Legislature(2015 - 2016)BARNES 124

01/25/2016 03:15 PM LABOR & COMMERCE

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Audio Topic
03:17:53 PM Start
03:18:24 PM SB53
03:50:46 PM Overview: Department of Commerce, Community and Economic Development, Division of Banking and Securities
04:16:53 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 53 ADVANCED PRACTICE REGISTERED NURSES TELECONFERENCED
Moved HCS SB 53(L&C) Out of Committee
+ Overview: TELECONFERENCED
Division of Banking & Securities by Dept. of
Commerce, Community & Economic Development
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                        January 25, 2016                                                                                        
                           3:17 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                                                                                                            
                                                                                                                              
SENATE BILL NO. 53                                                                                                              
"An Act relating to advanced practice registered nursing;                                                                       
relating to certified direct- entry midwifery; and providing for                                                                
an effective date."                                                                                                             
                                                                                                                                
     - MOVED HCS SB 53(L&C) OUT OF COMMITTEE                                                                                    
                                                                                                                                
OVERVIEW:  DIVISION OF BANKING & SECURITIES, DEPARTMENT OF                                                                      
COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT                                                                                      
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                              
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                              
BILL: SB 53                                                                                                                   
SHORT TITLE: ADVANCED PRACTICE REGISTERED NURSES                                                                                
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
02/18/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/15       (S)       L&C, HSS                                                                                               
03/10/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/10/15       (S)       Heard & Held                                                                                           
03/10/15       (S)       MINUTE(L&C)                                                                                            
03/12/15       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/12/15       (S)       Moved  SB 53 Out of Committee                                                                          
03/12/15       (S)       MINUTE(L&C)                                                                                            
03/13/15       (S)       L&C RPT 4DP 1NR                                                                                        
03/13/15       (S)       DP: COSTELLO, GIESSEL, MEYER, STEVENS                                                                  
03/13/15       (S)       NR: ELLIS                                                                                              
04/08/15       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
04/08/15       (S)       Heard & Held                                                                                           
04/08/15       (S)       MINUTE(HSS)                                                                                            
04/10/15       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
04/10/15       (S)       Moved  SB 53 Out of Committee                                                                          
04/10/15       (S)       MINUTE(HSS)                                                                                            
04/11/15       (S)       HSS RPT 4DP                                                                                            
04/11/15       (S)       DP: STEDMAN, STOLTZE, GIESSEL, ELLIS                                                                   
04/11/15       (S)       FIN REFERRAL ADDED AFTER HSS                                                                           
04/14/15       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/14/15       (S)       Heard & Held                                                                                           
04/14/15       (S)       MINUTE(FIN)                                                                                            
04/15/15       (S)       FIN RPT 5DP 1NR                                                                                        
04/15/15       (S)       DP:    MACKINNON,   MICCICHE,    BISHOP,                                                               
                         DUNLEAVY, HOFFMAN                                                                                      
04/15/15       (S)       NR: OLSON                                                                                              
04/15/15       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
04/15/15       (S)       Moved  SB 53 Out of Committee                                                                          
04/15/15       (S)       MINUTE(FIN)                                                                                            
04/16/15       (S)       TRANSMITTED TO (H)                                                                                     
04/16/15       (S)       VERSION: SB  53                                                                                        
04/16/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/16/15       (H)       L&C                                                                                                    
01/25/16       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduce SB 53, as prime sponsor.                                                                       
                                                                                                                                
JANE CONWAY, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Speaking on behalf of Senator Giessel,                                                                   
sponsor, provided a sectional analysis of SB 53.                                                                                
                                                                                                                                
LAURA SARCONE, Certified Nurse-Midwife                                                                                          
Co-Chair, APRN Alliance                                                                                                         
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During the hearing of SB 53, answered a                                                                  
question.                                                                                                                       
                                                                                                                                
JEFF WORRELL, Certified Registered Nurse Anesthetist                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   During the hearing of SB  53, testified and                                                             
answered a question.                                                                                                            
                                                                                                                                
JANEY HOVENDEN, Director                                                                                                        
Division of Corporations, Business, and Professional Licensing                                                                  
Department of Commerce, Community & Economic Development                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   During the  hearing of  SB 53,  answered a                                                             
question.                                                                                                                       
                                                                                                                                
JULIE GILLETTE, Chair                                                                                                           
Alaska Board of Nursing                                                                                                         
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:   Speaking as  the chair of the  Alaska Board                                                             
of Nursing, testified in support of SB 53.                                                                                      
                                                                                                                                
KEVIN ANSELM, Director                                                                                                          
Division of Banking and Securities                                                                                              
Anchorage Office                                                                                                                
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:   Provided  an overview  of the  functions of                                                             
the Division  of Banking and Securities,  Department of Commerce,                                                               
Community and Economic Development.                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:17:53 PM                                                                                                                    
                                                                                                                                
CHAIR KURT  OLSON called  the House  Labor and  Commerce Standing                                                             
Committee meeting to  order at 3:17 p.m.   Representatives Olson,                                                               
Hughes, Colver, Tilton,  Kito, and Josephson were  present at the                                                               
call to order.  Representative  LeDoux arrived as the meeting was                                                               
in progress.                                                                                                                    
                                                                                                                                
           SB 53-ADVANCED PRACTICE REGISTERED NURSES                                                                        
                                                                                                                                
3:18:24 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the first order of  business would be                                                               
SENATE  BILL  NO.  53,  "An Act  relating  to  advanced  practice                                                               
registered   nursing;   relating    to   certified   direct-entry                                                               
midwifery; and providing for an effective date."                                                                                
                                                                                                                                
3:18:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  HUGHES   moved  to   adopt  the   proposed  House                                                               
committee  substitute  (HCS)  for  SB  53,  labeled  29-LS0043\P,                                                               
Bruce, 1/20/16.   There being no objection, Version  P was before                                                               
the committee.                                                                                                                  
                                                                                                                                
3:18:52 PM                                                                                                                    
                                                                                                                                
SENATOR CATHY GIESSEL, Alaska State  Legislature, speaking as the                                                               
sponsor of  SB 53, directed attention  to the chart found  in the                                                               
committee packet entitled, "APRN  ALLIANCE" which illustrated the                                                               
current related  Alaska statute and the  statute changes proposed                                                               
in SB 53.   Senator Giessel said the bill  would change the title                                                               
of Advanced  Nurse Practitioner (ANP) and  Nurse Anesthetist (NA)                                                               
to  that  of Advanced  Practice  Registered  Nurse (APRN).    She                                                               
explained the change  would bring the state  into compliance with                                                               
the  national  title  conformity   that  is  recommended  by  the                                                               
National  Council  of  State  Boards   of  Nursing  in  order  to                                                               
eliminate  the confusion  of  consumers  and insurance  entities.                                                               
Nationally,  interested parties  agreed  that APRN  would be  the                                                               
"umbrella title."   The aforementioned  chart showed  the current                                                               
state  situation which  has  Nurse  Practitioner (NP),  Certified                                                               
Nurse  Midwife (CNM),  and  Certified  Clinical Nurse  Specialist                                                               
(CNS) included under  the title of ANP, and a  separate title for                                                               
NAs.  The  bill creates a uniform title of  APRN, under which all                                                               
four of the clinical specialties  would function, thus clarifying                                                               
the  specialties for  consumers  and insurers.   Senator  Giessel                                                               
assured the committee that the bill  does not change the scope of                                                               
practice for any of the specialties;  in fact, the bill is simply                                                               
a   title  change,   although  it   is   lengthy  because   nurse                                                               
practitioners serve in  multiple aspects of health  care, and the                                                               
title  corrections must  be cited  in many  sections of  statute.                                                               
She offered to provide further  testimony by staff and supporters                                                               
of the bill.                                                                                                                    
                                                                                                                                
CHAIR  OLSON  invited  Senator   Giessel's  staff  to  provide  a                                                               
sectional analysis of the bill.                                                                                                 
                                                                                                                                
3:22:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COLVER  noted that  SB 53 is  simply an  update of                                                               
the descriptions  of nursing practices  and asked, "Would  you be                                                               
fighting  off any  attempts to  hijack your  bill to  like insert                                                               
different agendas ... we can  be assured that you're committed to                                                               
this clean bill."                                                                                                               
                                                                                                                                
SENATOR GIESSEL responded yes.                                                                                                  
                                                                                                                                
REPRESENTATIVE HUGHES  asked whether  a nurse  practitioner would                                                               
be referred to as a nurse  practitioner, or an APRN.  She opined,                                                               
the  title "practitioner"  depicts  a higher  level  of scope  of                                                               
practice among members of the public.                                                                                           
                                                                                                                                
3:24:48 PM                                                                                                                    
                                                                                                                                
SENATOR   GIESSEL   agreed   that  nurse   practitioners,   nurse                                                               
anesthetists, clinical nurse midwives,  and nurse specialists are                                                               
titles known to  the public and will still be  used; however, for                                                               
credentialing purposes  such as  signing a prescription,  the new                                                               
titles will apply.                                                                                                              
                                                                                                                                
CHAIR  OLSON expressed  his belief  that  "hijacking bills"  this                                                               
early in the session is unacceptable.                                                                                           
                                                                                                                                
3:25:57 PM                                                                                                                    
                                                                                                                                
JANE  CONWAY,   Staff,  Senator   Cathy  Giessel,   Alaska  State                                                               
Legislature, provided a sectional analysis  of SB 53 on behalf of                                                               
Senator Giessel.  She informed  the committee that 26 sections of                                                               
the bill are conforming amendments  that only change the previous                                                               
titles to that  of APRN.  The sectional analysis  was as follows:                                                               
section  1 allows  APRNs  to  use their  titles  and initials  on                                                               
documents, signs,  and advertising;  sections 2-4  are conforming                                                               
amendments; section 5  requires APRN regulations to  apply to one                                                               
who  is  a   CRNA,  CNS,  CNP,  or  CNM,   and  makes  conforming                                                               
amendments; section  6 adds  APRN to a  list of  licenses issued,                                                               
and  changes  the  term  "professional  nursing"  to  "registered                                                               
nursing";   section 7  adds a  new subsection  that sets  out the                                                               
qualifications  for  an  APRN  license;  section  8  repeals  and                                                               
reenacts   AS  08.68.190   concerning  license   examinations  to                                                               
establish separate examinations  for registered practitioners and                                                               
APRNs; section 9  is a conforming amendment;  section 10 requires                                                               
the of  Department of Commerce, Community  & Economic Development                                                               
(DCCED) to set  fees, and deletes the  term "vocational nursing";                                                               
section  11  removes  licensed professional  nurse  from  titles;                                                               
section 12 is a new subsection  authorizing the use of CRNA, CNS,                                                               
CNP,  and CNM,  under that  section; section  13 adds  APRN as  a                                                               
person who  can supervise a  practical nurse; sections 14  and 16                                                               
are related to the impersonation  of an APRN; section 15 requires                                                               
institutions  that  are  applying for  accreditation  to  provide                                                               
certain  information; sections  17-19 are  related to  unlicensed                                                               
practice;  section 20  adds APRN  to licensees  who may  delegate                                                               
certain duties; section 21 is  a conforming amendment; section 22                                                               
defines the practice of APRN  nursing; sections 23 through 25 are                                                               
conforming amendments; section  26 adds APRNs to  persons who are                                                               
considered  justified   in  conduct   that  would   otherwise  be                                                               
considered  the use  of force  when delivering  emergency medical                                                               
care; sections  27 and 28  are conforming amendments;  section 29                                                               
adds  APRNs  to  licensees  immune  from  civil  liability  while                                                               
escorting an injured  or sick person; section 30  is a conforming                                                               
amendment; section  31 adds APRNs to  practitioners authorized to                                                               
draw  blood  for tests  of  persons  charged with  sex  offenses;                                                               
sections  32  and  33  are   conforming  amendments;  section  34                                                               
clarifies  that  nurse-midwives  and direct  entry  midwives  are                                                               
certified;  sections 35  through  38  are conforming  amendments;                                                               
section 39 changes the term  "registered professional nursing" to                                                               
"registered nursing";  section 40  clarifies  that nurse-midwives                                                               
must be certified to be a  provider in a hospital under AS 21.87;                                                               
section 41 is a conforming  amendment; sections 42 and 43 clarify                                                               
that  nurse-midwives  are  certified  and  make  other  technical                                                               
amendments;  sections 44  through 46  are conforming  amendments;                                                               
section 47 adds  APRNs to the definition of  health care provider                                                               
in  statutory  provisions  regarding  prisons; section  48  is  a                                                               
conforming  amendment; section  49 adds  APRNs to  licensees with                                                               
specific  training who  may  assess  a child  with  respect to  a                                                               
waiver  related  to  children  and  disabled  persons  under  the                                                               
Medicaid waiver;  section 50 is  a conforming  amendment; section                                                               
51 adds APRNs  to practitioners who are not  liable for providing                                                               
information  to  the Department  of  Health  and Social  Services                                                               
(DHSS)  for  hearing screenings;  sections  52  through 54  allow                                                               
APRNs concerning  mental health commitment determine  if a person                                                               
may  be  administered  psychotropic medication  without  consent;                                                               
section 55  adds APRNs to  practitioners who may review  a health                                                               
care  plan for  an  assisted living  home  resident; sections  56                                                               
through 59 are conforming amendments;  section 60 repeals certain                                                               
redundant statutes; and section 61 sets a new effective date.                                                                   
                                                                                                                                
3:34:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES  directed attention  to section 7,  page 5,                                                               
beginning line 15, which read:                                                                                                  
                                                                                                                                
        Sec. 7. AS 08.68.170 is amended by adding a new                                                                         
     subsection to read:                                                                                                        
      (c) An  applicant for a  license to  practice advanced                                                                    
     practice registered nursing shall  submit to the board,                                                                    
     on forms  and in  the manner  prescribed by  the board,                                                                    
     written evidence, verified by  oath, that the applicant                                                                    
      (1) is licensed as a registered nurse in the state;                                                                       
     and                                                                                                                        
      (2) has successfully completed an advanced practice                                                                       
       registered nurse education program that meets the                                                                        
     criteria established by the board under AS 08.68.100.                                                                      
                                                                                                                                
REPRESENTATIVE   HUGHES  asked   why  the   new  subsection   was                                                               
necessary.                                                                                                                      
                                                                                                                                
MS. CONWAY responded that this is  the criteria to qualify for an                                                               
APRN license.                                                                                                                   
                                                                                                                                
REPRESENTATIVE HUGHES restated her question.                                                                                    
                                                                                                                                
3:36:12 PM                                                                                                                    
                                                                                                                                
LAURA SARCONE, Certified  Nurse-Midwife; Co-Chair, APRN Alliance,                                                               
explained that the current section  relates to the qualifications                                                               
of registered or  practical nurse applicants; new  section 7 adds                                                               
a  subsection that  "pulls out  the advanced  practice registered                                                               
nurse  as  a  separate  category   from  registered  nursing  and                                                               
vocational nurses."                                                                                                             
                                                                                                                                
3:37:30 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON remarked:                                                                                              
                                                                                                                                
     There is in  the packet, there's a reference  to - sort                                                                    
     of a rebuttal  - to Dr. Joshua Stream and  I didn't see                                                                    
     his letter.  Can you give  me a sense of what criticism                                                                    
     he had?                                                                                                                    
                                                                                                                                
[Neither of the aforementioned documents were provided.]                                                                        
                                                                                                                                
MS.  CONWAY  informed  the committee  that  Dr.  Stream  provided                                                               
written  testimony which  questioned  whether nurse  anesthetists                                                               
were qualified to practice without  doctor supervision.  However,                                                               
since 2003,  nurse anesthetists in Alaska  have practiced without                                                               
doctor  supervision, as  this  is  decided by  each  state.   She                                                               
advised that Dr. Stream's comments were not germane to the bill.                                                                
                                                                                                                                
[CHAIR OLSON  and his  staff recalled  that Dr.  Stream's written                                                               
testimony was not received by any committee member.]                                                                            
                                                                                                                                
REPRESENTATIVE   JOSEPHSON   asked   about   the   role   of   an                                                               
anesthesiologist when a nurse anesthetist is present.                                                                           
                                                                                                                                
3:39:52 PM                                                                                                                    
                                                                                                                                
JEFF  WORRELL, Certified  Registered Nurse  Anesthetist, informed                                                               
the committee he  is past president of the  Alaska Association of                                                               
Nurse Anesthetists, and currently  works independently at a large                                                               
Anchorage hospital.                                                                                                             
                                                                                                                                
REPRESENTATIVE  JOSEPHSON restated  his question  as to  the need                                                               
for an anesthesiologist and a nurse anesthetist.                                                                                
                                                                                                                                
MR. WORRELL  explained that in current  practice both specialties                                                               
are  qualified to  provide anesthesia  services in  a variety  of                                                               
settings; however, the training differs:  a CRNA is trained first                                                               
as a nurse, followed by three  years of specialty training, and a                                                               
physician  anesthesiologist is  initially  trained as  physician,                                                               
followed by anesthesia training.   He advised that the titles are                                                               
different but the work is the same.                                                                                             
                                                                                                                                
REPRESENTATIVE HUGHES  directed attention to the  fiscal note and                                                               
asked whether the fees for  individual licenses would change; the                                                               
sponsor indicated they would not.                                                                                               
                                                                                                                                
3:43:22 PM                                                                                                                    
                                                                                                                                
JANEY  HOVENDEN, Director,  Division  of Corporations,  Business,                                                               
and Professional Licensing, DCCED,  answered that the fiscal note                                                               
identifies three programs in her  division that would be affected                                                               
by the  changes proposed  in SB  53.  The  average cost  would be                                                               
$2,500  per  regulation  project,  thus the  fiscal  note  totals                                                               
$7,500.    Her  division  would  attempt  to  garner  savings  by                                                               
combining this work with other ongoing regulation projects.                                                                     
                                                                                                                                
REPRESENTATIVE HUGHES asked whether  there would be an adjustment                                                               
of the fees charges to licensees.                                                                                               
                                                                                                                                
MS.  HOVENDEN said  the licensing  fees for  the nursing  program                                                               
would not be affected.                                                                                                          
                                                                                                                                
3:45:04 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON opened public testimony on SB 53.                                                                                   
                                                                                                                                
3:45:17 PM                                                                                                                    
                                                                                                                                
JULIE  GILLETTE, Chair,  Alaska  Board of  Nursing, informed  the                                                               
committee she is the chair of  the Alaska Board of Nursing, which                                                               
is fully in support of the bill.                                                                                                
                                                                                                                                
MR.  WORRELL  said  adopting  the   APRN  title  allows  for  the                                                               
portability of  licensure across state lines,  and for conformity                                                               
to billing standards with other states.                                                                                         
                                                                                                                                
3:47:03 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON,  after ascertaining no  one else wished  to testify,                                                               
closed public testimony.                                                                                                        
                                                                                                                                
3:47:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HUGHES moved to report  the HCS for SB 53, labeled                                                               
29-LS0043\P,  Bruce, 1/20/16,  out of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, HCS SB 53(L&C) was  reported out of the House Labor                                                               
and Commerce Standing Committee.                                                                                                
                                                                                                                                
3:47:47 PM                                                                                                                    
                                                                                                                                
The committee took an at ease from 3:47 p.m. to 3:50 p.m.                                                                       
                                                                                                                                
^OVERVIEW:    DEPARTMENT  OF  COMMERCE,  COMMUNITY  and  ECONOMIC                                                               
DEVELOPMENT, DIVISION OF BANKING AND SECURITIES                                                                                 
   OVERVIEW:  DEPARTMENT OF COMMERCE, COMMUNITY and ECONOMIC                                                                
        DEVELOPMENT, DIVISION OF BANKING AND SECURITIES                                                                     
                                                                                                                                
3:50:46 PM                                                                                                                    
                                                                                                                                
CHAIR OLSON announced  that the final order of  business would be                                                               
a  presentation  by  the  Division  of  Banking  and  Securities,                                                               
Department   of  Commerce,   Community  &   Economic  Development                                                               
(DCCED).                                                                                                                        
                                                                                                                                
3:51:03 PM                                                                                                                    
                                                                                                                                
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Anchorage Office,  DCCED, informed  the committee the  mission of                                                               
the Division of Banking and  Securities is:  to protect consumers                                                               
of  financial  service  and  promote  safe  and  sound  financial                                                               
systems.   In  addition,  the division  supports  the mission  of                                                               
DCCED,  which is  to promote  a healthy  economy, support  strong                                                               
communities,  and protect  consumers in  Alaska [slide  2].   Ms.                                                               
Anselm said duties of her division include:                                                                                     
                                                                                                                                
   · Charter,   license   and    register   financial   entities,                                                               
     institutions, salespersons and products and accept filings                                                                 
   · Examine licensees for compliance and investigate complaints                                                                
     relating to regulated industries and persons                                                                               
   · Provide financial education and information to consumers,                                                                  
     industry, small businesses, and investors [slide 3]                                                                        
                                                                                                                                
MS.  ANSELM  continued to  explain  that  her division  regulates                                                               
about  twelve  different programs  -  which  are not  limited  to                                                               
banking  and  securities  -  but  also  include  premium  finance                                                               
companies,   mortgage   lenders,   originators,   money   service                                                               
businesses,    investment    advisors,   broker-dealers,    proxy                                                               
solicitations  for  the  Alaska   Native  Claims  Settlement  Act                                                               
(ANCSA), and others  [slide 4].  In response to  Chair Olson, she                                                               
said  payday loan  institutions  are included  in her  division's                                                               
purview,   but  pawn   brokers   are  not.      In  response   to                                                               
Representative LeDoux, she said she  would find out who regulates                                                               
pawn brokers.                                                                                                                   
                                                                                                                                
MS. ANSLEM further explained that  in 2015 the division regulated                                                               
over  94,000   licensees,  processed  over  7,000   filings,  and                                                               
received about  $15 million,  of which $3.6  million are  used to                                                               
fund its  operations, with the  remainder going into  the general                                                               
fund  (GF) [slide  5].   Also in  fiscal year  2015 (FY  15), the                                                               
division issued 35 final orders  in securities, mortgage lending,                                                               
payday  lenders,  and  ANCSA proxy  solicitations.    Information                                                               
regarding orders is available on the DCCED web site [slide 6].                                                                  
                                                                                                                                
3:55:32 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOSEPHSON asked  for an example of  an action that                                                               
would cause an enforcement order to be issued.                                                                                  
                                                                                                                                
MS. ANSELM  gave examples  of final  orders against  an applicant                                                               
who does  not meet  the criteria, a  securities order  against an                                                               
unlicensed company and an out-of-state  stock broker, and a final                                                               
order against a company.                                                                                                        
                                                                                                                                
3:56:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX  expressed her  belief that  securities law                                                               
is federal  law and  asked how,  besides ANCSA,  state securities                                                               
laws differ from federal laws.                                                                                                  
                                                                                                                                
MS.  ANSELM  responded that  federal  law  relates to  interstate                                                               
transactions and  state laws, AS 45.55,  regulate any salesperson                                                               
and  firm that  sells  to Alaskans.   In  fact,  there are  1,200                                                               
brokerage firms  that must be  licensed in Alaska,  although many                                                               
are not  located here.   In addition, there are  state investment                                                               
advisors  that are  only in  Alaska that  are state-regulated;  a                                                               
bifurcation in  federal law allows  any investment  advisory firm                                                               
that  has over  $100 million  in  assets under  management to  be                                                               
federally  regulated, and  any investment  advisor that  has less                                                               
than $100 million under management to be state-regulated.                                                                       
                                                                                                                                
CHAIR OLSON  asked about the  division's involvement  in proposed                                                               
marijuana taxes.                                                                                                                
                                                                                                                                
MS. ANSELM said that because  her division regulates banking, and                                                               
many service businesses,  it will be involved in  the legal money                                                               
that  will be  made  by  marijuana businesses.    Due to  current                                                               
federal law, which  identifies marijuana as a  scheduled drug, it                                                               
is difficult  for banks  and credit unions  to handle  funds from                                                               
marijuana businesses.   In further  response to Chair  Olson, she                                                               
agreed  that  taxes from  marijuana  businesses  may have  to  be                                                               
collected in cash, which leads to public safety issues.                                                                         
                                                                                                                                
4:01:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   COLVER  asked   how  [marijuana]   entrepreneurs                                                               
process credit cards or debit cards.                                                                                            
                                                                                                                                
CHAIR OLSON said credit and debit  cards are not accepted, but in                                                               
Colorado vendors have cash machines.                                                                                            
                                                                                                                                
MS. ANSELM  advised that if  a financial institution  follows the                                                               
[Cole Memorandum  on Medical  Marijuana issued  by the  office of                                                               
the U.S.  Attorneys, U.S.  Department of  Justice] and  files the                                                               
required reports,  it can handle  the money albeit with  risk and                                                               
expense.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  LEDOUX   said  she   has  heard  that   banks  in                                                               
Washington  or   Oregon  are  accepting  money   [from  marijuana                                                               
businesses].                                                                                                                    
                                                                                                                                
MS.  ANSELM  confirmed that  in  Washington  and Oregon,  certain                                                               
institutions  are taking  risks and  are charging  large fees  to                                                               
open accounts [for marijuana vendors].                                                                                          
                                                                                                                                
REPRESENTATIVE   COLVER  asked   whether   any  state   chartered                                                               
institutions are exempt from federal regulations.                                                                               
                                                                                                                                
MS. ANSELM  said no.   All Federal Deposit  Insurance Corporation                                                               
(FDIC)  insured  institutions,  even  if  state  chartered,  must                                                               
follow federal requirements.                                                                                                    
                                                                                                                                
REPRESENTATIVE LEDOUX asked whether  any national banks in Alaska                                                               
have decided to "take the risk."                                                                                                
                                                                                                                                
MS. ANSELM said she was aware of none.                                                                                          
                                                                                                                                
4:04:35 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KITO  questioned whether there was  an opportunity                                                               
for an organization,  such as a Native  corporation, to establish                                                               
a state bank,  not subject to federal rules,  to handle marijuana                                                               
transactions.                                                                                                                   
                                                                                                                                
MS. ANSELM responded:                                                                                                           
                                                                                                                                
     Not that  I'm aware of.   There's really no way  to get                                                                    
     around   the  federal   anti-money  laundering   FinCEN                                                                    
     [Financial  Crimes Enforcement  Network] U.S.  treasury                                                                    
     requirements.                                                                                                              
                                                                                                                                
REPRESENTATIVE   HUGHES  said   he  has   heard  that   marijuana                                                               
businesses in Denver are using banks.                                                                                           
                                                                                                                                
MS.  ANSELM  suggested  it  was   possible  with  the  Securities                                                               
Exchange Commission  (SEC) and  the state,  that an  entity could                                                               
file a securities  offering to raise money,  although those funds                                                               
may have to be put into escrow.                                                                                                 
                                                                                                                                
CHAIR OLSON agreed the marijuana issue has no easy answers.                                                                     
                                                                                                                                
4:06:56 PM                                                                                                                    
                                                                                                                                
MS.  ANSELM returned  to her  presentation,  noting her  division                                                               
provides  educational  outreach  to consumer  groups,  small  and                                                               
large  businesses, and  others.   Outreach in  FY 2015  included:                                                               
financial     fitness     fairs      with     other     agencies;                                                               
military/federal/state  employee education  regarding protections                                                               
against fraud;  360 North investor protection  programs broadcast                                                               
on  television  in a  partnership  with  AARP,  and paid  for  by                                                               
grants; an open house for  ANCSA corporations and shareholders; a                                                               
webinar for financial institutions  about working with marijuana-                                                               
related businesses [slide  7].  Ms. Anselm  provided a comparison                                                               
of the division's  securities workload, to its  budget and number                                                               
of positions, over the past ten  years [slide 8].  Also presented                                                               
was a comparison of  the division's non-securities registrations,                                                               
filings,  and licenses  workload,  to its  budget  and number  of                                                               
positions  [slide  9].    She  pointed  out  that  the  financial                                                               
services industry  in Alaska has  significantly increased  in the                                                               
last  ten  years.    A  third  graph  was  a  comparison  of  the                                                               
division's enforcement orders and exams  for all programs, to its                                                               
budget and number  of positions [slide 10].   Ms. Anselm provided                                                               
an organizational  chart of  her division  and advised  that over                                                               
the  last  eighteen  months  her  division  has  streamlined  and                                                               
focused  on  areas  of  the   highest  activity:    examinations,                                                               
licensing,  and enforcement  and  outreach.   Some positions  are                                                               
being reclassified  to meld  with others  and better  reflect the                                                               
division's  work;  in  fact,  most  financial  services  are  now                                                               
blended, and thus financial  institution examiners and securities                                                               
examiners  are trained  in various  disciplines, including  money                                                               
laundering.    For  example,  trust   companies  deal  with  bank                                                               
deposits  and   securities,  and  therefore  examiners   need  to                                                               
"crossover";  this  also allows  for  better  utilization of  the                                                               
division's limited staffing  [slide 11].  She then  turned to the                                                               
division's movement from a  spreadsheet-based reporting system to                                                               
a database  system -  including access  to national  registries -                                                               
which  is helpful  since most  licensees are  out-of-state.   The                                                               
division also uses  technology to perform exams  remotely when it                                                               
is possible.   Finally,  she said the  division is  challenged in                                                               
its  mission to  serve Alaskans  because of  Alaska's out-of-date                                                               
financial  services  laws,  which   do  not  address  the  newest                                                               
technologies,  such  as  whether  the  division  should  regulate                                                               
virtual currency [slide 12].                                                                                                    
                                                                                                                                
4:14:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   JOSEPHSON  asked   whether  the   U.S.  Attorney                                                               
contacts the division for information.                                                                                          
                                                                                                                                
MS. ANSELM said yes, the  division works closely with federal and                                                               
state law enforcement.                                                                                                          
                                                                                                                                
REPRESENTATIVE KITO asked whether  there are concerns with payday                                                               
loan lenders,  or if the  state has adequate  protections against                                                               
predatory  lending  practices  that   use  collateral  for  high-                                                               
interest loans.                                                                                                                 
                                                                                                                                
MS.  ANSELM  cautioned that  the  state  does not  have  adequate                                                               
protections;  in fact,  there are  problems with  payday lenders.                                                               
However, payday lenders do not usually take collateral.                                                                         
                                                                                                                                
REPRESENTATIVE LEDOUX asked whether Alaska has usury laws.                                                                      
                                                                                                                                
MS. ANSELM was unsure and said she would provide that                                                                           
information to the committee.                                                                                                   
                                                                                                                                
REPRESENTATIVE JOSEPHSON inquired as to the division's                                                                          
recommended FY17 budget.                                                                                                        
                                                                                                                                
MS. ANSELM said the commissioner of DCCED recommended budgeting                                                                 
her division for twenty-three positions in FY17.  She added that                                                                
the division lost one position at the end of last year.                                                                         
                                                                                                                                
4:16:53 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Labor and Commerce Standing Committee meeting was adjourned at                                                                  
4:16 p.m.                                                                                                                       

Document Name Date/Time Subjects
SB53 ver N.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Sponsor Statement ver N.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Sectional Analysis ver N.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Fiscal Note DCCED-CBPL 4-7-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Draft Proposed CS ver P.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- AK Pharmacists 3-6-2015.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- AKANA 2-22-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- ANPA 2-24-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- APRN Alliance 2-22-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- ASHNHA 3-5-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Bd of Nursing 3-9-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Dooley 3-6-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- FASDx Services 2-26-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Hartz 2-26-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Hiles 3-16-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Myers 2-24-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter- Rader 2-22-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter-AaNA 3-9-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter-AARP 3-3-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter-AK Affiliate ACNM 2-23-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-States Adopting APRN Consensus Model.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Title Change Chart.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Benefits of APRN model.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Email-Logan 4-14-15.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Fiscal Note DCCED-CBPL-01-22-16.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Documents-Letter Rebuttal to MD Email.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
SB53 Supporting Document Dr. Robin Ninefeldt Jan. 21, 2016.pdf HL&C 1/25/2016 3:15:00 PM
SB 53
DCCED-Division of Banking Overview 1-25-15.pdf HL&C 1/25/2016 3:15:00 PM
Div. of Banking Overview