial analysis done on HB 100.                                                                       
                                                                                                                                
CHAIR SUMNER advised  that the next committee of  referral for HB                                                               
100 is the House Finance Committee.                                                                                             
                                                                                                                                
4:26:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ARMSTRONG  added that the insurance  company would                                                               
do the actuarial, since there would be no self-insurance.                                                                       
                                                                                                                                
4:26:39 PM                                                                                                                    
                                                                                                                                
MR. WALSH commented  that the bill does require  such an analysis                                                               
in any bidder who responded to the request for proposal.                                                                        
                                                                                                                                
REPRESENTATIVE ARMSTRONG  noted that  the state wouldn't  have to                                                               
do an actuarial.                                                                                                                
                                                                                                                                
4:27:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX  removed  his  objection.   There  being  no                                                               
further objection,  CSHB 100(L&C) was  reported out of  the House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
4:27:14 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:27 p.m. to 4:30 p.m.                                                                       
                                                                                                                                
             HB 254-PROHIBIT PORNOGRAPHY TO MINORS                                                                          
                                                                                                                                
4:30:48 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced  that the next order of  business would be                                                               
HOUSE BILL NO. 254, "An  Act relating to liability for publishing                                                               
or distributing pornography to minors on the Internet."                                                                         
                                                                                                                                
4:31:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SARAH  VANCE, Alaska  State Legislature,  as prime                                                               
sponsor,  read the  sponsor  statement for  HB  254 [included  in                                                               
committee packet],  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     House  Bill 254  stands  out as  a crucial  legislative                                                                    
     initiative,  addressing   the  growing   public  health                                                                    
     crisis  related  to  the influence  of  pornography  on                                                                    
     minors. It serves  as a proactive measure  to disrupt a                                                                    
     tool  employed by  traffickers, preventing  easy access                                                                    
     to young would-be victims through explicit content.                                                                        
                                                                                                                                
     Recent  years have  witnessed an  alarming exposure  of                                                                    
     minors  to  pornography,  facilitated  by  advances  in                                                                    
     technology and the  widespread availability of explicit                                                                    
     content   on   the   internet.  This   early   exposure                                                                    
     contributes to the  hyper-sexualization of young minds,                                                                    
     promoting bullying in  schools and setting unreasonable                                                                    
     self-expectations,  necessitating   urgent  legislative                                                                    
     action.                                                                                                                    
                                                                                                                                
     House  Bill 254  recognizes  the disturbing  connection                                                                    
     between pornography  and exploitation.  It acknowledges                                                                    
     that  individuals   involved  in  pornography   may  be                                                                    
     victims  of  exploitation,  blurring the  line  between                                                                    
     consensual  adult  participation and  sex  trafficking.                                                                    
     Some are forced into  participating against their will,                                                                    
     revealing a sinister aspect of the adult industry.                                                                         
                                                                                                                                
     The  bill also  addresses the  link between  the demand                                                                    
     for  pornography and  the  demand  for commercial  sex,                                                                    
     including  trafficking  victims. The  normalization  of                                                                    
     explicit content in society is  argued to contribute to                                                                    
     an increased  demand for sexual  services, perpetuating                                                                    
     sex trafficking.  Organized crime networks  profit from                                                                    
     both pornography  and exploitation,  utilizing explicit                                                                    
     content as a lure  to manipulate and control vulnerable                                                                    
     individuals.                                                                                                               
                                                                                                                                
     One  alarming aspect  necessitating urgent  legislative                                                                    
     intervention is the role of  pornography in the tactics                                                                    
     employed by  human traffickers. By  restricting minors'                                                                    
     access to  explicit material, House Bill  254 serves as                                                                    
     a crucial tool in  the fight against human trafficking,                                                                    
     contributing to  the overall  well-being and  safety of                                                                    
     the next generation.                                                                                                       
                                                                                                                                
     In conclusion, passing House Bill  254 is an urgent and                                                                    
     necessary step  in safeguarding the  mental, emotional,                                                                    
     and  physical  health  of  our  youth.  It  reflects  a                                                                    
     collective  responsibility  to   create  a  secure  and                                                                    
     nurturing environment, allowing  minors to develop into                                                                    
     healthy,  well-adjusted   individuals  free   from  the                                                                    
     corrosive influence of explicit material.                                                                                  
                                                                                                                                
4:35:36 PM                                                                                                                    
                                                                                                                                
BOB BALLINGER,  Staff, Representative  Sarah Vance,  Alaska State                                                               
Legislature, on  behalf of  Representative Vance,  prime sponsor,                                                               
read the  sectional analysis  for HB  254 [included  in committee                                                               
packet], which read as follows [original punctuation provided]:                                                                 
                                                                                                                                
     Section 1:  Adds a new  section that  establishes civil                                                                    
     liability  if   the  person  or   entity  intentionally                                                                    
     publishes or  distributes pornography and does  not use                                                                    
     a  "commercially reasonable  age verification  method."                                                                    
     The  section also  defines  a "commercially  reasonable                                                                    
     age verification method"  and regulates how identifying                                                                    
     information is handled.                                                                                                    
                                                                                                                                
     Sections  1  (b),  (c), and  (d)  exempt  news,  public                                                                    
     interest  sites,  internet  service  providers,  search                                                                    
     engines, and cloud service providers.                                                                                      
                                                                                                                                
     Finally, Section  1 (e) provides definitions  for terms                                                                    
     used in this bill.                                                                                                         
                                                                                                                                
4:38:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  RUFFRIDGE offered  his understanding  that online                                                               
age  verification programs  are  typically easy  to  bypass.   He                                                               
asked if  HB 254 would  require identification to  be transmitted                                                               
and  the business  would  verify it,  or if  it  would require  a                                                               
program that just asks for the user's birthday.                                                                                 
                                                                                                                                
REPRESENTATIVE  VANCE answered  that, on  the first  page of  the                                                               
bill,  it  would  require  the business  to  use  a  commercially                                                               
available age verification method.                                                                                              
                                                                                                                                
4:39:37 PM                                                                                                                    
                                                                                                                                
MR. BALLINGER  cited Section 1  subsection (a), starting  on line                                                               
11, which read as follows:                                                                                                      
                                                                                                                                
     In  this   subsection,  "commercially   reasonable  age                                                                    
     verification  method"  includes  requiring  the  person                                                                    
     attempting  to  access  the pornography  to  provide  a                                                                    
     digitized identification card,  requiring the person to                                                                    
     comply with  a commercial age verification  system that                                                                    
     verifies  age  using government-issued  identification,                                                                    
     or  another method  that relies  on  public or  private                                                                    
     transactional data.                                                                                                        
                                                                                                                                
MR.  BALLINGER advised  that  PornHub is  a  leading provider  of                                                               
pornography  on the  Internet, and  that in  some states,  it has                                                               
withdrawn.                                                                                                                      
                                                                                                                                
4:40:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK  said there  have been several  state data                                                               
breeches,  and asked  if there  are concerns  of data  theft when                                                               
uploading an identification card to access a site.                                                                              
                                                                                                                                
REPRESENTATIVE  VANCE responded  that  everyone  puts their  data                                                               
into  websites  all the  time.    She  stressed that  privacy  is                                                               
important to  her, so a  provision was  written in the  bill that                                                               
disallows a company verifying user  ages to retain the data; they                                                               
will be subject to civil liability if data is retained.                                                                         
                                                                                                                                
REPRESENTATIVE  CARRICK asked  for a  list of  companies that  do                                                               
online age  verification services,  as well  as how  other states                                                               
that  approved  similar  laws  go   about  contracting  with  the                                                               
services.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  VANCE  answered  that she  couldn't  answer  what                                                               
companies do this  services but advised that the  state would not                                                               
be involved in the setting up  of age verification, as that would                                                               
be the website's responsibility.                                                                                                
                                                                                                                                
4:44:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  PRAX asked  how  age verification  would work  in                                                               
practice, and how fraud could be avoided.                                                                                       
                                                                                                                                
MR. BALLINGER  answered that  Louisiana, for  example, contracted                                                               
with an  age verification  service provider  to create  a portal.                                                               
He offered to  follow up with a list of  such providers and noted                                                               
that there  are about 10  of them.   He pointed out  that PornHub                                                               
pulled out of North Carolina and Arkansas.                                                                                      
                                                                                                                                
4:46:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FIELDS said there  are many companies that collect                                                               
data, and that the current language  in HB 254 would not endanger                                                               
Alaskans'  private information  any  more  than online  companies                                                               
already harvest themselves.                                                                                                     
                                                                                                                                
4:46:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FIELDS stressed  that exploitation  of minors  is                                                               
bad.   He asked whether the  right to remove material  for minors                                                               
who are subjected to "revenge porn"  should be added to the bill.                                                               
He further asked about the  possibility of broader action against                                                               
Internet exploitation of minors, like facial recognition.                                                                       
                                                                                                                                
REPRESENTATIVE  VANCE commented  that her  staff is  looking into                                                               
artificial intelligence (AI) exploitation.   She said she is open                                                               
to ideas on what can be done.                                                                                                   
                                                                                                                                
4:48:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER stated,  "This is an area  that's ripe for                                                               
broad  legislative  action."    He  asked about  page  1  and  2,                                                               
regarding the  violators who retain  the personal data,  and what                                                               
liability they would be under.                                                                                                  
                                                                                                                                
REPRESENTATIVE  VANCE answered  civil liability;  this allows  an                                                               
individual,  who was  harmed by  the publishers  of the  site, be                                                               
able to prove to  the courts how it harmed them.   She said civil                                                               
liability poses a higher threat  to large companies than criminal                                                               
liability.                                                                                                                      
                                                                                                                                
4:50:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CARRICK commented that  the potential for identity                                                               
theft is  a concern of  hers.  She pointed  to page 3,  Section 5                                                               
and said the  bill defines "pornography" as something  that is of                                                               
"prurient  interest".   She explained  that, federally  speaking,                                                               
the term  is broad.   She pointed to Section  7 and said  that it                                                               
would  be   difficult  determining  what   on  a  website   is  a                                                               
"substantial  portion",  or  one-third  of  the  total  material,                                                               
containing  pornography; there's  room for  interpretation.   She                                                               
said that the  bill could be broadly defined  to include websites                                                               
other  than  just PornHub,  like  Netflix.   She  commented  that                                                               
requiring  Alaskans to  provide  their ID  when accessing  sites,                                                               
like Netflix, would  be a major violation of privacy.   She noted                                                               
that Montana,  a state  which has  passed a law  like HB  254, is                                                               
already being bypassed by people  switching their virtual private                                                               
network location to show they are  in another state.  She thanked                                                               
the bill sponsor for bringing  the bill forward but conveyed that                                                               
it may not solve the issue.                                                                                                     
                                                                                                                                
REPRESENTATIVE VANCE responded  that the purpose of HB  254 is to                                                               
protect children from harm from content on the Internet.                                                                        
                                                                                                                                
4:55:13 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that HB 254 was held over.                                                                               
                                                                                                                                
4:55:24 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:55 p.m. to 4:57 p.m.                                                                       
                                                                                                                                
            HB 273-AHFC MAKE/PURCHASE MORTGAGE LOANS                                                                        
                                                                                                                                
4:57:24 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that the  final order of business would be                                                               
HOUSE BILL  NO. 273 "An Act  relating to the power  of the Alaska                                                               
Housing Finance Corporation to make or purchase mortgage loans."                                                                
                                                                                                                                
4:57:45 PM                                                                                                                    
                                                                                                                                
ADAM CRUM,  Commissioner, Office of the  Commissioner, Department                                                               
of  Revenue, on  behalf of  the House  Rules Standing  Committee,                                                               
sponsored by  request of  the governor,  explained that  the idea                                                               
behind  the bill  is to  allow the  board of  the Alaska  Housing                                                               
Finance Corporation (AHFC) the capacity to lower the loan-to-                                                                   
value ratio from 95 percent to  97 percent on a first mortgage in                                                               
order to provide  access to housing in Alaska.   He said the hope                                                               
is that families  will see the program and be  encouraged to come                                                               
to Alaska.                                                                                                                      
                                                                                                                                
4:58:32 PM                                                                                                                    
                                                                                                                                
STACY  BARNES,  Director,  Alaska  Housing  Finance  Corporation,                                                               
Department of  Revenue, explained  that AHFC is  legally separate                                                               
from the  state of Alaska, and  is able to provide  a dividend to                                                               
the state; this year's was $48  million.  She said the mission of                                                               
the corporation  is to provide  access to quality  and affordable                                                               
housing to Alaskans, and there  are three tenets to that mission:                                                               
providing  access   to  housing,  improvement  of   housing,  and                                                               
facilitating  the  building  of  more affordable  housing.    She                                                               
listed the programs AHFC offers to  help with buying a home.  She                                                               
pointed to  the handout, "Impact of  Proposed Loan-to-Value (LTV)                                                               
Legislation     HB  273,"  which  she said  speaks  to  what  has                                                               
happened with single family home  prices over the last six years.                                                               
She pointed  out that, in  2019, the  median price for  a single-                                                               
family  home was  $374,000,  and  in 2023,  the  price jumped  to                                                               
$481,000;  therefore,  access  has   become  more  difficult  for                                                               
homebuyers as  the down  payment increases.   A home  buyer would                                                               
need $24,000  in down  payment assistance,  in addition  to other                                                               
closing costs.  She said that, if  HB 273 were to become law, the                                                               
AHFC board would be able to  determine an LTV that is appropriate                                                               
for a  risk profile and  offer it  to homebuyers.   She explained                                                               
that the bill proposes a 97  percent LTV.  She listed home prices                                                               
in several communities in the state  and said they all follow the                                                               
same  trend  from 2019  to  2023:  increased  home prices.    She                                                               
explained that,  when an Alaskan  chooses a home loan  with AHFC,                                                               
they choose to  have their loan serviced in-state.   She said the                                                               
bill has  just one section, which  would clear up the  current 95                                                               
percent LTV  cap and allow the  board to determine the  right LTV                                                               
percentage.  She detailed that,  following being signed into law,                                                               
the  board  would  address the  regulation  for  final  approval,                                                               
meaning that the effective date would  likely be the start of the                                                               
next calendar year.  She noted  that AHFC has 15,000 loans in its                                                               
portfolio,  with  a 30-day  delinquency  rate  of less  than  3.5                                                               
percent; the foreclosure rate is lower at .15 percent.                                                                          
                                                                                                                                
5:04:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked if  there is  estimation on  how HB                                                               
273 would affect delinquency and foreclosure rates.                                                                             
                                                                                                                                
MS.  BARNES  answered that  the  AHFC  board  feels that  the  97                                                               
percent  LTV  is a  responsible  move  forward, and  through  the                                                               
regulation process,  the board will  address questions  about the                                                               
risk  profile of  individuals  who  are seeking  the  loan.   She                                                               
explained that, in  order to offset risk, the  board may consider                                                               
increasing the credit score that  a buyer might need or examining                                                               
the buyer's debt-to-income ratios.                                                                                              
                                                                                                                                
REPRESENTATIVE  SADDLER asked  what the  effect on  housing would                                                               
be.                                                                                                                             
                                                                                                                                
MS.   BARNES  responded   that  the   loan  gives   Alaskans  the                                                               
opportunity to choose Alaska housing.                                                                                           
                                                                                                                                
5:06:48 PM                                                                                                                    
                                                                                                                                
CHAIR SUMNER announced that HB 273 was held over.                                                                               
                                                                                                                                
5:06:58 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
5:06 p.m.