Legislature(2019 - 2020)BARNES 124

04/29/2019 03:15 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 97 TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 29 INSURANCE COVERAGE FOR TELEHEALTH TELECONFERENCED
Moved HB 29 Out of Committee
-- Public Testimony --
+= HB 104 MORTGAGE LOAN ORIGINATOR LICENSING TELECONFERENCED
Moved CSHB 104(L&C) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 29, 2019                                                                                         
                           3:20 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Adam Wool, Co-Chair                                                                                              
Representative Gabrielle LeDoux, Co-Chair                                                                                       
Representative Zack Fields                                                                                                      
Representative Sara Hannan                                                                                                      
Representative Louise Stutes                                                                                                    
Representative Josh Revak                                                                                                       
Representative Dave Talerico                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 97                                                                                                               
"An Act relating to the prescription of drugs by a physician                                                                    
assistant without physical examination."                                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 29                                                                                                               
"An Act relating to insurance coverage for benefits provided                                                                    
through telehealth; and providing for an effective date."                                                                       
                                                                                                                                
     - MOVED HB 29 OUT OF COMMITTEE                                                                                             
                                                                                                                                
HOUSE BILL NO. 104                                                                                                              
"An Act relating to exemptions from mortgage loan originator                                                                    
licensing requirements; and providing for an effective date."                                                                   
                                                                                                                                
     - MOVED CSHB 104(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 97                                                                                                                   
SHORT TITLE: TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS                                                                            
SPONSOR(s): REPRESENTATIVE(s) KREISS-TOMKINS                                                                                    
                                                                                                                                
03/15/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/15/19       (H)       HSS, L&C                                                                                               
03/26/19       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/26/19       (H)       Heard & Held                                                                                           
03/26/19       (H)       MINUTE(HSS)                                                                                            
03/28/19       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/28/19       (H)       Moved CSHB 97(HSS) Out of Committee                                                                    
03/28/19       (H)       MINUTE(HSS)                                                                                            
03/29/19       (H)       HSS RPT CS(HSS) NT 4DP 1NR                                                                             
03/29/19       (H)       DP: CLAMAN, TARR, DRUMMOND, SPOHNHOLZ                                                                  
03/29/19       (H)       NR: PRUITT                                                                                             
03/29/19       (H)       FIN REFERRAL ADDED AFTER L&C                                                                           
04/12/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/12/19       (H)       -- MEETING CANCELED --                                                                                 
04/15/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/15/19       (H)       Scheduled but Not Heard                                                                                
04/24/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/24/19       (H)       Scheduled but Not Heard                                                                                
04/29/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 29                                                                                                                   
SHORT TITLE: INSURANCE COVERAGE FOR TELEHEALTH                                                                                  
SPONSOR(s): REPRESENTATIVE(s) SPOHNHOLZ                                                                                         
                                                                                                                                
02/20/19       (H)       PREFILE RELEASED 1/11/19                                                                               
02/20/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/20/19       (H)       HSS, L&C                                                                                               
03/26/19       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/26/19       (H)       Heard & Held                                                                                           
03/26/19       (H)       MINUTE(HSS)                                                                                            
03/28/19       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
03/28/19       (H)       Moved HB 29 Out of Committee                                                                           
03/28/19       (H)       MINUTE(HSS)                                                                                            
03/29/19       (H)       HSS RPT 3DP 1NR                                                                                        
03/29/19       (H)       DP: CLAMAN, DRUMMOND, SPOHNHOLZ                                                                        
03/29/19       (H)       NR: PRUITT                                                                                             
04/12/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/12/19       (H)       -- MEETING CANCELED --                                                                                 
04/15/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/15/19       (H)       Scheduled but Not Heard                                                                                
04/24/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/24/19       (H)       Heard & Held                                                                                           
04/24/19       (H)       MINUTE(L&C)                                                                                            
04/26/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/26/19       (H)       <Bill Hearing Canceled>                                                                                
04/29/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 104                                                                                                                  
SHORT TITLE: MORTGAGE LOAN ORIGINATOR LICENSING                                                                                 
SPONSOR(s): REPRESENTATIVE(s) WILSON                                                                                            
                                                                                                                                
03/25/19       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/19       (H)       L&C                                                                                                    
04/10/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/10/19       (H)       -- MEETING CANCELED --                                                                                 
04/17/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/17/19       (H)       -- MEETING CANCELED --                                                                                 
04/26/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/26/19       (H)       Heard & Held                                                                                           
04/26/19       (H)       MINUTE(L&C)                                                                                            
04/29/19       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REID HARRIS, Staff                                                                                                              
Representative Jonathan Kreiss-Tomkins                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 97 on behalf of                                                                            
Representative Kreiss-Tomkins, prime sponsor.                                                                                   
                                                                                                                                
DEBORAH STOVERN                                                                                                                 
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Answered questions during the hearing on HB                                                              
97.                                                                                                                             
                                                                                                                                
CHRISTOPHER DIETRICH, Assistant Medical Director                                                                                
Orion Behavioral Health Network                                                                                                 
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 97.                                                                           
                                                                                                                                
CHRISTOPHER DIETRICH, Assistant Medical Director                                                                                
Orion Behavioral Health Network                                                                                                 
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 29.                                                                           
                                                                                                                                
CLAUDIA TUCKER, Government Affairs VP                                                                                           
Teladoc Health                                                                                                                  
Purchase, New York                                                                                                              
POSITION STATEMENT:  Testified in support of HB 29.                                                                           
                                                                                                                                
ROBIN MINARD, Chief Communications Officer                                                                                      
Matsu Health Foundation                                                                                                         
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 29.                                                                           
                                                                                                                                
LYNN FREEMAN, PhD, CEO                                                                                                          
Mind Matters Research LLC                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 29.                                                                           
                                                                                                                                
WADE ERICKSON, MD                                                                                                               
Capstone Family Medicine                                                                                                        
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Testified in support of HB 29.                                                                           
                                                                                                                                
STACY HARVILL, Realtor                                                                                                          
Madden Real Estate                                                                                                              
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 104.                                                                          
                                                                                                                                
NADINE WINTERS, Executive Director                                                                                              
Fairbanks Neighborhood Housing Services                                                                                         
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 104.                                                                          
                                                                                                                                
PATRICK ANDERSON CEO                                                                                                            
Rural Community Action Program                                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 104.                                                                          
                                                                                                                                
PATRICE WALSH, Director                                                                                                         
Division of Banking and Securities                                                                                              
Department of Commerce, Community & Economic Development                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified during the hearing on HB 104.                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:20:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  GABRIELLE LEDOUX  called the  House Labor  and Commerce                                                             
Standing   Committee    meeting   to    order   at    3:20   p.m.                                                               
Representatives  Revak,  Stutes,  Hannan, Talerico,  LeDoux,  and                                                               
Wool were  present at the  call to order.   Representative Fields                                                               
arrived as the meeting was in progress.                                                                                         
                                                                                                                                
         HB 97-TELEHEALTH: PHYSICIAN ASSISTANTS; DRUGS                                                                      
                                                                                                                                
3:21:28 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced that the  first order of business would                                                               
be HOUSE  BILL NO. 97,  "An Act  relating to the  prescription of                                                               
drugs by a physician assistant without physical examination."                                                                   
                                                                                                                                
3:21:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  moved to adopt  the proposed  committee substitute                                                               
(CS)  for HB  97, labeled  31-LS0695\S, Fisher,  4/23/19, as  the                                                               
working draft.   There being no further objection,  Version S was                                                               
before the committee.                                                                                                           
                                                                                                                                
3:22:57 PM                                                                                                                    
                                                                                                                                
REID  HARRIS,  Staff,   Representative  Jonathan  Kreiss-Tomkins,                                                               
Alaska  State   Legislature,  presented   HB  97  on   behalf  of                                                               
Representative  Kreiss-Tomkins, prime  sponsor.   He  paraphrased                                                               
parts  of  the  sponsor  statement  [included  in  the  committee                                                               
packet],  which  read  in  its   entirety  as  follows  [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     The 2016 Medicaid Reform Bill  (SB 74) provided for the                                                                    
     use of telehealth, revising  Alaska statutes to require                                                                    
     the  Alaska State  Medical Board  to adopt  regulations                                                                    
     and  guidelines for  physicians rendering  a diagnosis;                                                                    
     providing  treatment;  or prescribing,  dispensing,  or                                                                    
     administering a  prescription drug to a  person without                                                                    
     first  conducting  a   physical  examination  under  AS                                                                    
     08.64.364.                                                                                                                 
                                                                                                                                
     However,  SB  74  only  addressed  physicians  and  the                                                                    
     Board's interpretation  was that the  bill's provisions                                                                    
     should not  apply to  physician assistants  (PAs). This                                                                    
     effectively  barred PAs  from practicing  telemedicine,                                                                    
     requiring    them    to   first    conduct    in-person                                                                    
     examinations.                                                                                                              
                                                                                                                                
     House Bill  97 aligns  statute with  the intent  of the                                                                    
     Medicaid Reform  Bill, clarifying that PAs  can provide                                                                    
     telemedicine  in  collaboration   with  and  under  the                                                                    
     oversight of  physicians. Under  HB97, PAs  are subject                                                                    
     to   the  same   statutory   oversight  as   physicians                                                                    
     regarding the practice of telemedicine,  as well as the                                                                    
     same disciplinary sanctions when appropriate.                                                                              
                                                                                                                                
     Alaska,  with  its  vast  geographical  challenges  and                                                                    
     limited access  to vital healthcare, stands  to benefit                                                                    
     from  this legislation.  HB  97  will increase  patient                                                                    
       access to care, extending the reach of medicine to                                                                       
     medically underserved areas                                                                                                
                                                                                                                                
3:25:00 PM                                                                                                                    
                                                                                                                                
MR. HARRIS  directed attention to the  document labelled, "AAPA,"                                                               
from the  American Academy of  Physician Assistants  [included in                                                               
the committee  packet] and highlighted what  physician assistants                                                               
(PAs)  do,  as well  as  briefly  described their  education  and                                                               
experience.   He said  that PAs  are not  operating independently                                                               
from a physician  and must have an active,  collaborative plan of                                                               
regular  contact.   Under that  plan, physicians  authorize their                                                               
functions and  the medications  they can  prescribe.   He pointed                                                               
out that  in Alaska,  if a  physician assistant  (PA) has  a Drug                                                               
Enforcement  Administration (DEA)  authorization number  they can                                                               
prescribe schedule 2-5 substances.                                                                                              
                                                                                                                                
MR.  HARRIS  turned  attention  to   two  maps  from  the  Health                                                               
Resources  &  Services  Administration (HRSA)  [included  in  the                                                               
committee  packet]  that  display  health  professional  shortage                                                               
areas (HPSA) and medically underserved  populations in the United                                                               
States, both  of which are present  in Alaska.  He  further noted                                                               
that the  passage of HB 97  and its companion bill,  SB 44, would                                                               
allow over  700 PAs to  engage in telehealth services  within the                                                               
state of Alaska.                                                                                                                
                                                                                                                                
3:30:19 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL sought  clarification on whether the  700 PAs would                                                               
be physically present in Alaska or  if they would be out of state                                                               
and accessed via telehealth.                                                                                                    
                                                                                                                                
MR.  HARRIS  offered his  understanding  that  they would  be  in                                                               
Alaska.  He  recounted that when the  first telemedicine statutes                                                               
were passed  several years  ago there  was concern  about medical                                                               
jobs being outsourced out of  state.  However, currently, he said                                                               
that isn't happening.                                                                                                           
                                                                                                                                
CO-CHAIR   WOOL,  in   reference  to   Teladoc,  contended   that                                                               
outsourcing is happening.                                                                                                       
                                                                                                                                
MR.  HARRIS   acknowledged  that   the  company  Teladoc   is  in                                                               
Tennessee;  however, the  doctors still  reside in  the state  of                                                               
Alaska.                                                                                                                         
                                                                                                                                
CO-CHAIR WOOL offered his understanding  that the doctors working                                                               
for Teladoc are on-call 24/7 and located out of state.                                                                          
                                                                                                                                
3:32:16 PM                                                                                                                    
                                                                                                                                
DEBORAH  STOVERN, Department  of Commerce,  Community &  Economic                                                               
Development,  in response  to  Representative  Wool, stated  that                                                               
there are  approximately 700 licensed  PAs in Alaska.   She noted                                                               
that  in  order to  enter  a  collaborative agreement  between  a                                                               
physician and  a PA, they must  both be licensed in  the state of                                                               
Alaska; however,  there is no  requirement that either  reside in                                                               
the state.                                                                                                                      
                                                                                                                                
3:34:17 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked why  the Alaska State  Medical Board                                                               
hasn't taken a position on this bill.                                                                                           
                                                                                                                                
MS. STOVERN explained  that the Board reviewed HB  97 in February                                                               
and took  a position in  support of  the legislation.   She noted                                                               
that  they  issued a  letter  referencing  their position,  which                                                               
could be provided to the committee upon request.                                                                                
                                                                                                                                
REPRESENTATIVE HANNAN  questioned whether leaving PAs  out of the                                                               
original  statute [AS  08.64.364  Prescription  of drugs  without                                                               
physical  examination]   that  gives  doctors   authorization  to                                                               
practice telemedicine was intentional.                                                                                          
                                                                                                                                
MR. HARRIS offered his understanding  that the original intent of                                                               
was to  allow both physicians  and PAs to  practice telemedicine.                                                               
He added that  it's not irrational that the  Board interpreted it                                                               
differently, as the original bill only addressed physicians.                                                                    
                                                                                                                                
MR. HARRIS  noted that HB  97 has an  effective date of  March 1,                                                               
2020, per request of the Alaska State Medical Board.                                                                            
                                                                                                                                
3:36:49 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX opened public testimony.                                                                                        
                                                                                                                                
3:37:00 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER   DIETRICH,   Assistant   Medical   Director,   Orion                                                               
Behavioral Health  Network, informed the  committee that he  is a                                                               
PA  practicing adolescent  and child  psychiatry  in Alaska  from                                                               
Kotzebue  to  Ketchikan.    He  noted  that  he  also  serves  an                                                               
underserved   demographic  by   offering  is   services  to   the                                                               
Department of Corrections (DOC).   He stated that PAs are medical                                                               
providers who  diagnose illnesses,  develop and  manage treatment                                                               
plans, prescribe  medications, and  often service as  a patient's                                                               
principal  healthcare  provider.    With thousands  of  hours  of                                                               
medical training,  he said, PAs are  versatile and collaborative.                                                               
He expressed  his support for  HB 97  as to decrease  barriers to                                                               
his patients in rural access areas  and to make it easier for all                                                               
patients to have adequate treatment.                                                                                            
                                                                                                                                
3:38:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed  public testimony.  She  announced that HB                                                               
97 was held over.                                                                                                               
                                                                                                                                
            HB 29-INSURANCE COVERAGE FOR TELEHEALTH                                                                         
                                                                                                                                
3:39:13 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be HOUSE BILL NO. 29, "An  Act relating to insurance coverage for                                                               
benefits  provided  through  telehealth;  and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
3:39:40 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:39 to 3:41 p.m.                                                                            
                                                                                                                                
3:42:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX opened public testimony on HB 29.                                                                               
                                                                                                                                
3:42:46 PM                                                                                                                    
                                                                                                                                
CHRISTOPHER   DIETRICH,   Assistant   Medical   Director,   Orion                                                               
Behavioral Health Network,  expressed his support for HB  29.  He                                                               
offered his  belief that  when patients who  are covered  by both                                                               
private insurance  and Medicaid, receive telehealth  service that                                                               
their private insurance denies, then  the cost is shifted over to                                                               
the state.   He  stated that  this bill would  help the  state of                                                               
Alaska save money and help patients receive better care.                                                                        
                                                                                                                                
3:44:10 PM                                                                                                                    
                                                                                                                                
CLAUDIA TUCKER,  Government Affairs  VP, Teladoc  Health, offered                                                               
support for  HB 29.   She said that  HB 29 will  mandate coverage                                                               
without   getting   into   the   contractual   relationship   for                                                               
reimbursement between providers and the  health plan and does not                                                               
require a prior  in-person [appointment], which she  said is good                                                               
policy.  She reported that  Teladoc Health has 47 Alaska licensed                                                               
physicians working in the state.                                                                                                
                                                                                                                                
3:45:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL asked if the  physicians working for Teladoc Health                                                               
are physically located in Alaska.                                                                                               
                                                                                                                                
MS. TUCKER  replied that they  can be both  in Alaska and  out of                                                               
state.   She said that  call volume for 2018  shows approximately                                                               
30  percent  of  calls  were answered  by  physicians  living  in                                                               
Alaska.  She  did note, however, that all  Teladoc physicians are                                                               
at least licensed in this state.                                                                                                
                                                                                                                                
3:46:22 PM                                                                                                                    
                                                                                                                                
ROBIN   MINARD,  Chief   Communications  Officer,   Matsu  Health                                                               
Foundation, voiced her  support for HB 29.  She  stated that this                                                               
bill addresses and solves both  transportation and access to care                                                               
for Alaskans.   She offered  her belief that  currently, patients                                                               
postpone   preventive  care,   medication   refills,  and   early                                                               
intervention  due to  access, cost,  weather, and  lack of  time,                                                               
which  ultimately increases  overall healthcare  costs when  they                                                               
end up  in the  emergency room (ER).   She said  that HB  29 will                                                               
help to give quality care to more Alaskans.                                                                                     
                                                                                                                                
3:49:21 PM                                                                                                                    
                                                                                                                                
LYNN FREEMAN, PhD,  CEO, Mind Matters Research  LLC, testified in                                                               
support of HB  29, stating that it is critical  for the wellbeing                                                               
of  patients in  Alaska.   She  informed the  committee that  her                                                               
research supports the  notion that telehealth can  offer the same                                                               
quality of  care as in-office  appointments.  She  contended that                                                               
in some cases, telehealth can even provide better outcomes.                                                                     
                                                                                                                                
3:51:34 PM                                                                                                                    
                                                                                                                                
WADE ERICKSON,  MD, Capstone Family Medicine,  stated his support                                                               
for HB  29.   He informed  the committee that  he has  been doing                                                               
telemedicine for six years as  a family physician, noting that he                                                               
uses it  for both rural  and local patients.   He said  that with                                                               
proper   use  of   telemedicine,  he   has  seen   a  significant                                                               
improvement in patient  care, access to care, and  a reduction in                                                               
the use of both emergency room and urgent care services.                                                                        
                                                                                                                                
3:53:02 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
3:53:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL  moved to  report  HB  29  out of  committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
Without  objection, HB  29 was  moved  from the  House Labor  and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
3:53:45 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:53 to 3:56 p.m.                                                                            
                                                                                                                                
           HB 104-MORTGAGE LOAN ORIGINATOR LICENSING                                                                        
                                                                                                                                
3:56:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX announced  that the next order  of business would                                                               
be  CS  FOR  HOUSE  BILL   NO.  104(L&C),  "An  Act  relating  to                                                               
exemptions from  mortgage lender,  mortgage broker,  and mortgage                                                               
loan  originator licensing  requirements;  and  providing for  an                                                               
effective date."                                                                                                                
                                                                                                                                
3:57:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX opened public testimony.                                                                                        
                                                                                                                                
3:57:34 PM                                                                                                                    
                                                                                                                                
STACY HARVILL,  Realtor, Madden Real  Estate, stated  her support                                                               
for HB 104.   She offered her belief that  HB 104 provides strong                                                               
consumer protection  and provides  options for people  buying and                                                               
selling in  the state of Alaska.   She said that  there are often                                                               
properties that  do not  fit the  traditional financing  mold and                                                               
buyers that do  not fit the traditional financing  standard.  She                                                               
opined  that  the  solution  is  owner  financing;  however,  the                                                               
current law  has made it that  a private individual cannot  do so                                                               
unless the  dwelling serves as  the individual's residence.   She                                                               
shared her  belief that  HB 104 will  help to  adequately address                                                               
owner financing and make it  easier for individuals to sell their                                                               
properties in many circumstances.                                                                                               
                                                                                                                                
CO-CHAIR WOOL  asked if  Ms. Harvill was  aware that  the current                                                               
version  of   the  bill  allows   for  nonprofits,  as   well  as                                                               
individuals, to sell properties.                                                                                                
                                                                                                                                
MS. HARVILL disclosed that she  participated in drafting the bill                                                               
and acknowledged  that nonprofits  were not  originally included.                                                               
Nonetheless, she  said that it  makes sense to  include nonprofit                                                               
organizations and expressed support for that addition.                                                                          
                                                                                                                                
CO-CHAIR WOOL asked if Ms.  Harvill would feel differently if the                                                               
nonprofits were large national groups  rather than small "mom and                                                               
pop" organizations.                                                                                                             
                                                                                                                                
MS. HARVILL  said, "possibly  but not  necessarily."   She stated                                                               
that all  the nonprofit organizations that  were mentioned during                                                               
the previous bill hearing for HB 104 made sense to her.                                                                         
                                                                                                                                
4:01:06 PM                                                                                                                    
                                                                                                                                
NADINE  WINTERS,   Executive  Director,   Fairbanks  Neighborhood                                                               
Housing Services, expressed  her support for HB  104, adding that                                                               
the  nonprofit exemption  would specifically  apply to  Fairbanks                                                               
Neighborhood  Housing  Services  (FNHS).   She  said  they  offer                                                               
products that are not available  by traditional lenders and would                                                               
be exempt by  federal law.  She opined that  this bill would help                                                               
FNHS  fulfill  their mission  to  help  low- and  moderate-income                                                               
first-time home buyers get into homes.                                                                                          
                                                                                                                                
4:03:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN  asked what kind for  employee screening is                                                               
done   to  stop   the  abuse   of   loan  applicants'   financial                                                               
information.                                                                                                                    
                                                                                                                                
MS.  WINTERS replied  that  they  have confidentiality  policies,                                                               
mortgage  underwriting  policies and  procedures,  as  well as  a                                                               
litany of assurances required by their funding sources.                                                                         
                                                                                                                                
REPRESENTATIVE  HANNAN   asked  if   that  includes   a  criminal                                                               
background check.                                                                                                               
                                                                                                                                
MS. WINTERS answered yes.                                                                                                       
                                                                                                                                
4:05:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL asked  if Ms. Winters, a  licensed loan originator,                                                               
handles all loans in her office.                                                                                                
                                                                                                                                
MS. WINTERS  confirmed that.  She  added that she does  the terms                                                               
with  the  assistance   from  a  loan  processor   who  does  the                                                               
voluminous paperwork requirements.                                                                                              
                                                                                                                                
CO-CHAIR WOOL considered  whether a nonprofit group  would be, by                                                               
definition, a  commercial lender if  they were to offer  the same                                                               
kind  of loan  as  a bank.    He  asked if  that  would make  the                                                               
nonprofit ineligible for the exemption.                                                                                         
                                                                                                                                
MS.  WINTERS  acknowledged  that  would meet  the  definition  of                                                               
"commercial" and the exemption would not apply to them.                                                                         
                                                                                                                                
CO-CHAIR  WOOL  sought clarification  on  the  zero percent  loan                                                               
program offered by  FNHS.  He speculated that  their down payment                                                               
helps people get bank loans to buy a house.                                                                                     
                                                                                                                                
MS. WINTERS said,  "Exactly," and added that  all her nonprofit's                                                               
programs  are for  first-time home  buyers.   She clarified  that                                                               
every second  mortgage that FNHS does  is tied to a  first lender                                                               
whose  client wouldn't  have been  able  to get  into their  home                                                               
without the program assistance offered by the nonprofit.                                                                        
                                                                                                                                
4:10:46 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL suggested a scenario  in which someone wants to get                                                               
a second  mortgage on a house  they own.   He asked if he  or she                                                               
would be  required to come up  with the down payment  if they are                                                               
already paying for the loan on their house.                                                                                     
                                                                                                                                
MS.  WINTERS said  if  that individual  already  has an  existing                                                               
mortgage  then  FNHS   would  not  be  assisting   them,  as  the                                                               
organization helps  first-time home buyers.   She reiterated that                                                               
someone  looking for  a second  mortgage  on top  of an  original                                                               
mortgage would  not be a client  that they serve.   She continued                                                               
by saying that FNHS helps people  with closing costs and the down                                                               
payment.                                                                                                                        
                                                                                                                                
CO-CHAIR  WOOL offered  his understanding  that  FNHS is  helping                                                               
people out with fees rather than originating their mortgage.                                                                    
                                                                                                                                
MS.  WINTERS  acknowledged that  they  are  augmenting a  certain                                                               
population of homebuyers in the community rather than competing.                                                                
                                                                                                                                
4:12:49 PM                                                                                                                    
                                                                                                                                
PATRICK  ANDERSON CEO,  Rural  Alaska  Community Action  Program,                                                               
informed  the  committee  that   Rural  Alaska  Community  Action                                                               
Program (RurAL  CAP) is  a nonprofit  agency operating  in Alaska                                                               
and  a licensed  mortgage loan  originator as  required by  state                                                               
law.   He expressed full  support for HB  104 as it  would exempt                                                               
nonprofit  organizations like  RurAL CAP  from the  requirements.                                                               
He  explained that  RurAL CAP  closes second  mortgages for  low-                                                               
income  home  buyers  that  are serviced  and  funded  by  Alaska                                                               
Housing  Finance Corporation,  noting that  in the  past 7  years                                                               
they have closed only 36 such  loans while expending in excess of                                                               
$20,000 in fees to maintain compliance with regulations.                                                                        
                                                                                                                                
CO-CHAIR WOOL  questioned whether  RurAL CAP uses  a bank  to buy                                                               
properties.                                                                                                                     
                                                                                                                                
MR. ANDERSON said that they buy it themselves.                                                                                  
                                                                                                                                
4:19:34 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL  said the committee  has heard from  nonprofits who                                                               
say they don't compete with  banks and offer different loans than                                                               
banks do.   He asked for the Division of  Banking and Securities'                                                               
response to that.                                                                                                               
                                                                                                                                
PATRICE  WALSH, Director,  Division  of  Banking and  Securities,                                                               
Department  of   Commerce,  Community  &   Economic  Development,                                                               
replied  that she  views these  nonprofits  as public  assistance                                                               
because  they  are  offering  services  to  a  group  that  isn't                                                               
serviced  by the  state or  federally licensed  loan originators.                                                               
She  noted  that   the  federal  law  already   allows  for  this                                                               
exemption, which other states have  adopted, leaving Alaska as an                                                               
outlier that has yet to convert to keep up with federal law.                                                                    
                                                                                                                                
4:21:50 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL asked  if the number of loans would  increase if HB                                                               
104 were to pass.                                                                                                               
                                                                                                                                
MS. WALSH  offered her belief  that there wouldn't be  more loans                                                               
because the nonprofits get their  money through grants, which are                                                               
limited.  She  added that she has never seen  the volume increase                                                               
for the few licensees that they have.                                                                                           
                                                                                                                                
4:24:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE HANNAN questioned whether  Ms. Walsh believes that                                                               
allowing the nonprofit origination  of residential mortgage loans                                                               
would open a risk to consumers in Alaska.                                                                                       
                                                                                                                                
MS. WALSH answered  no, because nonprofits must  qualify for this                                                               
exemption  and   in  that  qualification  process   there  is  an                                                               
extensive  review  of  each organization  that  must  be  renewed                                                               
annually.                                                                                                                       
                                                                                                                                
4:26:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR LEDOUX closed public testimony.                                                                                        
                                                                                                                                
4:26:56 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease.                                                                                             
                                                                                                                                
4:27:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR WOOL said he wasn't  present for the introduction of the                                                               
CS  at the  previous bill  hearing.   He further  noted that  the                                                               
nonprofits seem to  have a limited scope of  a limited clientele.                                                               
He  added that  it  would  have been  helpful  to  hear from  the                                                               
banking industry during testimony.                                                                                              
                                                                                                                                
4:28:24 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  WOOL moved  to report  CSHB  104, Version  31-LS0275\S,                                                               
Bannister,   4/10/109,   out   of   committee   with   individual                                                               
recommendations  and  the  accompanying fiscal  notes.    Without                                                               
objection,  CSHB 104(L&C)  was  moved from  the  House Labor  and                                                               
Commerce Standing Committee.                                                                                                    
                                                                                                                                
4:28:49 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:28 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB 97.Sponsor.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97.Bill Version U.PDF HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97.Bill Version S CS for Adoption.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97. Summary of Changes Version U to Verison S.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97.Sectional.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97.Fiscal DCCED.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 97.Backup Support Letter ASHNHA.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AK Policy Forum 3.27.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document ACoA 3.26.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AK State Medical Bd Roster 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AK State Medical Bd PA scope of practice 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document DEA Drug Schedules 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Dietrich (OBHS) 3.25.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document HRSA -HPSA Underserved Primary Care Areas 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Medically Underserved Areas HRSA 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document Orion BH Emails of Support 3.26.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document PA guidelines AK State Medical Bd 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document PA Prescriptive Authority (AAC) 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB0097 Supporting Document AAPA general overview 3.21.19.pdf HL&C 4/29/2019 3:15:00 PM
HB 97
HB 29.Sponsor.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 29.Bill Version A.PDF HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 29.Fiscal Note.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 29.Sectional.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
HB 29
HB 29.Backup Letters of Support.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 29.Backup Letter of Support AARP.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 29.Backup ADN Article.pdf HL&C 4/29/2019 3:15:00 PM
SHSS 2/14/2020 1:30:00 PM
SHSS 2/19/2020 1:30:00 PM
HB 29
HB 104.Sponsor.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104.Bill Version S CS for adoption.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104.Fiscal DCCED.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104.Backup GFBR.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104.Backup Support Letter Schiewer.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104.Backup Alaska Realtors.pdf HL&C 4/29/2019 3:15:00 PM
HB 104
HB 104 Non Profit Organization Exemption.pdf HL&C 4/29/2019 3:15:00 PM
HB 104