Legislature(2013 - 2014)CAPITOL 106

04/10/2014 03:00 PM House HEALTH & SOCIAL SERVICES


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 356 ADVISORY COMMITTEE ON WELLNESS TELECONFERENCED
Moved Out of Committee
*+ HB 380 WIC SUPPLEMENTAL FOOD PROGRAM VENDOR TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 162 HYDROCODONE PRESCRIPTION BY OPTOMETRISTS TELECONFERENCED
Moved Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
      HOUSE HEALTH AND SOCIAL SERVICES STANDING COMMITTEE                                                                     
                         April 10, 2014                                                                                         
                           3:07 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Pete Higgins, Chair                                                                                              
Representative Wes Keller, Vice Chair                                                                                           
Representative Benjamin Nageak                                                                                                  
Representative Lance Pruitt                                                                                                     
Representative Lora Reinbold                                                                                                    
Representative Paul Seaton                                                                                                      
Representative Geran Tarr                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 162                                                                                                             
"An Act authorizing a licensed optometrist to prescribe a                                                                       
pharmaceutical agent containing hydrocodone."                                                                                   
                                                                                                                                
     - MOVED SB 162 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 356                                                                                                              
"An Act establishing the Advisory Committee on Wellness; and                                                                    
relating to the administration of state group health insurance                                                                  
policies."                                                                                                                      
                                                                                                                                
     - MOVED HB 356 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 380                                                                                                              
"An Act relating to the selection by the Department of Health                                                                   
and Social Services of vendors under the federal Special                                                                        
Supplemental Food Program for Women, Infants, and Children."                                                                    
                                                                                                                                
     - MOVED HB 380 OUT OF COMMITTEE                                                                                            
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 162                                                                                                                  
SHORT TITLE: HYDROCODONE PRESCRIPTION BY OPTOMETRISTS                                                                           
SPONSOR(s): SENATOR(s) OLSON                                                                                                    
                                                                                                                                
02/07/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/07/14       (S)       HSS                                                                                                    
02/21/14       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/21/14       (S)       Heard & Held                                                                                           
02/21/14       (S)       MINUTE(HSS)                                                                                            
02/24/14       (S)       HSS RPT 1DP 3NR                                                                                        
02/24/14       (S)       DP: MEYER                                                                                              
02/24/14       (S)       NR: STEDMAN, MICCICHE, ELLIS                                                                           
02/24/14       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/24/14       (S)       Moved SB 162 Out of Committee                                                                          
02/24/14       (S)       MINUTE(HSS)                                                                                            
03/24/14       (S)       TRANSMITTED TO (H)                                                                                     
03/24/14       (S)       VERSION: SB 162                                                                                        
03/25/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/14       (H)       HSS                                                                                                    
04/03/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
04/03/14       (H)       Heard & Held                                                                                           
04/03/14       (H)       MINUTE(HSS)                                                                                            
04/10/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 356                                                                                                                  
SHORT TITLE: ADVISORY COMMITTEE ON WELLNESS                                                                                     
SPONSOR(s): REPRESENTATIVE(s) SEATON                                                                                            
                                                                                                                                
02/26/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/26/14       (H)       HSS, STA                                                                                               
03/20/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/20/14       (H)       Heard & Held                                                                                           
03/20/14       (H)       MINUTE(HSS)                                                                                            
04/10/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 380                                                                                                                  
SHORT TITLE: WIC SUPPLEMENTAL FOOD PROGRAM VENDOR                                                                               
SPONSOR(s): COMMUNITY & REGIONAL AFFAIRS                                                                                        
                                                                                                                                
03/31/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/31/14       (H)       HSS                                                                                                    
04/10/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
DAVID SCOTT, Staff                                                                                                              
Senator Donald Olson                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during discussion of SB
162, on behalf of the bill sponsor, Senator Donald Olson.                                                                       
                                                                                                                                
REPRESENTATIVE GABRIELLE LEDOUX                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 380 as the sponsor of the                                                                  
bill.                                                                                                                           
                                                                                                                                
LISA VAUGHT, Staff                                                                                                              
Representative Gabrielle Ledoux                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 380 on behalf of the bill                                                                  
sponsor, Representative Gabrielle Ledoux.                                                                                       
                                                                                                                                
RON KREHER, Director                                                                                                            
Director's Office                                                                                                               
Division of Public Assistance                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during discussion of HB
380.                                                                                                                            
                                                                                                                                
KATHLEEN WAYNE, Program Manager                                                                                                 
Special Supplemental Food Program for Women, Infants, and                                                                       
Children (WIC)                                                                                                                  
Division of Public Assistance                                                                                                   
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during discussion of HB
380.                                                                                                                            
                                                                                                                                
ARTHUR YANG, Owner                                                                                                              
Dragon Oriental Store                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 380.                                                                          
                                                                                                                                
SHENG YANG                                                                                                                      
Dragon Oriental Store                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 380.                                                                          
                                                                                                                                
MAIKUE HER                                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during discussion of HB 380.                                                                   
                                                                                                                                
MAGGIE YANG                                                                                                                     
(translated by Sheng Yang)                                                                                                      
Dragon Oriental Store                                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 380.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:07:39 PM                                                                                                                    
                                                                                                                                
CHAIR PETE  HIGGINS called the  House Health and  Social Services                                                             
Standing   Committee    meeting   to    order   at    3:07   p.m.                                                               
Representatives  Higgins,  Keller,   Seaton,  and  Reinbold  were                                                               
present at  the call to  order.  Representatives  Pruitt, Nageak,                                                               
and Tarr arrived as the meeting was in progress.                                                                                
                                                                                                                                
        SB 162-HYDROCODONE PRESCRIPTION BY OPTOMETRISTS                                                                     
                                                                                                                                
3:08:56 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  announced that the  first order of  business would                                                               
be  SENATE  BILL   NO.  162,  "An  Act   authorizing  a  licensed                                                               
optometrist  to  prescribe   a  pharmaceutical  agent  containing                                                               
hydrocodone."                                                                                                                   
                                                                                                                                
3:09:41 PM                                                                                                                    
                                                                                                                                
DAVID   SCOTT,  Staff,   Senator  Donald   Olson,  Alaska   State                                                               
Legislature, stated  that SB 162  did not change the  practice or                                                               
scope of  optometry; it only  made a specific exception  to allow                                                               
optometrists  to continue  prescriptions for  hydrocodone in  the                                                               
same manner as  they were currently.  He explained  that the U.S.                                                               
Food & Drug Administration (FDA)  was possibly going to propose a                                                               
change of listing  for hydrocodone from Schedule  III to Schedule                                                               
II,  which  would  no  longer allow  optometrists  in  Alaska  to                                                               
prescribe this medication.                                                                                                      
                                                                                                                                
CHAIR  HIGGINS  reflected  that   the  extent  of  education  for                                                               
optometry allowed for  prescriptive rights.  He  pointed out that                                                               
[abuse  of] hydrocodone  was  an  issue in  the  country, and  he                                                               
opined  that the  health care  community was  carefully reviewing                                                               
the  issue to  better understand  and  alleviate the  abuse.   He                                                               
declared that no  specific health care group was  the problem for                                                               
the abuse.   He noted that the optometrists  had the pharmacology                                                               
training to prescribe hydrocodone,  and the Board of Pharmacology                                                               
was  recommending continuance  for  the prescription  capability.                                                               
He reported that  an FDA change of the drug  schedule would leave                                                               
it to  the individual states  to determine  restriction policies.                                                               
He  summarized that  the proposed  bill  allowed for  a four  day                                                               
regimen which limited the abuse  factor.  He relayed that several                                                               
states  had   unrestricted  rights,   whereas  Alaska   was  more                                                               
restrictive.     He  offered  his   recommendation  to   allow  a                                                               
continuance for prescription of hydrocodone.                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON reported that there  had not been any cases                                                               
of [hydrocodone] abuse by optometrists in the last five years.                                                                  
                                                                                                                                
3:14:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  report  SB  162,  Version  28-                                                               
LS1390\A, out  of committee  with individual  recommendations and                                                               
the accompanying fiscal notes.   There being no objection, SB 162                                                               
was  moved from  the House  Health and  Social Services  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:15:15 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:15 p.m. to 3:19 p.m.                                                                       
                                                                                                                                
             HB 356-ADVISORY COMMITTEE ON WELLNESS                                                                          
                                                                                                                                
3:19:02 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS announced that the  next order of business would be                                                               
HOUSE BILL NO.  356, "An Act establishing  the Advisory Committee                                                               
on Wellness;  and relating to  the administration of  state group                                                               
health insurance policies."                                                                                                     
                                                                                                                                
REPRESENTATIVE SEATON  explained, as the sponsor  of the proposed                                                               
bill,  that  HB 356  would  establish  an advisory  committee  on                                                               
wellness within the Department of  Administration (DOA), and said                                                               
that the purpose  was to implement a prevention  of disease model                                                               
for  health care.   He  stated  that Sections  2 and  3 were  the                                                               
impetus of the  bill which asked that the DOA,  as determiners of                                                               
the health care policy through  the insurance provided, include a                                                               
wellness advisory  committee.  He  explained that  this committee                                                               
would have at least seven members,  and he relayed that 90 people                                                               
had  applied  for appointment  to  an  earlier wellness  advisory                                                               
committee.   He stated that  there was a  lot of interest  in the                                                               
population to promote  wellness.  He reported  that this proposed                                                               
committee  would   have  the  power  to   require  the  submitted                                                               
recommendations   be  addressed,   similar  to   the  Office   of                                                               
Children's  Services (OCS)  advisory committee.   He  shared that                                                               
DOA did  not have opposition  to the  proposed bill, as  its goal                                                               
was to control  the escalation of health care costs.   He pointed                                                               
out that  $3.8 billion  of unfunded liability  was caused  by the                                                               
escalation  of health  care costs  above the  original long  term                                                               
estimate for an  annual cost increase of 2 percent.   He directed                                                               
attention to  the handout  [Included in  members' packets]  for a                                                               
proposed  initiative to  save up  to  $10 million  annually.   He                                                               
spoke about  Vitamin D, nutritional  guidelines, and  wellness in                                                               
the  work place  initiatives.   He  explained  that the  wellness                                                               
committee would  work on proscriptive  solutions for  a voluntary                                                               
means to  reduce disease in  workers and the  retired population.                                                               
He lauded the  benefit of a wellness committee with  the power to                                                               
solicit a  response.  He pointed  out that this was  also defined                                                               
as  practical and  reasonable suggestions  for solutions  to hold                                                               
down  health  care  escalation  costs.    He  reported  that  the                                                               
committee  could meet  via teleconference,  as the  proposed bill                                                               
had a zero fiscal note.                                                                                                         
                                                                                                                                
CHAIR HIGGINS questioned the accomplishments  of the multitude of                                                               
committees, and asked  about the need for another  committee.  He                                                               
directed   attention  to   the  current   [Alaska]  Health   Care                                                               
Commission, which reviewed all of the  State of Alaska.  He noted                                                               
that a  committee on controlled  substances, formed more  than 32                                                               
years previously, had never met.                                                                                                
                                                                                                                                
3:26:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  replied  that   the  Alaska  Health  Care                                                               
Commission  was  under  the  Department   of  Health  and  Social                                                               
Services  (DHSS), and  reviewed  a different  spectrum than  this                                                               
proposed  committee  would  under  the  DOA,  which  administered                                                               
health policies and negotiated contracts  with state workers.  He                                                               
pointed out that  there had been a  voluntary wellness committee,                                                               
however  its focus  had not  been for  prevention of  disease and                                                               
there  had  not   been  any  requirement  for   response  to  its                                                               
suggestions.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER respectfully  pointed  out that,  although                                                               
the  Alaska  Health  Care  Commission did  not  solely  dwell  on                                                               
prevention,  it did  focus on  ways to  reduce health  care costs                                                               
with prevention as  a top priority.  He declared  his support for                                                               
the proposed  bill.   He shared  that he  had long  been involved                                                               
with prevention  groups, and  he reported  that many  people were                                                               
working on  prevention related to  smoking, obesity,  and chronic                                                               
disease.   He expressed  his discomfort  with an  indictment that                                                               
committees had  not reduced the  cost of health care,  noting the                                                               
difficulty  for documentation.   Directing  attention to  page 1,                                                               
line 9,  he questioned  the intent language,  "the state  has not                                                               
adequately focused state policy  on avoiding disease," and stated                                                               
that it did not mean that many  people were not trying.  He noted                                                               
that the  smoking cessation program  had required a lot  of work.                                                               
He  asked that  respect be  shown toward  those people  currently                                                               
working on prevention programs.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON  replied that the proposed  bill focused on                                                               
the DOA, and that  he did not intend to impugn  any other work on                                                               
wellness and  prevention.   He declared  a need  to focus  on the                                                               
budgetary  situation,  and  getting wellness  programs  initiated                                                               
with state  workers and  their dependents.   He pointed  out that                                                               
the current  Wellness committee had  not met since December.   He                                                               
explained  that  the  proposed bill  required  responses  to  its                                                               
recommendations, similar to the  authority of the Citizens Review                                                               
Panel  with the  Office of  Children's Services  (OCS).   He said                                                               
that he did  not want to denigrate other work,  and this proposed                                                               
bill was for wellness programs  through DOA, as insurance and the                                                               
subsequent health care inflation were housed there.                                                                             
                                                                                                                                
REPRESENTATIVE  KELLER acknowledged  the  other various  wellness                                                               
committees.                                                                                                                     
                                                                                                                                
REPRESENTATIVE NAGEAK  asked if  Department of Health  and Social                                                               
Services (DHSS)  would increase its education  for prevention, in                                                               
lieu of the creation of another committee.                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON replied that DHSS  had its own mission, and                                                               
its ways for working on change  in the state, which was different                                                               
than DOA, which oversees the  health care insurance policies.  He                                                               
offered his belief that it  was necessary to reduce the increases                                                               
to  health  insurance.    He relayed  that  incentives  to  place                                                               
wellness  programs, such  as co-pays  and  deductibles, could  be                                                               
offered through the health care contracts.                                                                                      
                                                                                                                                
CHAIR  HIGGINS   asked  for   clarification  that   the  wellness                                                               
committee would target the insurance policies.                                                                                  
                                                                                                                                
REPRESENTATIVE SEATON  said that  the proposed bill  would target                                                               
insurance  for  the  active workforce  employees,  retirees,  and                                                               
dependents in the State of Alaska for reductions in liabilities.                                                                
                                                                                                                                
CHAIR HIGGINS asked for an explanation to the zero fiscal note.                                                                 
                                                                                                                                
REPRESENTATIVE  SEATON  replied  that   DOA  had  stated  that  a                                                               
wellness  committee  was advisable  and,  as  it was  a  non-paid                                                               
position,  there  would be  volunteer  members  who would  attend                                                               
telephonic meetings.   He  opined that,  if successful,  it could                                                               
have huge benefits toward reducing the state budget.                                                                            
                                                                                                                                
3:38:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  moved  to  report  HB  356,  Version  28-                                                               
LS1465\C, out  of committee  with individual  recommendations and                                                               
the accompanying fiscal notes.   There being no objection, HB 356                                                               
was  moved from  the House  Health and  Social Services  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
3:39:19 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:39 p.m. to 3:41 p.m.                                                                       
                                                                                                                                
          HB 380-WIC SUPPLEMENTAL FOOD PROGRAM VENDOR                                                                       
                                                                                                                                
3:41:22 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS  announced that the  final order of  business would                                                               
be HOUSE BILL  NO. 380, "An Act relating to  the selection by the                                                               
Department of  Health and  Social Services  of vendors  under the                                                               
federal  Special Supplemental  Food Program  for Women,  Infants,                                                               
and Children."                                                                                                                  
                                                                                                                                
3:41:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE   LEDOUX,  Alaska   State  Legislature,                                                               
paraphrased from the sponsor statement, which read:                                                                             
                                                                                                                                
     HB 380 compels the Alaska Department of Health and                                                                         
     Social Services to seek permission from the United                                                                         
     States Department of Agriculture to provide a hardship                                                                     
     exemption to vendor selection and approval criteria in                                                                     
     the Women, Infants, and Children (WIC) supplemental                                                                        
     food program.                                                                                                              
                                                                                                                                
     Alaska is an increasingly diverse state with people of                                                                     
     many different cultural, religious, and ethnic                                                                             
     backgrounds sharing our local communities. These                                                                           
     cultural enclaves are often populated by people of                                                                         
     low-income status who need government assistance in                                                                        
     making ends meet. Currently one of the only                                                                                
     significant sources of food for the people on                                                                              
     supplemental food programs are big-box stores which                                                                        
     are either too far from the community or do not                                                                            
     provide the items necessary for their unique cultural                                                                      
     or religious needs.                                                                                                        
                                                                                                                                
     Adding a hardship exemption to the WIC vendor program                                                                      
     would allow those people with specific cultural or                                                                         
     religious sustenance needs to have those needs meet                                                                        
     without undue expense or hardship.                                                                                         
                                                                                                                                
      HB 380 recognizes that Alaska is a diverse community                                                                      
        and allows that diversity to be rewarded and to                                                                         
     prosper.                                                                                                                   
                                                                                                                                
3:43:02 PM                                                                                                                    
                                                                                                                                
LISA  VAUGHT,  Staff,  Representative  Gabrielle  Ledoux,  Alaska                                                               
State Legislature,  read from a  prepared statement.   She stated                                                               
that  the  proposed  bill instructed  Department  of  Health  and                                                               
Social Services (DHSS) to seek  a waiver from the U.S. Department                                                               
of  Agriculture  to  expand  federal  Special  Supplemental  Food                                                               
Program   for  Women,   Infants,   and   Children  (WIC)   vendor                                                               
eligibility.    It  would allow  small  Alaskan  grocers  serving                                                               
minority  communities  with   significant  language  barriers  to                                                               
accept the WIC vouchers.  She  opined that the limitations of the                                                               
current WIC  vendor eligibility  requirements harm  both Alaska's                                                               
minority  communities and  the local  stores serving  them.   She                                                               
stated  that locally  owned  businesses had  been  excluded at  a                                                               
great  cost  to  the  diverse  minority  communities  which  made                                                               
Anchorage neighborhoods vibrant.  She  noted that reliance on WIC                                                               
ensured an even  more fundamental role of the local  shops in the                                                               
community.   She pointed  out that the  proposed bill  would "re-                                                               
prioritize current  WIC regulations from favoring  big box chains                                                               
at  the expense  of small  local businesses."   She  acknowledged                                                               
that,   although   the  control   of   cost   was  an   important                                                               
consideration,  the fundamental  purpose  was to  help those  who                                                               
were most  vulnerable.  She  stated that a cultural  component to                                                               
the WIC  regulations was critical  to the health of  the minority                                                               
communities.   She said that a  request to expand the  WIC vendor                                                               
eligibility requirements  was the  least that  could be  done for                                                               
these communities.                                                                                                              
                                                                                                                                
3:45:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  questioned  how it  would  be  determined                                                               
which  communities had  language  barriers, asking  if there  was                                                               
data readily available.  He  offered his assumption that this was                                                               
directed at language  barrier communities as it was  taken from a                                                               
federal guideline.                                                                                                              
                                                                                                                                
REPRESENTATIVE  LEDOUX replied  that  there was  language in  the                                                               
federal  guidelines which  allowed application  for an  exemption                                                               
when language  barriers existed.   She reported that there  was a                                                               
significant  Hmong  community  in  East  Anchorage  with  limited                                                               
English  proficiency.   She  did  not know  if  there were  state                                                               
records for language challenged communities.                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked if the  availability of the stores to                                                               
the community was part of the  issue, as it was necessary to have                                                               
transportation to shop at the larger stores.                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  replied that  this  was  an issue.    She                                                               
offered  examples  for East  Anchorage  and  Mountain View  which                                                               
necessitated transportation, or an unsafe walk with groceries.                                                                  
                                                                                                                                
CHAIR HIGGINS asked about the large fiscal note.                                                                                
                                                                                                                                
REPRESENTATIVE  LEDOUX  replied  that   the  fiscal  note  was  a                                                               
surprise, as  the proposed bill  was only  asking to apply  for a                                                               
waiver.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  KELLER asked  if a  waiver request  would need  a                                                               
justification.                                                                                                                  
                                                                                                                                
REPRESENTATIVE  LEDOUX  said  that  it  should  be  done  without                                                               
spending  a huge  amount of  money.   She surmised  that language                                                               
barriers  in  communities  should  be  the  determinant  for  the                                                               
application for the waiver.                                                                                                     
                                                                                                                                
3:49:59 PM                                                                                                                    
                                                                                                                                
RON  KREHER,  Director,  Director's Office,  Division  of  Public                                                               
Assistance,  Department of  Health  and  Social Services  (DHSS),                                                               
explained  that the  department was  challenged as  there was  no                                                               
hard  data on  the  degree for  which  language barriers  created                                                               
challenges  to access  WIC foods.   He  expressed agreement  that                                                               
there were language challenges; however,  a waiver had to be done                                                               
at  a statewide  level.    The federal  guidelines  for food  and                                                               
nutrition services  recommended the  department conduct  a survey                                                               
and assessment to identify language  barriers statewide.  He said                                                               
that  this cannot  be  done  piecemeal.   He  explained that  the                                                               
fiscal note reflected a best  guess based on similar surveys, but                                                               
it would be  necessary for a contractor to define  the scope.  He                                                               
acknowledged  that  there  were  many  communities  with  a  high                                                               
percentage of  non-English speakers.   The data was  necessary to                                                               
assess whether there were significant  barriers to accessing food                                                               
in grocery  stores, in  order to satisfy  Alaska and  the federal                                                               
government to  focus resources  in those  challenged communities.                                                               
He reported that  all WIC vendors had to  meet specific criteria,                                                               
and, even  if serving a  predominantly ethnic population,  it was                                                               
required to stock  sufficient quantities of all  the WIC approved                                                               
food.  He offered an example  for quantities necessary for 35 WIC                                                               
recipients served by a specific  store, which included 394 quarts                                                               
of low fat  or nonfat milk on  the shelves every day,  as well as                                                               
records  to track  this.   He pointed  out that  most convenience                                                               
stores did  not carry this  quantity or  the full suite  of foods                                                               
required for WIC  stores.  He said that it  was also necessary to                                                               
review the  peer groups of  different vendors, so there  would be                                                               
balance.   He  noted that  the  proposed bill  spoke to  barriers                                                               
based  on  language, food  preference,  and  cultural bias.    He                                                               
pointed out that food preference was  not included in WIC, as WIC                                                               
only  allowed  specific foods.    If  a  food  item was  not  WIC                                                               
approved, then it  could not be purchased under  the WIC program.                                                               
He  offered an  example  that brown  rice  was acceptable,  while                                                               
white rice was not.  He  stated that the acceptable food list was                                                               
nutritionally based  and science driven, so  there were variables                                                               
other than non-English speaking staff for a WIC vendor.                                                                         
                                                                                                                                
CHAIR HIGGINS  asked if food stock  was an issue for  WIC vendors                                                               
in the bush communities.                                                                                                        
                                                                                                                                
3:55:09 PM                                                                                                                    
                                                                                                                                
KATHLEEN  WAYNE,   Program  Manager,  WIC,  Division   of  Public                                                               
Assistance,  Department of  Health  and  Social Services  (DHSS),                                                               
replied that a  participant access study for WIC  in rural Alaska                                                               
had just  been completed   The results  had been that  25 percent                                                               
said that the foods were either  not available on a regular basis                                                               
or  were outdated.   She  stated  that transportation  was a  key                                                               
issue.    She  relayed  that  WIC  federal  regulations  required                                                               
regular   monitoring  through   inventory  reports   and  on-site                                                               
inventories  to  ensure  that  clients  could  get  the  deserved                                                               
benefits.                                                                                                                       
                                                                                                                                
CHAIR HIGGINS asked what was the result for non-compliance.                                                                     
                                                                                                                                
MS.   WAYNE  said   there  were   possible  sanctions   with  the                                                               
possibility of termination.                                                                                                     
                                                                                                                                
REPRESENTATIVE  PRUITT asked  if  it was  possible  to receive  a                                                               
waiver of certain foods for certain populations.                                                                                
                                                                                                                                
MR. KREHER  said that it  was not possible,  as WIC was  the most                                                               
heavily regulated  program with the  most stringent rules  in the                                                               
Division of Public Assistance.                                                                                                  
                                                                                                                                
MS. WAYNE explained  that the foods chosen for WIC  came from the                                                               
Institute  of Medicine  and were  determined for  ultimate growth                                                               
and  healthy development.   These  foods were  usually higher  in                                                               
cost and nutrient dense.                                                                                                        
                                                                                                                                
REPRESENTATIVE  PRUITT  asked  how  the   lines  or  scope  of  a                                                               
community were outlined.                                                                                                        
                                                                                                                                
3:58:50 PM                                                                                                                    
                                                                                                                                
MR.  KREHER explained  that an  amendment  to the  state plan  to                                                               
expand  or  provide  additional criteria  for  vendors  would  be                                                               
applied  state wide,  and not  community based.   If  a community                                                               
could demonstrate  that 35 WIC  recipients were unable  to access                                                               
WIC foods because  of a language barrier, then a  vendor would be                                                               
eligible for selection as a WIC  vendor if they met all the other                                                               
criteria, which included  documentation, signage, and maintenance                                                               
of  the  full  suite of  WIC  foods.    He  pointed out  that  an                                                               
applicant needed to first be a food stamp approved vendor.                                                                      
                                                                                                                                
REPRESENTATIVE PRUITT asked for  clarification that, although the                                                               
entire state  would be  granted the  exemption, the  vendor would                                                               
have  to indicate  that  there  were 35  people  with a  language                                                               
hardship, and then fulfill the other criteria.                                                                                  
                                                                                                                                
MR. KREHER declared  that this was correct.  He  shared a concern                                                               
for an amendment  to add a range of small  or convenience stores.                                                               
He reported that  the costs to carry the required  range of foods                                                               
were much higher for small  stores, which would reduce the buying                                                               
power  of  the consumer.    He  expressed  his concern  that  the                                                               
recipients were  able to get the  most for their benefit,  as the                                                               
WIC  approved foods  tended  to  be higher  cost.   He  expressed                                                               
additional concern for the administrative  costs for a high level                                                               
of monitoring and  maintenance.  He detailed that  WIC was almost                                                               
100  percent  federally  funded and,  as  administrative  program                                                               
costs increase, the funding for food would decrease.                                                                            
                                                                                                                                
REPRESENTATIVE PRUITT asked for  clarification that WIC offered a                                                               
dollar  amount  and  not  a   quantity  amount  to  participants;                                                               
therefore, the  concern was  that participants  were not  able to                                                               
purchase as much food if the costs were higher.                                                                                 
                                                                                                                                
MR. KREHER replied  that this was one factor.   He explained that                                                               
the WIC  program was not like  food stamps, as the  approved food                                                               
was based on nutritional risk,  and a nutritional food assessment                                                               
was  given  to   the  participants,  so  the   food  benefit  was                                                               
customized to that recipient.   He pointed out that a participant                                                               
had  to shop  at  a  store which  carried  those prescribed  food                                                               
products.    He  declared  that  WIC  was  a  nutritional  health                                                               
program.                                                                                                                        
                                                                                                                                
MS.  WAYNE   reiterated  that   recipients  were   diagnosed  for                                                               
beneficial foods  at a WIC  clinic.   She explained that,  as WIC                                                               
had  a   cap,  participation  by  higher   cost  stores  required                                                               
management by the division for those higher costs.                                                                              
                                                                                                                                
REPRESENTATIVE PRUITT clarified  that the cap was  on the program                                                               
and not on the individual.                                                                                                      
                                                                                                                                
REPRESENTATIVE SEATON asked if there  could be more than one peer                                                               
group at a specific store.                                                                                                      
                                                                                                                                
MS. WAYNE replied  that federal regulations required  WIC to have                                                               
cost containment rules.   She explained that all  states had peer                                                               
groups, and  that vendors  were paid  by their  peer group.   She                                                               
said that  most states had  three or  four peer groups,  based on                                                               
criteria including  transportation costs, and that  Alaska had 13                                                               
peer groups.   She explained that the warrants had  to go through                                                               
a banking  contractor for  review, and each  peer group  would be                                                               
reviewed  for   the  maximum  allowable  reimbursement   plus  30                                                               
percent.   She said that any  store with a cost  higher than this                                                               
would only  be repaid up  to the maximum  allowable reimbursement                                                               
plus 30 percent, and would incur banking fees.                                                                                  
                                                                                                                                
MR. KREHER, in  response to Chair Higgins, said  that approval as                                                               
a food stamps vendor was "the first bar."                                                                                       
                                                                                                                                
CHAIR  HIGGINS expressed  his appreciation  for the  WIC program.                                                               
He asked about  the waiver for language, and he  opined that when                                                               
language barriers existed,  people would prefer to  shop in their                                                               
neighborhood.  He  asked if the store could apply  at any time to                                                               
be a food stamp vendor and then a WIC vendor.                                                                                   
                                                                                                                                
MR. KREHER  explained that  this was  possible.   He said  that a                                                               
factor for cost  containment was to find "the sweet  spot for the                                                               
number  of  retailers  that  you  have in  the  community."    He                                                               
explained that it  was necessary to have enough  vendors to allow                                                               
adequate access  for the population,  but not so many  vendors to                                                               
increase the overall program costs.   He allowed that it was more                                                               
complicated in urban areas.   He expressed agreement that a store                                                               
could  apply,  and  reported  that there  were  175  WIC  vendors                                                               
statewide with  23 vendors  located in Anchorage.   He  said that                                                               
the division  would definitely  review an area  that was  a "food                                                               
desert."  He  shared that any significant  language barrier which                                                               
impeded access  by WIC recipients  to food would be  addressed by                                                               
the division.   He said that  it was not difficult  to request an                                                               
amendment  to  the state  plan,  and  it  would not  require  any                                                               
legislation.   He stated  that the division  would still  want to                                                               
have the hard data as WIC was an evidence driven program.                                                                       
                                                                                                                                
4:11:42 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS clarified  that any food retail  store could apply,                                                               
and the division would review the application.                                                                                  
                                                                                                                                
MR. KREHER replied  that the Food and  Nutrition Service approved                                                               
the food  stamp vendors  and that his  division approved  the WIC                                                               
vendors.   He  reminded the  committee that  it was  necessary to                                                               
first become a food stamp vendor.                                                                                               
                                                                                                                                
MS.  WAYNE  relayed  that  the current  state  plan  limited  WIC                                                               
participation to full service grocery  stores, unless, such as in                                                               
rural  areas,  participant needs  necessitated  a  look at  other                                                               
stores.                                                                                                                         
                                                                                                                                
REPRESENTATIVE SEATON asked  if a peer group,  which included big                                                               
box and  full service grocery  stores, would be  reimbursed based                                                               
on the entire peer group.  He  asked if other vendors in the peer                                                               
group would be reimbursed at the same cost.                                                                                     
                                                                                                                                
MS. WAYNE replied that there were  a few different peer groups in                                                               
Anchorage, which  included super  stores and medium  size stores.                                                               
She  said that  there  would  be differences  even  with the  big                                                               
stores  for   having  a  different   peer  group,   although  the                                                               
reimbursement  prices were  based on  the peer  group, which  was                                                               
statewide.   She surmised that  an urban, non-full  grocery store                                                               
peer group would require a  maximum allowable reimbursement, even                                                               
though it was evident that there would be a higher prices.                                                                      
                                                                                                                                
REPRESENTATIVE  PRUITT asked,  as  there were  program costs,  if                                                               
there was a limit to the number of stores accepting WIC.                                                                        
                                                                                                                                
MS. WAYNE expressed her agreement,  stating that it was necessary                                                               
to justify  the addition of  another store.   She said  there had                                                               
not  been  concerns  voiced  by clients  or  local  agencies  for                                                               
problems  with language  barriers.   She  reported  that the  WIC                                                               
approved  food  list  had  pictures   and  brands  to  facilitate                                                               
language issues.                                                                                                                
                                                                                                                                
REPRESENTATIVE PRUITT asked if the  tags were required on all the                                                               
WIC approved foods.                                                                                                             
                                                                                                                                
4:17:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TARR  said that she  represented the  most diverse                                                               
neighborhood in  the U.S., with  challenges that included  a lack                                                               
of  engagement  in  traditional  systems.    She  suggested  that                                                               
transportation issues  were different for  different communities,                                                               
and  could  require other  adjustments  in  the approach  to  the                                                               
problems.                                                                                                                       
                                                                                                                                
MR. KREHER expressed recognition  for the language challenges and                                                               
suggested  involvement with  community  work  experience and  the                                                               
language  center to  help with  outreach and  education to  other                                                               
individuals.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TARR  offered an  anecdote  about  a local  store                                                               
which  carried certain  items that  were not  obtainable anywhere                                                               
else.   She  asked  how  farmer's markets  had  been expanded  to                                                               
include WIC approval.                                                                                                           
                                                                                                                                
MR. KREHER  replied that the  farmer's market program had  been a                                                               
collaborative  effort, and  expressed his  hope that  the program                                                               
would continue to grow.                                                                                                         
                                                                                                                                
REPRESENTATIVE TARR  said that the clientele  at farmer's markets                                                               
were now more diverse because of the expanded options.                                                                          
                                                                                                                                
MR. KREHER noted that the  department tried to provide additional                                                               
funds.                                                                                                                          
                                                                                                                                
4:23:24 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS opened public testimony.                                                                                          
                                                                                                                                
4:23:34 PM                                                                                                                    
                                                                                                                                
ARTHUR YANG, Owner, Dragon Oriental  Store, stated that his store                                                               
would like the opportunity to serve  the Hmong community as a WIC                                                               
vendor,  as that  community had  issues  with transportation  and                                                               
language barriers.   He said that, as a  small convenience store,                                                               
he  would not  exceed the  cap on  the WIC  coupon.   He reported                                                               
that, as there was a  language barrier, community members did not                                                               
know  who to  talk with  or who  to bring  their complaints.   He                                                               
shared  that many  of the  Hmong  community came  from a  country                                                               
where the  government was always right,  so they had no  idea who                                                               
to bring  any complaints.   He  said there  were more  than 5,000                                                               
Hmong in Alaska.   He asked to be considered  for the WIC program                                                               
in  his convenience  store, as  he could  better serve  the Hmong                                                               
community.   He stated that  the Farmers Market produce  was more                                                               
expensive than  the regular  supermarket.  He  said that  his fee                                                               
would not be over the cap.                                                                                                      
                                                                                                                                
CHAIR HIGGINS asked if he was a food stamp vendor.                                                                              
                                                                                                                                
MR. YANG said that he was, and had been for more than a year.                                                                   
                                                                                                                                
CHAIR HIGGINS asked if he had applied to be a WIC vendor.                                                                       
                                                                                                                                
MR.  YANG  replied  that  his application  had  been  denied,  as                                                               
regulations did not allow smaller  convenience stores, similar to                                                               
his.                                                                                                                            
                                                                                                                                
CHAIR  HIGGINS asked  about the  requirement for  maintaining the                                                               
stock  on  hand,  and  if  his   store  was  able  to  meet  this                                                               
requirement.                                                                                                                    
                                                                                                                                
MR. YANG said that they could  maintain the stock to meet the WIC                                                               
criteria.   He  declared that  he  could provide  service to  the                                                               
Hmong,  within  walking distance,  so  they  would not  face  the                                                               
language barrier.                                                                                                               
                                                                                                                                
4:30:41 PM                                                                                                                    
                                                                                                                                
SHENG YANG,  Dragon Oriental Store,  reported that  other members                                                               
of  the community  asked her  for  help with  language and  other                                                               
issues.   She offered  anecdotes about  shopping in  other stores                                                               
when language  was a  barrier.   She said  that allowing  the WIC                                                               
program into  the smaller stores  would be  a help to  the entire                                                               
minority community.                                                                                                             
                                                                                                                                
MAIKUE  HER  explained that  there  were  language problems  when                                                               
using the larger stores and that  it was much easier for shopping                                                               
in the smaller community stores.                                                                                                
                                                                                                                                
4:36:15 PM                                                                                                                    
                                                                                                                                
MAGGIE YANG,  (translated by Sheng Yang),  Dragon Oriental Store,                                                               
said  that Hmong  customers  came to  the  Dragon Oriental  Store                                                               
because it was difficult for them  to go to other WIC vendors, as                                                               
transportation and language  was often a barrier.   She said that                                                               
this difficulty  often resulted in minority  customers buying too                                                               
much at  one time,  and not being  able to use  all of  the food.                                                               
She  said  that  this  store   was  conveniently  located.    She                                                               
explained that many minority customers did  not want to go to the                                                               
big stores  as there was not  anyone to help them,  and they were                                                               
humiliated or embarrassed.                                                                                                      
                                                                                                                                
4:39:43 PM                                                                                                                    
                                                                                                                                
CHAIR HIGGINS closed public testimony.                                                                                          
                                                                                                                                
CHAIR HIGGINS asked how long it  would take to go through the WIC                                                               
application process.                                                                                                            
                                                                                                                                
MS.  WAYNE   replied  that   the  application   process  required                                                               
confirmation that the  store was a food  stamp vendor, submission                                                               
of a  list of available  foods, and  a pre-approval visit  by the                                                               
division  to  ensure  the  foods  were  all  there.    It  was  a                                                               
relatively  short process  if  the  foods were  all  there.   She                                                               
pointed  out that  the  state  plan, at  this  point, still  only                                                               
allowed  full service  stores, except  in  areas for  participant                                                               
access concerns.                                                                                                                
                                                                                                                                
CHAIR  HIGGINS  asked if  the  proposed  bill would  affect  this                                                               
situation.                                                                                                                      
                                                                                                                                
MS. WAYNE offered  her belief that the bill proposed  a waiver to                                                               
allow a non-full  service grocery store to participate  in WIC in                                                               
an area with a language barrier.                                                                                                
                                                                                                                                
CHAIR  HIGGINS  asked if  the  proposed  bill  was asking  for  a                                                               
federal waiver.                                                                                                                 
                                                                                                                                
MS. WAYNE said that the waiver  would go into the state plan, but                                                               
would  still   require  approval   by  the  U.S.   Department  of                                                               
Agriculture (USDA).   She reported  that the USDA  had questioned                                                               
who would  determine that there  were 35 participants in  need of                                                               
the service.                                                                                                                    
                                                                                                                                
CHAIR  HIGGINS asked  if there  was any  opportunity for  smaller                                                               
vendors to get WIC approval.                                                                                                    
                                                                                                                                
MS. WAYNE replied that some  stores were terminated, resulting in                                                               
a  search  for  replacement  stores.    She  explained  that  the                                                               
criteria was  based on  participants having  access to  food, and                                                               
the state  plan currently  limited this  to full  service grocery                                                               
stores, with  an exception  where there were  no other  stores in                                                               
the community for this service.                                                                                                 
                                                                                                                                
REPRESENTATIVE SEATON asked  if this was the  exception for rural                                                               
village stores.                                                                                                                 
                                                                                                                                
MS. WAYNE replied that this was correct.                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON  asked  for  more  information  about  the                                                               
sanctions.                                                                                                                      
                                                                                                                                
MS.  WAYNE explained  the sanction  points.   She  stated that  a                                                               
store would have  multiple chances to correct any  problems.  She                                                               
reported  that   independent  research  on  other   state  vendor                                                               
policies which allowed  for cultural waivers were  for areas with                                                               
no other access for food, no grocery stores, in the community.                                                                  
                                                                                                                                
REPRESENTATIVE SEATON asked if the  sanction points would lead to                                                               
termination or a reduced reimbursement rate.                                                                                    
                                                                                                                                
MS.  WAYNE  replied that  the  price  was  based on  the  maximum                                                               
allowable reimbursement  plus 30 percent,  and there was  not any                                                               
other fiscal action.                                                                                                            
                                                                                                                                
CHAIR  HIGGINS asked  if the  exemptions already  established for                                                               
the bush communities could be used in this circumstance.                                                                        
                                                                                                                                
MR.  KREHER explained  that the  exemption for  the villages  was                                                               
based  on no  other options  for vendor  selection for  access to                                                               
food.   He  explained that  language barriers  that could  not be                                                               
addressed at  another store would  also be a  separate exemption.                                                               
He declared that  sanction points were used to help  a vendor get                                                               
back in line.                                                                                                                   
                                                                                                                                
REPRESENTATIVE TARR  asked if  there was  any flexibility  in the                                                               
WIC food selection.                                                                                                             
                                                                                                                                
MR. KREHER  replied that  there was not  any flexibility,  as the                                                               
food  selection was  driven  by the  Food  and Nutrition  Service                                                               
based on nutritional science.                                                                                                   
                                                                                                                                
CHAIR HIGGINS  offered his  belief that it  may be  necessary for                                                               
another WIC vendor in order to help the population in that area.                                                                
                                                                                                                                
4:48:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER moved to report HB 380, Version 28-                                                                       
LS1616\N,  Mischel, 3/27/14,  out  of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, HB  380 was moved from the House  Health and Social                                                               
Services Standing Committee.                                                                                                    
                                                                                                                                
4:48:39 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:50:59 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
HB 380 Sponsor Statement.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB 380.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB0356A.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Wellness Presentation.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Background Materials.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Presentation 3 20 2014.pdf HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Background Material.pdf HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 Mayo Clinic vitamin D for health a global perspective.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB356 Support KPBSD.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB356-DOA-DRB-03-14-14.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB 356 sponsor statement.pdf HHSS 3/20/2014 3:00:00 PM
HHSS 4/10/2014 3:00:00 PM
HB 356
HB380-DHSS-WIC-04-09-14.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB 380 Research.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB 380 Research.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB 356 Cost Savings per year with vitamin D.pdf HHSS 4/10/2014 3:00:00 PM
HB 356
HB 380 Letter of Support.pdf HHSS 4/10/2014 3:00:00 PM
HB 380
HB 380 Letter of Support.pdf HHSS 4/10/2014 3:00:00 PM
HB 380