Legislature(2017 - 2018)BARNES 124

03/26/2018 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 165 COMPREHENSIVE HEALTH INSURANCE FUND TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 379 COMM FISHERMEN'S FUND:VESSEL OWNER CLAIMS TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+= SB 4 BARBERS/HAIRDRESSERS;CHEMICALS;BRAIDING TELECONFERENCED
Moved HCS CSSSSB 4(L&C) AM Out of Committee
-- Public Testimony --
+= HB 374 ON-BILL FINANCING OF ENERGY IMPROVEMENTS TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 45 EXEMPTION: LICENSING OF CONTRACTORS TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         March 26, 2018                                                                                         
                           3:18 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Sam Kito, Chair                                                                                                  
Representative Adam Wool, Vice Chair                                                                                            
Representative Andy Josephson                                                                                                   
Representative Louise Stutes                                                                                                    
Representative Chris Birch                                                                                                      
Representative Gary Knopp                                                                                                       
Representative Colleen Sullivan-Leonard                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
Representative Bryce Edgmon (alternate)                                                                                         
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 165                                                                                                             
"An  Act relating  to the  Alaska  comprehensive health  insurance                                                              
fund; and providing for an effective date."                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SENATE BILL NO. 45(FIN)                                                                                                  
"An  Act  relating   to  an  exemption  from  the   regulation  of                                                              
construction contractors."                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
CS FOR SS FOR SENATE BILL NO. 4(FIN) AM                                                                                         
"An  Act  relating  to the  Board  of  Barbers  and  Hairdressers;                                                              
relating   to  a   limited   license  to   practice   non-chemical                                                              
barbering;  relating  to  a license  to  practice  hair  braiding;                                                              
relating  to the  Department  of Environmental  Conservation;  and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HCS CSSSSB 4(L&C) AM OUT OF COMMITTEE                                                                              
                                                                                                                                
HOUSE BILL NO. 379                                                                                                              
"An  Act  relating  to claims  against  protection  and  indemnity                                                              
insurance policies of vessel owners."                                                                                           
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
HOUSE BILL NO. 374                                                                                                              
"An Act relating to on-bill financing by a utility for certain                                                                  
energy efficiency and conservation improvements."                                                                               
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 165                                                                                                                  
SHORT TITLE: COMPREHENSIVE HEALTH INSURANCE FUND                                                                                
SPONSOR(s): SENATOR(s) MACKINNON                                                                                                
                                                                                                                                
01/26/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        

01/26/18 (S) L&C, FIN 02/22/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 02/22/18 (S) Moved SB 165 Out of Committee 02/22/18 (S) MINUTE(L&C) 02/26/18 (S) L&C RPT 5DP 02/26/18 (S) DP: COSTELLO, STEVENS, MICCICHE, MEYER, GARDNER 02/27/18 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/27/18 (S) Heard & Held 02/27/18 (S) MINUTE(FIN) 02/28/18 (S) FIN RPT 6DP 1NR 02/28/18 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON IMHOF, STEVENS, MICCICHE 02/28/18 (S) NR: OLSON 02/28/18 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/28/18 (S) Moved SB 165 Out of Committee 02/28/18 (S) MINUTE(FIN) 03/05/18 (S) TRANSMITTED TO (H) 03/05/18 (S) VERSION: SB 165 03/07/18 (H) READ THE FIRST TIME - REFERRALS 03/07/18 (H) L&C, FIN 03/21/18 (H) L&C AT 3:15 PM BARNES 124 03/21/18 (H) -- MEETING CANCELED -- 03/23/18 (H) L&C AT 3:15 PM BARNES 124 03/23/18 (H) -- MEETING CANCELED -- 03/26/18 (H) L&C AT 3:15 PM BARNES 124 BILL: SB 45 SHORT TITLE: EXEMPTION: LICENSING OF CONTRACTORS SPONSOR(s): LABOR & COMMERCE 02/01/17 (S) READ THE FIRST TIME - REFERRALS 02/01/17 (S) L&C, FIN 02/07/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 02/07/17 (S) Heard & Held 02/07/17 (S) MINUTE(L&C) 02/28/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 02/28/17 (S) Moved SB 45 Out of Committee 02/28/17 (S) MINUTE(L&C) 03/01/17 (S) L&C RPT 1DP 4NR 03/01/17 (S) DP: COSTELLO 03/01/17 (S) NR: HUGHES, MEYER, STEVENS, GARDNER 04/07/17 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/07/17 (S) Heard & Held 04/07/17 (S) MINUTE(FIN) 04/11/17 (S) FIN AT 1:30 PM SENATE FINANCE 532 04/11/17 (S) Moved CSSB 45(FIN) Out of Committee 04/11/17 (S) MINUTE(FIN) 04/12/17 (S) FIN RPT CS 5DP 1NR SAME TITLE 04/12/17 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON IMHOF, MICCICHE 04/12/17 (S) NR: OLSON 04/15/17 (S) TRANSMITTED TO (H) 04/15/17 (S) VERSION: CSSB 45(FIN) 04/16/17 (H) READ THE FIRST TIME - REFERRALS 04/16/17 (H) L&C 03/23/18 (H) L&C AT 3:15 PM BARNES 124 03/23/18 (H) -- MEETING CANCELED -- 03/26/18 (H) L&C AT 3:15 PM BARNES 124 BILL: SB 4 SHORT TITLE: NON-CHEMICAL BARBERING;HAIR BRAIDING SPONSOR(s): MICCICHE

01/18/17 (S) PREFILE RELEASED 1/9/17

01/18/17 (S) READ THE FIRST TIME - REFERRALS

01/18/17 (S) L&C, FIN 02/17/17 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS 02/17/17 (S) L&C, FIN 03/02/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/02/17 (S) Heard & Held 03/02/17 (S) MINUTE(L&C) 03/14/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg) 03/14/17 (S) Moved SSSB 4 Out of Committee 03/14/17 (S) MINUTE(L&C) 03/15/17 (S) L&C RPT 1DP 4NR 03/15/17 (S) DP: COSTELLO 03/15/17 (S) NR: HUGHES, MEYER, STEVENS, GARDNER 04/14/17 (S) FIN WAIVED PUBLIC HEARING NOTICE,RULE 23 04/15/17 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/15/17 (S) <Bill Hearing Canceled> 04/16/17 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/16/17 (S) -- MEETING CANCELED -- 04/17/17 (S) FIN AT 9:00 AM SENATE FINANCE 532 04/17/17 (S) Heard & Held 04/17/17 (S) MINUTE(FIN) 02/02/18 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/02/18 (S) Heard & Held 02/02/18 (S) MINUTE(FIN) 02/05/18 (S) FIN AT 9:00 AM SENATE FINANCE 532 02/05/18 (S) Moved CSSSSB 4(FIN) Out of Committee 02/05/18 (S) MINUTE(FIN) 02/07/18 (S) FIN RPT CS 4DP SAME TITLE 02/07/18 (S) DP: MACKINNON, BISHOP, STEVENS, MICCICHE 02/09/18 (S) TRANSMITTED TO (H) 02/09/18 (S) VERSION: CSSSSB 4(FIN) AM 02/12/18 (H) READ THE FIRST TIME - REFERRALS 02/12/18 (H) L&C, FIN 03/16/18 (H) L&C AT 3:15 PM BARNES 124 03/16/18 (H) <Bill Hearing Canceled> 03/19/18 (H) L&C AT 3:15 PM BARNES 124 03/19/18 (H) Heard & Held 03/19/18 (H) MINUTE(L&C) 03/26/18 (H) L&C AT 3:15 PM BARNES 124 WITNESS REGISTER SENATOR ANNA MACKINNON Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced SB 165 as prime sponsor. ANNA LATHAM, Deputy Director Division of Insurance Department of Commerce, Community & Economic Development (DCCED) Juneau, Alaska POSITION STATEMENT: Answered questions in the hearing on SB 165. MICAELA FOWLER, Legislative Liaison Department of Commerce, Community & Economic Development (DCCED) Juneau, Alaska POSITION STATEMENT: Answered questions in the hearing on SB 165. SENATOR MIA COSTELLO Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Introduced SB 45 as prime sponsor. NATASHA MCCLANAHAN, Staff Senator Mia Costello Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented the sectional analysis of SB 45 on behalf of Senator Costello, prime sponsor. JANEY MCCULLOUGH, Director Division of Corporations, Business And Professional Licensing (DCBPL) Department of Commerce, Community & Economic Development (DCCED) Juneau, Alaska POSITION STATEMENT: Answered questions in the hearing on SB 45. ALAN WILSON, Owner Alaska Renovators Juneau, Alaska POSITION STATEMENT: Testified in support of SB 45. JIM DUNLAP, President Alaska State Homebuilding Association (ASHA) Anchorage, Alaska POSITION STATEMENT: Testified in support of SB 45. RICHARD CARR Wasilla, Alaska POSITION STATEMENT: Testified in support of SB 45. PATRICK DALTON Delta Junction, Alaska POSITION STATEMENT: Testified in opposition to SB 45. SENATOR PETER MICCICHE Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Reintroduced SB 4 as prime sponsor. RACHEL HANKE, Staff Senator Peter Micciche Alaska State Legislature Juneau, Alaska POSITION STATEMENT: Presented SB 4 on behalf of Senator Micciche, prime sponsor. ACTION NARRATIVE 3:18:57 PM CHAIR SAM KITO called the House Labor and Commerce Standing Committee meeting to order at 3:18 p.m. Representatives Sullivan-Leonard, Stutes, Knopp, Wool, Birch, Josephson, and Kito were present at the call to order. SB 165-COMPREHENSIVE HEALTH INSURANCE FUND 3:19:36 PM CHAIR KITO announced that the first order of business would be SENATE BILL NO. 165, "An Act relating to the Alaska comprehensive health insurance fund; and providing for an effective date." 3:19:54 PM SENATOR ANNA MACKINNON, Alaska State Legislature, introduced SB 165 as prime sponsor. She paraphrased the sponsor statement [included in committee packet], which reads as follows [original punctuation provided]: In 2015, the individual health care market in Alaska was in a precarious state. There were only two insurers with current enrollees in individual healthcare plans in Alaska, and each insurer was experiencing significant losses. Average premium rate increases in 2015 were 38.7% for one insurer and 39.9% for the other. In 2016, one of Alaska's only two remaining insurers gave notice that they would be withdrawing from the Alaska individual market effective January 2017. The 29th Legislature passed HB 374 in 2016, which created the Alaska Reinsurance Program, and allowed the Division of Insurance to apply for a federal Section 1332 state innovation waiver under the Affordable Care Act (ACA). That legislation included a sunset date of June 30, 2018 to ensure that the diversion of insurance premium taxes from the general fund was not relied upon as a long-term funding mechanism. In July 2017, the waiver was approved by both the Department of Health and Social Services and the Department of Treasury based on the application submitted by the division, which requested pass- through funding for the Alaska Reinsurance Program. The federal award for this waiver was approximately $322 million over five years. The award is to be used, in conjunction with the Alaska Reinsurance Program, to continue to stabilize the individual healthcare market in Alaska. This legislation extends the sunset provision on the Alaska comprehensive health insurance fund by six years, from June 30, 2018 to June 30, 2024 to allow for the continuation of the Alaska Reinsurance Program and receipt of the federal funding. The bill also removes the requirement that funds collected under AS 21.09.210 (tax on insurers), AS 21.33.055 (unauthorized insurance premium tax), AS 21.34.180 (surplus lines tax) and AS 21.66.110 (annual tax on title insurance premiums) are to be deposited into the Alaska comprehensive health insurance fund within the general fund. Passage of HB374 by the 29th Legislature has resulted in stabilization of the individual insurance market. The Section 1332 state innovation waiver provides funding for the Alaska Reinsurance Program, through the Alaska comprehensive health insurance fund. Now this legislation is necessary to ensure the continued effectiveness of the Alaska Reinsurance Program, meet the intent of the waiver, and receive the federal funding. 3:22:21 PM CHAIR KITO asked Senator Mackinnon to explain the funding that will go back into the general fund (GF). SENATOR MACKINNON corrected the amount was $63 million. She stated $55 million was done several years ago to create the reinsurance pool. She said high-risk insurance recipients were paid for outside of the regular insurance. She explained that $63 million represents current insurance premiums that are being deposited and moved back into GF. REPRESENTATIVE WOOL asked how many people were moved from the general pool to the high-risk pool. SENATOR MACKINNON answered that 500 individuals were driving 95 percent of the high-risk costs. She deferred to Ms. Lori Wing- Heier. 3:24:04 PM CHAIR KITO opened public testimony on SB 165. [He moved to invited testimony and did not close public testimony.] 3:25:01 PM MICAELA FOWLER, Legislative Liaison, Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on SB 165. She stated that when the original legislation passed, it directed premium tax dollars into the Alaska Comprehensive Health Insurance Fund. She added the legislation had a sunset date which would be extended in the proposed bill. The original legislation stipulated that the department would seek additional funding. She said that was carried out through a 1332 Waiver. She added that because the federal government pays a portion of premiums, the amount that is suppressed is being given back to the state for the fund for the next four years. CHAIR KITO asked about the 1332 Waiver. 3:27:04 PM ANNA LATHAM, Deputy Director, Division of Insurance, Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on SB 165. She stated the fiscal note (FN) reflects the federal funds from the 1332 Waiver award. REPRESENTATIVE BIRCH asked how many beneficiaries are in the insurance pool. MS. LATHAM answered there are around 18,000 Alaskans in the individual market. She added the state fully funded the program in 2017. She said there had been a $55 million appropriation. She said the Division of Insurance had applied for a federal waiver which was awarded in 2018. She added that because Alaska's market is highly subsidized, 90 percent of the re- insurance program for the 5 years of the waiver is going to be federally funded REPRESENTATIVE BIRCH asked whether the Alaska Comprehensive Health Insurance Association (ACHIA) program is expanded from hundreds to thousands over the years. MS. LATHAM spoke to the Alaska Reinsurance Program for individuals with high cost qualifying conditions. When Primera see these qualifying conditions, it lowers rates for everyone in the individual market. She added the individual market has been dropping in enrollment in recent years. REPRESENTATIVE WOOL asked whether ACHIA has "morphed" into the fund or whether they are separate things. MS. LATHAM answered the small population in the ACHIA program is stable, and the reinsurance program from 2016 is a separate program. REPRESENTATIVE WOOL surmised that a few people remaining on ACHIA might qualify for the high-risk designation that would be taken out of the pool. MS. LATHAM said the division has not seen a migration to the reinsurance program. REPRESENTATIVE WOOL suggested the program was started before the division knew it was going to get a federal reimbursement. MS. LATHAM answered that is correct. She added the division knew it had to find an alternate funding source. 3:33:44 PM CHAIR KITO held over SB 165. SB 45-EXEMPTION: LICENSING OF CONTRACTORS 3:34:00 PM CHAIR KITO announced that the next order of business would be SENATE BILL NO. 45, "An Act relating to an exemption from the regulation of construction contractors." 3:34:31 PM SENATOR MIA COSTELLO, Alaska State Legislature, introduced SB 45 as prime sponsor. She paraphrased the sponsor statement [included in committee packet], which reads as follows [original punctuation provided]: Senate Bill 45 provides better protections for buyers of homes and other buildings by requiring unlicensed owner-builders to disclose they are selling a newly built home as an unlicensed builder. The intent of the legislation, as stated in Section 1, is to continue to allow individuals to enjoy the freedom and ability to construct and sell their own homes. Following the housing market crash of the 1980's, the Alaska Legislature raised professional standards for homebuilders, requiring residential contractors to get a state license, a residential endorsement, bonding, and insurance. The Alaska Housing Finance Corporation was specifically directed by statute to establish energy efficiency initiatives such as energy ratings and the Alaska Craftsman Home Program. These efforts helped Alaska become a place where the home construction industry provides high quality and affordable energy-efficient options for buyers. Construction contractor law has been on the books since 1968. The current owner-builder exemption, AS 08.18.161(12), was first enacted that year to provide an exemption that allows individuals to build one home or commercial building every two years without a contractor license. Currently state law provides an exemption that allows individuals to build structures without a contractor license. Alaska law AS 08.18.161 allows anyone to build one structure every two years without a license. While the exemption was intended to allow Alaskans to build their own home, the industry is seeing a growing number of individuals using the exemption to operate construction businesses. SB 45 requires anyone who builds and sells a home without a contractor license within two years of starting construction to disclose that they do not have a license. The measure does not prohibit owner- builder construction. It does not require state approval for owner-builder construction. Owners have the right to build their own homes and this bill does not change that. It requires simple disclosure that helps home buyers. 3:35:50 PM NATASHA MCCLANAHAN, Staff, Senator Mia Costello, Alaska State Legislature, presented the sectional analysis of SB 45 on behalf of Senator Costello, prime sponsor. She paraphrased the sectional analysis [included in committee packet], which reads as follows [original punctuation provided]: Section 1. Adds legislative intent language to uncodified law to help assure that changes made by Section 3 of the bill be construed broadly to allow individuals the freedom and ability to construct and sell their own homes based on their own discretion. Page 1, lines 3-7. Section 2. Amends AS 08.18.116 to require the Department of Commerce, Community, and Economic Development or the Department of Labor and Workforce Development to investigate and take appropriate action if an owner-builder tries to sell a structure while not licensed as a contractor during the time of constructing the building or two years after construction begins. Page 1, lines 8-14. Section 3. Amends AS 08.18.161 to: • Exempt from construction contractor requirements those who work on an existing structure on their own property or their own existing residence. • Require an owner-builder to notify the Alaska Department of Commerce, Community, and Economic Development on a form provided by the agency when advertising or selling a home built if an owner- builder tries to sell it while not licensed as a contractor during the time of constructing the building or two years after construction begins. Section 4. Adds applicability language to uncodified law that would provide clarity on when construction begins under Section 3: either when the actual construction starts or when an owner enters into an agreement with someone to provide labor, act as a subcontractor, or provide materials for the construction. 3:37:31 PM REPRESENTATIVE JOSEPHSON asked the presenters to compare the proposed bill to that brought forward by Representative Cathy Tilton in a previous legislature [House Bill 81]. SENATOR COSTELLO answered that the bill to which he referred was addressing a similar issue. REPRESENTATIVE JOSEPHSON asked what the remedy for abuse is. MS. MCCLANAHAN answered it's a notice issue. She deferred to the department. REPRESENTATIVE KNOPP commented that SB 45 is simply a consumer protection bill. CHAIR KITO shared his understanding that the proposed bill would not preclude the ability of a city to regulate code enforcement within its jurisdiction. He said he thinks there are either six or nine communities in Alaska that have a jurisdiction for building codes. He surmised the provision is to try and put some protections in place for those people who don't have a municipal building code authority in their community. SENATOR COSTELLO said that was her understanding but deferred to the division. 3:42:07 PM JANEY MCCULLOUGH, Director, Division of Corporations, Business and Professional Licensing (DCBPL), Department of Commerce, Community & Economic Development (DCCED), answered questions in the hearing on SB 45. She stated the provision would not have any effect on local municipalities' ability to enforce building codes. She underlined it is a consumer protection bill. She said it would be a requirement to notify the department and would be another tool in the toolbox for buyers. 3:43:06 PM REPRESENTATIVE BIRCH asked whether the requirement would be to disclose within two years of the beginning of construction or two years from the end. SENATOR COSTELLO answered the starting point is point in which the ground is broken. If the home is then completed after two years and the owner decides to sell it, then notification is required. REPRESENTATIVE BIRCH said he thinks there is a federal tax deal for an owner who lives in the home for a certain amount of time. SENATOR COSTELLO stated she is not an expert in tax law and would defer to someone else for an answer. 3:45:00 PM ALAN WILSON, Owner, Alaska Renovators, testified in support of SB 45. He said he is a member of Alaska State Homebuilders Association (ASHA). He said the proposed legislation was an effort to ensure that homebuyers had some information about who built a home. He identified that there are no penalties provided for in the bill. 3:46:25 PM JIM DUNLAP, President, Alaska State Homebuilding Association (ASHA), testified in support of SB 45. He stated his organization would continue to work on community building codes. He said SB 45 attempts to protect consumers. He underlined the initiative does not involve penalties. 3:48:51 PM CHAIR KITO opened public testimony on SB 45. 3:49:04 PM RICHARD CARR testified in support of SB 45. He spoke to his experience as a remodeler and shared an example of poor workmanship he had observed. He said he believes SB 45 would help provide critical information for consumers when they are seeking a home. REPRESENTATIVE SULLIVAN-LEONARD asked Mr. Carr to give testimony on Mat-Su Homebuilder's position on the proposed bill. MR. CARR answered the organization is "100 percent in favor of SB 45." He said they think it would improve the Valley a great deal. REPRESENTATIVE SULLIVAN-LEONARD asked how many home builders are in Mat-Su Homebuilders Association. MR. CARR answered there are 145 members. 3:52:47 PM REPRESENTATIVE JOSEPHSON asked whether Mr. Carr is currently required to submit paperwork to the department stating he is constructing a home for sale. MR. CARR answered not in the Mat-Su Borough. REPRESENTATIVE JOSEPHSON asked who in government knows when he is building a home. MR. CARR answered no one that he knows of. He added that the Alaska Housing Finance Corporation (AHFC) would know. 3:53:50 PM PATRICK DALTON testified in opposition of SB 45. He said a few years ago there was a similar bill which exempted builders in the rural unorganized boroughs. He quoted from a study by the Cato Institute from an article entitled, "Zoning, Land-Use Planning, and Housing Affordability,Policy Analysis No. 823, October 2017, by Vanessa Brown Calder. 3:57:50 PM REPRESENTATIVE JOSEPHSON asked why the provision would be such a burden. He pointed out the requirement involves a form. MR. DALTON answered that the article addresses that regulations in any form create paperwork which creates uncertainty in the building market. He said businesses always pass the cost on the consumer. He added uncertainty is created over whether the application will be accepted. REPRESENTATIVE JOSEPHSON asked why the legislature should not exercise caution on behalf of consumers in the unorganized boroughs. MR. DALTON asked whether the legislature was protecting the homebuilder from increased prices. He said that houses in his area are cheaper than houses in Fairbanks, Alaska. 4:01:51 PM REPRESENTATIVE BIRCH asked whether Mr. Dalton is aware of any outside financing in Delta Junction. MR. DALTON answered he is a specialty contractor and can't answer questions on financing. He said people move to his area of the state to be free from the regulations in organized boroughs. He said they want fewer regulations. REPRESENTATIVE BIRCH asked Mr. Dalton whether he has a business license. MR. DALTON answered in the affirmative. REPRESENTATIVE BIRCH said he did not see the proposed bill as more complicated than acquiring a business license. MR. DALTON asked how the legislature is protecting the rights of a homebuilder. REPRESENTATIVE BIRCH shared his understanding that there is no prohibition on building one's own home. MR. DALTON shared his understanding that the proposed bill would require paperwork. He said he thinks it is an infringement on private property rights. 4:08:37 PM REPRESENTATIVE KNOPP commented that the proposed bill has nothing to do with planning or zoning. He added that it does not require seeking permission. He said the proposed bill would require that the homeowner notify the prospective buyer that the house was not built by a licensed contractor. He noted that a young builder may not know all the regulations. He opined it doesn't limit rights in any shape or form. He stated where he lives the borough has not adopted codes but the cities within the borough have. 4:11:15 PM CHAIR KITO held over SB 45. SB 4-NON-CHEMICAL BARBERING;HAIR BRAIDING 4:11:32 PM CHAIR KITO announced that the final order of business would be 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." 4:12:27 PM SENATOR PETER MICCICHE, Alaska State Legislature, reintroduced SB 4 as prime sponsor. He stated the proposed bill would clarify that owners must conspicuously display their shop licenses so that practitioners in the shop are not cited. It would allow shops to self-certify. The bill would create two new license types for non-chemical barbers and left the traditional barber license. He added that bill would reduce training hours. 4:14:11 PM RACHEL HANKE, Staff, Senator Peter Micciche, Alaska State Legislature, presented SB 4 on behalf of Senator Micciche, prime sponsor. She added the bill would also separate tattooing and cosmetic coloring into two separate licenses and would expand the definition of tattooing to include microblading and microneedling. 4:14:31 PM REPRESENTATIVE WOOL asked about the hours of training required for non-chemical barbers. He asked whether the hours were determined by the board. SENATOR MICCICHE answered it would be the board's decision. 4:15:46 PM CHAIR KITO opened public testimony on SB 4. Upon ascertaining that no one was available to testify, he closed public testimony. CHAIR KITO commented that it makes sense to look at and fix outdated statues. 4:17:25 PM REPRESENTATIVE WOOL moved to report SB 4 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, it was so ordered. 4:18:18 PM ADJOURNMENT There being no further business before the committee, the House Labor and Commerce Standing Committee meeting was adjourned at 4:18 p.m.

Document Name Date/Time Subjects
SB004 Sectional Analysis ver. N 3.19.2018.pdf HL&C 3/26/2018 3:15:00 PM
SB 4
SB004 ver N.pdf HL&C 3/26/2018 3:15:00 PM
SB 4
SB004 Explanation of Changes ver. U.A to ver. N 3.19.2018.pdf HL&C 3/26/2018 3:15:00 PM
SB 4
SB004 Legal Memo Tattooing.pdf HL&C 3/26/2018 3:15:00 PM
SB 4
SB045 Sectional Analysis.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB045 Sponsor Statement.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB045 Support Letters 3.22.18.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB045 Ver. O.PDF HL&C 3/26/2018 3:15:00 PM
SB 45
SB45 Opposition Letter 3.23.18.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB045 Fiscal Note DCCED-CBPL 2.3.17.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB045 Fiscal Note DCCED-CBPL 3.15.18.pdf HL&C 3/26/2018 3:15:00 PM
SB 45
SB004 ver N.pdf HL&C 3/26/2018 3:15:00 PM
SB 4