Legislature(2009 - 2010)CAPITOL 106

03/26/2009 03:00 PM House HEALTH & SOCIAL SERVICES


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03:04:08 PM Start
03:04:31 PM HB188
03:39:24 PM Confirmation Hearing|| Commissioner, Department of Health and Social Services
04:11:47 PM State Medical Board
04:23:38 PM HB188
04:50:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Confirmation Hearings: TELECONFERENCED
Dept. of Health & Social Services,
Commissioner Bill Hogan;
State Medical Board
+= HB 188 TAX ON MOIST SNUFF TELECONFERENCED
Heard & Held
<Bill Hearing Rescheduled from 03/24/09>
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         March 26, 2009                                                                                         
                           3:04 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bob Herron, Co-Chair                                                                                             
Representative Wes Keller, Co-Chair                                                                                             
Representative John Coghill                                                                                                     
Representative Bob Lynn                                                                                                         
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lindsey Holmes                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 188                                                                                                              
"An Act relating to the taxation of moist snuff tobacco, and                                                                    
amending the definition of 'tobacco product' in provisions                                                                      
levying an excise tax on those products."                                                                                       
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
CONFIRMATION(S)                                                                                                                 
                                                                                                                                
Commissioner, Department of Health and Social Services                                                                        
                                                                                                                                
     Bill Hogan - Juneau                                                                                                        
                                                                                                                                
     - CONFIRMATION ADVANCED                                                                                                    
                                                                                                                                
State Medical Board                                                                                                           
     Dr. David Miller                                                                                                           
     Casey Millar                                                                                                               
     Edward Hall                                                                                                                
     Dr. David Powers                                                                                                           
                                                                                                                                
     - CONFIRMATION(S) ADVANCED                                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 188                                                                                                                  
SHORT TITLE: TAX ON MOIST SNUFF                                                                                                 
SPONSOR(s): REPRESENTATIVE(s) HERRON                                                                                            
                                                                                                                                
03/12/09       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/12/09       (H)       HSS, L&C, FIN                                                                                          
03/24/09       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/24/09       (H)       <Bill Hearing Rescheduled to 03/26/09>                                                                 
03/26/09       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DR. JAY BUTLER, Chief Medical Officer                                                                                           
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions on HB 188.                                                              
                                                                                                                                
EMILY NEENAN, Alaska Government Relations Director                                                                              
American Cancer Society Cancer Action Network (ACS CAN)                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
JOHANNA BALES, Deputy Director                                                                                                  
Anchorage Office                                                                                                                
Tax Division                                                                                                                    
Department of Revenue (DOR)                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
MICHAEL HOUGH, Director                                                                                                         
Commerce, Insurance and Economic Development & Public Safety and                                                                
Elections Task Forces                                                                                                           
American Legislative Exchange Council (ALEC)                                                                                    
Washington, DC                                                                                                                  
POSITION STATEMENT:  Spoke in favor of a weight based tax.                                                                    
                                                                                                                                
MONTE WILLIAMS                                                                                                                  
United States Smokeless Tobacco Company (USSTC)                                                                                 
POSITION STATEMENT:  Testified in support of HB 188.                                                                          
                                                                                                                                
BILL HOGAN, (Acting) Commissioner                                                                                               
Office of the Commissioner                                                                                                      
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during his confirmation                                                               
hearing for his appointment as Commissioner of DHSS.                                                                            
                                                                                                                                
DR. DAVID POWERS                                                                                                                
Dillingham, Alaska                                                                                                              
POSITION STATEMENT:   Answered  questions during his  confirmation                                                            
hearing for the State Medical Board.                                                                                            
                                                                                                                                
EDWARD HALL, Physician Assistant (PA)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Answered  questions during his  confirmation                                                            
hearing for the State Medical Board.                                                                                            
                                                                                                                                
DR. DAVID MILLER                                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Answered  questions during his  confirmation                                                            
hearing for the State Medical Board.                                                                                            
                                                                                                                                
CASEY MILLAR                                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Answered  questions during her  confirmation                                                            
hearing for the State Medical Board.                                                                                            
                                                                                                                                
JENNY OLENDORFF                                                                                                                 
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
STEVE WARREN                                                                                                                    
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
CARRIE NYSSEN, Senior Director of Advocacy                                                                                      
American Lung Association of Alaska                                                                                             
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
CHRIS SHIRWIN, Vice President                                                                                                   
Advocacy and Government Affairs                                                                                                 
American Heart Association                                                                                                      
POSITION STATEMENT:  Testified about HB 188.                                                                                  
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:04:08 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WES  KELLER called the  House Health and  Social Services                                                            
Standing    Committee   meeting    to   order    at   3:04    p.m.                                                              
Representatives Herron,  Keller, Coghill, and Seaton  were present                                                              
at the  call to order.   Representatives  Cissna and  Lynn arrived                                                              
as the meeting was in progress.                                                                                                 
                                                                                                                                
HB 188-TAX ON MOIST SNUFF                                                                                                     
                                                                                                                                
3:04:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER announced  that the first order  of business would                                                              
be HOUSE BILL NO.  188, "An Act relating to the  taxation of moist                                                              
snuff tobacco,  and amending the  definition of 'tobacco  product'                                                              
in provisions levying an excise tax on those products."                                                                         
                                                                                                                                
3:05:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  introduced HB 188  as the prime sponsor  and said                                                              
that he had prepared  a Committee Substitute (CS) for  HB 188, but                                                              
had not  yet distributed  it to  other members  of the  committee.                                                              
He  clarified   that  the  committee   would  first   hear  public                                                              
testimony on  HB 188 until 3:30  p.m. and then hear  testimony for                                                              
the confirmations.                                                                                                              
                                                                                                                                
3:06:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COGHILL  commented  that   a  CS  might   require                                                              
additional testimony.                                                                                                           
                                                                                                                                
3:07:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  KELLER  said  that  public  testimony  would  be  opened                                                              
again.                                                                                                                          
                                                                                                                                
3:07:18 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON read  from the Sponsor Statement  [Included in the                                                              
members'  packets.] and  explained  that HB  188  changed the  tax                                                              
methodology  used  for  smokeless  tobacco products  in  order  to                                                              
discourage the use  of tobacco.  He stated that the  use of "chew"                                                              
was a crisis in  his region.  He declared that  the additional tax                                                              
revenue  would be  placed in  the  general fund  or the  cessation                                                              
fund.   He supported a  change from the ad  valorem tax to  a unit                                                              
tax.                                                                                                                            
                                                                                                                                
3:08:40 PM                                                                                                                    
                                                                                                                                
DR.   JAY  BUTLER,   Chief   Medical   Officer,   Office  of   the                                                              
Commissioner,  Department of  Health and  Social Services  (DHSS),                                                              
testified that  one study revealed  that a 10 percent  increase in                                                              
the tax on  smokeless tobacco would  lead to a 4  percent decrease                                                              
in the  use by adults,  and a 6 percent  decrease in use  by boys.                                                              
He  allowed that  the health  risks  are well  known and  included                                                              
cancers of  the mouth, gum  disease, and cardio  vascular affects.                                                              
He said  that the  use of  smokeless tobacco  was high  in Alaska,                                                              
almost 5  percent of adults  in 2008.   He disclosed  that tobacco                                                              
and obesity were  the two drivers of increased  health care costs.                                                              
He shared that DHSS  was concerned about the weight  based tax, as                                                              
it  would reduce  the  tax on  some products  and  create a  price                                                              
disparity   which  favored   the  newer,   light  weight   tobacco                                                              
products.   He  described snus  as a  smokeless, heavily  flavored                                                              
tobacco product,  packaged in small,  self contained  tin packets.                                                              
He  mentioned that  the juices  could be  swallowed which  removed                                                              
the  social stigma  of spitting.   He  described the  orbs as  gel                                                              
strips, which  dissolved in the  mouth, but provided  the nicotine                                                              
kick.  He acknowledged  that the product weight  created an uneven                                                              
tax field  and price  disparity.   He compared  the weights  for a                                                              
tin of snus  to be 10 percent of  a tin of Copenhagen,  so the tax                                                              
would also  be 10 percent that of  the Copenhagen.  He  also noted                                                              
that  weight based  taxes  were inflation  proof,  as the  portion                                                              
price for tax would decline as the product price increased.                                                                     
                                                                                                                                
3:12:43 PM                                                                                                                    
                                                                                                                                
DR. BUTLER expressed  concern that HB 188 would  create low priced                                                              
tobacco products, which would increase tobacco use among youth.                                                                 
                                                                                                                                
3:13:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  asked about  the [health] qualities  of the                                                              
gel strip orbs.                                                                                                                 
                                                                                                                                
3:13:37 PM                                                                                                                    
                                                                                                                                
DR.  BUTLER  replied  that  the   health  effects  were  not  well                                                              
defined,  but he  observed that  it  was banned  in Australia  and                                                              
most of the European Union.                                                                                                     
                                                                                                                                
3:15:51 PM                                                                                                                    
                                                                                                                                
EMILY  NEENAN,  Alaska  Government  Relations  Director,  American                                                              
Cancer  Society Cancer  Action Network  (ACS  CAN), applauded  the                                                              
objectives  of HB 188  to increase  the price,  decrease the  use,                                                              
and  decrease the  death and  disease  from the  use of  smokeless                                                              
tobacco.  She  disclosed that certain populations  of Alaskans had                                                              
some  of the  highest smokeless  tobacco use  in the  world.   She                                                              
reported  that  67  percent  of   pregnant  women  in  the  Yukon-                                                              
Kuskokwim  (Y-K) region  used smokeless  tobacco.   She  expressed                                                              
concerns about  the current version of  HB 188.  She  relayed that                                                              
the bill did not  have any price adjustment for  inflation, as the                                                              
weight based  tax was fixed.   [She passed  around a tin  of camel                                                              
snus.]   She  expressed concern  about  the use  of these  tobacco                                                              
products  by youth,  as  they were  discreet,  easy  to hide,  and                                                              
nicely  flavored.   She  mentioned  that  the current  ad  valorem                                                              
tobacco tax  rate of 75  percent of wholesale  price had  not been                                                              
increased since 1997.                                                                                                           
                                                                                                                                
3:20:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA asked  if  the use  of  smaller amounts  of                                                              
tobacco, such as the use of snus, eliminated the dangers.                                                                       
                                                                                                                                
3:23:01 PM                                                                                                                    
                                                                                                                                
MS.  NEENAN,  in  response to  Representative  Cissna,  said  that                                                              
ingesting  tobacco  was not  safe.   She  allowed  that there  was                                                              
debate about  the amount of  risk for different  tobacco products,                                                              
but she compared this to playing Russian roulette.                                                                              
                                                                                                                                
3:23:59 PM                                                                                                                    
                                                                                                                                
JOHANNA BALES,  Deputy Director,  Anchorage Office,  Tax Division,                                                              
Department of  Revenue (DOR), referred  to the fiscal note  for HB
188,  and  explained  that  there  would  be  an  initial  revenue                                                              
increase,  but that  as the  lightweight  tobacco products  became                                                              
more prevalent,  the weight  based tax  method would decrease  the                                                              
tax revenue.                                                                                                                    
                                                                                                                                
3:25:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  disclosed that  the CS for  HB 188  would address                                                              
these issues.                                                                                                                   
                                                                                                                                
3:26:16 PM                                                                                                                    
                                                                                                                                
MICHAEL  HOUGH,   Director,  Commerce,   Insurance  and   Economic                                                              
Development &  Public Safety and  Elections Task  Forces, American                                                              
Legislative  Exchange Council  (ALEC),  declared that  this was  a                                                              
tax fairness issue,  and that ALEC favored a weight  based tax, as                                                              
opposed  to an  ad valorem  tax.   He  explained  that ad  valorem                                                              
taxed at  different rates for like  products, as the tax  was less                                                              
for a less  expensive product.   He expressed that the  ad valorem                                                              
tax would unfairly influence consumer choice.                                                                                   
                                                                                                                                
3:28:02 PM                                                                                                                    
                                                                                                                                
MONTE  WILLIAMS  informed  the   committee  that  USSTC  were  the                                                              
manufacturers  of  the  round  cans  of  smokeless  tobacco.    He                                                              
explained   that   excise   taxes  were   levied   on   individual                                                              
measureable  units.   He cited  as examples,  a gallon  of gas,  a                                                              
liter  of wine,  and a  single cigarette.   He  stated that  sales                                                              
taxes were  levied on the  price of the  product.  He  referred to                                                              
the Other  Tobacco Products (OTP)  tax, which was a  percentage of                                                              
the wholesale  price on  all tobacco  products except  cigarettes.                                                              
He commented on  the introduction and sales growth  for discounted                                                              
tobacco  products   priced  "below   the  premium  level,"   which                                                              
resulted in  the loss of tax revenue  for Alaska.  He  opined that                                                              
ad  valorem taxes  favored  lower priced  brands,  and that  lower                                                              
taxes  should not  be  a  reward for  lowering  the  price of  the                                                              
product.                                                                                                                        
                                                                                                                                
3:34:29 PM                                                                                                                    
                                                                                                                                
MR. WILLIAMS  said that the ad valorem  tax was not a  good excise                                                              
tax  policy.     He   reported  that   tobacco  prices   were  not                                                              
increasing, so there  was no increased revenue with  an ad valorem                                                              
tax.  He cited  that price cuts resulted in tax  revenue cuts.  He                                                              
commented that  a weight based  tax was  good for revenue,  as the                                                              
same tax  was applied  to all the  products.   He stated  that the                                                              
weight based tax  was not a reward for lower prices.   He reported                                                              
that  16 states  had adopted  a weight  based tax.   He  expressed                                                              
that USSTC supported HB 188.                                                                                                    
                                                                                                                                
[HB 188 was taken up later in this meeting.]                                                                                    
                                                                                                                                
                                                                                                                                
3:38:34 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:38 p.m. to 3:39 p.m.                                                                       
                                                                                                                                
^CONFIRMATION HEARING                                                                                                         
^Commissioner, Department of Health and Social Services                                                                       
                                                                                                                                
3:39:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER  announced that the  next order of  business would                                                              
be confirmation of  the appointment of Bill Hogan  to the position                                                              
of  Commissioner  of  Department  of Health  and  Social  Services                                                              
(DHSS).                                                                                                                         
                                                                                                                                
BILL  HOGAN, (Acting)  Commissioner, Office  of the  Commissioner,                                                              
Department  of Health  and Social  Services (DHSS),  said that  he                                                              
had  been working  in  health  and  social service,  primarily  in                                                              
mental health and  substance abuse, for 35 years.   He spoke about                                                              
his  background  work  prior  to  his  arrival  in  Alaska,  which                                                              
included an  emphasis with rural issues.   He pointed out  that he                                                              
started work  with the State  of Alaska  in 2003, as  the Director                                                              
of the Division  of Behavioral Health.  He affirmed  that Governor                                                              
Palin  had nominated  him  in July,  2008,  as  Commissioner.   He                                                              
expressed  his  department  philosophy  as a  social  mission:  to                                                              
create  an effective,  efficient organization  which provided  the                                                              
quality   services  necessary   for  successful   living  in   the                                                              
community; and as  a business mission: to be good  stewards of the                                                              
public dollar and adhere to the bottom line.                                                                                    
                                                                                                                                
3:43:26 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN observed  that  DHSS focused  on  outcomes for  helping                                                              
people.   He stated that  the DHSS programs  were only  helpful if                                                              
they  successfully trained  people to  live in  and contribute  to                                                              
the community, stay  out of the criminal justice  system, and stay                                                              
in  school  or find  a  job.   He  expressed  the need  for  "true                                                              
outcomes."   He said that  articulated priorities  were important,                                                              
and he noted  that he had already  spoken to the House  Health and                                                              
Social Services  Standing  Committee about  those priorities.   He                                                              
mentioned  the Department  of Health  and  Social Services  (DHSS)                                                              
accomplishments,  which included the  integration of  the Division                                                              
of Alcohol  and Drug  Abuse with  the Division  of Mental  Health,                                                              
and the  integration of  the service delivery  system to  create a                                                              
behavioral  health  delivery  system.   He  explained  that  60-65                                                              
percent of the  people they served had co-occurring  problems.  He                                                              
reported that the  Bring the Kids Home initiative  had reduced the                                                              
out of state placement of kids.                                                                                                 
                                                                                                                                
3:46:24 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN spoke  about  integration  within the  department  when                                                              
working with  families, as many  of the divisions worked  with the                                                              
same  families.   He confirmed  that  morale had  improved in  the                                                              
last  several  months,  as  there was  good  leadership,  a  solid                                                              
direction, and that  DHSS was "making a difference."   He approved                                                              
of the DHSS management  of the Medicaid budget, and  opined that a                                                              
reasonable FY10  budget request for  only a 0.02  percent increase                                                              
had  been  submitted.   He  confirmed  the  DHSS intent  to  treat                                                              
people  with dignity  and respect,  function  with integrity,  and                                                              
appreciate its partners.                                                                                                        
                                                                                                                                
3:48:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER asked about the biggest challenges still ahead.                                                                 
                                                                                                                                
3:49:22 PM                                                                                                                    
                                                                                                                                
MR. HOGAN  said that  it was necessary  to address the  priorities                                                              
in a fiscally  responsible manner.   He surmised that  there would                                                              
never  be  enough money  to  meet  all  the  needs, and  that  the                                                              
biggest challenge was  to do the most with the  dollars available.                                                              
He  pointed out  the  frustrations of  state  bureaucracy, but  he                                                              
welcomed that  the "prize" was  doing good things  for individuals                                                              
and families.                                                                                                                   
                                                                                                                                
3:50:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CISSNA  noted   the   difficulty  of   constantly                                                              
changing  elected officials  and agendas.   She  commented on  the                                                              
integrated work between many departments.                                                                                       
                                                                                                                                
3:53:11 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN, in  response to  Representative Cissna,  said that  he                                                              
did  work  with   the  criminal  justice  agencies   and  that  he                                                              
recognized  the need  to have  solid  community behavioral  health                                                              
programs, definitive  housing options, and an array  of vocational                                                              
options.    He  opined  that the  costs  for  individuals  in  the                                                              
correctional  system would  be reduced  if  these agencies  worked                                                              
together.   He explained  how necessary  it was  for DHSS  to work                                                              
with  the   Department  of   Education.     He  acknowledged   the                                                              
importance for the  foundation of relationships and  that DHSS was                                                              
ready for the next steps.                                                                                                       
                                                                                                                                
3:55:31 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON referred  to Mr.  Hogan's resume,  noted that  he                                                              
managed a super agency, and asked if he was a superman.                                                                         
                                                                                                                                
3:55:56 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN  responded  that  the  DHSS  structure  was  nationally                                                              
referred to  as a super agency,  as few states had all  the Health                                                              
and Social Service agencies included in one department.                                                                         
                                                                                                                                
3:56:35 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  asked why Mr. Hogan  only remained an  average of                                                              
three years at a job.                                                                                                           
                                                                                                                                
3:57:07 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN said  that  he  liked to  start  programs,  but not  to                                                              
maintain them.   He  said that he  had no  intention of  moving on                                                              
from this position.                                                                                                             
                                                                                                                                
3:57:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON asked  why Mr.  Hogan  had decided  to work  with                                                              
DHSS.                                                                                                                           
                                                                                                                                
3:58:25 PM                                                                                                                    
                                                                                                                                
MR. HOGAN  replied that, while working  outside the state  job, he                                                              
had  opined  that  he  would "make  a  difference  and  do  things                                                              
differently."   He  laughingly acknowledged  his realization  that                                                              
this was  not so easy  to accomplish.   He observed  that progress                                                              
had been made during his tenure as Deputy Commissioner.                                                                         
                                                                                                                                
4:00:40 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN,  in  response  to  Co-Chair   Herron,  said  that  any                                                              
problems in DHSS probably touched every person in Alaska.                                                                       
                                                                                                                                
4:02:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN  asked  if   he  had  been  involved  in  the                                                              
"certificate of need" discussions.                                                                                              
                                                                                                                                
MR. HOGAN said that  he was not significantly involved.   He noted                                                              
that  new  regulations  were  soon   to  be  released  for  public                                                              
comment.                                                                                                                        
                                                                                                                                
4:03:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COGHILL  commented that Alaska had  numerous health                                                              
systems, including  the Indian Health  Services and  the [Division                                                              
of]  Behavioral Health  service, with  different structures  which                                                              
often dealt  with the same  people.  He asked  if it needed  to be                                                              
improved.                                                                                                                       
                                                                                                                                
4:04:56 PM                                                                                                                    
                                                                                                                                
MR.  HOGAN  replied  that  the  Native  Health  Corporations  were                                                              
important  partners  and that,  in  many  regions of  Alaska,  the                                                              
Native  Health was  the only provider.   He  reported that  Native                                                              
Health were  the first  to recognize  the co-existing  problems of                                                              
mental  health  and substance  abuse.    He observed  that  Native                                                              
Health engaged families  and he allowed a challenge  was to modify                                                              
Medicaid, in  order for  Native Health to  bill for  its services.                                                              
He did  not agree that  there were  separate or parallel  systems,                                                              
and he counseled for one integrated system.                                                                                     
                                                                                                                                
4:06:34 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL  agreed  that  it was  necessary  to  work                                                              
together,  especially   to  have  the  Medicaid   rules  work  for                                                              
everyone.                                                                                                                       
                                                                                                                                
4:07:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked if DHSS had any  comments about Human                                                              
Resources  (HR)  now  being a  separate,  centralized  agency,  in                                                              
contrast to DHSS control of its own HR department.                                                                              
                                                                                                                                
4:09:11 PM                                                                                                                    
                                                                                                                                
MR. HOGAN  noted that each  department had  their own HR,  when he                                                              
first worked for  the State of Alaska.  He expressed  his pleasure                                                              
with  the Department  of Administration  liaison,  but he  offered                                                              
his  opinion   that  the   successful  working  relationship   was                                                              
personality driven.                                                                                                             
                                                                                                                                
4:11:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to forward  the nomination  of Bill                                                              
Hogan  to  the   joint  session  of  the  House   and  Senate  for                                                              
confirmation.    There being  no  objection, the  confirmation  of                                                              
Bill  Hogan  was  advanced  from   the  House  Health  and  Social                                                              
Services Standing Committee.                                                                                                    
                                                                                                                                
^State Medical Board                                                                                                          
                                                                                                                                
4:11:47 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER  announced that the  next order of  business would                                                              
be  confirmation  hearings  for  the  appointments  of  Dr.  David                                                              
Miller, Casey  Millar, Edward  Hall, and Dr.  David Powers  to the                                                              
State Medical Board.                                                                                                            
                                                                                                                                
4:12:03 PM                                                                                                                    
                                                                                                                                
DR.   DAVID  POWERS   explained  that   he  was   "glad  for   the                                                              
opportunity"  to serve  on the  state  medical board.   He  opined                                                              
that his  perspective on work in  rural Alaska would lend  well to                                                              
solutions for the long distance challenges of rural health care.                                                                
                                                                                                                                
4:14:01 PM                                                                                                                    
                                                                                                                                
EDWARD  HALL,   Physician  Assistant   (PA),  said  that   he  was                                                              
completing  his first  four year  term on  the board.   He  opined                                                              
that it was important to have PA representation on the board.                                                                   
                                                                                                                                
4:15:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  asked how  his perspective had  changed the                                                              
way the board viewed issues.                                                                                                    
                                                                                                                                
4:15:59 PM                                                                                                                    
                                                                                                                                
MR.  HALL said  that when  he arrived  in Alaska,  there were  not                                                              
many  PA's  working  in  the  state.     He  explained  that  many                                                              
providers  were still  not  aware  of the  scope  of practice  for                                                              
PA's.                                                                                                                           
                                                                                                                                
4:17:34 PM                                                                                                                    
                                                                                                                                
DR. DAVID  MILLER said  that he would  represent both  the surgeon                                                              
perspective and SE Alaska.                                                                                                      
                                                                                                                                
4:18:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN  asked Dr. Miller  about his service  with the                                                              
U.S. Air Force.                                                                                                                 
                                                                                                                                
DR. MILLER  said that  Alaska was  his duty  station with  the Air                                                              
Force, and that he had decided to stay in Alaska.                                                                               
                                                                                                                                
4:19:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA asked  what the important  issues  were for                                                              
Dr. Miller.                                                                                                                     
                                                                                                                                
4:20:02 PM                                                                                                                    
                                                                                                                                
DR. MILLER  considered that  his responsibility  was "to  maintain                                                              
high  professional and  ethical conduct."   He  responded that  he                                                              
had no  agenda as  a member of  the board  and that his  decisions                                                              
would  be based  on  the safety  and  security  for patients,  the                                                              
protection  for hospitals,  and the just  and impartial  treatment                                                              
for physicians.                                                                                                                 
                                                                                                                                
4:21:29 PM                                                                                                                    
                                                                                                                                
CASEY MILLAR said  that she was interested in  becoming the public                                                              
member  on  the  board.    She  announced  that  she  would  be  a                                                              
reasonable  voice for  the public  as  a consumer  representative.                                                              
She  offered  to  give a  fresh  perspective  from  a  non-medical                                                              
viewpoint.                                                                                                                      
                                                                                                                                
4:23:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  COGHILL moved  to forward  the nominations  of Dr.                                                              
David Miller, Casey  Millar, Edward Hall, and Dr.  David Powers to                                                              
the  joint  session of  the  House  and Senate  for  confirmation.                                                              
There being no  objection, the confirmations of  Dr. David Miller,                                                              
Casey  Millar, Edward  Hall, and  Dr. David  Powers were  advanced                                                              
from the House Health and Social Services Standing Committee.                                                                   
                                                                                                                                
HB 188-TAX ON MOIST SNUFF                                                                                                     
                                                                                                                                
4:23:38 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER announced  that the final order  of business would                                                              
be  a return  of the  committee's  attention to  discussion of  HB
188.                                                                                                                            
                                                                                                                                
JENNY  OLENDORFF expressed  concern  for tobacco  use,  especially                                                              
among  children.   She  stated  that  she  had worked  in  tobacco                                                              
prevention  programs   for  three   years,  and  she   reported  a                                                              
documented  increase in  the use  of  smokeless tobacco  products.                                                              
She noted that  the increase of regulations for  cigarette use had                                                              
increased  the use  of smokeless  products by  youth.  She  stated                                                              
that kids considered  smokeless use to be a  healthier alternative                                                              
to smoking.   She offered  her belief  that tobacco  companies had                                                              
increased its  marketing of smokeless  tobacco to the youth.   She                                                              
opined that HB  188 would make lightweight tobacco  products, such                                                              
as  snus, more  affordable  for  youth.   She  opined that  weight                                                              
based  taxes  had   historically  increased  tobacco   use.    She                                                              
declared  that cheaper, more  available,  tobacco products  was "a                                                              
recipe  for  passing   on  a  deadly  addiction   to  yet  another                                                              
generation."  She expressed her interest in the proposed CS.                                                                    
                                                                                                                                
4:26:18 PM                                                                                                                    
                                                                                                                                
STEVE  WARREN   reported  that   he  had  established   a  tobacco                                                              
cessation  program in  Sitka.   He  declared that  HB 188  favored                                                              
lightweight   tobacco  products.     He   described  the   tobacco                                                              
marketing campaign  as designed  to attract  youth.  He  suggested                                                              
that  there be  a tax  on units  of  nicotine.   He expressed  his                                                              
concern with the current version of HB 188.                                                                                     
                                                                                                                                
4:29:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON, in  response to Mr. Warren, said  that the CS for                                                              
HB 188 would target the lightweight products.                                                                                   
                                                                                                                                
4:31:31 PM                                                                                                                    
                                                                                                                                
CARRIE  NYSSEN,   Senior  Director  of  Advocacy,   American  Lung                                                              
Association  of Alaska, said  that the  American Lung  Association                                                              
was  concerned  with  the  long  term  effect  of  HB  188.    She                                                              
described  the bill  as special  interest  legislation that  would                                                              
distort the tobacco  taxation system for the benefit  of a tobacco                                                              
manufacturer.  She  endorsed the current ad valorem  tax system of                                                              
tobacco products,  other than cigarettes.   She declared  that the                                                              
weight  based  tax created  a  tax  loophole  for the  low  weight                                                              
products,  and  that  this  tax   would  not  maintain  pace  with                                                              
inflation  or price  increases.   She  expressed  concern for  the                                                              
increased nicotine  addiction of Alaskan youth, as  a weight based                                                              
tax favored  the smokeless tobacco  products that  were attractive                                                              
to youth.   She offered support  for a policy to  increase revenue                                                              
and discourage tobacco use.                                                                                                     
                                                                                                                                
4:34:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON,  referring  to  the  testimony  about  the                                                              
addition  of nicotine  to other  products, asked  if nicotine  was                                                              
regulated  by the Food  and Drug  Administration  (FDA) and  if it                                                              
was permitted as a chemical additive to other products.                                                                         
                                                                                                                                
4:35:39 PM                                                                                                                    
                                                                                                                                
MS. NYSSEN said that she would get some information.                                                                            
                                                                                                                                
4:35:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA compared the  current nicotine  additive to                                                              
the historical addition of cocaine to Coca-Cola.                                                                                
                                                                                                                                
4:36:47 PM                                                                                                                    
                                                                                                                                
CHRIS SHIRWIN,  Vice President,  Advocacy and Government  Affairs,                                                              
said  that  the   American  Heart  Association  shared   the  same                                                              
concerns  as the  other agencies.   He  warned of  the harms  from                                                              
smokeless  tobacco,  and the  concern  that these  were  "gateway"                                                              
products.   He said that  a weight based  tax favored  the premium                                                              
smokeless products,  as this  would lower its  taxes.   He lobbied                                                              
to increase  the ad  valorem tax, or  implement a significant  tax                                                              
floor for these products.                                                                                                       
                                                                                                                                
4:41:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LYNN asked about the goal of the bill.                                                                           
                                                                                                                                
4:41:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  reflected that  "chew" was at  a crisis  level in                                                              
his  district.    He  responded  that his  goal  was  to  increase                                                              
revenue to  the cessation fund, instead  of the general  fund.  He                                                              
opined that the  danger was the new lightweight  tobacco products,                                                              
not the ad valorem tax.                                                                                                         
                                                                                                                                
4:44:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN shared  a concern  for the  expansion of  the                                                              
"sin" taxes.                                                                                                                    
                                                                                                                                
4:44:36 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON said  that he  was annoyed  with the  advertising                                                              
messages.   He established  that his original  intent with  HB 188                                                              
was  to  reduce the  use  of  tobacco products,  and  to  increase                                                              
funding for the cessation grants.                                                                                               
                                                                                                                                
4:45:44 PM                                                                                                                    
                                                                                                                                
CO-CHAIR KELLER  reminded the committee  to keep the  questions to                                                              
the bill at hand.                                                                                                               
                                                                                                                                
4:45:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA declared  that "habit"  had brought  Alaska                                                              
nationwide  attention for  bad  habits.   She  requested that  any                                                              
solution not allow for the continuance of "habits."                                                                             
                                                                                                                                
4:48:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  reopened   the  question  of  whether  the                                                              
placement of  nicotine in  other products  could be restricted  by                                                              
state  law,  if  it  was  not  restricted  by  federal  law.    He                                                              
summarized  about the need  to curtail  nicotine addiction  and he                                                              
commented  on the possibility  of  a "tax floor  per sale,"  which                                                              
would cover weight or quantity.                                                                                                 
                                                                                                                                
4:50:02 PM                                                                                                                    
                                                                                                                                
[HB 188 was held over.]                                                                                                         
                                                                                                                                
4:50:22 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being  no further business  before the committee,  the House                                                              
Health  and   Social  Services  Standing  Committee   meeting  was                                                              
adjourned at 4:50 p.m.                                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
Confirmation Resumes.pdf HHSS 3/26/2009 3:00:00 PM
HSS188pkt.PDF HHSS 3/26/2009 3:00:00 PM
HHSS 4/9/2009 3:00:00 PM