SENATE FINANCE COMMITTEE February 2, 2018 9:05 a.m. 9:05:19 AM CALL TO ORDER Co-Chair MacKinnon called the Senate Finance Committee meeting to order at 9:05 a.m. MEMBERS PRESENT Senator Lyman Hoffman, Co-Chair Senator Anna MacKinnon, Co-Chair Senator Click Bishop, Vice-Chair Senator Peter Micciche Senator Donny Olson Senator Gary Stevens Senator Natasha von Imhof MEMBERS ABSENT None ALSO PRESENT Rachel Hanke, Staff, Senator Peter Micciche; Juli Lucky, Staff, Senator Anna MacKinnon; Sara Chambers, Acting Director, Alcohol and Marijuana Control Office, Department of Commerce, Community and Economic Development. PRESENT VIA TELECONFERENCE Kevin McKinley, Chair, Board of Barbers and Hairdressers. SUMMARY SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING SB 4 was HEARD and HELD in committee for further consideration. SENATE BILL NO. 4 "An Act relating to the Board of Barbers and Hairdressers; and relating to a limited license to practice non-chemical barbering." 9:06:51 AM SENATOR PETER MICCICHE, SPONSOR, discussed the purpose of the bill: Under Title 8 licensed professionals regulated by the Board of Barbers and Hairdressers (Board) must work in a licensed shop. These students or practitioners are required by statute to conspicuously display their licenses; however the shop owner is not. This inequity has led to employees being fined because, unbeknownst to them, the shop owner's license had lapsed. SSSB4 requires the shop owner to conspicuously display the shop license, as well as the licenses of employees, renters and students. By statute, an individual must obtain a shop certification from the Department of Environmental Conservation (DEC) before they receive a license from the Board of Barbers and Hairdressers. The DEC is no longer providing certifications due to budget reductions. SSSB4 will allow a DEC standard self- certification process regulated through the Board. Additionally, SSSB4 creates two new license types. First is a non-chemical barber's license. Currently, all barbers are held to nearly the same standard as hairdressers and are required to have practical training in chemical waving, chemical straightening, bleaching, and coloring. They must complete a total of 1,650 training hours, which is equivalent to hairdressers. SSSB4 will open the door to more Alaskans interested in joining the industry by balancing training requirements and reducing the burden. In essence, the bill provides more economic opportunity and less government-induced burden for hard working Alaskans. The higher-level barber's license will remain available to those who wish to perform chemical procedures. Finally, SSSB4 will create a specific license for braiding; a trade that has been growing in popularity. Braiders are also being held to the same standard as hairdressers, including the same 1,650 hours or more of practical training in addition to a written exam. This bill will welcome more workers into the industry, creating jobs and a stronger economy by balancing training requirements to the specific demands and required skills of the trade. 9:10:20 AM RACHEL HANKE, STAFF, SENATOR PETER MICCICHE, looked at Section 14. She remarked that there had been a concern about the Department of Environmental Conservation (DEC) standards for cleanliness. She stated that the section instructed the board to adopt the regulations for standards of cleanliness for licensed establishments. She noted that DEC would still be regulating the tattooing, piercing, and cosmetic coloring shops. Co-Chair MacKinnon wondered whether the testimony referenced bill version J. Ms. Hanke replied in the affirmative. 9:11:25 AM KEVIN MCKINLEY, CHAIR, BOARD OF BARBERS AND HAIRDRESSERS (via teleconference), stated that the bill fixed some things that the board had hoped to fix for many years. He shared that owners of the shops could not properly be certified, so the board had a quick fix that did not allow for a long term solution. He spoke in support of the legislation. Co-Chair MacKinnon wondered whether regulations could be in place by January 1, 2019. Mr. McKinley replied in the affirmative. Mr. McKinley thanked the committee. Vice-Chair Bishop MOVED to ADOPT the committee substitute for SS SB 4, Work Draft 30-LS0078\O, Radford, 1/30/18. Co-Chair MacKinnon OBJECTED for discussion. 9:14:44 AM JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, stated that the only change in the committee substitute was the effective date. She stated that there was some language change because of some changes in the statutes. Co-Chair MacKinnon WITHDREW her objection. There being NO OBJECTION, the proposed committee substitute was adopted. Vice-Chair Bishop MOVED Amendment 1, 30-LS0078\O.1, Radford, 2/1/18 (copy on file). Co-Chair MacKinnon OBJECTED for discussion. Ms. Lucky explained the amendment. She shared that there was a concern about the repeal of the sanitation standards in DEC. She shared that it was the understanding that the board would adopt substantially similar regulations. She stated that that there did not seem to be legal difficulty with leaving the regulations in place at DEC. She stated that the amendment left the DEC sanitation and cleanliness standards in regulation, but allowed the board to enforce to regulations. Senator Micciche remarked that the board had the ability to choose self-certification through the regulations. Ms. Lucky replied that the language was intended to be as broad as possible to allow the board to enforce any of the regulations. She shared that there was a legal memo that stated that the section was drafted to be broad enough to expressly grant the board the power to enforce all applicable regulations, including the department sanitation regulations. Senator Stevens wondered whether the board have the power to enforce any egregious cleanliness issues. Ms. Lucky replied that the issue was for the underlying bill. She noted that the amendment allowed for the board to conduct hearings and request that the department investigate the practices of the person. Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO OBJECTION, Amendment 1 was adopted. Vice-Chair Bishop discussed the fiscal notes. 9:21:20 AM SARA CHAMBERS, ACTING DIRECTOR, ALCOHOL AND MARIJUANA CONTROL OFFICE, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, shared that the bill would solve some licensing issues, and would accomplish the commercial goals. She noted that there was some concern that the department was not given authority in the effective date change to adopt fees. 9:22:37 AM AT EASE 9:23:57 AM RECONVENED SB 4 was HEARD and HELD in committee for further consideration. ADJOURNMENT 9:25:02 AM The meeting was adjourned at 9:24 a.m.