Legislature(2015 - 2016)BARNES 124

04/15/2015 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 4:45 p.m. Today --
+= HB 12 MORTGAGE LENDING AND LOAN ORIGINATORS TELECONFERENCED
Moved CSHB 12(L&C) Out of Committee
+= SB 47 LIFE INSURANCE/ANNUITY EXEMPTIONS TELECONFERENCED
Heard & Held
+= SB 71 VACCINE CERTIFICATION FOR PHARMACISTS TELECONFERENCED
Moved SB 71 Out of Committee
*+ HB 159 HEALTH CARE RETAINER; INSURANCE EXEMPT TELECONFERENCED
Heard & Held
*+ HB 185 ALCOHOLIC BEVERAGE CONTROL TELECONFERENCED
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
           HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 15, 2015                                                                                         
                            4:47 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Kurt Olson, Chair                                                                                                
Representative Shelley Hughes, Vice Chair                                                                                       
Representative Jim Colver                                                                                                       
Representative Gabrielle LeDoux                                                                                                 
Representative Cathy Tilton                                                                                                     
Representative Andy Josephson                                                                                                   
Representative Sam Kito                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Mike Chenault (alternate)                                                                                        
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 12                                                                                                               
"An Act relating  to mortgage lending, mortgage  loan originators,                                                              
depository  institutions, nonprofit  organizations, and  nonprofit                                                              
organization employees; and providing for an effective date."                                                                   
                                                                                                                                
     - MOVED CSHB 12(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
HOUSE BILL NO. 159                                                                                                              
"An Act exempting  certain health care agreements  from regulation                                                              
as insurance."                                                                                                                  
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 185                                                                                                              
"An  Act  relating   to  alcoholic  beverages;  relating   to  the                                                              
regulation  of   manufacturers,  wholesalers,  and   retailers  of                                                              
alcoholic  beverages;  relating  to  licenses,  endorsements,  and                                                              
permits involving  alcoholic beverages; relating to  the Alcoholic                                                              
Beverage Control  Board; relating to offenses  involving alcoholic                                                              
beverages; relating  to the offense  of minor consuming;  relating                                                              
to  revocation  of  a  driver's  license  for  a  minor  consuming                                                              
offense; relating  to the effect  of the revocation of  a driver's                                                              
license  for  a  minor  consuming   offense  on  a  motor  vehicle                                                              
liability  insurance  policy;  and   providing  for  an  effective                                                              
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 71                                                                                                              
"An Act relating to the practice of pharmacy; and relating to                                                                   
the   administration    of   vaccines   and    related   emergency                                                              
medications."                                                                                                                   
                                                                                                                                
     - MOVED SB 71 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 47                                                                                                              
"An Act relating to exemptions for cash surrender values,                                                                       
accrued dividends, and loan values of life insurance and annuity                                                                
contracts."                                                                                                                     
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 12                                                                                                                   
SHORT TITLE: MORTGAGE LENDING AND LOAN ORIGINATORS                                                                              
SPONSOR(s): REPRESENTATIVE(s) HUGHES                                                                                            
                                                                                                                                
01/21/15       (H)       PREFILE RELEASED 1/9/15                                                                                
01/21/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/21/15       (H)       L&C                                                                                                    
04/13/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/13/15       (H)       Heard & Held                                                                                           
04/13/15       (H)       MINUTE(L&C)                                                                                            
04/15/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 159                                                                                                                  
SHORT TITLE: HEALTH CARE RETAINER; INSURANCE EXEMPT                                                                             
SPONSOR(s): REPRESENTATIVE(s) KELLER                                                                                            
                                                                                                                                
03/23/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/23/15       (H)       L&C                                                                                                    
04/15/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 185                                                                                                                  
SHORT TITLE: ALCOHOLIC BEVERAGE CONTROL                                                                                         
SPONSOR(s): REPRESENTATIVE(s) HERRON                                                                                            
                                                                                                                                
04/09/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/15       (H)       L&C, JUD                                                                                               
04/15/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB 71                                                                                                                   
SHORT TITLE: VACCINE CERTIFICATION FOR PHARMACISTS                                                                              
SPONSOR(s): SENATOR(s) GIESSEL BY REQUEST                                                                                       
                                                                                                                                
03/11/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/15       (S)       L&C                                                                                                    
03/17/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/17/15       (S)       Heard & Held                                                                                           
03/17/15       (S)       MINUTE(L&C)                                                                                            
03/19/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/19/15       (S)       Moved  SB 71 Out of Committee                                                                          
03/19/15       (S)       MINUTE(L&C)                                                                                            
03/20/15       (S)       L&C RPT 5DP                                                                                            
03/20/15       (S)       DP: COSTELLO, GIESSEL, MEYER, STEVENS,                                                                 
                         ELLIS                                                                                                  
03/20/15       (S)       FIN REFERRAL ADDED AFTER L&C                                                                           
04/02/15       (S)       FIN AT 1:30 PM SENATE FINANCE 532                                                                      
04/02/15       (S)       Heard & Held                                                                                           
04/02/15       (S)       MINUTE(FIN)                                                                                            
04/10/15       (S)       FIN RPT 4DP 1NR                                                                                        
04/10/15       (S)       DP:    MACKINNON,    MICCICHE,    BISHOP,                                                              
                         HOFFMAN                                                                                                
04/10/15       (S)       NR: DUNLEAVY                                                                                           
04/10/15       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/10/15       (S)       Moved  SB 71 Out of Committee                                                                          
04/10/15       (S)       MINUTE(FIN)                                                                                            
04/13/15       (S)       TRANSMITTED TO (H)                                                                                     
04/13/15       (S)       VERSION: SB  71                                                                                        
04/13/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (H)       L&C, FIN                                                                                               
04/15/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: SB 47                                                                                                                   
SHORT TITLE: LIFE INSURANCE/ANNUITY EXEMPTIONS                                                                                  
SPONSOR(s): SENATOR(s) COGHILL                                                                                                  
                                                                                                                                
02/11/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/11/15       (S)       L&C, JUD                                                                                               
02/26/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/26/15       (S)       Heard & Held                                                                                           
02/26/15       (S)       MINUTE(L&C)                                                                                            
03/03/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/03/15       (S)       Moved  SB 47 Out of Committee                                                                          
03/03/15       (S)       MINUTE(L&C)                                                                                            
03/04/15       (S)       L&C RPT 3DP                                                                                            
03/04/15       (S)       DP: GIESSEL, MEYER, STEVENS                                                                            
03/16/15       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/16/15       (S)       Heard & Held                                                                                           
03/16/15       (S)       MINUTE(JUD)                                                                                            
03/25/15       (S)       JUD AT 1:30 PM BUTROVICH 205                                                                           
03/25/15       (S)       Bills Previously Heard/Scheduled:                                                                      
03/30/15       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/30/15       (S)       -- Rescheduled from 3/25/15 --                                                                         
03/31/15       (S)       JUD RPT 3DP 1NR                                                                                        
03/31/15       (S)       DP: MCGUIRE, COSTELLO, COGHILL                                                                         
03/31/15       (S)       NR: WIELECHOWSKI                                                                                       
04/09/15       (S)       TRANSMITTED TO (H)                                                                                     
04/09/15       (S)       VERSION: SB  47                                                                                        
04/10/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/10/15       (H)       L&C                                                                                                    
04/15/15       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
GINGER BLAISDELL, Staff                                                                                                         
Representative Shelley Hughes                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Speaking on behalf of the prime sponsor,                                                                 
Representative Shelley Hughes, provided an overview of HB 12.                                                                   
                                                                                                                                
KEN TRUITT, Staff                                                                                                               
Representative Wes Keller                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the sponsor,                                                                      
Representative Wes Keller, during the discussion of HB 159.                                                                     
                                                                                                                                
REPRESENTATIVE WES KELLER                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified as prime sponsor of HB 159.                                                                    
                                                                                                                                
REPRESENTATIVE BOB HERRON                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions as prime                                                                
sponsor of HB 185.                                                                                                              
                                                                                                                                
JANE CONWAY, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified and answered questions on behalf                                                               
of the sponsor on SB 71, Senator Cathy Giessel.                                                                                 
                                                                                                                                
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified and answered questions as prime                                                                
sponsor of SB 71.                                                                                                               
                                                                                                                                
BARRY CHRISTENSEN, Co-Chair                                                                                                     
Alaska Pharmacists Association                                                                                                  
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of SB 71.                                                                           
                                                                                                                                
LIS HOUCHEN, Counsel; NW Regional Director                                                                                      
National Association of Chain Drugstores (NACD)                                                                                 
Arlington, Virginia                                                                                                             
POSITION STATEMENT:  Testified in support of SB 71.                                                                           
                                                                                                                                
RYAN RUGGLES, Pharmacist                                                                                                        
Carrs-Safeway                                                                                                                   
Sitka, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of SB 71.                                                                           
                                                                                                                                
GERMAN BAQUERO, Intern                                                                                                          
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified on behalf of the prime sponsor of                                                              
SB 47.                                                                                                                          
                                                                                                                                
RYNNIEVA MOSS, Staff                                                                                                            
Senator John Coghill                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the discussion of SB 47.                                                                
                                                                                                                                
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community, & Economic Development (DCCED)                                                               
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the discussion of                                                              
SB 47.                                                                                                                          
                                                                                                                                
MATTHEW BLATTMACHR, Vice-President & Trust Officer                                                                              
Alaska Trust Company                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of SB 47.                                                                
                                                                                                                                
LINDA HULBERT                                                                                                                   
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the discussion of SB 47.                                                                
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
4:47:10 PM                                                                                                                    
                                                                                                                                
CHAIR  KURT OLSON  called the  House Labor  and Commerce  Standing                                                            
Committee meeting  to order at 4:47 p.m.   Representatives Tilton,                                                              
LeDoux,  Kito, Hughes,  and  Olson  were present  at  the call  to                                                              
order.    Representatives  Josephson  and Colver  arrived  as  the                                                              
meeting was in progress.                                                                                                        
                                                                                                                                
           HB 12-MORTGAGE LENDING AND LOAN ORIGINATORS                                                                      
                                                                                                                                
4:47:40 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the first  order of business  would be                                                              
HOUSE BILL NO.  12 "An Act relating to mortgage  lending, mortgage                                                              
loan    originators,     depository    institutions,     nonprofit                                                              
organizations,   and   nonprofit   organization   employees;   and                                                              
providing for an effective date."                                                                                               
                                                                                                                                
4:48:44 PM                                                                                                                    
                                                                                                                                
GINGER  BLAISDELL, Staff,  Representative  Shelley Hughes,  Alaska                                                              
State Legislature,  speaking on  behalf of the  sponsor of  HB 12,                                                              
Representative  Hughes, offered  to give the  50,000 foot  version                                                              
of  this  bill.    By  changing   some  of  the  state's  statutes                                                              
regarding  mortgage licensing,  this  bill will  create an  equal-                                                              
playing  field for  mortgage brokers,  mortgage loan  originators,                                                              
and  a  similar  oversight  to  banks   or  registered  depository                                                              
institutions.                                                                                                                   
                                                                                                                                
4:49:21 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  said that  this bill  was originally  opposed  by the                                                              
Alaska  Bankers  Association, but  the  changes in  the  committee                                                              
substitute seemed to neutralize the opposition to the bill.                                                                     
                                                                                                                                
CHAIR OLSON,  after first  determining no  one wished to  testify,                                                              
closed public testimony on HB 12.                                                                                               
                                                                                                                                
4:49:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  TILTON  moved the  proposed  committee  substitute                                                              
(CS) for  HB 12,  labeled 29-LS0089\H,  Bannister, 4/10/15  out of                                                              
committee  with individual  recommendations  and the  accompanying                                                              
fiscal  notes.    There  being  no  objection,  CSHB  12(L&C)  was                                                              
reported from the House Labor and Commerce Standing Committee.                                                                  
                                                                                                                                
4:50:11 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 4:50 p.m. to 4:52 p.m.                                                                       
                                                                                                                                
          HB 159-HEALTH CARE RETAINER; INSURANCE EXEMPT                                                                     
                                                                                                                                
4:52:28 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that  the next order  of business  would be                                                              
HOUSE  BILL  NO.  159,  "An  Act  exempting  certain  health  care                                                              
agreements from regulation as insurance."                                                                                       
                                                                                                                                
4:53:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  WES KELLER,  Alaska State  Legislature, stated  he                                                              
served on  the Alaska Health  Commission in  2007.  He  has become                                                              
convinced that  health care reform  means that the market  must be                                                              
working.     This   bill   would   exempt  direct   primary   care                                                              
associations  from  the  Alaska   insurance  code  definitions  of                                                              
insurance.   The bill  would not  propose any  new regulations  or                                                              
incur  additional  expenses.    This   would  allow  primary  care                                                              
physicians  to  have  contractual   agreement  with  patients  for                                                              
primary  care services.   It would  remove the  third party  payer                                                              
since patients  would subscribe to  the primary care service.   He                                                              
characterized  it  as  the  doctor  being  one  call  away.    The                                                              
contracts would be  handled by existing law.  He  offered that the                                                              
positive  effects  of  this  bill  include  improved  quality  and                                                              
access  of care  that  patients would  have  with their  provider,                                                              
which could reduce  overall health care cost  since administrative                                                              
costs are  drastically reduced.   Further, the number  of patients                                                              
per  doctor  is   also  higher  than  the  current   system.    He                                                              
highlighted  that doctors often  have 15  minutes per patient  and                                                              
if one takes longer it can create stress for everyone.                                                                          
                                                                                                                                
4:57:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  thanked for bringing this  concept forward.                                                              
She asked  how reimbursement would  work for the patient  since it                                                              
will prohibit the provider from billing insurance.                                                                              
                                                                                                                                
KEN  TRUITT,  Staff,  Representative   Wes  Keller,  Alaska  State                                                              
Legislature, on  behalf of the  prime sponsor, Representative  Wes                                                              
Keller,  said the  concept behind  the  bill is  that it  wouldn't                                                              
change  any  existing  relationship.    Patients  can  still  seek                                                              
reimbursement for  their primary care costs,  including membership                                                              
into the primary care network.                                                                                                  
                                                                                                                                
4:58:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  asked whether  insurers will pay  a monthly                                                              
service fee  and if patient and  doctor contracts happen  in other                                                              
states.                                                                                                                         
                                                                                                                                
MR. TRUITT said he  was not certain.  The language  for HB 159 was                                                              
modeled  on legislation  that passed  in  Michigan.   He has  also                                                              
reviewed  other   states  that  have  primary   care  legislation,                                                              
including Utah.                                                                                                                 
                                                                                                                                
CHAIR OLSON  answered that  several bills  before the  legislature                                                              
this session are related to medical costs.                                                                                      
                                                                                                                                
4:58:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked for further clarification  on whether                                                              
this  bill  would  prohibit the  doctors  from  billing  insurance                                                              
companies.                                                                                                                      
                                                                                                                                
MR.  TRUITT  answered  yes;  that   the  concept  was  to  relieve                                                              
physicians  from dealing  with third-party  payers.  For  example,                                                              
he said  that billing manuals  for Blue  Cross was over  200 pages                                                              
and  showed several.    The benefit  from  the  provider would  be                                                              
payment via contract  with the patient and no longer  need to deal                                                              
with the third party payers.                                                                                                    
                                                                                                                                
5:00:00 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked for a copy of the manuals.                                                                                    
                                                                                                                                
REPRESENTATIVE KELLER offered to provide it.                                                                                    
                                                                                                                                
5:00:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  said that currently some doctors  hold down                                                              
fees  by not  billing insurance.   She  asked the  reason to  have                                                              
statutory  provisions  that  prohibit   doctors  from  billing  an                                                              
insurance  company since  doctors can  currently opt  not to  bill                                                              
insurance.   She said  it seemed to  interfere, which  didn't seem                                                              
like limited government to her.                                                                                                 
                                                                                                                                
REPRESENTATIVE  KELLER offered  to  provide the  logic from  other                                                              
states.                                                                                                                         
                                                                                                                                
5:01:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  asked which provider networks  would use this                                                              
program.   He asked  whether any  doctor's office  or company  was                                                              
seeking  an alternate  option  or if  it was  a  concept that  the                                                              
sponsor wanted to make available.                                                                                               
                                                                                                                                
REPRESENTATIVE  KELLER replied  he  did not  specifically know  of                                                              
anyone  although   he  has  doctor  friends  who   have  expressed                                                              
interest or  positively inclined.   He  said he became  acquainted                                                              
with  health care  agreements via  the  Alaska Health  Commission,                                                              
however, this type of contract is not currently available.                                                                      
                                                                                                                                
5:02:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO asked  whether  these  health care  agreement                                                              
contracts will  result in monthly fees  for patients or  a fee for                                                              
services.   He was unsure how  the patient would find  the billing                                                              
code and the amount of the procedure.                                                                                           
                                                                                                                                
REPRESENTATIVE KELLER  answered that this  bill does not  speak to                                                              
fees, but he  noted it would need  to be addressed.   He said this                                                              
bill  allows contracts  between  doctor and  their  patients.   He                                                              
surmised  that some  of  these  contracts or  subscriptions  might                                                              
even include  clauses for  visitor care.   For example,  a patient                                                              
might pay  a certain amount for  a subscription for  primary care,                                                              
which allows  visiting family or  friends to use the  service when                                                              
in town.   He  said that  in other  states the  rates have  ranged                                                              
from $80-$200 per month for these subscriptions.                                                                                
                                                                                                                                
5:04:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON asked  for the client  and patient  care                                                              
protections  that  might  be  given  up  in  terms  of  regulatory                                                              
protections in order to accrue the benefits.                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  answered  that  he  wasn't  aware  of  any                                                              
increased risk to patients.                                                                                                     
                                                                                                                                
5:04:55 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON offered  that the  sponsor may  continue work  during                                                              
the legislative interim.                                                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER said  that  the Division  of Insurance  has                                                              
indicated a willingness to work on this bill during the interim.                                                                
                                                                                                                                
5:05:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  noted  that  this  bill  doesn't  prohibit                                                              
doctors  from  billing   insurance,  but  the  process   would  be                                                              
addressed as  part of  the contract.   She recalled reading  about                                                              
these  services,  also  known  as  concierge  services,  in  which                                                              
people  pay $200-300  per month  to  have the  benefit of  private                                                              
physicians.    She  recalled  that  concierge  plans  have  become                                                              
popular in  California in order for  people to avoid  dealing with                                                              
Medicaid,  Medicare, and  the various  private  insurers.   Again,                                                              
she said,  it might  be difficult  if the  doctor doesn't  provide                                                              
billing information,  but some people might be  interested in this                                                              
to get a doctor's appointment.                                                                                                  
                                                                                                                                
5:06:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KELLER  said  many stories  are  available  online                                                              
that illustrate the benefits of this type of health care.                                                                       
                                                                                                                                
[HB 159 was held over.]                                                                                                         
                                                                                                                                
5:07:36 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 5:07 p.m. to 5:08 p.m.                                                                       
                                                                                                                                
5:08:23 PM                                                                                                                    
                                                                                                                                
                HB 185-ALCOHOLIC BEVERAGE CONTROL                                                                           
                                                                                                                                
CHAIR OLSON  announced that  the next order  of business  would be                                                              
HOUSE  BILL NO.  185,  "An Act  relating  to alcoholic  beverages;                                                              
relating  to the  regulation  of manufacturers,  wholesalers,  and                                                              
retailers   of   alcoholic  beverages;   relating   to   licenses,                                                              
endorsements,   and   permits   involving   alcoholic   beverages;                                                              
relating  to the  Alcoholic Beverage  Control  Board; relating  to                                                              
offenses involving  alcoholic beverages;  relating to  the offense                                                              
of minor consuming;  relating to revocation of  a driver's license                                                              
for  a minor  consuming offense;  relating  to the  effect of  the                                                              
revocation  of a driver's  license for  a minor consuming  offense                                                              
on a motor  vehicle liability insurance policy;  and providing for                                                              
an effective date."                                                                                                             
                                                                                                                                
5:09:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE BOB  HERRON, Alaska State Legislature,  stated that                                                              
HB 185 was the  Title 4, [AS 04] rewrite, noting  a companion bill                                                              
was  in  the  other  body.    He  said  that  Title  04  regulates                                                              
alcoholic  beverages   and  the  ABC  Board   [Alcoholic  Beverage                                                              
Control Board (ABC  Board)], its staff, and law  enforcement carry                                                              
out  these  laws.   These  statutes  haven't been  reviewed  since                                                              
1980, although  numerous updates have  occurred.  He  suggested it                                                              
was  time   for  a  review.     During  the  spring   2012,  sixty                                                              
stakeholders and  staff dedicated time to make  recommendations to                                                              
improve  the  structure,  organization,   the  policies,  and  the                                                              
implementation of  AS 04.   He listed stakeholders,  including the                                                              
alcohol   industry,   public   health,   local   government,   law                                                              
enforcement,  public  safety,  education,  the court  system,  and                                                              
community outreach sectors.                                                                                                     
                                                                                                                                
REPRESENTATIVE  HERRON  highlighted  two review  goals,  including                                                              
promoting  a  fair  business climate  and  protecting  health  and                                                              
public safety.   Further, the stakeholder wanted to  make Title 04                                                              
a  clear  and consistent  legal  framework  that  can be  used  by                                                              
licensees, the  ABC Board, and law  enforcement.  He  offered that                                                              
the  bill  consists  of a  comprehensive  packet  of  interrelated                                                              
proposals for revision.                                                                                                         
                                                                                                                                
5:10:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  agreed  the  report  would  make  a  stout                                                              
doorstop, but  this was the first  time all the  stakeholders have                                                              
looked at  how Title 4  can be improved.   He envisioned  that the                                                              
stakeholders will  look forward to  interim work and he  hoped the                                                              
legislature will pass this bill or the companion bill next year.                                                                
                                                                                                                                
5:10:59 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  said   he  would  be  looking  for  the                                                              
consensus and real "buy in" for the bill.                                                                                       
                                                                                                                                
REPRESENTATIVE  HERRON stated  his belief  that the  "buy in"  has                                                              
already happened.   He said he will continue to work  with all the                                                              
stakeholders,  noting the legislative  process brings  unusual and                                                              
unforeseen  circumstances and  influences.   He  offered that  the                                                              
stakeholders  will have  the tedious  job of  keeping the  package                                                              
together while still allowing for suggestions.                                                                                  
                                                                                                                                
5:12:23 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON  said that seemed to suggest  if the bill                                                              
passed as written everyone will be equally content.                                                                             
                                                                                                                                
REPRESENTATIVE  HERRON  thought  "equally  content" was  a  little                                                              
generous.   However, at this point  the bill essentially  been the                                                              
stakeholders'  product, but  now  it will  go  through the  public                                                              
process.                                                                                                                        
                                                                                                                                
CHAIR OLSON  offered his  belief that the  sponsor is  a consensus                                                              
builder.                                                                                                                        
                                                                                                                                
5:13:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   asked  whether  the  committee   will  be                                                              
hearing testimony  from stakeholders that it shouldn't  amend this                                                              
or that since it will destroy the consensus.                                                                                    
                                                                                                                                
REPRESENTATIVE  HERRON  answered   that  everyone  recognizes  the                                                              
process.   He suggested it  will take "all  hands on deck"  to get                                                              
the bill  through the  process and the  stakeholders know  what to                                                              
expect.   He said that  Title 4 [AS  04] as currently  written has                                                              
become very  clumsy.   Although stakeholders  are committed,  they                                                              
recognize that  the legislative process  will bring out  undue and                                                              
unforeseen influences.                                                                                                          
                                                                                                                                
5:14:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  said she has  been involved in  the process                                                              
and  predicted that  it will  be a  delicate balance  to pass  the                                                              
bill.   She offered  her belief that  the stakeholders  agree this                                                              
process needs  to happen.   She said  she was glad  Representative                                                              
Herron is at the  helm with this bill since everyone  will need to                                                              
work together given  the significant compromise that  has happened                                                              
during the process  of creating the draft bill.   Everyone did not                                                              
get what  they wanted,  but worked to  achieve balance,  she said.                                                              
She said she  appreciated the chair bringing this  bill forward to                                                              
allow work to occur during the interim.                                                                                         
                                                                                                                                
[HB 185 was held over.]                                                                                                         
                                                                                                                                
           SB 71-VACCINE CERTIFICATION FOR PHARMACISTS                                                                      
                                                                                                                              
5:15:52 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the final  order of business  would be                                                              
SENATE  BILL  NO.  71,  "An  Act   relating  to  the  practice  of                                                              
pharmacy;  and relating  to  the  administration  of vaccines  and                                                              
related emergency medications."                                                                                                 
                                                                                                                                
5:16:16 PM                                                                                                                    
                                                                                                                                
JANE   CONWAY,  Staff,   Senator  Cathy   Giessel,  Alaska   State                                                              
Legislature,  on  behalf  of  the  prime  sponsor,  Senator  Cathy                                                              
Giessel,  stated that  SB  71 would  allow  Alaska pharmacists  to                                                              
administer   all  vaccines   without   a  collaborative   practice                                                              
agreement.     Since  2001,   Alaska  pharmacists  have   required                                                              
oversight   by  medical   doctor  or  a   nurse  practitioner   to                                                              
administer  vaccines.   These oversight  practice agreements  cost                                                              
$50-500 annually  for pharmacists depending on the  agreement with                                                              
the  oversight physician  or nurse  practitioner.   The  oversight                                                              
amounts  to the  physician or  nurse  practitioner overseeing  the                                                              
immunization records.                                                                                                           
                                                                                                                                
5:17:28 PM                                                                                                                    
                                                                                                                                
MS. CONWAY  offered that some  pharmacies have difficulty  finding                                                              
a  collaborative medical  doctor  or nurse  practitioner and  this                                                              
hurdle  reduces access  to needed  vaccines to  the public.   This                                                              
bill, SB 71  will give already educated and  certified pharmacists                                                              
the  authority to  immunize Alaskan  adults  and children  without                                                              
having  to  contract  with  often   hard  to  find  an  overseeing                                                              
physician or nurse practitioner.                                                                                                
                                                                                                                                
MS. CONWAY explained  that the appropriate clinical  procedure for                                                              
vaccine administration  is part of the course work  for a pharmacy                                                              
doctorate degree, which  has been the case since 2005.   The level                                                              
of entry  into the pharmacist  position is  a doctorate or  PhD of                                                              
pharmacology.    Under the  bill,  pharmacists educated  prior  to                                                              
2005 are  required to immunization  education program  outlined by                                                              
the Board of Pharmacy.                                                                                                          
                                                                                                                                
5:19:23 PM                                                                                                                    
                                                                                                                                
SENATOR CATHY GIESSEL,  Alaska State Legislature,  stated that the                                                              
Board  of   Pharmacy  would   provide  a  vaccine   administration                                                              
program.    The  pharmacists  already   understand  the  vaccines,                                                              
including the  pharmacology and  side effects,  but they  would be                                                              
polishing  their skills on  the administration.   Their  education                                                              
already includes  the drug  therapy, dosing,  and adverse  events.                                                              
How to  respond to  adverse events  was a  question raised  in the                                                              
other   committees.     When  she   prescribes   she  often   asks                                                              
pharmacists  for information  since they  know the  drugs and  are                                                              
definitely  qualified  [to  administer vaccines].    In  addition,                                                              
this bill  would help  rural communities  since people  often have                                                              
more  interaction  with  their  pharmacists  than  they  do  their                                                              
health care  providers.   Many states  already authorize  this and                                                              
have  experienced higher  immunization rates,  which Alaska  could                                                              
benefit from.                                                                                                                   
                                                                                                                                
5:20:54 PM                                                                                                                    
                                                                                                                                
SENATOR   GIESSEL   explained   that    the   statewide   database                                                              
"vacstracks"  was used to  track vaccines.   Pharmacists  would be                                                              
required to  enter the  vaccine data, which  is accessible  to all                                                              
health  care  providers  in  the  state.    In  2013,  pharmacists                                                              
administered  over   13,000  flu   vaccines.    This   bill  could                                                              
definitely   make   more   vaccines    available   through   these                                                              
pharmacists and pharmacies.                                                                                                     
                                                                                                                                
5:21:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX   asked  whether   pharmacists   currently                                                              
required to enter data into the statewide database.                                                                             
                                                                                                                                
SENATOR GIESSEL answered yes.                                                                                                   
                                                                                                                                
5:21:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES related  her  understanding  that they  are                                                              
trained  on  dosages.   She  asked  whether pharmacists  are  also                                                              
trained in administering them.                                                                                                  
                                                                                                                                
SENATOR GIESSEL  answered that pharmacists from 2005  forward have                                                              
been  educated   in  the  administration   of  vaccines.     Those                                                              
pharmacists educated  prior to 2005  will be required to  take the                                                              
vaccine  administration   course  that   the  Board   of  Pharmacy                                                              
approves.                                                                                                                       
                                                                                                                                
5:22:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  asked  whether  taking  patient's  medical                                                              
history  was  part   of  process  since  she  did   not  think  of                                                              
pharmacists as taking medical history.                                                                                          
                                                                                                                                
SENATOR GIESSEL  answered that currently for flu  vaccines citizen                                                              
fills  out a  form  citing medications  they  currently take,  any                                                              
allergies  to medications,  and any  chronic  conditions they  may                                                              
have.   The  same requirements  would happen  with other  vaccines                                                              
administered.                                                                                                                   
                                                                                                                                
5:23:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES wondered if  this might  lower the  cost of                                                              
administration of vaccines.                                                                                                     
                                                                                                                                
SENATOR GIESSEL  was unsure.   Certainly, that  would be  the goal                                                              
and it will reduce  the cost for the individual  professionals who                                                              
administer the vaccines.   Currently, it can take  6-12 months for                                                              
collaborative agreements to be solidified.                                                                                      
                                                                                                                                
5:23:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX   asked  for  further   clarification  that                                                              
administering means actually giving the shots.                                                                                  
                                                                                                                                
SENATOR GIESSEL answered yes.                                                                                                   
                                                                                                                                
5:24:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  said she  really  likes  this bill.    She                                                              
wondered  whether it  might be  possible  in the  future to  allow                                                              
pharmacists  some limited  powers  to prescribe  drugs.   She  has                                                              
experienced picking  up prescription drugs such as  antibiotics in                                                              
other countries.                                                                                                                
                                                                                                                                
SENATOR  GIESSEL replied  that  it would  require  changes in  the                                                              
pharmacists' educational  program to perform diagnosis.   She said                                                              
that  the state  insurance  program  has  nurse advice  lines  for                                                              
patients to receive advice.                                                                                                     
                                                                                                                                
5:25:40 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   asked   whether  the   footprint   of                                                              
pharmacies would need to change.                                                                                                
                                                                                                                                
SENATOR  GIESSEL answered  that pharmacists  currently  administer                                                              
vaccines so they already have the facilities.                                                                                   
                                                                                                                                
5:26:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO   related  his  understanding   rural  Alaska                                                              
experiences  problems obtaining  oversight agreements.   He  asked                                                              
whether   other   circumstances   exist  in   which   doctors   or                                                              
pharmacists   are   having  difficulties   in   putting   together                                                              
agreements.                                                                                                                     
                                                                                                                                
SENATOR GIESSEL  answered that  she was  not certain and  deferred                                                              
to the pharmacists to respond.                                                                                                  
                                                                                                                                
5:27:04 PM                                                                                                                    
                                                                                                                                
BARRY  CHRISTENSEN,  Co-Chair,  Alaska   Pharmacists  Association,                                                              
stated the Alaska  Pharmacists Association membership  consists of                                                              
pharmacists,   pharmacies,   and   pharmacy  technicians.      The                                                              
association fully  supports this  bill, which he  characterized as                                                              
a "win-win-win"  such  that it  will ensure  that pharmacists  who                                                              
are currently  immunizing can  continue to do  so.  It  would also                                                              
open  up  open  up  immunizations  to  pharmacists  who  have  had                                                              
difficulty  obtaining  a  partner  for  a  collaborative  practice                                                              
agreement.   Further,  it would  open  up access  to patients  for                                                              
immunizations.   Finally, it's  a "win"  for employers  since this                                                              
will keep  people healthier.  The  Center for Disease  Control has                                                              
reported that  every dollar  spent on  immunization will  save $10                                                              
in overall  health care costs.   This bill  has support  from "mom                                                              
pop" pharmacies to chain pharmacies.                                                                                            
                                                                                                                                
5:28:58 PM                                                                                                                    
                                                                                                                                
LIS HOUCHEN, Counsel,  NW Regional Director,  National Association                                                              
of Chain Drugstores  (NACD) stated that she represents  chain drug                                                              
stores in  the Northwest  region, including  Costco, Genoa  Health                                                              
Care,   Good   neighbor  Health   Mart,   Carrs-Safeway,   Target,                                                              
Walgreen,  and Walmart.    She thanked  members  for hearing  this                                                              
important  bill to  allow pharmacists  to independently  prescribe                                                              
and administer  immunizations in  Alaska.   She said that  Senator                                                              
Giessel mentioned  that the state was  not doing as good  a job as                                                              
it could.   In 2012, only  1.2 percent of Alaskans  were immunized                                                              
for influenza flu, which ranked as 49th in the nation.                                                                          
                                                                                                                                
MS. HOUCHEN  said that  the organization was  encouraged by  SB 71                                                              
since  many additional  needed vaccines  will  be administered  in                                                              
local villages  by pharmacists to  patients and families  that may                                                              
otherwise go without being immunized.                                                                                           
                                                                                                                                
5:30:33 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON  commented  that  he   gets  his  flu  shots  at  the                                                              
pharmacy.                                                                                                                       
                                                                                                                                
5:31:36 PM                                                                                                                    
                                                                                                                                
RYAN RUGGLES, Pharmacist,  Carrs-Safeway, stated that  he works as                                                              
a pharmacist  and he currently  administers vaccines.   He offered                                                              
strong  support  for  SB  71, which  all  comes  down  to  patient                                                              
access.    Although  Carrs-Safeway   stores  has  a  collaborative                                                              
practice provider  that they  regularly use,  but if the  provider                                                              
is  traveling  or  unavailable,   it  can  take  time  to  find  a                                                              
substitute.    Sometimes  the pharmacists  simply  waits  for  the                                                              
collaborative practice provider to return.                                                                                      
                                                                                                                                
5:32:56 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON,  after first  determining no  one wished to  testify,                                                              
closed public testimony on SB 71.                                                                                               
                                                                                                                                
5:33:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COLVER  remarked that  this was an  excellent bill.                                                              
He  stated that  this  can  help combat  health  care  costs.   He                                                              
offered his belief  that it was common in other  countries to have                                                              
a streamlined process  to administer vaccines.   Further, a number                                                              
of   people  already   obtain  their   immunizations  from   their                                                              
neighborhood pharmacies.                                                                                                        
                                                                                                                                
5:33:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  acknowledged that pharmacists  eager to get                                                              
in place.   She asked whether  nurse practitioners  and physicians                                                              
support this concept.                                                                                                           
                                                                                                                                
SENATOR GIESSEL  answered that there  has not been  any opposition                                                              
to the bill.                                                                                                                    
                                                                                                                                
5:34:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES moved  to  report SB  71  out of  committee                                                              
with  individual  recommendations   and  the  accompanying  fiscal                                                              
notes.   There being  no objection,  SB 71  was reported  from the                                                              
House Labor and Commerce Standing Committee.                                                                                    
                                                                                                                                
The committee took a brief at ease.                                                                                             
                                                                                                                                
             SB 47-LIFE INSURANCE/ANNUITY EXEMPTIONS                                                                        
                                                                                                                                
5:34:42 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  announced that the final  order of business  would be                                                              
SENATE  BILL NO.  47,  "An Act  relating  to exemptions  for  cash                                                              
surrender  values,  accrued dividends,  and  loan  values of  life                                                              
insurance and annuity contracts."                                                                                               
                                                                                                                                
5:36:32 PM                                                                                                                    
                                                                                                                                
GERMAN  BAQUERO,  Intern,  Senator   John  Coghill,  Alaska  State                                                              
Legislature,  stated that  Section  1 of  SB 47  would repeal  and                                                              
reenact one  AS 09.38.025 (a),  which will essentially  repeal the                                                              
$500,000  cap  on  the  exemption  of  un-matured  life  insurance                                                              
policies, and  reenacts it as a  full exemption regardless  of the                                                              
value limit.   Section 2 of  the bill clarifies  the applicability                                                              
date.                                                                                                                           
                                                                                                                                
5:37:27 PM                                                                                                                    
                                                                                                                                
MR.  BAQUERO  said this  bill  came  about  when some  members  of                                                              
insurance  industry   and  trust   industry  found  more   private                                                              
employees  are  turning  to  life  insurance  and  life  insurance                                                              
policies  as  new estate  and  retirement  tools.   He  said  that                                                              
granting  a full exemption  was a  means to  treat all  retirement                                                              
funds as secured,  just as public employee retirement  accounts or                                                              
union  accounts,  which are  completely  shielded  by the  federal                                                              
government  and not  subject to  garnishment.   He  stated that  a                                                              
zero fiscal note  was attached to HB  47.  He said that  this bill                                                              
does  not  shield  life  insurance   policies  from  any  type  of                                                              
criminal  action, but  refers to  civil litigation.   He  directed                                                              
attention  to  members'  bill packets  to  [AS  09.38.065]  claims                                                              
enforceable  against exempt  property  that provides  the list  of                                                              
exceptions  to the  exemptions  ranging from  being  able to  levy                                                              
against property to enforcing child support claims.                                                                             
                                                                                                                                
5:39:36 PM                                                                                                                    
                                                                                                                                
MR. BAQUERO He read  a portion of paragraph (3),  which read, "(3)                                                              
a creditor  may make a  levy against exempt  property of  any kind                                                              
to  enforce  the  claim  of a  victim,  including  a  judgment  of                                                              
restitution  on behalf  of a  victim of  a crime  or a  delinquent                                                              
act, ...."  He  interpreted this to mean that this  bill would not                                                              
stop someone  from trying to seek  just restitution in  a criminal                                                              
situation.  He said  that the bill has opposition  from the Alaska                                                              
Bankers  Association,  who  expressed   concern  that  this  could                                                              
create  a means  to shield  assets that  could be  garnished by  a                                                              
bank,  but  the   sponsor  found  that  interpretation   a  little                                                              
wanting.    For  one thing,  the  exemptions  under  AS  09.38.030                                                              
[(c)],  related  earnings  and  liquid  assets  clearly  states  a                                                              
creditor  can  levy upon  the  earning  of  an individual  if  the                                                              
creditor's  claim is  enforceable  under an  order of  a court  of                                                              
bankruptcy  under the Bankruptcy  Reform Act  of 1978.   Therefore                                                              
the concerns  of the  banking industry are  not quite  accurate in                                                              
terms of a debtor  trying to hide or commit fraud.   Finally, this                                                              
bill does  not interfere  assigning  a policy  as collateral  to a                                                              
bank for a loan.   He directed attention to AS  34.40.010, related                                                              
to invalidity  generally, basically  says that anyone  who assigns                                                              
any  of their  property as  collateral  means that  the person  is                                                              
assigning  the property  to them,  subject to  garnishment on  any                                                              
default.  He said  there really is not any fraudulent  intent that                                                              
could come along,  but can help make life insurance  policies more                                                              
secure tools  for estate  planning while  the policies  remain un-                                                              
matured.                                                                                                                        
                                                                                                                                
                                                                                                                                
5:42:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LEDOUX  related   a  scenario  involving  criminal                                                              
action,  but noted the  standards  of proof in  a criminal  action                                                              
and  a  civil  action  are  different.    She  asked  for  further                                                              
clarification that  regardless of the amount of  damages, they can                                                              
keep the insurance policy that may be valuable.                                                                                 
                                                                                                                                
MR.  BAQUERO answered  that  the  intent of  the  bill  is not  to                                                              
harbor savings,  earnings, or investment  of an insurance  policy;                                                              
instead, the  intent is to secure  the investments a  person makes                                                              
in an insurance  policy while the policy is un-matured.   Once the                                                              
policies  have matured  and the  assets have  transferred over  to                                                              
the  beneficiary,   the   assets  become   the  property   of  the                                                              
beneficiary and  are attachable.  This  bill was trying  to put AS                                                              
09.38.025 in  line with exemptions  for retirement plans  under AS                                                              
09.38.017.                                                                                                                      
                                                                                                                                
5:45:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX  asked  whether   retirement  plans   were                                                              
exempt.                                                                                                                         
                                                                                                                                
MR.  BAQUERO answered  there was  no numerical  value limit  since                                                              
they are fully exempted.                                                                                                        
                                                                                                                                
REPRESENTATIVE LEDOUX  remarked she  had some problems  with that,                                                              
too.                                                                                                                            
                                                                                                                                
5:46:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  suppose   someone  owes  $500,000  to  the                                                              
creditor.   She  asked whether  the  creditor can  come after  the                                                              
debtor.                                                                                                                         
                                                                                                                                
MR. BAQUERO  stated that  currently under  AS 09.38.025,  when the                                                              
policy has  matured the assets  are attachable.   This legislature                                                              
pertains to un-matured  life insurance and once  the insurance was                                                              
matured, the  assets are  accessible to  garnishment.   In further                                                              
response to  Representative Hughes,  he said  that once  the value                                                              
of the policy exceeds $500,000, it is subject to garnishment.                                                                   
                                                                                                                                
5:48:11 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  related her understanding that  was current                                                              
law, but if this bill passes it could not be garnished.                                                                         
                                                                                                                                
MR. BAQUERO answered  that if the bill passed it  would exempt all                                                              
un-matured  life insurance  and  annuity contracts  regardless  of                                                              
the value limit.                                                                                                                
                                                                                                                                
5:48:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO asked for the reason to make these changes.                                                                 
                                                                                                                                
MR. BAQUERO  answered that the  trust and life insurance  industry                                                              
has found that  once clients were buying policies  up to $500,000,                                                              
they  found that  clients wanted  more protection  similar to  the                                                              
protections  that public  employees  have with  respect to  social                                                              
security or  the state's supplemental  annuity plan.  In  fact the                                                              
top   ten  highest   gross  retirement   plans   in  the   state's                                                              
supplemental annuity  were over $1 million and  were shielded from                                                              
garnishment.   This bill was  a means to  level the  playing field                                                              
from  private  employees trying  to  find  a new  estate  planning                                                              
tool.                                                                                                                           
                                                                                                                                
5:50:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  asked  for  further  clarification  that  in                                                              
creating  additional security  with  the policy  does it  decrease                                                              
the cost to consumer for that policy.                                                                                           
                                                                                                                                
MR. BAQUERO deferred to the trust industry to respond.                                                                          
                                                                                                                                
5:50:55 PM                                                                                                                    
                                                                                                                                
RYNNIEVA  MOSS,   Staff,  Senator   John  Coghill,  Alaska   State                                                              
Legislature, echoed  that the sponsor  found that many  people who                                                              
wanted  to invest money  in a  retirement system  were limited  to                                                              
$500,000  to  obtain  the  same  benefits  the  union  and  public                                                              
employees  have.  In  addition,  the  sponsor  was  interested  in                                                              
building a  trust industry in Alaska  that helps to  diversify the                                                              
economy  and potentially  result in  $58 million  in taxes  to the                                                              
state  in 2016.   One  disadvantage  in getting  people to  invest                                                              
more than  $500,000 into  a life insurance  or annuity  program is                                                              
that  money is  not  secure and  is  un-matured.   Currently,  the                                                              
Alaska  Trust Industry  in  Alaska has  $50  million deposited  in                                                              
Northrim  Bank since it  is the  limit for  funds secured  by FDIC                                                              
[Federal  Deposit  Insurance  Corporation].   The  rest  of  their                                                              
funds are  invested in  money markets and  other investments.   In                                                              
conclusion,  she recapped that  the sponsor  would like  to create                                                              
an  industry  and  incentive  people  to  invest  in  larger  life                                                              
insurance policies  since the state assesses premium  taxes on the                                                              
life insurance policies.                                                                                                        
                                                                                                                                
5:52:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KITO   offered   his  belief   that   individuals                                                              
investing more than $500,000 would be a small pool in Alaska.                                                                   
                                                                                                                                
MS. MOSS  answered that people from  the Lower 48 invest  in these                                                              
life insurance policies.                                                                                                        
                                                                                                                                
5:53:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  offered her belief that the  funds would be                                                              
secure  so long  as people  did not  get into  accidents and  paid                                                              
their bills.                                                                                                                    
                                                                                                                                
MS. MOSS suggested  that people can go to other states  to get the                                                              
policies.   She said  that one  objection the  banks had  was that                                                              
they  couldn't  get  to  a life  insurance  policy  prior  to  the                                                              
insurance  policy   being  issues.    She  said   that  banks  are                                                              
responsible  for  obtaining  collateral   at  the  time  money  is                                                              
loaned.  She suggested  it was a little disingenuous  to reach out                                                              
after the  fact and  grab unto  a life  insurance policy  that was                                                              
purchased after  loans were approved  with other collateral.   She                                                              
suggested  that  if they  issued  a  loan without  an  appropriate                                                              
amount of  collateral would  be the bank's  decision.  She  said a                                                              
person shouldn't be punished for it.                                                                                            
                                                                                                                                
5:54:36 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  asked whether John  Q. Public who  wants to                                                              
collect his debts.                                                                                                              
                                                                                                                                
MS. MOSS  answered that  state has  exceptions to the  exemptions,                                                              
which  was a  fairly  lengthy list,  but it  does  not give  carte                                                              
blanche protection or immunity from paying debts.                                                                               
                                                                                                                                
5:55:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  stated  that  in  his  experience  with                                                              
debtors/creditors  [in his  law practice],  that much  of what  we                                                              
own  is  vulnerable.    He suggested  that  most  people  are  not                                                              
worried about it and take one step at a time.                                                                                   
                                                                                                                                
MS. MOSS  directed attention to the  issue of equal  treatment for                                                              
retirement  and   the  opportunity  to   build  a  nest   egg  for                                                              
retirement.     She  stated  that   public  employees   and  union                                                              
employees are  protected under federal  law with a  $500,000 limit                                                              
for individuals.   She  acknowledged that this  bill was  a policy                                                              
call.  She  said   that  her  issue  is  that   anyone  who  wants                                                              
retirement system should be treated equally.                                                                                    
                                                                                                                                
5:57:24 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Director, Division  of Insurance, Department  of                                                              
Commerce,  Community, &  Economic  Development  (DCCED), said  she                                                              
testified  on this  bill  in the  Senate.   She  offered that  the                                                              
industry being  discussed was new  to Alaska.  The  life insurance                                                              
industry  in Alaska  has come  up with  an idea  that attempts  to                                                              
stimulate  the insurance  industry  and provide  something new  to                                                              
the   state.     She  said   people  could   question  the   other                                                              
jurisdictions, such  as Switzerland, have so much  business in the                                                              
financial industry.   She answered  that it was because  they have                                                              
created a favorable tax structure.                                                                                              
                                                                                                                                
5:58:51 PM                                                                                                                    
                                                                                                                                
MS.  WING-HEIER  said  that  Vermont has  been  renowned  for  its                                                              
captive  insurance  policies  since   Vermont  built  a  good  tax                                                              
structure,  as have  other  jurisdictions,  such  as the  Bahamas,                                                              
Bermuda,  and the Virgin  Islands.   She offered  her belief  that                                                              
Alaska's  life  insurance  industry   has  expressed  interest  in                                                              
several  changes,  including  the  $500,000 issue,  which  is  not                                                              
limited  to Alaskans  but some of  the biggest  polices in  Alaska                                                              
are  sold  to  nonresidents.    She   characterized  Alaska's  tax                                                              
structure as good,  noting that after $100,000 the  tax rate drops                                                              
from .1  to .08 percent  premium tax.   If Alaska can  become more                                                              
competitive, the industry  believes it can sell  more and removing                                                              
the $500,000  limit may help to  do so.  Secondly,  life insurance                                                              
is a  very safe retirement  vehicle for  small employers,  who may                                                              
not feel  comfortable with stocks  and bonds.  Once  the insurance                                                              
reaches  $500,000,  it  becomes  accessible  to  creditors.    She                                                              
acknowledged everyone  should pay their debts; however,  the issue                                                              
of  fair  play should  be  considered,  such  that the  public  or                                                              
unions paying  into their  retirement systems  are protected,  but                                                              
the private sector  employees are not.  Thus creditors  can access                                                              
their $500,000  or un-matured cash  value, but they  cannot access                                                              
the public employee's $500,000.                                                                                                 
                                                                                                                                
6:00:46 PM                                                                                                                    
                                                                                                                                
MS.  WING-HEIER  explained that  this  bill  does not  affect  her                                                              
division  since the Division  of Insurance's  statutes fall  under                                                              
Title 21 [AS 21];  however, she has done some research.   She said                                                              
that [garnishments]  can  happen on life  insurance and  annuities                                                              
with  criminal  actions,  but  not   under  civil  actions.    She                                                              
recalled the Division  of Insurance did receive a  letter from the                                                              
Department of Law to clarify that point.                                                                                        
                                                                                                                                
6:01:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  expressed concern that the  state might not                                                              
want  to allow  bank  accounts, like  Switzerland  does, in  which                                                              
people can avoid lawsuits and other things.                                                                                     
                                                                                                                                
MS. WING-HEIER  answered she used  Switzerland as an  example, but                                                              
noted  that other  jurisdictions that  have taken  actions on  the                                                              
insurance or financial industries have had good success.                                                                        
                                                                                                                                
6:02:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON  surmised  the  administration  supports                                                              
this bill.                                                                                                                      
                                                                                                                                
MS. WING-HEIER  answered that  there has  not been any  opposition                                                              
to  the  bill.   In  further  response,  she  clarified  that  the                                                              
division's statutes  are under  Title 21, not  in Title 9  and the                                                              
bill affects  AS 09 and the  administration has not given  her any                                                              
direction on this bill.                                                                                                         
                                                                                                                                
6:03:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JOSEPHSON said he  was in  the process  of vetting                                                              
SB  47, but  he has  found that  normally when  the department  is                                                              
neutral  on   a  bill,  the  administration   doesn't  necessarily                                                              
support the bill.  He assumed that was the case with SB 47.                                                                     
                                                                                                                                
MS. WING-HEIER  reiterated that this  bill would affect AS  09 and                                                              
not the insurance code that falls under AS 21.                                                                                  
                                                                                                                                
6:04:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  suggested  that  it might  be  necessary  to                                                              
protect consumers  and residents  of Alaska,  for example,  if the                                                              
state was  creating a new product,  it will be important  that the                                                              
product  not harm  anyone in  Alaska.   He said he  would like  to                                                              
learn more about potential impacts on Alaskans.                                                                                 
                                                                                                                                
6:05:10 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES  said  [the  changes  proposed  in  SB  47]                                                              
sounds like  a new economic opportunity.   She asked  whether this                                                              
could bring in hundreds of millions to the state.                                                                               
                                                                                                                                
MS.  WING-HEIER  answered the  insurance  industry  is the  second                                                              
largest  contributor to  the general  fund in  premium taxes.   If                                                              
the insurance industry  was right in its predictions,  it could be                                                              
significant to Alaska.   Certainly, the state charges  2.7 percent                                                              
as  a rule  on  all  premiums that  come  into  the state.    Life                                                              
insurance taxes  on premiums drop  to 1 percent after  $100,000 in                                                              
premium.    She   estimated  that  the  premium   taxes  would  be                                                              
approximately  $55 or $56  million and if  the market  changed and                                                              
the industry  can entice  people from  the Lower  48 to  invest in                                                              
trusts, annuities,  and life  insurance, it  could be  significant                                                              
to the state.                                                                                                                   
                                                                                                                                
6:06:36 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  asked for  further clarification  on  the tax  cap of                                                              
.08 percent.                                                                                                                    
                                                                                                                                
MS. WING-HEIER  answered that  another bill  [SB 15] would  reduce                                                              
the premium tax from 1 percent to .08.                                                                                          
                                                                                                                                
CHAIR OLSON  asked for the projections  on a bill that  passed 3-4                                                              
years ago in which the state gave up premium taxes.                                                                             
                                                                                                                                
MS. WING-HEIER offered to research and provide the information.                                                                 
                                                                                                                                
6:07:50 PM                                                                                                                    
                                                                                                                                
MATTHEW BLATTMACHR,  Vice-President & Trust Officer,  Alaska Trust                                                              
Company,   stated  that   Alaska  Trust   Company  doesn't   offer                                                              
insurance  services  nor was  one  that  the company  was  pushing                                                              
forward, but the  Alaska Trust Company supports it.   He explained                                                              
that  a substantial  portion  of its  business  comes from  estate                                                              
planning with life insurance and annuity contracts.                                                                             
                                                                                                                                
6:08:44 PM                                                                                                                    
                                                                                                                                
MR.  BLATTMACHR  asked  how  much  was lost  in  revenue  for  the                                                              
previous  premium taxes.    He said  the  statute currently  reads                                                              
that the  state charges 2.7 percent  on any premium  under 100,000                                                              
and it drops  ten basis points after  $100,000.  At the  time that                                                              
bill  passed,  the Alaska  Trust  Company  asked the  Division  of                                                              
Insurance for  largest policy  premium, with  no policy  in excess                                                              
of $50,000.   This  didn't give  up any  premium tax revenue,  but                                                              
gave an incentive to receive additional large policies.                                                                         
                                                                                                                                
6:09:50 PM                                                                                                                    
                                                                                                                                
CHAIR  OLSON asked  whether the  prior bill  affected any  premium                                                              
tax impact.                                                                                                                     
                                                                                                                                
MR. BLATTMACHR testified it was his understanding it did not.                                                                   
                                                                                                                                
6:10:06 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON  asked for further clarification  on why the  bill was                                                              
passed.   He  recalled  it was  going to  bring  in large  premium                                                              
policies.                                                                                                                       
                                                                                                                                
MR.  BLATTMACHR answered  that  did impact  a  number of  policies                                                              
that  came to the  state, but  it did  not cost  to implement  the                                                              
changes.                                                                                                                        
                                                                                                                                
6:10:47 PM                                                                                                                    
                                                                                                                                
MR. BLATTMACHR  said that the  life insurance industry  is growing                                                              
in Alaska  and contributes to the  state's economic industry.   He                                                              
said that the  trust industry in Alaska deals  with life insurance                                                              
almost  on a  daily base  so it  is in support  of the  bill  as a                                                              
means of keeping Alaska as attractive environment.                                                                              
                                                                                                                                
6:11:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES related  her  understanding  that the  last                                                              
change to  1 percent in  taxes didn't affect  revenue.   She asked                                                              
what Alaska gained.                                                                                                             
                                                                                                                                
MR. BLATTMACHR  answered that the  discussion today  was regarding                                                              
SB 47,  but the tax change  was contained in  SB 15.   However, he                                                              
did state that  Alaska has received additional  policies it likely                                                              
would not  have received due to  the favorable tax structure.   He                                                              
suggested that the  exact number would be difficult  to determine,                                                              
but  he  offered  that currently,  the  state  has  a  substantial                                                              
number of large policies.                                                                                                       
                                                                                                                                
6:12:36 PM                                                                                                                    
                                                                                                                                
LINDA  HULBERT  stated that  she  was  involved in  the  insurance                                                              
industry as an agent  for 25 years and prior to  that she spent 20                                                              
years in the educational  community in Alaska.  She  said she does                                                              
not represent  any companies,  but represents  herself.   She said                                                              
that this protection  was available in many states  throughout the                                                              
United States,  including New York,  Florida, Texas,  and Arizona.                                                              
She said  that many states have  the exemption for  life insurance                                                              
and annuities as  part of their state policies.   She said that if                                                              
someone  were to  move  from Alaska  to New  York  and took  their                                                              
insurance  policy  with them  and  changed their  residency,  they                                                              
would  have  this  protection.     She  characterized  this  as  a                                                              
fairness  issue  and  an  opportunity to  create  revenue  and  an                                                              
opportunity for savings.                                                                                                        
                                                                                                                                
6:14:37 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON asked whether NAIC has any model legislation.                                                                       
                                                                                                                                
MS. WING-HEIER  answered no, not  with respect to lifting  the cap                                                              
for creditors since it does not affect Title 21.                                                                                
                                                                                                                                
6:15:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KITO  asked  whose  responsibility  Title  9  fell                                                              
under.                                                                                                                          
                                                                                                                                
MS. WING-HEIER  said she was  unsure since statutes  governing the                                                              
Division of Insurance  fall under Title 21, so she  was unsure who                                                              
administers the title.                                                                                                          
                                                                                                                                
[SB 47 was held over.]                                                                                                          
                                                                                                                                
6:15:52 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
6:15 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB159 Ver W.pdf HL&C 4/15/2015 3:15:00 PM
HB 159
HB159 Sponsor Statement.pdf HL&C 4/15/2015 3:15:00 PM
HB 159
HB159 Supporting Documents-Powerpoint Am Academy Family Physicians DPC Leg - Reg update.pdf HL&C 4/15/2015 3:15:00 PM
HB 159
SB47 ver A.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Sponsor Statement.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Sectional Analysis.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Fiscal Note-SB47-DCCED-DOI-02-20-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-AS09.38.010-.030 Alaska Exemptions Act.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-AS09.38.065 Claims Enforceable Against Exempt Property.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-AS34.40.010 Invalidity Generally..pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-Legal Opinion on Retirement Benefits 3-20-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-Letter-Cook Schuhmann & Groseclose Inc-3-26-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB47 Supporting Documents-Letter-Hompesch & Evans Attorneys at Law 3-26-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 47
SB71 ver W.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Sponsor Statement.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Sectional Analysis.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Fiscal Note DCCED-CBPL 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Fiscal Note DHSS-MAA 3-14-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Fiscal Note DHSS-MAA 4-7-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Emails-3-19-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Document-Collaborative Agreement costs.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Document-Pharmacist Collaborative Prctc Detail.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Adele Garrison.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-AK Pharmacists Assn 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Bd of Pharmacy 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Brown 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Island Pharmacy 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-NACDS 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Ron's Apothecary 3-13-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Safeway 3-16-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Letter-Soden 3-23-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
SB71 Supporting Documents-Physician Collaborative Prctce detail.pdf HL&C 4/15/2015 3:15:00 PM
SB 71
HB185 ver A.PDF HL&C 4/15/2015 3:15:00 PM
HB 185
HB185 Sponsor Statement.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
HB185 Sectional Analysis of SB 99- Updated 04-10-15.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
SB 99
HB185 Supporting Documents-Executive Summary.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
HB185 Supporting Documents-Powerpoint - Title 4 Review.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
HB185 Supporting Documents-Title 4 Recommendations.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
HB185 Supporting Documents-Title 4 Review Process.pdf HL&C 4/15/2015 3:15:00 PM
HB 185
SB47 Opposing Documents-Letter AK Bankers Assoc 4-10-15.pdf HL&C 4/15/2015 3:15:00 PM
SB 47