04/12/2016 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB203 | |
| SB118 | |
| HB125 | |
| HB314 | |
| SB206 | |
| HB254 | |
| SB55 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 203 | TELECONFERENCED | |
| += | SB 118 | TELECONFERENCED | |
| += | SB 156 | TELECONFERENCED | |
| += | HB 125 | TELECONFERENCED | |
| += | HB 314 | TELECONFERENCED | |
| += | SB 206 | TELECONFERENCED | |
| + | HB 254 | TELECONFERENCED | |
| += | SB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 12, 2016
1:36 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
MEMBERS ABSENT
Senator Johnny Ellis
COMMITTEE CALENDAR
SENATE BILL NO. 203
"An Act relating to overtime pay eligibility for medical care
providers employed by common air carriers or by carriers that
transport mail by air for the federal government and to overtime
pay eligibility for flight crews and medical care providers
employed by air ambulance service providers."
- MOVED SB 203 OUT OF COMMITTEE
SENATE BILL NO. 118
"An Act relating to surveys required to be submitted to the
Department of Natural Resources; relating to peer review by the
State Board of Registration for Architects, Engineers, and Land
Surveyors of required surveys submitted to the Department of
Natural Resources; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 156
"An Act relating to insurance coverage for contraceptives and
related services; relating to medical assistance coverage for
contraceptives and related services; and providing for an
effective date."
- BILL HEARING CANCELED
HOUSE BILL NO. 125
"An Act relating to the sale of products containing
dextromethorphan; relating to the regulation of dextromethorphan
by municipalities; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 314
"An Act relating to the Alaska regional economic assistance
program; extending the termination date of the Alaska regional
economic assistance program; and providing for an effective
date."
- MOVED SCS HB 314(L&C) OUT OF COMMITTEE
SENATE BILL NO. 206
"An Act relating to a reinsurance program for residents who are
high risks and insurer assessments to cover the costs of the
reinsurance program; relating to application for state
innovation waivers for health care insurance; relating to
definitions of 'residents who are high risks' and 'covered
lives'; and providing for an effective date."
- MOVED SB 206 OUT OF COMMITTEE
HOUSE BILL NO. 254
"An Act extending the termination date of the Big Game
Commercial Services Board; and providing for an effective date."
- MOVED HB 254 OUT OF COMMITTEE
SENATE BILL NO. 55
"An Act relating to the practice of optometry."
- MOVED CSSB 55(L&C) OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 203
SHORT TITLE: MEDI-VAC FLIGHT CREW OVERTIME PAY
SPONSOR(s): JUDICIARY
03/11/16 (S) READ THE FIRST TIME - REFERRALS
03/11/16 (S) L&C
03/24/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/24/16 (S) Heard & Held
03/24/16 (S) MINUTE (L&C)
04/08/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/08/16 (S) -- MEETING CANCELED --
04/09/16 (S) L&C AT 4:00 PM BELTZ 105 (TSBldg)
04/09/16 (S) -- MEETING CANCELED --
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 118
SHORT TITLE: DNR LAND DISPOSAL SURVEYS; PEER REVIEW
SPONSOR(s): COSTELLO
01/19/16 (S) PREFILE RELEASED 1/8/16
01/19/16 (S) READ THE FIRST TIME - REFERRALS
01/19/16 (S) L&C, RES
02/25/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/25/16 (S) <Bill Hearing Canceled>
04/07/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/07/16 (S) Heard & Held
04/07/16 (S) MINUTE (L&C)
04/09/16 (S) L&C AT 4:00 PM BELTZ 105 (TSBldg)
04/09/16 (S) -- MEETING CANCELED --
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 125
SHORT TITLE: RESTRICTIONS ON SALE OF DEXTROMETHORPHAN
SPONSOR(s): MILLETT
02/25/15 (H) READ THE FIRST TIME - REFERRALS
02/25/15 (H) JUD
04/09/15 (H) JUD AT 1:00 PM CAPITOL 120
04/09/15 (H) Moved HB 125 Out of Committee
04/09/15 (H) MINUTE (JUD)
04/10/15 (H) JUD RPT 1DP 6NR
04/10/15 (H) DP: MILLETT
04/10/15 (H) NR: CLAMAN, LYNN, FOSTER, GRUENBERG,
KELLER, LEDOUX
03/16/16 (H) TRANSMITTED TO (S)
03/16/16 (H) VERSION: HB 125
03/18/16 (S) READ THE FIRST TIME - REFERRALS
03/18/16 (S) L&C
04/08/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/08/16 (S) -- MEETING CANCELED --
04/09/16 (S) L&C AT 4:00 PM BELTZ 105 (TSBldg)
04/09/16 (S) -- MEETING CANCELED --
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 314
SHORT TITLE: AK REG ECON ASSIST. PROGRAM; EXTEND
SPONSOR(s): HUGHES
02/17/16 (H) READ THE FIRST TIME - REFERRALS
02/17/16 (H) L&C
03/09/16 (H) L&C AT 3:15 PM BARNES 124
03/09/16 (H) Scheduled but Not Heard
03/11/16 (H) L&C AT 3:15 PM BARNES 124
03/11/16 (H) -- MEETING CANCELED --
03/21/16 (H) L&C AT 3:15 PM BARNES 124
03/21/16 (H) Moved HB 314 Out of Committee
03/21/16 (H) MINUTE (L&C)
03/23/16 (H) L&C RPT 6DP 1NR
03/23/16 (H) DP: LEDOUX, COLVER, JOSEPHSON, KITO,
HUGHES, OLSON
03/23/16 (H) NR: TILTON
03/23/16 (H) FIN REFERRAL ADDED AFTER L&C
03/29/16 (H) FIN REFERRAL WAIVED
04/01/16 (H) TRANSMITTED TO (S)
04/01/16 (H) VERSION: HB 314
04/04/16 (S) READ THE FIRST TIME - REFERRALS
04/04/16 (S) L&C, FIN
04/07/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/07/16 (S) Heard & Held
04/07/16 (S) MINUTE (L&C)
04/09/16 (S) L&C AT 4:00 PM BELTZ 105 (TSBldg)
04/09/16 (S) -- MEETING CANCELED --
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 206
SHORT TITLE: REINSURANCE PROGRAM; HEALTH INS. WAIVERS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/25/16 (S) READ THE FIRST TIME - REFERRALS
03/25/16 (S) L&C, FIN
03/29/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/29/16 (S) Heard & Held
03/29/16 (S) MINUTE (L&C)
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: HB 254
SHORT TITLE: EXTEND BIG GAME COMMERCIAL SERVICES BOARD
SPONSOR(s): STUTES
01/19/16 (H) READ THE FIRST TIME - REFERRALS
01/19/16 (H) RES, FIN
03/23/16 (H) RES AT 1:00 PM BARNES 124
03/23/16 (H) Moved HB 254 Out of Committee
03/23/16 (H) MINUTE (RES)
03/24/16 (H) RES RPT 6DP 3NR
03/24/16 (H) DP: HERRON, OLSON, TARR, SEATON,
TALERICO, NAGEAK
03/24/16 (H) NR: JOHNSON, JOSEPHSON, CHENAULT
04/04/16 (H) FIN AT 1:30 PM HOUSE FINANCE 519
04/04/16 (H) Moved HB 254 Out of Committee
04/04/16 (H) MINUTE (FIN)
04/05/16 (H) FIN RPT 6DP 4NR 1AM
04/05/16 (H) DP: GARA, GUTTENBERG, GATTIS, EDGMON,
MUNOZ, THOMPSON
04/05/16 (H) NR: SADDLER, PRUITT, WILSON, NEUMAN
04/05/16 (H) AM: KAWASAKI
04/08/16 (H) TRANSMITTED TO (S)
04/08/16 (H) VERSION: HB 254
04/09/16 (S) READ THE FIRST TIME - REFERRALS
04/09/16 (S) L&C, FIN
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 55
SHORT TITLE: OPTOMETRY & OPTOMETRISTS
SPONSOR(s): GIESSEL BY REQUEST
02/18/15 (S) READ THE FIRST TIME - REFERRALS
02/18/15 (S) HSS, L&C
03/18/15 (S) HSS AT 1:30 PM BUTROVICH 205
03/18/15 (S) Heard & Held
03/18/15 (S) MINUTE (HSS)
02/01/16 (S) HSS AT 1:30 PM BUTROVICH 205
02/01/16 (S) Moved SB 55 Out of Committee
02/01/16 (S) MINUTE (HSS)
02/08/16 (S) HSS RPT 3DP 1NR
02/08/16 (S) DP: STEDMAN, STOLTZE, GIESSEL
02/08/16 (S) NR: ELLIS
03/10/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/10/16 (S) Heard & Held
03/10/16 (S) MINUTE (L&C)
03/29/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/29/16 (S) Heard & Held
03/29/16 (S) MINUTE (L&C)
04/12/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
WESTON EILER, Staff
Senate Labor and Commerce Standing Committee and
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the changes in the CS for SB 118;
the CS for HB 314; and the CS for SB 55.
BRENT GOODRUM, Director
Division of Mining, Land and Water
Department of Natural Resources (DNR)
Anchorage, Alaska
POSITION STATEMENT: Provided supporting testimony for SB 118.
GRACE ABBOTT, Staff
Representative Charisse Millett
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 125 on behalf of the sponsor.
KACI SCHROEDER, Assistant Attorney General
Legal Services Section
Criminal Division
Department of Law (DOL)
Juneau, Alaska
POSITION STATEMENT: Testified that the administration does not
have an official position on HB 125.
SEAN MOORE
Consumer Health Care Product Association (CHCPA)
Washington, D.C.
POSITION STATEMENT: Testified in support of HB 125.
BRITTENY CIONI-HAYWOOD, Director
Division of Economic Development
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions related to HB 314.
DOUG GRIFFIN
Southwest Alaska Municipal Conference
Anchorage, Alaska
POSITION STATEMENT: Testified that the reporting requirements
called for in HB 314 would not be problematic for the SWAMC
ARDOR.
REPRESENTATIVE SHELLEY HUGHES
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of HB 314.
FRED PARADY, Deputy Commissioner
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Provided supporting testimony for SB 206.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Provided supporting information for SB 206.
SHEELA TALLMAN, Legislative Policy Manager
Premera Blue Cross Blue Shield of Alaska
Seattle, Washington
POSITION STATEMENT: Testified that Premera supports SB 206.
JASON GOOTEE, Director
MODA Health
Anchorage, Alaska
POSITION STATEMENT: Testified that MODA supports SB 206
STEVE HANDY, Staff
Representative Louise Stutes
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced HB 254 on behalf of the sponsor.
KRIS CURTIS, Legislative Auditor
Division of Legislative Audit
Juneau, Alaska
POSITION STATEMENT: Summarized the legislative audit findings
related to HB 254.
SARAH CHAMBERS, Operations Manager
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions relating to HB 254.
SAM ROHRER, President
Alaska Professional Hunters Association (APHA)
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 254.
DICK ROHRER, representing himself
Kodiak, Alaska
POSITION STATEMENT: Testified in support of HB 254.
ROD ARNO, Executive Director
Alaska Outdoor Council (AOC)
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 254.
ACTION NARRATIVE
1:36:42 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:36 p.m. Present at the call to
order were Senators Meyer, Stevens, and Chair Costello.
SB 203-MEDI-VAC FLIGHT CREW OVERTIME PAY
1:37:31 PM
CHAIR COSTELLO announced the consideration of SB 203. She
relayed the intent to adopt a committee substitute (CS), take
members questions, and look to the will of the committee.
1:37:38 PM
At ease
1:37:55 PM
CHAIR COSTELLO reconvened the meeting and clarified that there
is no committee substitute.
SENATOR GIESSEL joined the committee.
1:38:44 PM
SENATOR MEYER moved to report SB 203, labeled 29-LS1566\A, from
committee with individual recommendations and attached fiscal
note(s).
CHAIR COSTELLO announced that without objection, SB 203 is
reported from the Senate Labor and Commerce Standing Committee.
1:38:56 PM
At ease
SB 118-DNR LAND DISPOSAL SURVEYS; PEER REVIEW
1:40:20 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 118. She relayed the intent to adopt a
committee substitute, hear from the department and hold the bill
in committee.
1:41:07 PM
SENATOR MEYER moved to adopt the work draft CS for SB 118,
labeled 29-LS0318\E, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
1:41:32 PM
WESTON EILER, Staff, Senate Labor and Commerce Standing
Committee and Senator Mia Costello, explained that the CS for SB
118 removes the involvement of the Board of Registration for
Architects, Engineers, and Land Surveyors and the Department of
Commerce, Community and Economic Development from the peer
review process for land survey work. He relayed the sponsor's
intent to continue to work with the Department of Natural
Resources to avoid additional cost to the state.
Section 1 provides that if the department notifies a person
within two weeks of its intention to review a survey, the person
has the alternate option of working directly with a qualified
land surveyor who will conduct the review. He noted that the
Municipality of Anchorage employs this model for peer review.
Section 2 relating to powers of the commissioner is the same as
Section 5 of the original bill. It adds a new paragraph (9)
providing for peer review of a survey.
Section 3 has transition language that largely mirrors the
effect of the original bill.
[Section 4 provides for an immediate effective date.]
CHAIR COSTELLO removed her objection and the CS for SB 118 was
adopted.
1:45:04 PM
BRENT GOODRUM, Director, Division of Mining, Land and Water,
Department of Natural Resources (DNR), provided supporting
testimony for SB 118. He said the department has reduced the
backlog of authorizations more than 63 percent since FY2012.
Several of those authorizations had ties to survey work and the
department has identified improvements it can make in this area.
DNR is interested in ensuring a timely turnaround of these
important land ownership documents and that a quality product
goes out the door.
CHAIR COSTELLO expressed appreciation for what the department
has done to address the backlog. She said she looks forward to
continuing to work with the department pursuing this type of
approach that has seen some success in other jurisdictions.
1:47:04 PM
CHAIR COSTELLO held SB 118 in committee.
1:47:17 PM
At ease
HB 125-RESTRICTIONS ON SALE OF DEXTROMETHORPHAN
1:47:20 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 314. She relayed the intent to hear from the
sponsor and the administration, take member's questions, and
hold the bill for future consideration.
1:47:58 PM
GRACE ABBOTT, Staff, Representative Charisse Millett, introduced
HB 125 on behalf of the sponsor speaking to the following
sponsor statement:
For over 50 years, families have relied upon cough and
cold medicines containing dextromethorphan (DXM) to
treat their coughs. Today, more than 100 over the
counter cough and cold products contain DXM. When used
correctly, DXM-containing medicines are safe and
effective, but when abused can produce dangerous side
effects. According to a 2013 National Institute of
Drug Abuse study, four percent of teenagers - 8th
graders through 12th graders - have intentionally
taken exceedingly large amounts of cough medicine
containing DXM to get high. At high doses, e.g. 8 to
50 times the maximum labeled dose, DXM can produce
hallucinations, confusion, blurred vision, nausea,
excessive fatigue, and loss of motor control.
To help address this problem and combat the number of
teens who abuse DXM, House Bill 125 prohibits the sale
of DXM to those under 18 years of age without a
prescription. This simple step, asking for proof of
age prior to sale, would maintain access to effective,
over the counter cough medicines for Americans who use
them to treat cough symptoms associated with colds and
the flu, while limiting access to the small but
significant number of adolescents who might abuse
them. The penalty for those who sell to minors would
be a $150 for the first violation, and $250 for the
second and any future violation. Alaskans take
substance abuse issues very seriously, and the abuse
of DXM should be no exception.
1:50:42 PM
KACI SCHROEDER, Assistant Attorney General, Legal Services
Section, Criminal Division, Department of Law (DOL), stated that
the administration does not have an official position on HB 125,
but believes that Ms. Abbott accurately articulated the problem
and that the bill can be implemented as drafted.
1:51:32 PM
CHAIR COSTELLO opened public testimony on HB 125.
1:51:54 PM
SENATOR MEYER asked if products containing DXM would be placed
behind the counter and customers would need to show ID and
register in order to make a purchase.
MS. ABBOTT said no, but an ID check would be triggered at the
point of sale. The concern with dextromethorphan relates to age,
whereas the concern with Sudafed is the potential manufacture of
another drug.
SENATOR MEYER asked if there is a penalty for young people who
try to purchase dextromethorphan.
MS. ABBOTT said there is no intent to penalize anyone purchasing
the drug; the onus is on the vender.
SENATOR MEYER asked if the vender would display an information
sign to keep young people from attempting to purchase the
medicine.
MS. ABBOTT replied many retailers voluntarily have put up signs
and she believes that is an effective way to get the message
across.
1:54:16 PM
SEAN MOORE, Consumer Health Care Product Association (CHCPA),
said he is speaking in support of HB 125 on behalf of the
national trade association that represents the over-the-counter
medicine industry. They have worked closely with the sponsor. He
summarized that the bill would simply prohibit the sale of over-
the-counter products containing dextromethorphan to those under
age 18. The drug was first approved by the Food and Drug
Administration (FDA) in the 1950s and now is the most widely
used cough suppressant on the market. It is nonnarcotic and does
not produce physical dependence when taken according to the
directions. However, a significant number of teens have been
abusing DXM to get high, often ingesting as much as 25 times the
recommended dose. This can produce side effects that include
distortions of color and sound, confusion, loss of motor
control, nausea and vomiting. The National Institute on Drug
Abuse in 2009 reported that about 5.25 percent of teens in
grades 8, 10, and 12 admitted abusing DXM in the past year.
MR. MOORE said the industry takes the issue of medicine abuse
very seriously and has committed to the FDA to help reduce the
abuse rate. As part of that effort, they have partnered with
organizations that have expertise in preventing and reducing
medicine abuse by youth. Members of CHCPA have voluntarily
committed to include bold warnings on their packaging and
directing parents to a website. More recently, they have begun
supporting legislation similar to HB 125. He emphasized that
this is an easy bipartisan issue and the evidence shows that it
is working. He urged the committee to support HB 125.
1:57:51 PM
CHAIR COSTELLO closed public testimony and held HB 125 in
committee for future consideration.
HB 314-AK REG ECON ASSIST. PROGRAM; EXTEND
1:58:11 PM
CHAIR COSTELLO announced the consideration of HB 314. She
relayed the intent to adopt a committee substitute (CS), take
member's questions, and look to the will of the committee.
1:58:38 PM
SENATOR GIESSEL moved to adopt the CS for HB 314, labeled 29-
LS1381\P], as the working document. [The presumption is that the
committee intended to adopt a Senate committee substitute for
the House bill.]
CHAIR COSTELLO objected for an explanation of changes.
1:59:07 PM
WESTON EILER, Staff, Senate Labor and Commerce Standing
Committee and Senator Costello, said the committee substitute
makes two changes. First, language in Section 3 on page 3, lines
6-11, requires the Department of Commerce, Community and
Economic Development (DCCED) to coordinate with the ARDORs to
produce an annual report to the legislature that summarizes the
previous year's activities of each of the regional development
organizations. The second change appears in Section 4 on page 4,
removing the sunset provision for the ARDOR program. The program
is reauthorized but not funded. The original bill repealed the
sunset provision for the ARDOR program on July 1, 2021.
2:01:17 PM
CHAIR COSTELLO removed her objection and the CS for HB 314 was
adopted. [The presumption is that the committee intended to
adopt a Senate committee substitute for the House bill.]
2:01:55 PM
BRITTENY CIONI-HAYWOOD, Director, Division of Economic
Development, Department of Commerce, Community and Economic
Development (DCCED), introduced herself and offered to answer
questions related to HB 314.
CHAIR COSTELLO asked if the reporting requirements in the CS
would be unduly burdensome for the ARDORs.
MS. CIONI-HAYWOOD said no. She related she spoke with several
ARDORs who indicated that the reporting requirements would not
be burdensome; most of the ARDORs will be producing this
information anyway.
CHAIR COSTELLO asked if it is the department's intent that the
reports will be submitted electronically.
MS. CIONI-HAYWOOD replied her division no longer prints reports;
they are posted electronically and that is the intention moving
forward.
CHAIR COSTELLO asked Mr. Griffin to answer the same question.
2:04:14 PM
DOUG GRIFFIN, Southwest Alaska Municipal Conference (SWAMC),
stated that the reporting requirements called for in HB 314
would not be problematic. "We generally want you to know what
we're doing out here so that is not going to be a problem at
all," he said.
CHAIR COSTELLO asked the sponsor if she would like to make any
final comments.
2:04:43 PM
REPRESENTATIVE SHELLEY HUGHES, Alaska State Legislature, sponsor
of HB 314, said she appreciates the committee substitute. She
added, "If the ARDORs are okay with it I'm good with it; this is
really to help them move along." She acknowledged that some of
the smaller ARDORs may have some concern but she hasn't heard
from any. She opined that the data collected will be important
over time.
2:05:39 PM
SENATOR GIESSEL moved to report the CS for HB 314, labeled 29-
LS1381\P, from committee with individual recommendations and
attached fiscal note(s). [The presumption is that the committee
intended to report a Senate committee substitute for the House
bill from committee.]
CHAIR COSTELLO announced that without objection, [SCS HB
314(L&C)] is reported from the Senate Labor and Commerce
Standing Committee.
2:06:06 PM
At ease
SB 206-REINSURANCE PROGRAM; HEALTH INS. WAIVERS
2:06:57 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 206. She noted this is the second hearing
and public testimony is closed. She relayed the intent to hear
from the administration, take questions, and look to the will of
the committee.
2:07:36 PM
FRED PARADY, Deputy Commissioner, Department of Commerce,
Community and Economic Development (DCCED), stated that SB 206
addresses the fragile condition of Alaska's individual health
insurance market. This segment of the insurance market has
experienced back-to-back increases of about 36 percent. There
are just two remaining insurance carriers in the state and one
has been significantly stressed this year. He said SB 206
provides a restructure of the ACHIA program that is grounded in
prior Alaska statute.
CHAIR COSTELLO welcomed Senator Stevens.
MR. PARADY directed attention to the highlighted table in the
packets from the Division of Insurance 2015 annual report. It
shows 236,000 covered lives; the federal reinsurance program -
Affordable Care Act 2016 annual fee per member per month of
$2.25; and a 3 percent tax that averages $30 per member per
month for an individual and $18 per month for a group. For the
purposes of the analysis, those two items sunset at the end of
2016.
Page 2 reflects a $19.36 per month assessment - the rough
equivalent to the expiring federal taxes and fees for ACHIA - on
the 236,000 covered lives that would generate about $55 million.
The premium impact on the individual market would reduce costs
to individuals roughly 15 percent to 18 percent. The division
anticipates another year of 36 percent to 40 percent increases
so SB 206 would substantially moderate those ongoing cost
increases for the 22,000 Alaskans that are insured in the
individual market. SB 206 offers a straightforward and doable,
but not perfect, solution.
CHAIR COSTELLO mentioned the $19.38 per member per month
estimated reinsurance limit and asked Ms. Wing-Heier if the
division had identified the higher cost codes it would capture
through the reinsurance.
2:11:19 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), explained
that the division asked the insurance companies and reinsurance
companies that were writing in the individual market at the time
to submit their claim data and they quantified it for the first
10 highest cost claims, the top 20, the top 30, and the top 40.
Those are the claims that are identified as set 1, 2, 3, and 4.
The final page of the set of documents titled "Annualized
Adjustment Estimate" shows all the data combined. The claims
themselves are identified by hierarchical claim condition (HCC)
code throughout the document. On each of the last 4 pages, 10
more conditions are added; those are top drivers in the market.
CHAIR COSTELLO asked her to describe the nature of the problem
and what SB 206 attempts to achieve.
MS. WING-HEIER said the bill was introduced because the
individual insurance market in Alaska is very small and has
experienced nearly 40 percent rate increases the last two years.
There is no reason to believe that there won't be a third year
of rate increases in the individual market of close to 40
percent. There are two remaining insurers in Alaska and one has
been financially stressed this year. The insured population is
about 23,000 and there is no reason to think it's going to grow
at this time. Alaska has had a high risk pool for a number of
years, and the idea is to take the individuals that would have
been in the high risk pool had it not been for the Affordable
Care Act, and place them back into the high risk pool. They will
be funded in the high-risk ACHIA pool as they were funded before
the Affordable Care Act. This will spread the cost over the
entire marketplace (covered lives) as was done before the
implementation of the Affordable Care Act. What that hopefully
will do is drive the cost down of the individual market or at
least stabilize it so people can afford to keep their premiums.
She acknowledged that for some there may be a few dollars per
month increase, but for those in the individual market there
will be a stabilization. Hopefully this will result in insurers
staying in the market in Alaska or attract other business.
She shared that since SB 206 was introduced it has received
press in the Lower 48. She listed the states that have called
asking what is being done with this reinsurance bill because
they are experiencing the same struggles.
2:18:08 PM
At ease
2:18:48 PM
CHAIR COSTELLO reconvened the meeting and invited Ms. Tallman to
comment on the bill.
2:18:59 PM
SHEELA TALLMAN, Legislative Policy Manager, Premera Blue Cross
Blue Shield of Alaska, testified in support of SB 206. She
described the individual health insurance market in Alaska as in
crisis. The average benchmark plan premium is the highest in the
country at over $700 per month; the next highest cost state is
$468 per month. Premium increases of 40 percent for the past two
years have a significant impact when the premium is already so
high.
She said the subsidies will help many, but over 1,200
individuals with Premera coverage do not qualify. She expressed
concern that premiums will continue to skyrocket due to the
small size of the individual pool and the small but significant
number of individuals in the pool that have high-cost
conditions. These individuals destabilize the pool and
dramatically impact costs.
MS. TALLMAN noted that while some insurers have opted to exit
the individual market, Premera and MODA Health have been working
collaboratively to come up with a sustainable option for
Alaskans. Premera supports a balanced assessment that will not
place undue burdens on the group market and will also provide
some relief to the individual market. SB 206 aims to do this.
She urged the committee to support the legislation.
2:21:16 PM
JASON GOOTEE, Director, MODA Health, Anchorage, Alaska, stated
that MODA supports SB 206 as a way of addressing the variability
inherent in the Alaska individual insurance market. He said the
expansion of the individual market has been difficult for many
insurers because the health of the population nationally is
worse than expected and Alaska is no exception. Of particular
concern in Alaska is the relatively small number of people in
the individual market over which to spread the risk.
He reported that MODA has collaborated with the Division of
Insurance, Premera Blue Cross Blue Shield of Alaska and ACHIA on
a reinsurance program aimed at helping to stabilize this market.
MODA and Premera have provided detailed claims data through
ACHIA to an actuarial consulting firm to model the impact of
such a program. MODA's actuaries have been reviewing the
analysis and providing feedback to ensure that the results are
sound. He restated support for SB 206 as a means of improving
the predictability of the individual pool when setting future
rates.
2:23:11 PM
CHAIR COSTELLO closed public testimony and solicited a motion.
She noted the bill has a finance referral.
2:23:48 PM
At ease
2:23:59 PM
SENATOR GIESSEL moved to report SB 206, labeled 29-GS2126\A,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO announced that without objection, SB 206 is
reported from the Senate Labor and Commerce Standing Committee.
2:24:30 PM
At ease
HB 254-EXTEND BIG GAME COMMERCIAL SERVICES BOARD
2:26:34 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of HB 254. She relayed the intent to hear from the
sponsor, hear a legislative audit update, hear from the
administration, take questions and public testimony, and look to
the will of the committee.
2:27:01 PM
STEVE HANDY, Staff, Representative Louise Stutes, Alaska State
Legislature, introduced HB 254 on behalf of the sponsor speaking
to the following sponsor statement:
House Bill 254 extends the Big Game Commercial Service
Board's (BGCSB) sunset date from June 30, 2016, to
June 30, 2019.
The BGCSB provides a legislative command to assist in
resource conservation and consumer protection. The
Board develops professional and ethical standards,
administers exams, makes final licensing decisions and
takes civil action against persons who violate
regulations.
The BGCSB is staffed by the Division of Corporations,
Business and Professional Licensing. The BGCSB
consists of two licensed Registered Guide
two licensed Transporters, two private landholders,
two public members, and one member from the Board of
Game. Board members are appointed by the Governor and
confirmed by the Legislature.
The Board's regulated professions include Assistant
Guide, Class
Guide
Registered Guide
and Transporter.
MR. HANDY noted that the McDowell Group reported in 2012 that
guided hunting in Alaska accounted for 2,210 jobs and $35
million in labor income, generated $78 million in economic
activity, and brought in nearly $2 million from hunting licenses
and big game tags.
MR. HANDY mentioned the legislative audit and posited that an
oversight by the legislature that allowed the board to sunset
contributed to some of that debt. He noted that the legislature
reinstated the board in December 2015 and SB 206 will extend the
current sunset to 2019. He concluded saying that the Big Game
Commercial Services Board is essential to the safety of hunters,
guides and transporters and to the management of the resource
itself. He requested the committee pass HB 254.
CHAIR COSTELLO asked him to submit his comments to the committee
in written form.
SENATOR STEVENS asked what happens if the bill doesn't pass.
MR. HANDY replied the board will sunset on June 30, 2016 and
will completely shut down in about one year.
2:31:01 PM
SENATOR MEYER asked if he read that the board is running a $1
million deficit.
MS. HANDY said he believes it has decreased substantially since
that number was published. He deferred further comment on the
deficit to the auditor.
2:31:37 PM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
related that the division conducted a sunset review looking at
whether the Big Game Commercial Services Board was serving the
public interest and should be extended. Overall, the audit found
the board provided assurance that individuals licensed to guide,
outfit hunts, and transport hunters to and from hunt locations
are qualified to do so. Also, the board's regulation and
licensing of qualified guides, guide-outfitters, and
transporters benefited the public safety and safeguarded the
state's wildlife resources.
In recognition that the board reported a $1 million deficit as
of April 30, 2015, the division recommended a conditional three-
year extension. The condition is the board demonstrate in
January that it has the capacity to address its deficit. When
the audit was done last summer, there were proposed regulations
to increase licensing fees and add new activity fees. Both the
division and the board believed those fees would be able to
address the deficit, but the regulations were in draft form at
the time of the audit.
MS. CURTIS said the audit also recommended four operational
improvements. The first was to the director of the Division of
Corporations, Business and Professional Licensing (DCBPL) to
ensure that staff adhere to procedures to provide efficient and
effective support to the board. This is a repeat finding and
while there were some improvements, problems continue in the
area of public noticing exams and meetings. Additional
improvement was recommended in those areas.
The second recommendation was for the director of DCBPL to take
steps to improve the timeliness of investigations. The audit
looked at 25 investigative cases and 17 had periods of
inactivity. According to the lead investigator, this was due to
a lack of resources to address the large case load. The audit
also found problems with effective case monitoring.
The third recommendation was for the board and the director of
DCBPL to work together to increase licensing fees to address the
board deficit. This is the third time an audit has recommended
addressing the deficit. The 2011 audit found the board had a
deficit of $374 thousand, and the audit warned that it was
likely to increase if the board did not increase fees or reduce
expenditures. The deficit as of April last year was over $1
million. The growth was due to various factors. The board
delayed increasing the fees, there was a reduction in the number
of license renewals, and the division reallocated its indirect
costs that resulted in another $200 thousand increase in the
deficit.
To address the deficit after the 2011 audit, the division
proposed an increase in fees between 61 percent and 68 percent.
The division did not carry through and raise the fees at that
point, but did increase them about 44 percent in FY2014.
However, the revenues were not enough to cover expenditures and
the deficit continued to grow. The division has indicated it
will raise fees and the belief is that those will be effective
in addressing the deficit.
The fourth recommendation is for the division director to ensure
that the transporter license renewal application form complies
with statute. The statute requires the licensees to sign an
affidavit in the application that all activity reports have been
filed with the department. The audit found no affidavit.
MS. CURTIS reported that overall, the department and board
concurred with all the recommendations.
2:37:40 PM
SENATOR STEVENS asked if her office monitors the board's
progress in following the recommendations of the audit.
MS. CURTIS said there is no mechanism to formally monitor
progress unless the audit division is formally requested to do
so.
2:38:31 PM
SARAH CHAMBERS, Operations Manager, Division of Corporations,
Business and Professional Licensing, Department of Commerce,
Community and Economic Development (DCCED), introduced herself.
SENATOR GIESSEL said she assumes that the $20 thousand reflected
in the narrative of the fiscal note is for board travel.
MS. CHAMBERS confirmed the travel is for board members and one
staff to attend board meetings. Typically there are two each
year, one in Anchorage and one in Fairbanks.
SENATOR GIESSEL suggested the board find ways to reduce
traveling costs.
CHAIR COSTELLO asked her to comment on the work to improve the
financial standing of boards and her role in helping to address
the recommendations in this audit.
MS. CHAMBERS advised that the division has been working for
several years with legislative finance, the director of
administrative services, and the boards to improve the fee
analysis structure by making it more detailed. She noted that
board members now receive an interactive Excel spreadsheet that
gives a better picture of the impact of different fees. She said
that while fees were raised in 2013 and 2015, Legislative
Finance warned that trying to eradicate the deficit in one fell
swoop would probably put many of the guides and transporters out
of business.
She explained that the board and division paid special attention
to ensure that non-contracting guides are not penalized. Some of
the burden was placed on guides that contract and they also
looked for new revenue sources. The hot record and transporter
activity report database was restructured in response to the
2011 legislative audit, and a fee was attached to compensate for
staff time helping state troopers fulfil their statutory need
for that information.
2:43:33 PM
SENATOR STEVENS asked who is objecting to the fee increases.
MS. CHAMBERS replied transporters, in particular, have expressed
concern about the impact of the new transporter activity report
fee on their businesses. She has met twice with the transporter
subcommittee to solicit new ideas, but the bottom line is that
it's necessary to go forward with the deficit reduction.
SENATOR STEVENS commented that it sounds as though the fee
structure is in some form of evolution.
MS. CHAMBERS clarified that last November the fees for this
renewal period were adopted by the director and signed by the
lieutenant governor. The deficit was below $900 thousand after
the second quarter and the third quarter report is anticipated
to show additional reduction. She maintained that the division
has met the legislative commitment to set fees and will continue
to review them through the annual fee analysis.
2:46:31 PM
SENATOR GIESSEL suggested that transporters pass the licensing
fees on to their clients. She pointed out that other boards are
subsidizing the shortfall of the Big Game Commercial Services
Board and it can't go on. She asked what the transporter license
fee is currently.
MS. CHAMBERS replied it is $850 every two years.
SENATOR GIESSEL pointed out that the fee isn't as high as for
other licensed professions such as direct entry midwives. She
called on guides, outfitters, and transporters to step up and
take responsibility.
2:48:52 PM
CHAIR COSTELLO opened public testimony on HB 254.
2:49:06 PM
SAM ROHRER, President, Alaska Professional Hunters Association
(APHA), testified in support of HB 254. He said the board is
critical to the long-term viability of the guide industry. It
provides a conduit for meaningful input on regulations and
provides for reasonable testing standards. He highlighted that
the guiding industry supported the most recent fee increases. He
encouraged the committee to move the bill today.
2:50:20 PM
DICK ROHRER, representing himself, Kodiak, Alaska, testified in
support of HB 254. He related that he became involved in the
guiding industry in 1965 when he moved to Alaska and has been
through various sunsetting and reinstatement of the board. He
also served two terms on the board, beginning in 2005, after the
board was reinstated. At that time the board, with Senator
Steven's help, was able to clarify that privately owned cabins,
particularly in remote areas, could be rented to big game
hunters without the owner being required to have a guide or
transporter license. That favored resident hunters. He also
clarified that the point-to-point air taxi operators that do not
advertise specifically for transporting hunters or don't charge
an extra fee are not required to have a transporter license.
Therefore, resident hunters that choose to use air taxi services
are not affected. As a past board member, he encouraged the
committee to move the bill today.
SENATOR STEVENS asked Dick Rohrer if he supports the fee
increases.
DICK ROHRER confirmed that he supports the fees and expressed
strong support for the current chief investigator. He expects
she will bring investigative costs under control and good
progress will be made in the next three years.
2:55:06 PM
CHAIR COSTELLO closed public testimony on HB 254. She stated her
intent to move the bill to give Senate Finance time to review
it.
2:55:16 PM
At ease
2:59:01 PM
CHAIR COSTELLO reconvened the meeting and reopened public
testimony.
2:59:24 PM
ROD ARNO, Executive Director, Alaska Outdoor Council (AOC),
testified in support of HB 254. He said the Big Game Commercial
Services Board is needed now more than ever. As federal land
managers change their purpose, the guiding industry will be in a
pinch on federal lands which will put more pressure on state
lands. That is where most Alaskan residents are hunting,
particularly those from non-subsistence areas. He urged the
committee to pass the bill to extend the sunset on the board.
SENATOR GIESSEL requested he pass along her comments that other
boards have been subsidizing the Big Game Commercial Services
Board for many years, and it's time for these professions to
step up.
MR. ARNOS replied the AOC supports the increased fees.
3:01:28 PM
CHAIR COSTELLO closed public testimony on HB 254.
3:01:37 PM
SENATOR GIESSEL moved to report HB 254, labeled 29-LS1309\A,
from committee with individual recommendations and attached
fiscal note(s).
CHAIR COSTELLO announced that without objection, HB 254 is
reported from the Senate Labor and Commerce Standing Committee.
3:01:58 PM
At ease
SB 55-OPTOMETRY & OPTOMETRISTS
3:07:13 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 55. She relayed the intent to adopt a
committee substitute (CS), take member's questions, and look to
the will of the committee.
3:07:28 PM
SENATOR GIESSEL moved to adopt the CS for SB 55, labeled 29-
LS0524\I, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
3:07:43 PM
WESTON EILER, Staff, Senate Labor and Commerce Standing
Committee and Senator Mia Costello, explained the changes in the
CS for SB 55, version I.
Section 1 - page 1, lines 8-249, adds text under paragraph (4)
relating to regulations for the treatment of eye disease. Page
1, lines 12-14, adds a new paragraph (6) relating to regulations
that the State Medical Board agrees to regarding the scope of
practice to perform ophthalmic surgery and noninvasive
procedures.
Section 4 - page 2, lines 18-24 adds new subsections to AS
08.72.272. Subsection (e) prohibits a licensee from injecting a
derivative of clostridium botulinum in the ocular globe of the
eye. Subsection (f) provisionally prohibits a licensee from
prescribing more than a 7-day supply of a controlled substance.
Patients needing a refill shall be referred to a licensed
physician or ophthalmologist.
Section 5 - page 2, lines 25-31 through page 3, line 1, adds a
new Sec. 08.72.278. Subsection (a) states that a licensee may
perform services of optometry only if they are within the scope
of the licensee's education, training, and experience as
established by regulations adopted by the board. Subsection (b)
prohibits a licensee from performing ophthalmic surgery
described in regulation if it is beyond the scope of the
licensee's education, training, and experience.
Mr. Eiler advised that Section 7 of the original bill that
defined "invasive surgery" is deleted. It is addressed in the
new paragraph (6) in Section 1 relating to regulations that the
State Medical Board agrees to regarding the scope of practice to
perform ophthalmic surgery and noninvasive procedures.
3:11:08 PM
CHAIR COSTELLO removed her objection and the CS was adopted.
SENATOR STEVENS asked if paragraph (6) in Section 1 addresses
the objections that ophthalmologists have with the bill.
MR. EILER said that's the intent; the CS is a compromise that
seeks to get the State Medical Board, licensed physicians, and
the Board of Optometry to agree on the terms that will form the
regulation in statute.
SENATOR STEVENS offered his understanding that optometrists are
governed by the Board of Optometry and ophthalmologists are
governed by the State Medical Board.
MR. EILER agreed adding that ophthalmologists are licensed
medical doctors.
3:12:50 PM
SENATOR GIESSEL moved to report the CS for SB 55, labeled 29-
LS0524\I, from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO announced that without objection CSSB 55(L&C) is
reported from the Senate Labor and Commerce Standing Committee.
3:13:12 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:13 p.m.