Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/08/2018 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 157 LIFE & HEALTH INSURANCE GUARANTY ASSN. TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 205 TELECOMMUNICATIONS REGULATION/EXEMPTIONS TELECONFERENCED
Heard & Held
+= SB 62 REPEAL CERTIFICATE OF NEED PROGRAM TELECONFERENCED
Heard & Held
+= HB 86 STUDENT LOAN DEFAULT/OCC. LICENSE RENEWAL TELECONFERENCED
Moved HB 86 Out of Committee
+= SB 112 WORKERS COMPENSATION;DRUG DATABASE & TEST TELECONFERENCED
Heard & Held
            SB  62-REPEAL CERTIFICATE OF NEED PROGRAM                                                                       
                                                                                                                                
2:04:33 PM                                                                                                                    
CHAIR   COSTELLO   reconvened    the   meeting,   announced   the                                                               
consideration  of  SB  62,  and   noted  the  proposed  committee                                                               
substitute (CS).                                                                                                                
                                                                                                                                
2:05:02 PM                                                                                                                    
SENATOR  MEYER moved  to  adopt  the work  draft  CS  for SB  62,                                                               
labeled 30-LS0502\D, as the working document.                                                                                   
                                                                                                                                
CHAIR COSTELLO objected for discussion purposes.                                                                                
                                                                                                                                
2:05:19 PM                                                                                                                    
NATASHA  MCCLANAHAN, Staff,  Senator Mia  Costello, Alaska  State                                                               
Legislature,  Juneau,  Alaska,  explained the  following  changes                                                               
from version A to version D of SB 62:                                                                                           
                                                                                                                                
     SB 62 version A would  have repealed the certificate of                                                                    
     need  program for  healthcare  facilities. After  three                                                                    
     committee  hearings   in  Senate  Labor   and  Commerce                                                                    
     changes  were   made  to   the  legislation   based  on                                                                    
     conversations with stakeholders and public testimony.                                                                      
                                                                                                                                
     SB  62  version D  allows  for  an exemption  from  the                                                                    
     certificate of need program if  the new construction of                                                                    
     a healthcare  facility, alteration of bed  capacity, or                                                                    
     addition  of a  category  of health  services  is in  a                                                                    
     location   that  is   over  100   miles  from   another                                                                    
     healthcare facility. This removes  a barrier for remote                                                                    
     communities  that are  currently struggling  to attract                                                                    
     and retain healthcare services in  an effort to provide                                                                    
     equal access to care for all Alaskans.                                                                                     
                                                                                                                                
2:06:22 PM                                                                                                                    
CHAIR COSTELLO removed  her objection and version  D was adopted.                                                               
She noted  an attorney  from legislative  legal was  available to                                                               
answer  questions. She  asked  Mr.  Zepp to  comment  on how  the                                                               
committee  substitute changes  the scope  of  the bill.  It is  a                                                               
tailored  response  to the  testimony  the  committee heard  from                                                               
Interior Alaskans about their inability  to access health care in                                                               
the community. She  noted that the next committee  of referral is                                                               
Finance.                                                                                                                        
                                                                                                                                
GARY   ZEPP,   Staff,   Senator  David   Wilson,   Alaska   State                                                               
Legislature, Juneau,  Alaska, said the  evolution of the  bill is                                                               
in  the right  direction for  the people  of Delta.  The original                                                               
intent was  for communities to  decide and remove  the government                                                               
barriers that are currently in  place for the certificate of need                                                               
program. While the bill isn't as  broad in scope, he believes the                                                               
sponsor  would  be pleased  that  it  is still  helping  Alaskans                                                               
provide   health   care   services  and   facilities   in   their                                                               
communities.                                                                                                                    
                                                                                                                                
CHAIR COSTELLO said  the committee also heard  that going through                                                               
the process of certificate of  need was valuable. Communities can                                                               
still go  through that process.  She noted that they  reached out                                                               
to  the  Department of  Health  and  Social Services  (DHSS)  for                                                               
information about applications received  and what communities are                                                               
paying. There  was a recognition  that the  regulations regarding                                                               
certificate of need have not been  updated in some time. Her hope                                                               
is that  as this version  of the bill  moves forward, it  sends a                                                               
message to the department that  updating the regulations would be                                                               
helpful. She  looks forward to  discussion in the  Senate Finance                                                               
because it  surrounds the  cost of health  care. Whether  this is                                                               
the answer remains to be seen.                                                                                                  
                                                                                                                                
2:10:17 PM                                                                                                                    
SENATOR GARDNER asked if the  committee could expect to hear from                                                               
the Department  of Health  and Social  Services on  the committee                                                               
substitute and see updated fiscal notes.                                                                                        
                                                                                                                                
CHAIR  COSTELLO said  it was  her understanding  that DHSS  won't                                                               
state a position on the bill until it looks like it will pass.                                                                  
                                                                                                                                
MS. MCCLANAHAN  agreed; a  letter to that  effect from  [the DHSS                                                               
deputy commissioner] is in the backup documents.                                                                                
                                                                                                                                
2:11:08 PM                                                                                                                    
SENATOR STEVENS  commented that it's  backward to think  that the                                                               
department won't get  involved until it looks like  the bill will                                                               
pass.                                                                                                                           
                                                                                                                                
CHAIR COSTELLO  said unless it's  a governor's bill,  that's been                                                               
the common approach.  She said her office could reach  out to the                                                               
department  and see  if they  have  a position  on the  committee                                                               
substitute.                                                                                                                     
                                                                                                                                
2:11:52 PM                                                                                                                    
SENATOR  MICCICHE said  the change  to AS  18.07.031(a) adds  the                                                               
words  "in a  location  within 100  miles  of another  healthcare                                                               
facility."  The  applicability  seems  to  require  two  parts  -                                                               
located more  than 100  miles from  another health  care facility                                                               
and that it  has an existing certificate of need  issued by DHSS.                                                               
He asked  when a certificate  of need  exists, does it  remain in                                                               
effect after  the construction  and during  the operation  of the                                                               
health care  facility or at some  point, could it be  closed down                                                               
after the project is complete  and would the applicability affect                                                               
the outcome of Section 1.                                                                                                       
                                                                                                                                
2:12:59 PM                                                                                                                    
JEAN  MISCHEL, Legislative  Counsel, Legislative  Legal Services,                                                               
Legislative  Affairs Agency,  Alaska  State Legislature,  Juneau,                                                               
Alaska, said  the applicability provision  is essentially  a hold                                                               
harmless provision.  The courts  have found that  certificates of                                                               
need have  some value and  are construed as a  property interest.                                                               
They  exist during  the operation  of the  health care  facility;                                                               
they  don't go  away after  construction. They're  attached, they                                                               
get renewed, and modified over time.                                                                                            
                                                                                                                                
SENATOR  MICCICHE  commented  that   exactly  100  miles  is  not                                                               
covered. Section 1  has more than 100 miles  in applicability and                                                               
within  100 miles,  which is  somewhat  less than  100 miles.  He                                                               
asked if  that is a  potential problem. Although the  chance that                                                               
it is  exactly between  100 and  101 miles is  rare, he  asked if                                                               
that is a gap the committee should clarify.                                                                                     
                                                                                                                                
MS.  MISCHEL  said she  didn't  see  the gap.  Legislative  legal                                                               
interprets  "within 100  miles" to  include 100  miles and  "more                                                               
than 100 miles" would be anything over 100 miles.                                                                               
                                                                                                                                
2:15:04 PM                                                                                                                    
CHAIR COSTELLO stated  she would hold SB 62  until the Department                                                               
of Health and Social Services  provided an updated opinion on the                                                               
topic.                                                                                                                          
                                                                                                                                
MS.  MCCLANAHAN clarified  that the  letter was  from the  deputy                                                               
commissioner of DHSS, not the commissioner.                                                                                     

Document Name Date/Time Subjects
SB 205 Ver. D.pdf SL&C 3/8/2018 1:30:00 PM
SB 205
SB 205 Sectional Analysis CS (LC) 3.8.18.pdf SL&C 3/8/2018 1:30:00 PM
SB 205
SB 205 ATA Letter to RCA.pdf SL&C 3/8/2018 1:30:00 PM
SB 205
CS SB 205 (L&C) Explanation of Changes Ver. A to D.pdf SL&C 3/8/2018 1:30:00 PM
SB 205
SB 62 Ver. D.pdf SL&C 3/8/2018 1:30:00 PM
SB 62
CS SB62 Explanation of Changes Ver. A to D.pdf SL&C 3/8/2018 1:30:00 PM
SB 62
SB 62 - DHSS Response to S LC.pdf SL&C 3/8/2018 1:30:00 PM
SB 62
SB 112 CS Draft version L.PDF SL&C 3/8/2018 1:30:00 PM
SB 112
CS SB112 (L&C ) Explanation of Changes Ver. R to L.pdf SL&C 3/8/2018 1:30:00 PM
SB 112
SB 112 Sectional version L.PDF SL&C 3/8/2018 1:30:00 PM
SB 112
SB 112 Quick Ref version L.PDF SL&C 3/8/2018 1:30:00 PM
SB 112
SB 112 Quick Ref version R revisions to L.PDF SL&C 3/8/2018 1:30:00 PM
SB 112
Support SB 112 - Samson Tug and Barge 03.07.18.pdf SL&C 3/8/2018 1:30:00 PM
SB 112
03.19.2018 AFL-CIO Letter of opposition SSSB 112.pdf SL&C 3/8/2018 1:30:00 PM
SB 112