Legislature(2013 - 2014)BARNES 124

04/02/2014 03:15 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 309 CRAFT DISTILLERY LICENSE TELECONFERENCED
Moved CSHB 309(L&C) Out of Committee
+= HB 152 PERS TERMINATION COSTS TELECONFERENCED
Moved CSHB 152(L&C) Out of Committee
*+ HB 160 LICENSING OF ATHLETIC TRAINERS TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 2, 2014                                                                                          
                           3:19 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Lora Reinbold, Vice Chair                                                                                        
Representative Mike Chenault                                                                                                    
Representative Bob Herron                                                                                                       
Representative Charisse Millett                                                                                                 
Representative Dan Saddler                                                                                                      
Representative Andy Josephson                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Craig Johnson                                                                                                    
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 309                                                                                                              
"An Act relating to a craft distillery license."                                                                                
                                                                                                                                
     - MOVED CSHB 309(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 152                                                                                                              
"An Act  requiring certain employers who  terminate participation                                                               
in   the  defined   benefit  retirement   plan  or   the  defined                                                               
contribution retirement plan of  the Public Employees' Retirement                                                               
System to  make contributions related  to past  service liability                                                               
and  pay   termination  costs;   repealing  a   requirement  that                                                               
employers   who   terminate    participation   in   the   defined                                                               
contribution retirement  plan or  the defined  benefit retirement                                                               
plan  of  the  Public  Employees' Retirement  System  pay  for  a                                                               
termination cost study; and providing for an effective date."                                                                   
                                                                                                                                
     - MOVED CSHB 152(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 160                                                                                                              
"An  Act relating  to the  licensing and  regulation of  athletic                                                               
trainers."                                                                                                                      
                                                                                                                                
     - MOVED HB 160 OUT OF COMMITTEE                                                                                            
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 309                                                                                                                  
SHORT TITLE: CRAFT DISTILLERY LICENSE                                                                                           
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
02/17/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/14       (H)       L&C                                                                                                    
04/02/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 152                                                                                                                  
SHORT TITLE: PERS TERMINATION COSTS                                                                                             
SPONSOR(s): REPRESENTATIVE(s) THOMPSON                                                                                          
                                                                                                                                
03/04/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/04/13       (H)       L&C, FIN                                                                                               
04/05/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/05/13       (H)       Heard & Held                                                                                           
04/05/13       (H)       MINUTE(L&C)                                                                                            
03/05/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/05/14       (H)       -- MEETING CANCELED --                                                                                 
03/10/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/10/14       (H)       Heard & Held                                                                                           
03/10/14       (H)       MINUTE(L&C)                                                                                            
03/19/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/19/14       (H)       Heard & Held                                                                                           
03/19/14       (H)       MINUTE(L&C)                                                                                            
04/02/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 160                                                                                                                  
SHORT TITLE: LICENSING OF ATHLETIC TRAINERS                                                                                     
SPONSOR(s): REPRESENTATIVE(s) THOMPSON BY REQUEST                                                                               
                                                                                                                                
03/11/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/13       (H)       L&C, FIN                                                                                               
04/02/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE CHRIS TUCK                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as the prime sponsor of HB 309.                                                                
                                                                                                                                
GEORGE ASCOT, Staff                                                                                                             
Representative Chris Tuck                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the prime sponsor,                                                                
Representative Chris Tuck.                                                                                                      
                                                                                                                                
HEATHER SHADE, Co-owner                                                                                                         
Port Chilkoot Distillery                                                                                                        
Haines, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of HB 309.                                                               
                                                                                                                                
FELICIA KEITH-JONES, Owner                                                                                                      
High Mark Distillery                                                                                                            
Sterling, Alaska                                                                                                                
POSITION STATEMENT:  Testified during the discussion of HB 309.                                                               
                                                                                                                                
DALE FOX, President/Chief Executive Officer                                                                                     
Alaska Cabaret, Hotel, Restaurant, and Retailer's Association                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 309.                                                                          
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as the prime sponsor of HB 152.                                                                
                                                                                                                                
JANE PIERSON, Staff                                                                                                             
Representative Steve Thompson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the prime sponsor of                                                              
HB 152.                                                                                                                         
                                                                                                                                
SALLIE STUVEK, Human Resources Director                                                                                         
Fairbanks North Star Borough (FNSB)                                                                                             
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 152.                                                               
                                                                                                                                
REPRESENTATIVE STEVE THOMPSON                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 160.                                                                    
                                                                                                                                
BRODIE ANDERSON, Staff                                                                                                          
Representative Steve Thompson                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the prime sponsor of                                                              
HB 160, Representative Steve Thompson.                                                                                          
                                                                                                                                
                                                                                                                                
LYNN YOUNG, Secretary/Treasurer                                                                                                 
Alaska Athletic Trainers Association (AATA)                                                                                     
Eagle River Alaska                                                                                                              
POSITION STATEMENT:  Testified during the discussion of HB 160.                                                               
                                                                                                                                
SARA CHAMBERS, Director                                                                                                         
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community, & Economic Development                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and  answered questions during the                                                             
discussion of HB 160.                                                                                                           
                                                                                                                                
CARY KELLER, Orthopedic Surgeon                                                                                                 
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 160.                                                               
                                                                                                                                
CHRISTOPHER DEAN, Certified Athletic Trainer                                                                                    
President, Alaska Athletic Trainers Association (AATA)                                                                          
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of HB 160.                                                               
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:19:38 PM                                                                                                                    
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee meeting to order at  3:19 p.m.  Representatives Herron,                                                               
Reinbold, Josephson, Saddler, and Olson  were present at the call                                                               
to order.   Representatives Chenault  and Millett arrived  as the                                                               
meeting was in progress.                                                                                                        
                                                                                                                                
                HB 309-CRAFT DISTILLERY LICENSE                                                                             
                                                                                                                                
3:19:48 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
HOUSE  BILL NO.  309,  "An  Act relating  to  a craft  distillery                                                               
license."                                                                                                                       
                                                                                                                                
REPRESENTATIVE  REINBOLD moved  to adopt  the proposed  committee                                                               
substitute  (CS) for  HB  309,  labeled 28-LS0698\Y,  Strasbaugh,                                                               
3/6/14, [Version Y] as the working document.                                                                                    
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
3:20:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK, Alaska  State Legislature,  stated that  HB                                                               
309 will not have any impact  on the state but will modernize the                                                               
distillery laws in  Alaska so they more closely  mirror those for                                                               
wineries  and breweries  by giving  distilleries  the ability  to                                                               
attract customers by hosting tours  of their facilities and offer                                                               
samples and sell products.                                                                                                      
                                                                                                                                
REPRESENTATIVE  TUCK  explained  the   changes  in  the  proposed                                                               
committee  substitute (CS)  for  HB 309,  Version  Y, will  allow                                                               
local  distilleries take  part  in the  tourism  industry.   This                                                               
could contribute more to the  economy and create jobs by allowing                                                               
for the sales of up to one  gallon of the product directly to the                                                               
public for consumption off premises.   This bill would also allow                                                               
for the  sale of not  more than  three ounces for  consumption on                                                               
premises  and for  the public  to  sample small  portions of  the                                                               
product free  of charge.   Similar to wineries and  breweries, HB                                                               
309 would prevent  distilleries from acting as a de  facto bar by                                                               
prohibiting  bar-like   amenities  such   as  limited   hours  of                                                               
operation.   This bill has  received the  support of all  five of                                                               
Alaska's  small distilleries,  the Brewers  Guild of  Alaska, the                                                               
Haines  Chamber  of  Commerce,   Explorer  Fairbanks,  the  Kenai                                                               
Peninsula Tourism Marketing Council,  the Alaska Farm Bureau, and                                                               
Alaska  Cabaret, Hotel,  Restaurant,  and Retailer's  Association                                                               
(CHARR).  He reported that HB 309 does not have any opposition.                                                                 
                                                                                                                                
3:22:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK provided a  section-by-section analysis of HB                                                               
309, Version Y.  He referred to  page 1, lines 3-9, Section 1, to                                                               
AS 04.11.170, related  to distillery licenses.   Current law only                                                               
allows for the  distillery operation and sales to  licensees.  He                                                               
said that HB 309 will allow  the holder of the distillery license                                                               
to  sell   alcoholic  beverages   directly  to  the   public  for                                                               
consumption off  premises, limited to  one gallon.   He explained                                                               
that previously a distributor could only sell to licensees.                                                                     
                                                                                                                                
3:23:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK referred to page  1, lines 8-9, of Version Y,                                                               
noting  the prohibition  of  selling less  than  five gallons  is                                                               
removed at  the request  of industry since  there wasn't  a clear                                                               
reason for the restriction.  He  referred to page 1, lines 10-15,                                                               
Section 2, which  allows for free samples in  small portions with                                                               
exceptions for  intoxicated persons.  He  related that subsection                                                               
(e) allows for sales of up to three  ounces a day to a person for                                                               
consumption   on  the   premises,  similar   to  provisions   for                                                               
breweries.   He  highlighted  prohibitions in  Version Y  against                                                               
live  entertainment, televisions,  pool  tables, dancing,  games,                                                               
game  tables, or  other recreational  or gaming  opportunities on                                                               
the premises  where the product  is served,  and seats at  a bar.                                                               
Additionally, this  section would  limit hours from  9 a.m.  to 8                                                               
p.m.  He  stated that these restrictions are  intended to prevent                                                               
distilleries  from  acting  as  de  facto bars.    He  noted  two                                                               
amendments in members' packets are pending.                                                                                     
                                                                                                                                
3:25:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked how  many distilleries  are located                                                               
in Alaska.                                                                                                                      
                                                                                                                                
REPRESENTATIVE TUCK  answered that five distilleries  are located                                                               
in Alaska, with one in  Matanuska-Susitna area, one in Anchorage,                                                               
one in Haines, and one located on the Kenai-Peninsula.                                                                          
                                                                                                                                
3:26:09 PM                                                                                                                    
                                                                                                                                
GEORGE  ASCOT, Staff,  Representative  Chris  Tuck, Alaska  State                                                               
Legislature,  identified the  five  distilleries in  Alaska.   He                                                               
stated  that the  Alaska Distillery  is located  in Wasilla,  the                                                               
Bare Distillery,  Alaska, LLC is  located in Anchorage,  the High                                                               
Mark Distillery, Inc.  is located in Sterling,  the Port Chilkoot                                                               
Distillery is  located in  Haines, and  Ursa Major  Distilling is                                                               
located in Fairbanks.                                                                                                           
                                                                                                                                
3:26:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD asked about the fiscal note.                                                                            
                                                                                                                                
REPRESENTATIVE TUCK  said it  is a  false fiscal note.   It  is a                                                               
zero fiscal  note, but the false  fiscal note of $10  million per                                                               
year indefinitely was intended as an April Fools' Day joke.                                                                     
                                                                                                                                
3:27:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to adopt Amendment  1, labeled 28-                                                               
LS0698\Y.1, Strasbaugh, 3/28/14, which read as follows:                                                                         
                                                                                                                                
     Page 2, following line 7:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 3. AS 04.21.065(a) is amended to read:                                                                      
          (a)  A holder of one of the following types of                                                                        
       licenses or permits shall post on the licensed or                                                                        
      designated premises three separate warning signs as                                                                       
     described in (b) of this section:                                                                                          
               (1)  beverage dispensary license;                                                                                
               (2)  restaurant or eating place license;                                                                         
               (3)  club license;                                                                                               
               (4)  brewery license; this paragraph applies                                                                     
       only to a brewery that permits a person to sample                                                                        
     portions of the brewery's product;                                                                                         
               (5)  package store license;                                                                                      
               (6)  common carrier dispensary license;                                                                          
               (7)  recreational site license;                                                                                  
               (8)  pub license;                                                                                                
               (9)  winery license; this paragraph applies                                                                      
        only to a winery that permits a person to sample                                                                        
     portions of the winery's product;                                                                                          
               (10)  distillery license; this paragraph                                                                     
     applies only to a distillery that permits a person to                                                                  
     sample portions of the distillery's product;                                                                           
               (11)  caterer's permit;                                                                                      
              (12) [(11)]  special events permit;                                                                           
               (13)   [(12)]      conditional   contractor's                                                                
     permit;                                                                                                                    
               (14) [(13)]  another license or permit                                                                       
         issued by the board authorizing consumption of                                                                         
     alcoholic beverages."                                                                                                      
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
3:27:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TUCK  explained  that  Amendment  1  adds  a  new                                                               
section that  requires posting of  warning signs to  caution that                                                               
drinking and smoking during pregnancy  can lead to birth defects.                                                               
It would also inform people that  a person providing alcohol to a                                                               
person  under the  age of  21  can receive  up to  five years  in                                                               
prison and  a fine of  $50,000.  Additionally, Amendment  1 would                                                               
identify  that  a person  under  21  years  of age  entering  the                                                               
premises could  be subject to a  fine up to $1,000,  which is the                                                               
same as for any type of establishment that serves alcohol.                                                                      
                                                                                                                                
3:28:39 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
3:28:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to adopt Amendment  2, labeled 28-                                                               
LS0698\Y.2, Strasbaugh, 3/28/14, which read as follows:                                                                         
                                                                                                                                
     Page 2, following line 7:                                                                                                  
     Insert a new bill section to read:                                                                                         
        "* Sec. 3. AS 04.21.025(a) is amended to read:                                                                      
          (a)  As a condition of issuance or renewal of a                                                                       
     license  and   selling  alcoholic  beverages   under  a                                                                    
     license, the  board shall require a  licensee who sells                                                                    
     or serves  alcoholic beverages and a  licensee's agents                                                                    
     and employees who sell or  serve alcoholic beverages or                                                                    
     check  the identification  of a  patron to  complete an                                                                    
     alcohol server education course  approved by the board,                                                                    
     if the license is for a                                                                                                    
               (1)  beverage dispensary;                                                                                        
               (2)  restaurant or eating place;                                                                                 
               (3)  club;                                                                                                       
               (4)  package store;                                                                                              
               (5)  recreational site;                                                                                          
               (6)  pub;                                                                                                        
               (7)  distillery;                                                                                             
               (8)  conditional contractor."                                                                                
                                                                                                                                
CHAIR OLSON objected for the purpose of discussion.                                                                             
                                                                                                                                
REPRESENTATIVE  TUCK stated  that  Amendment 2  adds  a new  bill                                                               
section  related  to  alcohol  server   education  courses.    He                                                               
explained  that distilleries,  their  agents,  and employees  who                                                               
sell  or serve  alcohol must  complete an  alcohol server  course                                                               
approved  by the  board.   He  said  that it  has  been known  as                                                               
[Techniques of  Alcohol Management]  (TAM), but  the new  card is                                                               
now  called a  [Training for  Alcohol Professionals]  (TAP) card.                                                               
He   noted   that   anyone   serving   alcohol   has   the   same                                                               
responsibilities  and requirements  to get  certified as  for any                                                               
other establishment.                                                                                                            
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Amendment 2 was adopted.                                                                                             
                                                                                                                                
3:30:17 PM                                                                                                                    
                                                                                                                                
HEATHER SHADE,  Co-owner, Port  Chilkoot Distillery,  stated that                                                               
the distillery  produces hand crafted  small batches  of whiskey,                                                               
gin, and vodka in Southeast Alaska.   She wished she could invite                                                               
members  to  visit  the  distillery,   which  is  in  a  restored                                                               
historical  building;   however,  existing  laws   prohibit  this                                                               
invitation.  Five  distilleries are located in  Alaska, with each                                                               
representing a unique region of the  state.  She compared this to                                                               
over 450 small  distilleries nationwide.  She  reported that most                                                               
states have  updated their distillery  laws to allow  for on-site                                                               
tastings  and sales.    She stated  that this  has  led to  great                                                               
economic  success.   Idaho passed  their distillery  bill several                                                               
weeks  ago, which  is similar  to the  one before  members today.                                                               
The  distilleries  in  Alaska are  already  contributing  to  the                                                               
state's  economy, supporting  other  industries in  Alaska.   She                                                               
advised   members  that   her   distillery   buys  Alaska   grown                                                               
agricultural products, which  are used to make  the craft spirits                                                               
and  also creates  export  products for  the  state and  provides                                                               
jobs.   She predicted that if  this law is updated  she will hire                                                               
two additional  people to accommodate  the visitor aspect  of the                                                               
business.   It is  difficult to  compete with  national distilled                                                               
products so this  bill will model what  microbreweries have done.                                                               
She noted  the importance of  distilleries being able  to promote                                                               
their products on  site to be competitive.  In  fact, it is often                                                               
the personal  connection with  the customer  that sets  the small                                                               
distilleries  apart from  imported mass-produced  products.   She                                                               
related  the  many challenges  that  businesses  face in  Alaska,                                                               
including the seasonal market, the  high-cost of exportation, and                                                               
difficult  shipping  logistics,  and  the  bill  would  help  the                                                               
distilleries  be in  a better  position  to absorb  the costs  by                                                               
operating the distilleries as visitor destinations.                                                                             
                                                                                                                                
3:34:06 PM                                                                                                                    
                                                                                                                                
MS. SHADE  related that the  community of  Haines has been  a big                                                               
supporter  of  their  distillery  business and  many  people  are                                                               
excited to  show it off.   She pointed  out that the  business is                                                               
located next to the cruise ship dock  and she hopes to be able to                                                               
invite visitors  to the  distillery.   Essentially this  bill has                                                               
been  the result  of teamwork  with distilleries,  the breweries,                                                               
the  tourism  industry, the  farm  bureau,  and the  chambers  of                                                               
commerce.   She concluded that  the local communities  are hoping                                                               
to  see these  new businesses  survive.   Similar bills  in other                                                               
states have proved to be a huge  success and this one is good for                                                               
Alaska's businesses.  She hoped members would support the bill.                                                                 
                                                                                                                                
3:35:04 PM                                                                                                                    
                                                                                                                                
FELICIA  KEITH-JONES, Owner,  High Mark  Distillery, stated  that                                                               
her distillery is a hand-crafted one.   She said that HB 309 will                                                               
mean tastings, tours,  and bottle sales from  her own distillery.                                                               
She  emphasized  that  this  needs to  happen  to  modernize  the                                                               
industry  guidelines currently  being  enjoyed  by breweries  and                                                               
wineries across Alaska.  She  characterized the system as being a                                                               
little  antiquated only  since  distilleries  did not  previously                                                               
exist in Alaska.  The state  has five distilleries and it is time                                                               
to  catch  up  with  the  rest of  the  industry.    The  current                                                               
guidelines  are rather  restricting and  confusing, for  example,                                                               
the  federal government  requires the  distilleries to  train and                                                               
establish distilleries  across the  U.S.  She  personally trained                                                               
in Spokane at Dry Fly  Distillery and at Jack Daniels Distillery.                                                               
These  distilleries are  used as  models for  running an  Alaskan                                                               
distillery; however,  she was  informed that  Alaska's guidelines                                                               
do not follow  the same federal guidelines  that the distilleries                                                               
providing the training follow.   She said she is passionate about                                                               
HB 309  due to  the sales  potential and  the ability  to capture                                                               
lost revenue.   In  fact, distilleries  are anchors  for tourism,                                                               
and the Kenai Peninsula has  already lost potential revenue.  For                                                               
example,  the  Alaska  General Contractors,  Inc.  and  political                                                               
functions  would like  to  use the  Alaskan  spirits, but  cannot                                                               
currently sample the products.   The bill would also help support                                                               
buying Alaskan  products.  Fishing derbies  and dipnetting brings                                                               
thousands  of  visitors  to  the region  and  many  want  tasting                                                               
parties for  chartered clients.   Hotels  have reported  that the                                                               
distillery gives people a reason to stay an extra day to visit.                                                                 
                                                                                                                                
MS.  KEITH-JONES stated  that the  Kenai-Peninsula currently  has                                                               
five breweries, one winery, and  her distillery.  It keeps people                                                               
in the communities  for a longer length of time.   She personally                                                               
turned  away  three  carloads  of  people  who  wanted  to  visit                                                               
yesterday so the word is out.   On average, tasting rooms command                                                               
$45,000 to $150,000 per year  in purchases.  Alaskan distilleries                                                               
also  are subject  to three  taxes totaling  40 percent  for each                                                               
bottle sold, which is currently lost revenue to the state.                                                                      
                                                                                                                                
3:39:47 PM                                                                                                                    
                                                                                                                                
MS. KEITH stated  that her company provides  an interesting place                                                               
to go,  and the  distillery is an  example of  applied chemistry.                                                               
She pointed out  lost revenue to the state  and local government.                                                               
She also  noted that her  distillery could expand her  staff from                                                               
four to  six or  seven employees  if she has  a tasting  room. In                                                               
addition, her  distillery uses all  Alaskan or U.S. goods.   Last                                                               
year  she paid  $28,000 in  shipping  to one  company in  Alaska.                                                               
This industry  has been viable  and is  growing and she  hopes it                                                               
will  to  continue  to  grow.    The  distillery  uses  renewable                                                               
resources, including  grain and water  and donates spent  mash to                                                               
chicken farmers.  She also  employs a veteran.  Distilled spirits                                                               
are one  of the main products  that can easily be  exported, at a                                                               
profit,  to the  Lower  48  and internationally.    In fact,  her                                                               
products  are requested  internationally.   She also  highlighted                                                               
key  successes  in  hand  crafted   spirits,  noting  the  Kenai-                                                               
Peninsula has shown overwhelming  support towards the distillery.                                                               
She reported that High Mark  Distillery has been chosen two years                                                               
in a row  for people's choice awards at the  "Taste of the Kenai"                                                               
event and  was selected as Wells  Fargo's successful entrepreneur                                                               
of the  year for 2013.   The  Haines Chilkoot Distillery  and the                                                               
High  Mark   Distillery  were  chosen   by  the   small  business                                                               
development center  as success stories  for 2014.  She  said this                                                               
industry is  a highly motivated one  that has proven to  bring in                                                               
income and  create jobs.   Many  non-profits have  mentioned they                                                               
depend on  her distillery's contributions  to sustain them.   She                                                               
concluded by  mentioning letters  of support in  members' packets                                                               
from  many  organizations.    She  urged  members  to  allow  the                                                               
distilleries to use the "Buy Alaska" stamp.                                                                                     
                                                                                                                                
3:44:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  asked  whether   anyone  has  talked  to                                                               
Mothers against Drunk Driving.                                                                                                  
                                                                                                                                
REPRESENTATIVE TUCK  answered no; but  commented that he  has not                                                               
had any push back so far.                                                                                                       
                                                                                                                                
3:44:40 PM                                                                                                                    
                                                                                                                                
DALE  FOX, President  & CEO,  Alaska Cabaret,  Hotel, Restaurant,                                                               
and Retailer's  Association (CHARR),  testified in support  of HB                                                               
309, noting the CHARR's  government affairs committee unanimously                                                               
supported the  intent of HB  309 to help the  Alaska distilleries                                                               
and  to  give them  the  same  rights  that  have been  given  to                                                               
breweries  and wineries.   He  complimented the  sponsor and  the                                                               
distilleries for doing a great  job on outreach and communicating                                                               
with  all of  the parties  to ensure  that the  bill had  all the                                                               
needed elements.   He characterized the bill as a  good bill that                                                               
is worthy of members' support.                                                                                                  
                                                                                                                                
3:45:38 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 309.                                                                                     
                                                                                                                                
CHAIR  OLSON  removed his  objection.    There being  no  further                                                               
objection, Version Y was before the committee.                                                                                  
                                                                                                                                
REPRESENTATIVE JOSEPHSON  said it seems  like a good bill  and it                                                               
is a niche  that could be enhanced for this  type of opportunity.                                                               
He suggested the committee support it.                                                                                          
                                                                                                                                
3:46:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked to put a  question on the record.  He                                                               
recalled that  a distillery sells  its products at  the Anchorage                                                               
Airport.   He assumed  that this  would not be  a place  at which                                                               
samples could be given.                                                                                                         
                                                                                                                                
REPRESENTATIVE TUCK was unsure if  the bill limits location, that                                                               
if the  distillery is  licensed and  wishes to  dispense products                                                               
they could do so.                                                                                                               
                                                                                                                                
REPRESENTATIVE MILLETT said she likes the bill.                                                                                 
                                                                                                                                
REPRESENTATIVE TUCK  clarified that the distillery  is limited to                                                               
spirits.                                                                                                                        
                                                                                                                                
3:47:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to  report the  proposed committee                                                               
substitute  (CS) for  HB  309,  labeled 28-LS0698\Y,  Strasbaugh,                                                               
3/16/14,   as  amended,   out   of   committee  with   individual                                                               
recommendations and  the accompanying  fiscal note.   There being                                                               
no  objection, the  CSHB  309(L&C) was  reported  from the  House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
3:48:09 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:48 p.m. to 3:50 p.m.                                                                       
                                                                                                                                
                 HB 152-PERS TERMINATION COSTS                                                                              
                                                                                                                                
3:50:22 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the  next order of business  would be                                                               
HOUSE  BILL NO.  152,  "An Act  requiring  certain employers  who                                                               
terminate participation  in the  defined benefit  retirement plan                                                               
or  the  defined  contribution  retirement  plan  of  the  Public                                                               
Employees'  Retirement System  to make  contributions related  to                                                               
past  service liability  and pay  termination costs;  repealing a                                                               
requirement  that employers  who terminate  participation in  the                                                               
defined  contribution  retirement  plan or  the  defined  benefit                                                               
retirement plan  of the Public  Employees' Retirement  System pay                                                               
for  a termination  cost study;  and providing  for an  effective                                                               
date."                                                                                                                          
                                                                                                                                
3:50:29 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  explained the  committee heard  this bill  last year                                                               
and had hearings  on March 5, March  10 and March 19,  2014.  The                                                               
committee adopted  a proposed committee substitute  (CS), Version                                                               
Y, on March 10, 2014, and took public testimony.                                                                                
                                                                                                                                
3:50:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  STEVE  THOMPSON,  Alaska  State  Legislature,  as                                                               
prime sponsor of HB 152, stated  that he is very passionate about                                                               
this bill.   He said passage  of HB 152 would  mean viability and                                                               
existence for many  small communities and villages  in the state.                                                               
He emphasized  that the state has  experienced declining revenues                                                               
with  less revenue  sharing.   He  explained  that with  layoffs,                                                               
termination studies add to the  debt.  For example, the community                                                               
of Galena pays over $20,000 per  month for debt and it means this                                                               
small community has less money to  keep people employed.  He said                                                               
he doesn't want to see the communities go bankrupt.                                                                             
                                                                                                                                
3:53:21 PM                                                                                                                    
                                                                                                                                
SALLIE  STUVEK, Human  Resources Director,  Fairbanks North  Star                                                               
Borough (FNSB), asked to testify in  support of HB 152.  She said                                                               
the FNSB believes that infusing  money into the unfunded PERS and                                                               
TRS  system  will  save  the   state  and  municipalities  future                                                               
contributions.    Prefunding  will   allow  the  FNSB  to  reduce                                                               
contributions in future years and  allow for interest earnings to                                                               
be utilized now,  increasing the funding ratio  for both systems.                                                               
In  addition, the  repeal of  the  termination study  requirement                                                               
will allow municipal  employers necessary operational flexibility                                                               
to manage their programs and  services.  Municipalities should be                                                               
able   to  adjust   their  workforce   without  concern   for  an                                                               
administrative  decision  today  having  long  lasting  financial                                                               
impacts to the municipality's PERS  liability.  She reported that                                                               
the  FNSB  assembly passed  a  resolution  on January  30,  2014,                                                               
supporting this and reiterated the FNSB's support of HB 152.                                                                    
                                                                                                                                
3:54:53 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 152.                                                                                     
                                                                                                                                
3:55:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  referred to  the 4/2/14 fiscal  note and                                                               
asked for clarification.                                                                                                        
                                                                                                                                
JANE PIERSON, Staff, Representative  Steve Thompson, Alaska State                                                               
Legislature referred  to a  March 4, 2014,  fiscal note  from the                                                               
Department of Administration that  is indeterminate; however, the                                                               
last line on page 2 of  the fiscal note reads, "Termination costs                                                               
would be approximately $75,000,000."                                                                                            
                                                                                                                                
REPRESENTATIVE REINBOLD said the fiscal note is $75 million.                                                                    
                                                                                                                                
MS. PIERSON agreed that is correct.   She said it assumes that 20                                                               
percent of the workforce would be laid off.                                                                                     
                                                                                                                                
3:56:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  expressed   concern  that  this  could                                                               
increase local  government contributions.   He  expressed further                                                               
concern that  it will grow  unfunded liability.   He acknowledged                                                               
the  problem  exists  for  small communities,  which  is  why  he                                                               
thought the  original version  of the  bill was  more compelling.                                                               
He  understood the  need  to  privatize the  work  force, but  he                                                               
remains  concerned about  what happened  in  the Municipality  of                                                               
Anchorage last year.   Yesterday an election  result was arguably                                                               
a referendum on  last year's events, although the  results of the                                                               
election are  not yet clear.   He highlighted his  concerns about                                                               
unnecessarily privatizing the public sector  since it can be more                                                               
responsive to  public need  than the private  sector since  it is                                                               
difficult to  know who to  direct a  complaint to in  the private                                                               
sector.  He acknowledged that this  issue is complicated.  He was                                                               
unsure  whether Version  Y is  the right  mechanism, particularly                                                               
since it is  vastly different from the original version.   He did                                                               
not think he would recommend its passage.                                                                                       
                                                                                                                                
3:59:01 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON offered  his belief  that it  is important  to bring                                                               
forth the issue to the public;  however, with such a large fiscal                                                               
impact he  wondered if  it would  have a tough  time in  the next                                                               
committee of referral.                                                                                                          
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   acknowledged   that   Representative                                                               
Thompson was previously  a city mayor, which provides  him with a                                                               
unique perspective.                                                                                                             
                                                                                                                                
REPRESENTATIVE THOMPSON provided some  history, noting that years                                                               
ago the state went to  villages, communities, and boroughs to ask                                                               
them to  join in  the retirement system  to enhance  their hiring                                                               
ability, stabilize  the retirement benefit package,  and become a                                                               
tool for  communities.  He said  most joined and it  was good for                                                               
communities until the state discovered  its actuary misquoted the                                                               
debt.    The  state  outlined  the  percentage  of  payment,  and                                                               
communities  complied.   Through  no fault  of  their own,  these                                                               
communities have  been assessed  a portion of  unfunded liability                                                               
that is  detrimental to  the future of  some of  the communities.                                                               
He hoped that the state and  governor would provide a PERS fix to                                                               
address  the unfunded  liability;  however, in  the meantime  the                                                               
state could lose  small communities.  He said that  if 20 percent                                                               
of  the employees  were  all laid  off, it  could  result in  $75                                                               
million.    Some  communities  are  not  closing  departments  or                                                               
terminating employees  because they can't afford  the termination                                                               
costs.   He  characterized this  as being  a big  problem and  he                                                               
reiterated the importance of not losing communities.                                                                            
                                                                                                                                
4:01:54 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON said that this has been an issue for several years.                                                                 
                                                                                                                                
REPRESENTATIVE  HERRON  concurred with  Representative  Thompson.                                                               
He  said  that  the  choice has  negative  connotations,  but  he                                                               
emphasized the importance of protecting the "little people."                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD pointed out she  knows where to go in the                                                               
private sector.  She offered  her belief that businesses are very                                                               
responsive.  She thanked the sponsor for bringing this issue up.                                                                
                                                                                                                                
4:03:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  moved to  report the  proposed committee                                                               
substitute (CS)  for HB 152, labeled  28-LS-272\Y, Wayne, 2/26/14                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying fiscal  notes.  There  being no objection,  the CSHB                                                               
152(L&C) was reported from the  House Labor and Commerce Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
4:03:41 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:03 p.m. to 4:04 p.m.                                                                       
                                                                                                                                
             HB 160-LICENSING OF ATHLETIC TRAINERS                                                                          
                                                                                                                                
4:04:59 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
HOUSE  BILL  NO. 160,  "An  Act  relating  to the  licensing  and                                                               
regulation of athletic trainers."                                                                                               
                                                                                                                                
4:05:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   STEVE   THOMPSON,  Alaska   State   Legislature,                                                               
speaking  as sponsor,  stated  that HB  160  would amend  current                                                               
statutes  to  establish  licensing  and  regulation  of  athletic                                                               
trainers  in Alaska.   He  explained that  athletic trainers  are                                                               
health  care professionals  who  collaborate  with physicians  to                                                               
ensure the  practice of  sports medicine clients.   He  said that                                                               
this  profession  plays a  significant  role  in the  management,                                                               
prevention, recognition,  and rehabilitation of  injured athletes                                                               
under the  supervision of a  licensed physician.  Trainers  are a                                                               
vital resource in administrating  injury prevention and treatment                                                               
programs as well  as immediate emergency care for  the support in                                                               
the athletic  community.  He reported  that Alaska is one  of two                                                               
states without licensure  of athletic trainers.   He related that                                                               
HB  160 will  require  athletic  trainers to  have  a license  to                                                               
practice  in the  state and  will  hold them  accountable to  the                                                               
rigorous  standards of  the Board  of Certification,  Inc. (BOC),                                                               
which  is  a  national  agency created  to  certify  health  care                                                               
professionals and assure  protection of the public.   As Alaskans                                                               
become  increasingly active,  the need  for properly  trained and                                                               
licensed athletic trainers becomes imperative.                                                                                  
                                                                                                                                
4:06:40 PM                                                                                                                    
                                                                                                                                
BRODIE  ANDERSON, Staff,  Representative  Steve Thompson,  Alaska                                                               
State Legislature,  provided a section-by-section analysis  of HB                                                               
160.   He  stated that  Section 1  would add  a new  paragraph to                                                               
license athletic  trainers.  Section  2 would add a  new chapter,                                                               
chapter  7, for  athletic trainers,  AS 08.07.010,  outlining the                                                               
licensing requirements and exemptions.                                                                                          
                                                                                                                                
MR.  ANDERSON  referred to  a  new  section, AS  08.07.020,  that                                                               
identifies  the qualifications,  fees,  and  renewal process  for                                                               
athletic trainers.  He said that  AS 08.07.030 adds a new section                                                               
that identifies the scope of  practice for athletic trainers.  He                                                               
identified  that  AS  08.07.040   outlines  the  regulations  for                                                               
athletic trainers  that the  department will need  to adopt.   He                                                               
stated that  AS 08.07.049 provides  definitions and  AS 09.65.300                                                               
inserts athletic trainers to the list of health care providers.                                                                 
                                                                                                                                
MR.  ANDERSON explained  the final  two sections,  Sec. 4  and 5,                                                               
amends   AS  47.17.290   (13)  adds   an   athletic  trainer   to                                                               
"practitioner  of the  healing arts"  and adds  a new  section of                                                               
uncodified law outlining the applicability of the bill.                                                                         
                                                                                                                                
4:08:41 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HERRON asked for  the catalyst for introducing the                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  THOMPSON  answered  that some  athletic  trainers                                                               
asked  him   to  assist  them  in   obtaining  certification  and                                                               
licensure since 48 states currently offer it.                                                                                   
                                                                                                                                
4:09:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   HERRON  asked   whether  any   recent  incidents                                                               
highlight the need for the bill due to lack of skills.                                                                          
                                                                                                                                
REPRESENTATIVE THOMPSON  said that  he is aware  of some  but did                                                               
not have sufficient information to discuss.                                                                                     
                                                                                                                                
MR. ANDERSON  anticipated testimony by Lynn  Young, Treasurer for                                                               
the Alaska  Athletic Trainers  Association (AATA).   He  said the                                                               
Association came  forward since Alaska  is one of the  few states                                                               
that don't regulate athletic trainers.   Concerns have previously                                                               
been expressed that people might  take a couple of online courses                                                               
and then hold themselves out as athletic trainers.                                                                              
                                                                                                                                
CHAIR  OLSON  answered that  this  concept  has  been a  work  in                                                               
progress for several years.   He commended the current version as                                                               
being "the cleanest" version to date.                                                                                           
                                                                                                                                
MR.  ANDERSON  explained  the  fiscal note  dated  3/28/14.    He                                                               
reported that in  FY 15 $48.1, and for each  consecutive year for                                                               
FY 16-20 at $5.0 thousand to establish the licensing program.                                                                   
                                                                                                                                
4:11:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CHENAULT asked  whether  adding athletic  trainer                                                               
costs associated  with injuries  will be  passed on  to insurance                                                               
companies.                                                                                                                      
                                                                                                                                
MR.  ANDERSON answered  that he  didn't know,  but he  offered to                                                               
check and report back to the committee.                                                                                         
                                                                                                                                
4:12:38 PM                                                                                                                    
                                                                                                                                
LYNN   YOUNG,  Secretary/Treasurer,   Alaska  Athletic   Trainers                                                               
Association (ATTA),  stated that  she is also  the chair  for the                                                               
governmental  affairs  committee  and  is  a  certified  athletic                                                               
trainer.    She  explained  that  athletic  trainers  are  highly                                                               
trained multi-skilled  professionals who  are part of  the allied                                                               
health  care profession.   She  reported  that athletic  trainers                                                               
work, collaborate,  and work under  the direction  of physicians.                                                               
She  stated  that  services provided  by  athletic  trainers  are                                                               
prevention,  emergency  care,  clinical  assessment,  therapeutic                                                               
intervention,   and  rehabilitation   of  injuries   and  medical                                                               
conditions.   Individuals  who wish  to become  athletic trainers                                                               
must  earn   a  degree  from  an   accredited  athletic  training                                                               
curriculum,  and  sit for  the  national  board of  certification                                                               
exam, and upon  passage can call themselves  a certified athletic                                                               
trainer.   Athletic  trainers must  adhere to  50 hours  biennial                                                               
continuing education  approved by the  national BOC, of  which 10                                                               
hours   must  be   part  of   an   evidenced  based   curriculum.                                                               
Additionally,   athletic   trainers   must   obtain   a   current                                                               
certification  in  emergency  cardiac  care at  a  minimum  of  a                                                               
professional rescuer  level or above.   She reported  that Alaska                                                               
is one of  two states to not yet license  athletic trainers.  She                                                               
indicated that  the trainers  are proactive  in asking  for this.                                                               
She was not aware of any  improper behavior; however, they do not                                                               
want to wait  [until an issue occurs] and be  reactive.  In 2011,                                                               
athletic  trainers also  testified  on HB  15,  which relates  to                                                               
concussions, and  athletic trainers  are one  of the  health care                                                               
providers who  can assist with  the prevention,  recognition, and                                                               
proper care  of concussions.   Due  to the  severity and  risk of                                                               
concussions,  athletic  trainers  do   not  want  anyone  holding                                                               
themselves out to  be an athletic trainer and  putting school age                                                               
children  at  risk.    She urged  members  to  regulate  athletic                                                               
trainers to  ensure at a  minimum that people  calling themselves                                                               
athletic trainers have the basic education and qualifications.                                                                  
                                                                                                                                
4:16:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MILLETT  asked  which  sports  have  the  highest                                                               
incidence of concussions.                                                                                                       
                                                                                                                                
MS. YOUNG answered  that football has the  highest incidence, and                                                               
she  added girls'  soccer, boys'  soccer, girls'  basketball, and                                                               
boys' basketball; however, not enough  data exists for ice hockey                                                               
since  not every  state has  ice hockey  programs.   She surmised                                                               
that ice hockey probably would rank as high as football.                                                                        
                                                                                                                                
4:16:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MILLETT asked whether  helmet design has improved,                                                               
if they are helpful, or if it is just the nature of sports.                                                                     
                                                                                                                                
MS. YOUNG  answered that helmets  are "marketed,"  as concussion-                                                               
proof; however, the anatomy of the  brain is such that it sits in                                                               
fluid and nothing can prevent  concussions.  She noted that skull                                                               
fractures or structural problems can  be minimized, but the brain                                                               
will slosh  against the skull,  which can cause  concussions when                                                               
injured.  She offered her  belief that "concussion proof" helmets                                                               
help prevent  skull fractures  help but  they will  not eliminate                                                               
the risk of concussions.                                                                                                        
                                                                                                                                
4:17:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  asked for examples of  what an athletic                                                               
trainer does.                                                                                                                   
                                                                                                                                
MS.  YOUNG explained  that the  traditional setting  for athletic                                                               
trainers is on  the sidelines of sporting events.   Some military                                                               
and other employers hire athletic  trainers to minimize injuries.                                                               
She stated  that athletic trainers provide  education and provide                                                               
emergency  health care  and assess  whether  the treatment  falls                                                               
within their  scope of practice.   Athletic trainers  can provide                                                               
post-surgery therapeutic exercises  and provide rehabilitation to                                                               
safely return them to their sports activities.                                                                                  
                                                                                                                                
4:19:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked why  California does not currently                                                               
have regulation for licensed athletic trainers.                                                                                 
                                                                                                                                
MS.  YOUNG  answered   that  California  is  a   big  state  with                                                               
significant licensure  of professions so  the state is  trying to                                                               
figure out  the athletic trainer's role.   She said that  she has                                                               
held discussions with  California's governmental affair's agency,                                                               
and their director  indicated that it is in part  due to the size                                                               
of the state, but also due to the politics involved.                                                                            
                                                                                                                                
4:20:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked her to  discuss the national BOC and                                                               
the relationship  to athletic trainers  and if the  BOC certifies                                                               
other professions.                                                                                                              
                                                                                                                                
MS. YOUNG  answered that the  BOC is  the board for  the national                                                               
Athletic  Trainers'  Association.   It  regulates  and  certifies                                                               
athletic trainers  and ensures  that competencies  are met.   The                                                               
BOC  establishes the  basic educational  and clinical  components                                                               
necessary to show  competency in order for applicants  to sit for                                                               
the  exam.   The BOC  outlines  the practice  standards, code  of                                                               
professional responsibility,  ethics, and  establishes continuing                                                               
education.     Athletic  trainers  must  maintain   50  hours  of                                                               
continuing education biennially and  the DOC assesses, documents,                                                               
and  certifies   the  athletic   trainers  have   met  continuing                                                               
education.                                                                                                                      
                                                                                                                                
4:21:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  asked how this bill  will affect athletic                                                               
trainer's income or reimbursement rate.                                                                                         
                                                                                                                                
MS.  YOUNG answered  it probably  will  not have  much impact  in                                                               
terms  of insurance  and  fees,  but HB  160  will improve  youth                                                               
safety.    She  related  that  currently  athletic  trainers  are                                                               
looking nationally  at reimbursement,  but she thought  that will                                                               
take  years  to  implement.   Currently,  athletic  trainers  are                                                               
employed  by schools,  orthopedic  groups, or  hospitals to  help                                                               
ensure safety of their clients.   She said some athletic trainers                                                               
work  in the  capacity  of physician  extenders  so the  athletic                                                               
trainer services would be billed  similar to a medical assistant,                                                               
under the license of a physician.                                                                                               
                                                                                                                                
4:22:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD  related her own experience  when her son                                                               
played football.   She said  she bought an  expensive concussion-                                                               
proof  helmet, but  her son  suffered a  concussion anyway.   She                                                               
asked if there was a website parents can go to for information.                                                                 
                                                                                                                                
MS.  YOUNG answered  that some  sites,  such as  the centers  for                                                               
disease  control and  the  national  athletic trainers'  websites                                                               
acknowledged  that  good  helmets  decrease  the  risk  of  skull                                                               
fractures, but they  do not endorse statements  that helmets will                                                               
prevent  concussions.     She  acknowledged   that  unfortunately                                                               
marketing will make  claims; however, she said it  is likely that                                                               
she decreased  a worst-case scenario,  in which her son  may have                                                               
avoided a skull fracture.                                                                                                       
                                                                                                                                
4:24:56 PM                                                                                                                    
                                                                                                                                
SARA  CHAMBERS,  Director,  Professional Licensing,  Division  of                                                               
Corporations,  Business, and  Professional Licensing,  Department                                                               
of Commerce, Community, & Economic  Development (DCCED), asked to                                                               
discuss the fiscal note and  the basic process of licensing fees.                                                               
She said that the fiscal note  estimates $180 for the first year,                                                               
followed by $100-$150 per year for an biennial license fee.                                                                     
                                                                                                                                
4:27:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER asked whether  any economy of scale exists                                                               
to set up two boards at the same time.                                                                                          
                                                                                                                                
MS. CHAMBERS answered that she  would need to ponder it; however,                                                               
AS 08.01.065 dictates how the  division sets licensing fees.  She                                                               
explained that this  statute requires each cost must  be borne by                                                               
the licensees.  She described it  as a fairly rigorous process to                                                               
identify costs  that directly support  individual programs.   She                                                               
suggested it  is unlikely there  would be substantial  savings to                                                               
do so.                                                                                                                          
                                                                                                                                
4:28:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER  remarked   that  several  new  licensing                                                               
programs are likely headed her way.                                                                                             
                                                                                                                                
MS.  CHAMBERS  answered that  it  is  possible potential  savings                                                               
could  occur if  multiple  licensing programs  share  work.   She                                                               
offered to check into it for the committee.                                                                                     
                                                                                                                                
4:28:52 PM                                                                                                                    
                                                                                                                                
CARY KELLER,  Orthopedic Surgeon, stated  that he has  offices in                                                               
Fairbanks  and  Sitka.    He  said  that  he  probably  has  more                                                               
experience than anyone  in Alaska in terms  of athletic trainers.                                                               
He  related that  he has  cared  for collegiate  and high  school                                                               
athletes  and has  worked  closely with  athletic  trainers.   He                                                               
currently  is the  chair of  Alaska State  Activities Association                                                               
Sports Medicine  advisory committee and he  has served nationally                                                               
on  the  National Federation  of  High  Schools' sports  medicine                                                               
advisory committee.   He explained  that the  national federation                                                               
is the  National Collegiate Athletic  Association (NCAA)  of high                                                               
school sports.   He  indicated that  he is  a former  trustee and                                                               
fellow of the  American College of Sports Medicine.   He has also                                                               
served  as  the  team  physician for  the  University  of  Alaska                                                               
Fairbanks  and  for  the  schools in  the  Fairbanks  North  Star                                                               
Borough  School District  for 30  years.   He offered  his belief                                                               
that  athletic trainers  are incredibly  important in  the school                                                               
setting and also a tremendous  help to persons outside the school                                                               
setting.    It has  become  increasingly  clear that  the  public                                                               
schools and  university have  responsibility to  student athletes                                                               
to help prevent injuries, evaluate  injuries when they occur, and                                                               
to  care  for those  injuries  -  both  the  acute care  and  the                                                               
rehabilitation as  Ms. Young  described.   He offered  his belief                                                               
that it  has been  clear since the  months following  the state's                                                               
passage  of  concussion  legislation   that  schools  are  poorly                                                               
prepared  to  take  on  the  responsibility  in  the  absence  of                                                               
athletic trainers  in the schools.   Therefore, the AATA  and the                                                               
schools have  worked together to  establish protocols  for taking                                                               
care of and protecting concussed athletes.                                                                                      
                                                                                                                                
4:31:53 PM                                                                                                                    
                                                                                                                                
DR. KELLER offered  his belief that the schools that  do the best                                                               
job with  concussions are ones  with athletic trainers  and other                                                               
schools have  difficulty finding  substitutes.  He  suggested the                                                               
best substitute  is the school  nurse.  Concussions are  just one                                                               
example  since athletes  obtain all  kinds of  injuries, and  the                                                               
schools are poorly prepared to take  care of all of the injuries.                                                               
He recalled that  in the 1980s he performed a  study in Alaska of                                                               
all  injuries  in two  seasons  in  the  FNSBSD.   Once  athletic                                                               
trainers were added  another study was conducted  over two years.                                                               
He concluded  that with the  presence of athletic trainers,  a 70                                                               
percent  reduction  of  injuries   happened  and  the  associated                                                               
medical costs  decreased by 50  percent.  He said  the statistics                                                               
emphasize  the value  of the  athletic trainers.   He  has worked                                                               
closely with  ASAA, and  its board  passed a  motion recommending                                                               
all schools  have athletic trainers and  they further recommended                                                               
that  the University  of  Alaska develop  a  curriculum to  train                                                               
athletic  trainers  to   meet  the  needs  of  the   state.    He                                                               
complimented the sponsor and encouraged passage of HB 160.                                                                      
                                                                                                                                
4:34:33 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER DEAN,  Certified Athletic Trainer;  President, Alaska                                                               
Athletic  Trainers Association  (AATA), thanked  members for  the                                                               
opportunity  to  address  the   committee.    He  explained  that                                                               
athletic trainers are allied health  care professionals who serve                                                               
communities  at many  levels, including  youth competitive  teams                                                               
through  high  school,   collegiate,  and  professional  athletic                                                               
teams.   He reiterated  that Alaska and  California are  the only                                                               
states that do not license athletic  trainers.  He asked the 49th                                                               
state to  be the 49th state  to pass licensure.   He acknowledged                                                               
that some confusion exists between  personal trainer and athletic                                                               
trainers.    He   said  Ms.  Young  has   highlighted  the  role,                                                               
qualifications, and  duties of athletic trainers.   He emphasized                                                               
that athletic trainers are not personal trainers.                                                                               
                                                                                                                                
MR. DEAN offered  his belief that the  greatest consideration for                                                               
licensure is public  safety.  He recalled that House  Bill 15 was                                                               
enacted in  2011 and  specifically named  athletic trainers  as a                                                               
qualified  health  care provider  who  can  evaluate, manage  and                                                               
treat  concussions; however,  currently in  Alaska, anyone  could                                                               
call  his/herself   an  athletic  trainer.     The  Alaska  State                                                               
Activities  Association (ASAA),  the  Anchorage School  District,                                                               
and  the  FNSB  School  District  have  worked  hard  to  promote                                                               
concussion   education  and   awareness  and   identify  athletic                                                               
trainers as a  qualified health care provider  to treat concussed                                                               
student athletes.   Further, a parent, student,  and coach should                                                               
be assured that  the athletic trainer is a  certified trainer and                                                               
has  the necessary  education and  competency to  provide quality                                                               
health care.   Earlier, a  question was asked about  any negative                                                               
events  in Alaska  regarding  athletic trainers.    He related  a                                                               
scenario  in   which  a  14-year-old   student  who   suffered  a                                                               
concussion that  took 3.5 weeks  to heal.  The  student completed                                                               
the  return-to-play  protocol  as   defined  by  ASAA,  which  is                                                               
standard  in   the  medical  community   and  returned   to  full                                                               
participation  on a  Wednesday.   He  played  again and  suffered                                                               
another concussion, was helped off  the field by the coaches, and                                                               
sat on the  sideline in pain for  30 minutes.  At the  end of the                                                               
game the mother was informed that  her son was simply scared, but                                                               
the coach insisted  her son did not have a  concussion.  Although                                                               
she  asked  whether  the  coach   was  an  athletic  trainer  and                                                               
qualified to  make the determination and  he said he was,  he was                                                               
not.    The scenario  highlights  an  instance in  which  someone                                                               
represented himself  incorrectly and placed a  student athlete at                                                               
risk, he said.                                                                                                                  
                                                                                                                                
4:39:06 PM                                                                                                                    
                                                                                                                                
MR.  DEAN,  in response  to  an  earlier question,  related  that                                                               
insurance  billing   is  an  area   he  would  like   to  pursue.                                                               
Currently,  athletic trainers  cannot bill  because they  are not                                                               
licensed  providers.   He  said  his  number one  priority  after                                                               
obtaining licensure  will be to  ask insurers to  recognize them,                                                               
as other states have, to  identify them as health care providers.                                                               
In further  response to a  question on  employment opportunities,                                                               
he   indicated   one   physical  therapist's   office   has   the                                                               
authorization to  hire five athletic  trainers once this  bill is                                                               
passed.  He  emphasized that this bill will help,  and he thanked                                                               
members for the opportunity to testify.                                                                                         
                                                                                                                                
4:40:24 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  REINBOLD  surmised  that injuries  likely  happen                                                               
more often  since coaches need players  to win and may  not "have                                                               
the  will" to  identify the  injury.   She suggested  that it  is                                                               
better  to have  a more  objective person  make these  decisions.                                                               
She thanked him for his testimony.                                                                                              
                                                                                                                                
CHAIR  OLSON,  after first  determining  no  one else  wished  to                                                               
testify, closed public testimony on HB 160.                                                                                     
                                                                                                                                
4:41:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE REINBOLD moved  to report HB 160  out of committee                                                               
with  individual  recommendations  and  the  accompanying  fiscal                                                               
notes.   There being no objection,  HB 160 was reported  from the                                                               
House Labor & Commerce Standing Committee.                                                                                      
                                                                                                                                
4:41:43 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:41 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB309 ver C.PDF HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Sponsor Statement.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Draft Proposed Blank CS ver Y.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Summary of Changes ver C to Ver Y.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Draft Proposed Amendment ver Y.1.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Draft Proposed Amendment ver Y.2.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Supporting Documents-Assorted Letters.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Supporting Documents-News Articles-Assorted.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB309 Fiscal Note-DCCED-ABC-03-27-14.pdf HL&C 4/2/2014 3:15:00 PM
HB 309
HB160 ver O.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Sponsor Statement.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Sectional Analysis.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Fiscal Note-DCCED-CBPL-03-28-14.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Supporting Documents- Athletic Trainer Profession Sheet.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Supporting Documents- Athletic Trainers Fact Sheet.pdf HL&C 4/2/2014 3:15:00 PM
HB 160
HB160 Supporting Documents-Assorted Letters.pdf HL&C 4/2/2014 3:15:00 PM
HB 160