Legislature(2021 - 2022)BARNES 124

04/12/2021 03:15 PM LABOR & COMMERCE

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Audio Topic
03:17:39 PM Start
03:19:09 PM Board of Certified Real Estate Appraisers
03:36:07 PM SB87
03:41:55 PM HB145
04:14:57 PM HB90
04:51:23 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 87 REINSURANCE; CREDITS TELECONFERENCED
Heard & Held
*+ HB 145 EXPAND PHARMACIST AUTHORITY TELECONFERENCED
Heard & Held
+= HB 90 VEHICLE RENTALS & VEHICLE RENTAL NETWORKS TELECONFERENCED
Moved HB 90 Out of Committee
-- Public Testimony --
+ Consideration of Governor's Appointees: TELECONFERENCED
- Board of Pharmacy: Justin Ruffridge
- Board of Veterinary Examiners: Rachel Berngartt
- Board of Certified Real Estate Appraisers:
Mae Hayes
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          HOUSE LABOR AND COMMERCE STANDING COMMITTEE                                                                         
                         April 12, 2021                                                                                         
                           3:17 p.m.                                                                                            
                                                                                                                                
                             DRAFT                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Zack Fields, Co-Chair                                                                                            
Representative Ivy Spohnholz, Co-Chair                                                                                          
Representative Calvin Schrage                                                                                                   
Representative Liz Snyder                                                                                                       
Representative David Nelson                                                                                                     
Representative James Kaufman                                                                                                    
Representative Ken McCarty                                                                                                      
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
CONFIRMATION HEARING(S):                                                                                                        
                                                                                                                                
Board of Pharmacy                                                                                                             
                                                                                                                                
     Jason Ruffridge - Soldotna                                                                                                 
                                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
Board of Veterinary Examiners                                                                                                 
                                                                                                                                
     Rachel Berngartt - Juneau                                                                                                  
                                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
Board of Certified Real Estate Appraisers                                                                                     
                                                                                                                                
     Mae Sprague - Wasilla                                                                                                      
                                                                                                                                
     HEARD AND HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 87                                                                                                              
"An Act relating to credit for reinsurance; and providing for an                                                                
effective date."                                                                                                                
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 145                                                                                                              
"An Act relating to the Board of Pharmacy; relating to health                                                                   
care services provided by pharmacists and pharmacy technicians;                                                                 
and relating to the practice of pharmacy."                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 90                                                                                                               
"An Act relating to rental vehicles; relating to vehicle rental                                                                 
networks; relating to liability for vehicle rental taxes; and                                                                   
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED HB 90 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  87                                                                                                                  
SHORT TITLE: REINSURANCE; CREDITS                                                                                               
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
02/22/21       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/21       (S)       L&C                                                                                                    
03/08/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/08/21       (S)       Heard & Held                                                                                           
03/08/21       (S)       MINUTE(L&C)                                                                                            
03/19/21       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/19/21       (S)       Moved SB 87 Out of Committee                                                                           
03/19/21       (S)       MINUTE(L&C)                                                                                            
03/22/21       (S)       L&C RPT 5DP                                                                                            
03/22/21       (S)       DP: COSTELLO, GRAY-JACKSON, STEVENS,                                                                   
                         REVAK, HOLLAND                                                                                         
03/31/21       (S)       TRANSMITTED TO (H)                                                                                     
03/31/21       (S)       VERSION: SB  87                                                                                        
04/05/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/21       (H)       L&C                                                                                                    
04/12/21       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB 145                                                                                                                  
SHORT TITLE: EXPAND PHARMACIST AUTHORITY                                                                                        
SPONSOR(s): SNYDER                                                                                                              
                                                                                                                                
03/24/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/24/21       (H)       L&C, HSS                                                                                               
04/12/21       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
BILL: HB  90                                                                                                                  
SHORT TITLE: VEHICLE RENTALS & VEHICLE RENTAL NETWORKS                                                                          
SPONSOR(s): WOOL                                                                                                                
                                                                                                                                
02/18/21       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/21       (H)       L&C, FIN                                                                                               
04/09/21       (H)       L&C AT 8:00 AM GRUENBERG 120                                                                           
04/09/21       (H)       Heard & Held                                                                                           
04/09/21       (H)       MINUTE(L&C)                                                                                            
04/12/21       (H)       L&C AT 3:15 PM BARNES 124                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JUSTIN RUFFRIDGE, PharmD, Appointee                                                                                             
Board of Pharmacy                                                                                                               
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Spoke as an appointee to the Board of                                                                    
Pharmacy.                                                                                                                       
                                                                                                                                
RACHEL BERNGARTT, DVM, Appointee                                                                                                
Board of Veterinary Examiners                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as an appointee to the Board of                                                                    
Veterinary Examiners.                                                                                                           
                                                                                                                                
MAE SPRAGUE, Appointee                                                                                                          
Board of Certified Real Estate Appraisers                                                                                       
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT:  Spoke as an appointee to the Board of                                                                    
Certified Real Estate Appraisers.                                                                                               
                                                                                                                                
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community, and Economic Development                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced SB 87 on behalf of the Senate                                                                 
Rules Standing Committee, sponsor, by request of the governor.                                                                  
                                                                                                                                
ALLIANA SANGUIT, Staff                                                                                                          
Representative Liz Snyder                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented the sectional analysis of HB 145                                                               
on behalf of Representative Snyder, prime sponsor.                                                                              
                                                                                                                                
TOM WADSWORTH, Chief Administrative Officer                                                                                     
University of Alaska Anchorage/Idaho State University Doctor of                                                                 
Pharmacy Program                                                                                                                
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided testimony during the hearing on HB
145.                                                                                                                            
                                                                                                                                
GRETCHEN GLASPY, President                                                                                                      
Alaska Pharmacists Association                                                                                                  
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided testimony during the hearing on HB
145.                                                                                                                            
                                                                                                                                
JUSTIN RUFFRIDGE, PharmD                                                                                                        
Board of Pharmacy                                                                                                               
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Provided testimony during the hearing on HB
145.                                                                                                                            
                                                                                                                                
REPRESENTATIVE ADAM WOOL                                                                                                        
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  As prime sponsor, provided information and                                                               
answered questions during the hearing on HB 90.                                                                                 
                                                                                                                                
MIKE BARNHILL, Deputy Commissioner                                                                                              
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided information during the hearing on                                                               
HB 90.                                                                                                                          
                                                                                                                                
SEAN VINCK, Senior Counsel                                                                                                      
Turo                                                                                                                            
San Francisco, California                                                                                                       
POSITION STATEMENT:  Testified in opposition to HB 90.                                                                        
                                                                                                                                
CARL SZABO, Vice President and General Counsel                                                                                  
NetChoice                                                                                                                       
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Testified in opposition to HB 90.                                                                        
                                                                                                                                
BENJAMIN PALMER, Director of Government and Public Affairs                                                                      
Enterprise Holdings Inc.                                                                                                        
California                                                                                                                      
POSITION STATEMENT:  Testified in support of HB 90.                                                                           
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
3:17:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  IVY  SPOHNHOLZ  called  the House  Labor  and  Commerce                                                             
Standing   Committee    meeting   to    order   at    3:17   p.m.                                                               
Representatives Schrage,  McCarty, Fields, Snyder,  and Spohnholz                                                               
were present at  the call to order.   Representatives Kaufman and                                                               
Nelson arrived as the meeting was in progress.                                                                                  
                                                                                                                                
^CONFIRMATION HEARING(S):                                                                                                       
                    CONFIRMATION HEARING(S):                                                                                
^Board of Pharmacy                                                                                                              
                       Board of Pharmacy                                                                                    
^Board of Veterinary Examiners                                                                                                  
                 Board of Veterinary Examiners                                                                              
^Board of Certified Real Estate Appraisers                                                                                      
           Board of Certified Real Estate Appraisers                                                                        
                                                                                                                              
                                                                                                                              
3:19:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  first order  of business                                                               
would  be   confirmation  hearings   for  consideration   of  the                                                               
governor's appointees to various boards.                                                                                        
                                                                                                                                
3:19:22 PM                                                                                                                    
                                                                                                                                
JUSTIN RUFFRIDGE, PharmD, Appointee,  Board of Pharmacy, informed                                                               
the  committee that  he  has been  practicing  in Soldotna  since                                                               
2008.   He said he  owns three  pharmacies within Alaska  and has                                                               
been involved  in several  areas of the  practice.   He expressed                                                               
the  hope  of  continuing  to serve  his  committee  through  his                                                               
profession and public service.                                                                                                  
                                                                                                                                
3:21:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MCCARTY  asked Dr. Ruffridge what  concerns he has                                                               
for pharmacies in Alaska.                                                                                                       
                                                                                                                                
DR.  RUFFRIDGE   responded  that  he  believes   pharmacists,  as                                                               
protectors of medicine,  are the natural choice  to help Alaskans                                                               
to progress  in their  health.   Pharmacists have  sometimes been                                                               
stuck between a rock and a hard  place, he said, with a degree of                                                               
uncertainty about  what their abilities  and duties are  in cases                                                               
where  a  patient needs  a  drug  prescribed  by  a doctor.    He                                                               
expressed that  the Board of  Pharmacy has gone to  great lengths                                                               
to ensure pharmacists are aware  of their duties and protections,                                                               
particularly in cases  of opiate medications.  He  said he's seen                                                               
significant  alterations of  prescribing practices  and durations                                                               
of therapy, and that Alaska is moving in the right direction.                                                                   
                                                                                                                                
REPRESENTATIVE MCCARTY  asked what  can be done  in collaboration                                                               
with the Board of Medicine.                                                                                                     
                                                                                                                                
DR. RUFFRIDGE replied that the  collaborative process is ongoing,                                                               
with a  recent joint  meeting between the  two boards  to discuss                                                               
prescription drug monitoring programs  and ways for physicians to                                                               
collaborate  with  pharmacists  to  produce  high-quality  health                                                               
care.  He  noted that the current chair of  the Board of Pharmacy                                                               
has gone "above and beyond" in collaboration efforts.                                                                           
                                                                                                                                
3:24:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  thanked Dr.  Ruffridge and expressed  that he                                                               
has been a leader when it comes to "moving change" in Alaska.                                                                   
                                                                                                                                
3:25:29 PM                                                                                                                    
                                                                                                                                
RACHEL BERNGARTT, DVM, Appointee,  Board of Veterinary Examiners,                                                               
informed the  committee that she  has lived and worked  in Alaska                                                               
since 2002  and is currently  based in Juneau.   She said  she is                                                               
also a licensed  member of the Alaska Bar Association.   She said                                                               
she was initially confirmed to  the Board of Veterinary Examiners                                                               
in 2016,  and this  confirmation would be  a reinstatement.   She                                                               
noted  the  need to  recognize  the  role veterinarians  play  in                                                               
zoonotic  disease  risk management  and  the  increased need  for                                                               
veterinary  services due  to the  surge in  pet adoptions  during                                                               
quarantine.  She  said on her previous work on  the board she has                                                               
addressed the  public's need for  safe access to  veterinary care                                                               
during  the  COVID-19  pandemic,  providing  best  practices  for                                                               
licensees  for  continued  services,  emergency  regulation,  and                                                               
ongoing monitoring and effects of  state mandates.  Dr. Berngartt                                                               
described  her extensive  participation in  legislative testimony                                                               
and outreach.   She said she  would like to keep  her momentum on                                                               
the board.                                                                                                                      
                                                                                                                                
3:31:50 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON  asked Dr.  Berngartt  to  talk about  her                                                               
history as a veterinarian.                                                                                                      
                                                                                                                                
DR. BERNGARTT responded  that she has served for 10  years as the                                                               
clinical  director of  the  Juneau Humane  Society  and has  been                                                               
involved in marine mammal science  efforts at the Alaska Sea Life                                                               
Center.   She  said  she  has worked  with  seals in  Antarctica,                                                               
provided  equine   care  in   Southeast  Alaska,   and  currently                                                               
practices regular small-animal medicine in Juneau.                                                                              
                                                                                                                                
3:34:01 PM                                                                                                                    
                                                                                                                                
MAE   SPRAGUE,  Appointee,   Board  of   Certified  Real   Estate                                                               
Appraisers, said  she is a  certified real estate  appraiser with                                                               
20 years'  experience in  real estate  in Alaska,  as well  as an                                                               
operating principal  in her husband's construction  company.  She                                                               
said  she  would like  to  serve  on  the  board to  become  more                                                               
knowledgeable in  issues within  the field of  real estate.   She                                                               
said that she  would bring to the board a  perspective from other                                                               
fields.                                                                                                                         
                                                                                                                                
3:35:54 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ opened  public  testimony  on the  governor's                                                               
appointees  to  the  Board  of   Pharmacy,  Board  of  Veterinary                                                               
Examiners, and Board of Certified  Real Estate Appraisers.  After                                                               
ascertaining that  no one  wished to  testify, she  closed public                                                               
testimony.                                                                                                                      
                                                                                                                                
                   SB 87-REINSURANCE; CREDITS                                                                               
                                                                                                                                
3:36:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the next  order of  business                                                               
would  be SENATE  BILL NO.  87, "An  Act relating  to credit  for                                                               
reinsurance; and providing for an effective date."                                                                              
                                                                                                                                
3:36:22 PM                                                                                                                    
                                                                                                                                
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce, Community,  and Economic Development, introduced  SB 87                                                               
on behalf  of the  Senate Rules  Standing Committee,  sponsor, by                                                               
request of  the governor.   She  explained that  one of  the most                                                               
important  duties carried  out by  the Division  of Insurance  is                                                               
monitoring  the   solvency  of  insurance  companies   to  ensure                                                               
adequate  funds  to pay  claims.    She  said that  in  practice,                                                               
insurance companies only keep a portion  of the risk; if a person                                                               
has  a house  worth $500,000,  the insurance  company may  insure                                                               
only  half of  the worth,  purchasing reinsurance  for the  other                                                               
half.   Likewise,  she said,  the company  may transfer  only the                                                               
earthquake  portion of  the policy  because  the company  doesn't                                                               
want  to  carry that  risk.    She  recalled the  2008  financial                                                               
crisis, noting  that the  Division of  Insurance was  diligent in                                                               
monitoring insurance companies for  solvency, but did not monitor                                                               
for reinsurance.   She stated that the United  States, along with                                                               
the  United Kingdom  and the  European Union,  developed what  is                                                               
called  the  "covered  agreement,"   a  very  detailed  agreement                                                               
providing  that   insurance  regulators  in  each   country  will                                                               
maintain the  same financial  standards for  insurance companies.                                                               
The  covered agreement  with  the European  Union  was signed  by                                                               
President  Barack  Obama,  and the  covered  agreement  with  the                                                               
United  Kingdom was  signed by  President Donald  Trump.   As new                                                               
international  insurers   are  launched,  however,  a   need  for                                                               
modification arises, which is the reason for SB 87.                                                                             
                                                                                                                                
MS. WING-HEIER  directed the committee's attention  to Section 1,                                                               
subsection  (a),  paragraph  (6), of  the  proposed  legislation,                                                               
detailed  on  pages   10  through  13,  which   would  amend  the                                                               
conditions for  qualified reinsurers and the  associated baseline                                                               
for allowing reinsurers  to assume the liabilities  of a domestic                                                               
insurer.    Current  domestic  insurers,  she  said,  are  Alaska                                                               
National Insurance  Company and  Umialik Insurance Company.   She                                                               
explained that  "creditor reinsurance" is called  as such because                                                               
when  an  insurance company  buys  reinsurance  from a  qualified                                                               
reinsurer, the  company can get  a credit for what  was purchased                                                               
in  reinsurance.   Ms. Wing-Heier  then  summarized the  relevant                                                               
sectional analysis,  which read as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     AS  21.12.020(a)(6)  is  amended by  adding  conditions                                                                    
     that  a   qualified  reinsurer  must  meet   to  assume                                                                    
     liabilities  of   a  domestic  insurer.   The  assuming                                                                    
     insurer shall:                                                                                                             
     (A)  Have  its  head  office   or  be  domiciled  in  a                                                                    
     reciprocal jurisdiction;                                                                                                   
     (B) Have  and maintain minimum capital  and surplus, or                                                                    
     its equivalent, in an amount set out in regulation;                                                                        
     (C)  Have and  maintain a  minimum solvency  or capital                                                                    
     ratio in an amount set out in regulation;                                                                                  
     (D)  Agree to  and provide  adequate assurances  to the                                                                    
     director (i)prompt written notice  if the insurer falls                                                                    
     below  the minimum  requirements or  if any  regulatory                                                                    
     action is taken against  it for serious non-compliance;                                                                    
     (ii)  consent in  writing to  the  jurisdiction of  the                                                                    
     courts  of this  state and  to the  appointment of  the                                                                    
     director  as the  agent for  service of  process; (iii)                                                                    
     consent in writing to pay  all final judgments obtained                                                                    
     by   the  ceding   insurer;   (iv)   agree  that   each                                                                    
     reinsurance  agreement  must  provide  security  in  an                                                                    
     amount equal  to 100 percent of  the assuming insurer's                                                                    
     liabilities;   and  (v)   confirm   that   it  is   not                                                                    
     participating  in  any  solvent scheme  of  arrangement                                                                    
     that involves this state's ceding insurers;                                                                                
     (E) Provide  certain documentation  to the  director as                                                                    
     specified in regulation;                                                                                                   
     (F) Maintain a practice of prompt payment of claims;                                                                       
     (G) Confirm  to the  director on  an annual  basis that                                                                    
     the assuming insurer complies  with requirement (B) and                                                                    
     (C);                                                                                                                       
     (H) Agree  that nothing in this  paragraph precludes an                                                                    
     assuming  insurer  from  providing  the  director  with                                                                    
     information on a voluntary basis.                                                                                          
                                                                                                                                
MS. WING-HEIER  stated that the  proposed legislation  would also                                                               
provide a definition of a  "reciprocal jurisdiction" and that the                                                               
reciprocal  jurisdiction  would  include  the  countries  in  the                                                               
United Kingdom and the countries of the European Union.                                                                         
                                                                                                                                
3:40:58 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  commented that  reinsurance  seems  to be  more                                                               
broadly available  to, and  disproportionally benefit,  people in                                                               
regions   of   low-frequency,    high-consequence   events   like                                                               
earthquakes.                                                                                                                    
                                                                                                                                
MS.  WING-HEIER  replied  that   such  events  are  exactly  what                                                               
reinsurance is for, noting that  such events don't commonly occur                                                               
but are "catastrophic" when they do.                                                                                            
                                                                                                                                
3:41:40 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ announced that SB 87 was held over.                                                                          
                                                                                                                                
               HB 145-EXPAND PHARMACIST AUTHORITY                                                                           
                                                                                                                                
3:41:55 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that  the next  order of  business                                                               
would be  HOUSE BILL NO.  145, "An Act  relating to the  Board of                                                               
Pharmacy;   relating  to   health  care   services  provided   by                                                               
pharmacists  and  pharmacy  technicians;   and  relating  to  the                                                               
practice of pharmacy."                                                                                                          
                                                                                                                                
3:42:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SNYDER,  as  prime sponsor,  introduced  HB  145,                                                               
which she  described as a  "housekeeping bill" as it  pertains to                                                               
the business of pharmacy and  pharmacy services.  She paraphrased                                                               
the   sponsor  statement,   which  read   as  follows   [original                                                               
punctuation provided]:                                                                                                          
                                                                                                                                
     Passage   of   House    Bill   145,   "The   Pharmacist                                                                    
     Mobilization  Act,"   increases  access  to   care  and                                                                    
     ensures  Alaska's   pharmacists  are   reimbursed  when                                                                    
     providing services.                                                                                                        
                                                                                                                                
     I  am  introducing it  at  the  request of  the  Alaska                                                                    
     Pharmacists Association in  partnership with the Alaska                                                                    
     Board of  Pharmacy and  the University  of Alaska/Idaho                                                                    
     State Doctor of Pharmacy Program.                                                                                          
                                                                                                                                
     The  coronavirus pandemic  has  shown that  pharmacists                                                                    
     can  engage  at  an  elevated  level  to  help  deliver                                                                    
     necessary healthcare to  all Alaskans. Pharmacists have                                                                    
     provided    COVID-19    testing,   vaccinations,    and                                                                    
     telehealth  visits,  and  have helped  patients  manage                                                                    
     chronic  health  conditions.   This  bill  will  update                                                                    
     outdated statute so  pharmacists can continue providing                                                                    
     these services.                                                                                                            
                                                                                                                                
     HB  145   defines  the   patient  care   services  that                                                                    
     pharmacists    and   pharmacy    support   staff    can                                                                    
     independently  provide,  allows pharmacist  technicians                                                                    
     to   administer   vaccines   when  under   the   direct                                                                    
     supervision  of a  licensed  pharmacists, and  empowers                                                                    
     the Board of Pharmacy  to regulate pharmacists, student                                                                    
     pharmacists,  and pharmacy  support  staff who  provide                                                                    
     these services.                                                                                                            
                                                                                                                                
     Furthermore,  the  bill  updates the  current  provider                                                                    
     anti-discrimination   statute   to  support   insurance                                                                    
     coverage of  these patient care services  when provided                                                                    
     by a pharmacist. Currently, pharmacists  are one of the                                                                    
     only  healthcare  professionals   not  listed  in  this                                                                    
     statute.                                                                                                                   
                                                                                                                                
     HB 145 largely updates  outdated statutes to align with                                                                    
     current  practices. Its  passage  benefits Alaskans  by                                                                    
     increasing  healthcare  access  during  and  after  the                                                                    
     pandemic.   Please    support   this    common   sense,                                                                    
     housekeeping bill  that will help your  local, patient-                                                                    
     oriented  pharmacies  continue   to  provide  essential                                                                    
     services.                                                                                                                  
                                                                                                                                
3:45:13 PM                                                                                                                    
                                                                                                                                
ALLIANA SANGUIT,  Staff, Representative Liz Snyder,  Alaska State                                                               
Legislature, on  behalf of Representative Snyder,  prime sponsor,                                                               
detailed the  sectional analysis of HB  145 [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     Sec.  1: Adds  language to  AS 08.80.030(b)  Powers and                                                                    
     Duties of  the Board,  statute that outlines  the Board                                                                    
     of  Pharmacy's   powers,  that  allows  the   Board  of                                                                    
     Pharmacy  to adopt  rules to  regulate the  independent                                                                    
     monitoring of  drug therapy and  independent pharmacist                                                                    
     prescribing of vaccines and naloxone.                                                                                      
                                                                                                                                
     Sec.  2:   Adds  a  new  subsection   to  AS  08.80.045                                                                    
     Nonprescription  Drugs  that  aligns statute  with  the                                                                    
     current  practice  of   pharmacists  recommending  non-                                                                    
     prescription  medications  and   devices  for  treating                                                                    
     minor and self-limited conditions.                                                                                         
                                                                                                                                
     Sec.  3:  Amends  AS   08.80.155  Emergency  Permit  to                                                                    
     increase the  Board of Pharmacy's flexibility  to grant                                                                    
     emergency licenses  for all  relevant licenses  used in                                                                    
     pharmacies.                                                                                                                
                                                                                                                                
     Sec.  4:  Amends   AS  08.80.168(a)  Administration  of                                                                    
     Vaccines  and Related  Emergency Medications  by adding                                                                    
     "prescribe"   to    existing   vaccine   administration                                                                    
     statute.                                                                                                                   
                                                                                                                                
     Sec. 5: Amends AS  08.80.168(b) by replacing "dispense"                                                                    
     with   "prescribe  and   administer"   in  regards   to                                                                    
     administering an opioid overdose drug.                                                                                     
                                                                                                                                
     Sec.  6: Adds  a new  subsection to  AS 08.80.168  that                                                                    
     allows a  pharmacy technician  to administer  a vaccine                                                                    
     or related  emergency medication but only  if they have                                                                    
     been authorized by  the Board of Pharmacy to  do so AND                                                                    
     if they are under the  direct supervision of a licensed                                                                    
     pharmacist who  meets the requirements in  AS 08.80.168                                                                    
     (a).                                                                                                                       
                                                                                                                                
     Sec. 7:  Adds language to AS  08.80.297(a) Prescription                                                                    
     Prices Available to Consumer  that allows personnel who                                                                    
     are not  licensed pharmacists to  disclose the  cost of                                                                    
     filling a  prescription when  directed by  a pharmacist                                                                    
     working at the same institution.                                                                                           
                                                                                                                                
     Sec. 8: Amends AS  08.080 Pharmacists and Pharmacies by                                                                    
     adding a  new section, AS 08.80.337  Other Patient Care                                                                    
     Services, that:                                                                                                            
          ? Allows a pharmacist to provide patient     care                                                                     
          services  for  a  disease  or  condition  with  an                                                                    
          existing  diagnosis under  an agreement  made with                                                                    
          and approved by a practitioner                                                                                        
          ?  Limits patient  care services  that pharmacists                                                                    
          can   provide    to   those   that    are   minor,                                                                    
          selflimiting,  and have  a CLIA-waived  laboratory                                                                    
          test which guides clinical decision making.                                                                           
          ? Provides language that  allows pharmacists to be                                                                    
          reimbursed for providing these services 04/07/21                                                                      
                                                                                                                                
     Sec.  9: Amends  AS 08.80.480  Definitions by  removing                                                                    
     "dosage  form"  as  a definition  of  "equivalent  drug                                                                    
     product". This allows pharmacists to make minor, non-                                                                      
     therapeutic  changes  to prescriptions  using  clinical                                                                    
     judgement   and   expertise  without   contacting   the                                                                    
     prescriber for  verbal or  written approval.  This does                                                                    
     not  allow a  pharmacist  to substitute  a dosage  form                                                                    
     that would negatively  impact patient outcomes, safety,                                                                    
     or   cost   effectiveness.  Examples   of   appropriate                                                                    
     substitutions under this  section include changing from                                                                    
     a tablet  form of medication  to a capsule form  of the                                                                    
     same medication and strength.                                                                                              
                                                                                                                                
     Sec.   10:   Amends    AS   08.80.480(30)   by   adding                                                                    
     "dispensing"  and  "independent   prescribing"  to  the                                                                    
     definition of the "Practice of  Pharmacy" to align with                                                                    
     the changes  made in  Section 4 &  5 (AS  08.80.168) of                                                                    
     this  bill.  These  additions better  represent  actual                                                                    
     provision of naloxone and vaccine by pharmacists.                                                                          
                                                                                                                                
     Sec. 11:  Amends AS 21.36.090(d)  Unfair Discrimination                                                                    
     to  include  "pharmacists"  as  protected  health  care                                                                    
     providers in the  provider anti-discrimination statute.                                                                    
     This  aligns the  state  statute  with federal  statute                                                                    
     (CFR   438.12)   and   afford  pharmacists   the   same                                                                    
     protection  as  all  other  healthcare  providers  when                                                                    
     engaging  health plans  for  covered  services such  as                                                                    
     ordering   laboratory  tests,   point-of-care  testing,                                                                    
     vaccine  prescribing  and administration,  preventative                                                                    
    health    services,   managing    minor   self-limiting                                                                     
     conditions, and participating in collaborative disease                                                                     
     state management.                                                                                                          
                                                                                                                                
3:49:30 PM                                                                                                                    
                                                                                                                                
TOM WADSWORTH,  PharmD, Chief Administrative  Officer, University                                                               
of  Alaska/Idaho State  University  Doctor  of Pharmacy  Program,                                                               
informed the  committee that his testimony  doesn't represent any                                                               
official position  of the  University of Alaska  and that  he was                                                               
speaking as a  practicing pharmacist and educator.   He explained                                                               
that  the Doctor  of Pharmacy  program trains  students in  every                                                               
area proposed under HB 145,  noting that graduates of the program                                                               
are prepared  to engage  in a variety  of patient  care settings.                                                               
He said  that only about  half of all practicing  pharmacists are                                                               
engaged in the  community setting such as what one  would find at                                                               
a Walgreen's or Safeway pharmacy;  pharmacists are often embedded                                                               
inside  physician  clinics  doing medicine  management  or  post-                                                               
diagnostic  disease management.   Pharmacists  can specialize  in                                                               
pediatrics,  oncology, infectious  diseases,  and psychiatry,  he                                                               
explained, and  in each case  are medication experts  tasked with                                                               
improving  the  medication  experience   for  the  patient.    He                                                               
expressed that  HB 145  is a needed  update to  pharmacy practice                                                               
laws, empowering the  Board of Pharmacy to  regulate patient care                                                               
services not related simply to dispensing.                                                                                      
                                                                                                                                
3:51:59 PM                                                                                                                    
                                                                                                                                
GRETCHEN   GLASPY,   PharmD,    President,   Alaska   Pharmacists                                                               
Association, testified  in support of  HB 145.  She  informed the                                                               
committee  that  the  Alaska Pharmacists  Association  represents                                                               
over   250  pharmacists,   pharmacy   technicians,  and   student                                                               
pharmacists in  Alaska.  She said  she has been a  pharmacist for                                                               
15 years  and is presently  with Bartlett Regional Hospital  as a                                                               
clinical  informatics  pharmacist,  or expert  in  pharmaceutical                                                               
technology.  She stated her strong support for HB 145.                                                                          
                                                                                                                                
3:53:24 PM                                                                                                                    
                                                                                                                                
JUSTIN RUFFRIDGE,  PharmD, Board of Pharmacy,  explained that the                                                               
Board  of  Pharmacy  was  tasked   with  regulating  support  for                                                               
pharmacists'   COVID-19  response   and   having  the   emergency                                                               
regulations in  place to take effect  post-pandemic to facilitate                                                               
recovery and  expanding access  to healthcare.   One of  the most                                                               
difficult areas,  he said, was  consistent friction due  to state                                                               
statutes existing  in conflict  with current  pharmacy practices.                                                               
Current  statutes,   he  said,  are  largely   relevant  only  to                                                               
dispensing pharmacists, without considering  the many other areas                                                               
of  pharmaceutical   practice.    He  characterized   HB  145  as                                                               
legislation that would empower the  Board of Pharmacy to continue                                                               
to  regulate pharmacies,  pharmacists, pharmacy  technicians, and                                                               
interns at the highest possible level.                                                                                          
                                                                                                                                
3:55:27 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON asked for  further explanation of Section 7                                                               
of HB 145.                                                                                                                      
                                                                                                                                
DR.  RUFFRIDGE  explained  that  there   is  a  wide  variety  of                                                               
opportunity for  multiple individuals to use  information related                                                               
to the cost of filling  a prescription.  Pharmacy technicians are                                                               
highly  trained,  he  explained,   and  are  usually  engaged  in                                                               
computer-based  activity  of  billing,  looking  up  prices,  and                                                               
ordering medication.  A pharmacist  concentrates on the medicine,                                                               
looking out  for things  like interactions or  side effects.   He                                                               
characterized  pharmacy technicians  as "more  adept and  more in                                                               
the  nitty gritty  of the  billing" than  pharmacists and  stated                                                               
that this is  one of the ways the statutes  could be aligned with                                                               
current practices.                                                                                                              
                                                                                                                                
3:57:53 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ  pointed  out  that most  people  visiting  a                                                               
pharmacy speak with the pharmacy tech instead of a pharmacist.                                                                  
                                                                                                                                
3:58:12 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAUFMAN  expressed  concern  that  parts  of  the                                                               
proposed legislation would encroach on primary care.                                                                            
                                                                                                                                
REPRESENTATIVE   SNYDER  replied   that,  while   physicians  and                                                               
physician  groups  have been  contacted,  no  comments have  been                                                               
received.                                                                                                                       
                                                                                                                                
3:59:29 PM                                                                                                                    
                                                                                                                                
DR. WADSWORTH  explained that  there is  already a  definition in                                                               
statute that  addresses the duties  of a pharmacist  in providing                                                               
pharmaceutical care  or drug  therapy, in  what is  called "other                                                               
patient  care   services"  for  the  intent   of  prevention  and                                                               
treatment of disease.  The goal of  Section 8 of HB 145, he said,                                                               
is to determine  exactly what patient care  services the language                                                               
refers to.   He said there are no activities  outlined in Section                                                               
8 that  have not been practiced  by pharmacists for at  least the                                                               
past  20-30 years;  however, pharmacists  in  the private  sector                                                               
have  experienced  difficulties  in  engaging  health  plans  for                                                               
reimbursement,  so such  services have  mainly been  practiced by                                                               
pharmacists   within   organizations   such  as   tribal   health                                                               
organizations  or U.S.  Veterans  Affairs facilities.   He  noted                                                               
that in  a free market,  services without a revenue  stream cease                                                               
being offered.   Dr. Wadsworth  directed attention to  Section 8,                                                               
subsection (a),  describing a collaborative agreement  to provide                                                               
patient care  services along with  a practitioner, which  he said                                                               
is  in  accord  with  already-existing  statutes  and  regulation                                                               
around  what's  referred  to  as  the  "pharmacist  collaborative                                                               
authority," in effect since 2002.                                                                                               
                                                                                                                                
DR. WADSWORTH addressed Section 8,  subsection (b), which he said                                                               
defines  what  patient care  services  a  pharmacist may  provide                                                               
independently, noting  that the  subsection does not  contain any                                                               
activity not  already practiced  by pharmacists.   Areas  such as                                                               
general health and  wellness, smoking cessation, over-the-counter                                                               
recommendations,  or disease  prevention, he  said, all  are non-                                                               
prescriptive  areas; minor  or self-limiting  conditions such  as                                                               
athlete's foot are often presented  to pharmacists.  He discussed                                                               
certain types of  tests performed by pharmacists  and pointed out                                                               
that  if  HB  145  were  to fail,  these  tests  would  still  be                                                               
performed by pharmacists, just  without reimbursement from health                                                               
care insurers.   Collaborative agreements such  as the pharmacist                                                               
collaborative authority,  he said, are currently  reviewed by the                                                               
Board of Pharmacy and the Board  of Medicine; the clarity that HB
145  would provide  regarding independent  patient care  services                                                               
would  allow pharmacists  to engage  with health  care plans  and                                                               
companies to provide services.   For instance, he said, a patient                                                               
who goes  to a  Soldotna pharmacy  for a  COVID-19 test  would be                                                               
able to have it covered by insurance.                                                                                           
                                                                                                                                
4:05:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  asked whether  subsection (b)  could lead                                                               
pharmacists  to  believe  they  have  more  authority  than  they                                                               
actually do.                                                                                                                    
                                                                                                                                
4:06:27 PM                                                                                                                    
                                                                                                                                
MR.  RUFFRIDGE responded  that the  Board  of Pharmacy  discussed                                                               
subsection  (b)   in  depth   with  providers,   physicians,  and                                                               
practitioners across the  state.  The intent, he said,  is not to                                                               
promote  prescription  of  medications  outside  of  the  current                                                               
purview of  pharmacists.  The  vagueness of the subsection  is to                                                               
allow for the "multitude of  situations" encountered every day by                                                               
pharmacists  to  be covered  by  the  proposed legislation.    He                                                               
pointed  out  that  under   current  statute,  smoking  cessation                                                               
recommendations could not specifically be made by a pharmacist.                                                                 
                                                                                                                                
REPRESENTATIVE   KAUFMAN  asked   to   be   provided  with   more                                                               
information.                                                                                                                    
                                                                                                                                
4:09:06 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS commented  that he had the same  question when he                                                               
initially read  the proposed legislation,  and expressed  that HB
145 seems to "strike the right balance."                                                                                        
                                                                                                                                
4:09:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY expressed  support for  HB 145  discussed                                                               
having pharmacists offer eye exams.                                                                                             
                                                                                                                                
4:11:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ clarified  that  the  invited testifiers  are                                                               
Doctors of Pharmacy, not of medicine.   She then asked whether HB
145 would allow pharmacists to perform eye exams.                                                                               
                                                                                                                                
4:12:10 PM                                                                                                                    
                                                                                                                                
DR. WADSWORTH replied  that HB 145 does  not specifically propose                                                               
eye exams to  be included in the covered activities,  but that it                                                               
would not  be above the  purview of a  pharmacist to have  an eye                                                               
chart and perform a simple eye exam.                                                                                            
                                                                                                                                
CO-CHAIR  SPOHNHOLZ  pointed  out that  Representative  McCarty's                                                               
question referred to a test  currently administered by people not                                                               
trained  in healthcare  or optometry,  such as  employees of  the                                                               
Department of Motor Vehicles.                                                                                                   
                                                                                                                                
DR.  WADSWORTH agreed  and noted  that there  is a  precedent for                                                               
every  item in  Section 8.    He pointed  out that  the Board  of                                                               
Pharmacy would  be the regulator  of the  statute.  He  then said                                                               
that diabetes or high blood  pressure screenings are performed by                                                               
pharmacists as part of the  general disease prevention activities                                                               
in Section 8.                                                                                                                   
                                                                                                                                
4:14:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SNYDER emphasized  that HB  145 would  update the                                                               
statute to reflect current, modern practices.                                                                                   
                                                                                                                                
4:14:42 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ announced that HB 145 was held over.                                                                         
                                                                                                                                
        HB 90-VEHICLE RENTALS & VEHICLE RENTAL NETWORKS                                                                     
                                                                                                                                
4:14:57 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  SPOHNHOLZ announced  that the  final order  of business                                                               
would be HOUSE BILL NO. 90,  "An Act relating to rental vehicles;                                                               
relating to  vehicle rental networks;  relating to  liability for                                                               
vehicle rental taxes; and providing for an effective date."                                                                     
                                                                                                                                
4:15:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ADAM WOOL,  Alaska  State  Legislature, as  prime                                                               
sponsor, thanked the  committee and said he would be  open to any                                                               
questions.                                                                                                                      
                                                                                                                                
4:15:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  NELSON asked  Representative Wool  to comment  on                                                               
the letter from the Department  of Revenue (DOR) [included in the                                                               
committee packet].                                                                                                              
                                                                                                                                
REPRESENTATIVE  WOOL  responded  that  DOR has  taken  a  neutral                                                               
position on  the bill.   He said  the statement presented  in the                                                               
PowerPoint  presentation   given  during  the  House   Labor  and                                                               
Commerce Standing Committee meeting on  April 9, 2021, was from a                                                               
DOR employee under  the previous administration.   He pointed out                                                               
that  the letter  stated DOR  would  continue to  follow the  law                                                               
regarding vehicle rental tax.  He  said it was established in the                                                               
same committee meeting that anyone  renting a car to someone else                                                               
owes a  vehicle rental  tax, although  there is  no way  to track                                                               
down  individuals,   which  is   the  reason  for   the  proposed                                                               
legislation.                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON  opined that the quote  gave the impression                                                               
that the current DOR supports HB 90.                                                                                            
                                                                                                                                
4:17:39 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS said  that  as  recently as  last  year DOR  was                                                               
actively supporting the proposed legislation.                                                                                   
                                                                                                                                
4:18:09 PM                                                                                                                    
                                                                                                                                
MIKE  BARNHILL,  Deputy   Commissioner,  Department  of  Revenue,                                                               
confirmed  that  the  current  administration  does  not  have  a                                                               
position on HB 90.                                                                                                              
                                                                                                                                
4:18:26 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  shared  that  he  "likes"  the  proposed                                                               
legislation  and noted  that  Turo doesn't  even  have an  Alaska                                                               
business  license.    He wondered  whether  enforcing  a  vehicle                                                               
rental tax would cost more money than would be collected.                                                                       
                                                                                                                                
REPRESENTATIVE WOOL stressed  Representative McCarty's point that                                                               
Turo has  not applied  for a  business license  in Alaska  but is                                                               
receiving revenue through its operations  within the state.  Uber                                                               
does  have  a business  license  in  Alaska,  he said,  and  pays                                                               
corporate income  taxes.  He  said Turo has indicated  an initial                                                               
public offering  (IPO) in 2021, making  it a C Corp,  which would                                                               
mandate corporate state income taxes;  with that change, he said,                                                               
there may be more transparency in their revenue.                                                                                
                                                                                                                                
REPRESENTATIVE MCCARTY  mentioned Turo  and business  licenses in                                                               
Alaska.                                                                                                                         
                                                                                                                                
REPRESENTATIVE  WOOL  replied  that   it's  already  law  that  a                                                               
business  must  have  an  Alaska business  license  in  order  to                                                               
operate, and  said that  he doesn't think  he needs  the proposed                                                               
legislation to repeat the statute.                                                                                              
                                                                                                                                
4:23:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NELSON asked Mr. Barnhill  about the stance of DOR                                                               
on the previous iteration of the proposed legislation.                                                                          
                                                                                                                                
MR.   BARNHILL  said   that  while   he  believes   the  previous                                                               
administration  supported  an  earlier version  of  the  proposed                                                               
legislation,  he's not  aware  of any  position  taken under  the                                                               
current administration.                                                                                                         
                                                                                                                                
4:24:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  noted that  the effective  date of  HB 90                                                               
would be  immediate.   He asked  whether there  would be  a grace                                                               
period for implementation, and whether  people hosting their cars                                                               
would owe back taxes.                                                                                                           
                                                                                                                                
REPRESENTATIVE WOOL  responded that  people renting out  cars are                                                               
currently  liable for  the car  rental tax.   He  said that  this                                                               
proposed legislation would, in practice,  add a line item for tax                                                               
on the  payment page of  the app.  He  said that the  state would                                                               
not have the  names of the hosts, so there  would be no mechanism                                                               
for retroactive enforcement.   He emphasized that  car rental tax                                                               
is not  a liability incurred by  the car owner, but  is passed on                                                               
to the buyer.                                                                                                                   
                                                                                                                                
4:27:20 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ noted that Section 8  of HB 90 states that the                                                               
act would take effect immediately and would not be retroactive.                                                                 
                                                                                                                                
4:27:47 PM                                                                                                                    
                                                                                                                                
MR. BARNHILL  said DOR would  implement enforcement should  HB 90                                                               
pass.                                                                                                                           
                                                                                                                                
4:28:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  asked whether DOR  anticipates litigation                                                               
to enforce the  participation of the companies  running the peer-                                                               
to-peer applications.                                                                                                           
                                                                                                                                
MR. BARNHILL replied  that litigation seems possible  but said he                                                               
is hesitant to speculate.   He clarified that DOR would implement                                                               
any  passed  legislation in  good  faith  and actively  look  for                                                               
efficient methods of enforcement.                                                                                               
                                                                                                                                
4:30:07 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  stated his  agreement  that  companies need  to                                                               
follow  the law,  which should  apply equally  whether a  company                                                               
does business through an app or  a storefront.  He said that with                                                               
the  increasingly virtual  environment facilitating  the transfer                                                               
of goods and services, the law will need to adapt.  He added:                                                                   
                                                                                                                                
     The  absence  of  a level  playing  field,  conversely,                                                                    
     encourages companies to engage  in what economists call                                                                    
     'rent-seeking  activities'   ...  you  don't   want  to                                                                    
     encourage    rent-seeking    activities.        They're                                                                    
     inefficient, they  tend to exist  in an  environment of                                                                    
     political corruption.   It's incumbent on  us to ensure                                                                    
     companies follow the law.                                                                                                  
                                                                                                                                
CO-CHAIR FIELDS opined  that it seems obvious  that using digital                                                               
transactions to  facilitate services or  the use of  property can                                                               
be  taxed  equitably,  noting   that  owners  hosting  properties                                                               
through Airbnb  pay lodging  tax.  He  expressed that  the middle                                                               
class  has  experienced  stagnant  wages  and  rising  costs  and                                                               
governments have  experienced growing  fiscal constraints  due in                                                               
part to  some companies exploiting  anachronisms existing  in the                                                               
law  regarding  selling  a  good or  service  through  an  online                                                               
portal.  He referred to  Representative McCarty's earlier comment                                                               
that  laws need  to  be current.   He  wondered  how to  maximize                                                               
public  benefit as  more goods  and services  migrate to  digital                                                               
platforms, expressing  that consumers should  be able to  see the                                                               
benefits and  convenience of using digital  platforms without the                                                               
concerns of  sacrificing the state's  fiscal position,  the wages                                                               
of workers, or the public good.                                                                                                 
                                                                                                                                
4:33:09 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ opened public testimony on HB 90.                                                                            
                                                                                                                                
4:33:22 PM                                                                                                                    
                                                                                                                                
SEAN VINCK, Senior  Counsel, Turo, testified in  opposition to HB
90.    He  opined  that   the  "basic  thrust"  of  the  proposed                                                               
legislation  is   to  equate   individual  vehicle   owners  with                                                               
traditional  multinational rental  car corporations,  imposing on                                                               
them the same obligations and burdens.   He said that contrary to                                                               
what has  been discussed,  HB 90  would not  transfer obligations                                                               
onto  the  vehicle  sharing   platforms,  but  impose  collection                                                               
obligations  on  individuals  who  share  vehicles  through  said                                                               
platforms.  He  said that, if the objective is  to impose certain                                                               
obligations  on   out-of-state  platforms   facilitating  digital                                                               
transactions  in  order to  level  the  playing field,  that's  a                                                               
reasonable  goal.   The problem,  he said,  is that  HB 90  would                                                               
impose those  obligations on the  individuals within Alaska.   He                                                               
said  HB  90  would  have  no   effect  on  the  bottom  line  of                                                               
corporations  and  suggested that  other  items  to consider  are                                                               
consumer  protection,  public  safety, and  insurance,  and  that                                                               
there exists a model for  car sharing legislation on the national                                                               
level.                                                                                                                          
                                                                                                                                
4:37:27 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS asked, "Do you think if General Motors had to                                                                   
pay taxes and Ford did not, that would have an impact on their                                                                  
competitiveness, vis--vis each other?"                                                                                          
                                                                                                                                
MR. VINCK  replied, "I  assume that  the answer  is yes.  I don't                                                               
represent either  of those  companies and  don't know  what their                                                               
financial situation is."                                                                                                        
                                                                                                                                
CO-CHAIR  FIELDS  stated,  "Then,  obviously, it  would  have  an                                                               
impact  on   your  competitiveness  vis--vis   bona   fide  local                                                               
businesses in Alaska that rent cars."                                                                                           
                                                                                                                                
4:37:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE KAUFMAN  asked Mr. Vinck whether  he was referring                                                               
to the subparagraph  beginning on page 1, line 12,  which read as                                                               
follows:                                                                                                                        
                                                                                                                                
     (B) vehicle  rental business that arranged  or executed                                                                
     the rental  through the vehicle  rental network  if the                                                                
     rental  was  arranged  or executed  through  a  vehicle                                                                
     rental network; and                                                                                                    
                                                                                                                                
REPRESENTATIVE  KAUFMAN asked  whether Mr.  Vinck was  discussing                                                               
his  interpretation   that  the  "rental   business"  terminology                                                               
referred  to the  individual  hosting the  car,  rather than  the                                                               
online broker arranging the rental.                                                                                             
                                                                                                                                
MR. VINCK  responded that Representative Kaufman  highlighted the                                                               
section in  question.   He said that  his interpretation  is that                                                               
the objective  is to  impose tax  collection obligations  on both                                                               
the  person who  provides the  vehicle  and also  on the  vehicle                                                               
rental  business as  defined later  in the  text of  the proposed                                                               
legislation.   He said that,  in his interpretation,  the vehicle                                                               
rental business  is the person  or entity that owns  the vehicle.                                                               
The network, he said, is the  platform through which the owner of                                                               
the  vehicle connects  with the  person  who wants  to share  the                                                               
vehicle.   The vehicle network as  defined in the text,  he said,                                                               
is not the same  thing as the rental business.   He said that the                                                               
proposed  legislation  would  not  put  the  obligation  for  tax                                                               
collection on the network, but  on the business, which is defined                                                               
as  the  owner  of the  vehicle.    He  said  that the  issue  of                                                               
ambiguity  in the  structure of  the proposed  legislation should                                                               
require broader discussion.                                                                                                     
                                                                                                                                
4:40:15 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ  asked whether Turo collects  taxes on rentals                                                               
that take place in other states.                                                                                                
                                                                                                                                
MR.  VINCK  replied that  some  states  have been  authorized  to                                                               
deploy tax collection and remittance  obligations to out of state                                                               
platforms,  transferring  the   tax  collection  obligation  from                                                               
vendors to platforms  under certain circumstances.   To that end,                                                               
he said, the  law requires businesses to collect  and remit sales                                                               
taxes on many transactions in approximately 24 states.                                                                          
                                                                                                                                
CO-CHAIR  SPOHNHOLZ referred  to  Mr.  Vinck's earlier  assertion                                                               
that HB 90  "seeks to equate individuals who seeks  to rent their                                                               
vehicles  with multinational  corporations."   She asked  whether                                                               
Turo operates outside of the United States.                                                                                     
                                                                                                                                
MR. VINCK replied that Turo is  a technology company and does not                                                               
own any  vehicles, but that  it provides the  technology platform                                                               
to those who  do own vehicles.  He said,  "My comment earlier was                                                               
to point out that this is  trying to equate shared vehicle owners                                                               
with multinational corporations."                                                                                               
                                                                                                                                
4:42:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY  asked   whether  individual  car  owners                                                               
collect  payment and  remit  to Turo,  or  whether Turo  collects                                                               
payment and remits to the car owners.                                                                                           
                                                                                                                                
MR. VINCK  asked whether Representative McCarty  was referring to                                                               
taxes.                                                                                                                          
                                                                                                                                
REPRESENTATIVE MCCARTY clarified his question.                                                                                  
                                                                                                                                
MR.  VINCK responded  that  the  person who  is  renting the  car                                                               
provides  the payment  through the  digital platform,  which then                                                               
remits compensation to the vehicle owner.                                                                                       
                                                                                                                                
REPRESENTATIVE MCCARTY surmised that  an individual pays Turo for                                                               
the service, and Turo subcontracts with entities within Alaska.                                                                 
                                                                                                                                
MR. VINCK replied  that an individual pays Turo  the total price,                                                               
and Turo remits to the vehicle owner the agreed amount.                                                                         
                                                                                                                                
REPRESENTATIVE MCCARTY  concluded, "So that means  Turo is really                                                               
doing business in Alaska."                                                                                                      
                                                                                                                                
MR. VINCK suggested that defined  terms in statute mean that Turo                                                               
is not actually doing business in Alaska.                                                                                       
                                                                                                                                
4:44:22 PM                                                                                                                    
                                                                                                                                
CARL  SZABO,  Vice  President  and  General  Counsel,  NetChoice,                                                               
testified in  opposition to HB 90.   He said that  Alaska doesn't                                                               
have  a  statewide  sales  tax,  which is  what  is  affected  by                                                               
established  law.   He said  that saying  the U.S.  Supreme Court                                                               
decision in South Dakota v.  Wayfair, Inc., No. 17-494 (U.S. Jun.                                                             
21, 2018), applies to car rental  tax is a misrepresentation.  He                                                             
mentioned  Representative Kaufman's  discussion of  the effective                                                               
date and  whether the  tax obligation would  be retroactive.   He                                                               
said that  no state treats  peer-to-peer car sharing the  same as                                                               
large rental car companies when it  comes to taxes.  He said that                                                               
Hertz and "Big Rental" own thousands  of cars in Alaska, but Turo                                                               
doesn't own a  single vehicle; likewise, those  companies enjoy a                                                               
tax carve-out  of approximately $4 billion  nationwide, with $1.9                                                               
million in Alaska,  for which Turo and individual  car owners are                                                               
not  eligible.    Mr.  Szabo  suggested  that  digital  platforms                                                               
facilitating  car  sharing are  exactly  the  same as  using  the                                                               
classified page  in the Anchorage  Daily News, which has  an app,                                                               
provides other services, and facilitates  rentals.  Therefore, he                                                               
opined,  the  Anchorage Daily  News  would  be  one of  the  "tax                                                               
scofflaws"  addressed   under  HB   90.    Either   the  proposed                                                               
legislation is  way too overinclusive as  a new tax, he  said, or                                                               
it's a  retroactive tax already in  statute, in which case  HB 90                                                               
is   irrelevant   and,   if  enacted,   would   face   the   same                                                               
constitutional issues as did North Dakota.                                                                                      
                                                                                                                                
4:48:04 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS  commented  that it's  ironic  that  NetChoice's                                                               
representative was inveighing  against companies operating within                                                               
the  state  of  Alaska  while it's  funded  by  Google,  Alibaba,                                                               
Amazon.com,  and   some  of   the  other   largest  multinational                                                               
companies on earth.                                                                                                             
                                                                                                                                
4:48:40 PM                                                                                                                    
                                                                                                                                
BENJAMIN  PALMER,  Director  of Government  and  Public  Affairs,                                                               
Enterprise Holdings, Inc, testified in  support of HB 90, stating                                                               
that it would clarify that  peer-to-peer car rental platforms are                                                               
required to  collect car rental  taxes for transactions  on their                                                               
platforms.  He  said that the tax would be  paid by the consumer,                                                               
and that  everyone renting a car  in Alaska should expect  to pay                                                               
the tax.   As  stated before, he  said, the  proposed legislation                                                               
would  create  a  level  playing field  and  ensure  the  state's                                                               
general fund doesn't lose out on revenue.                                                                                       
                                                                                                                                
4:49:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  MCCARTY asked  whether Enterprise  Holdings, Inc,                                                               
engages in peer-to-peer services.                                                                                               
                                                                                                                                
MR.  PALMER  replied  that Enterprise  CarShare  exists  in  some                                                               
locations,  but   that  the  corporation   does  not   engage  in                                                               
traditional peer-to-peer services.                                                                                              
                                                                                                                                
4:50:29 PM                                                                                                                    
                                                                                                                                
CO-CHAIR SPOHNHOLZ,  after ascertaining  that no one  else wished                                                               
to testify, closed public testimony on HB 90.                                                                                   
                                                                                                                                
4:50:37 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  FIELDS moved  to report  HB  90 out  of committee  with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
There being  no objection, HB  90 was  reported out of  the House                                                               
Labor and Commerce Standing Committee.                                                                                          
                                                                                                                                
                                                                                                                                
4:51:23 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Labor and  Commerce Standing Committee  meeting was  adjourned at                                                               
4:51 p.m.                                                                                                                       

Document Name Date/Time Subjects
HB 90 Opposition Received as of 4.10.21.pdf HL&C 4/12/2021 3:15:00 PM
HB 90
HB 145 Supporting Document - AK Pharmacists Association Fact Sheet.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 145 Sponsor Statement, Ver. A.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 145 Supporting Document - AK Pharmacists Association Talking Points.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 145 Ver. A.PDF HL&C 4/12/2021 3:15:00 PM
HB 145
HB 145 Fiscal Note - DCCED, 4.09.21.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 145 Sectional Analysis, Ver. A.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 90 v. A 2.18.21.PDF HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Sponsor Statement 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Sectional Analysis 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Supporting Document - State by State P2P Collecting Map 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Supporting Document - Anchorage Ordinance PVRN 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Supporting Document - Revenue Stream Chart 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Supporting Document - State by State DOR Collection Map 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Fiscal Note - DOR, 4.2.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Fiscal Note - DOA, 4.3.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
HB 90 Sponsor Presentation 3.30.21.pdf HL&C 4/9/2021 8:00:00 AM
HL&C 4/12/2021 3:15:00 PM
HB 90
SB 87 Fiscal Note 1.pdf HL&C 4/12/2021 3:15:00 PM
SL&C 3/8/2021 1:30:00 PM
SB 87
SB 87 v. A.PDF HL&C 4/12/2021 3:15:00 PM
SL&C 3/8/2021 1:30:00 PM
SB 87
SB 87 Transmittal Letter.pdf HL&C 4/12/2021 3:15:00 PM
SB 87
SB 87 v. A Sectional Analysis.pdf HL&C 4/12/2021 3:15:00 PM
SL&C 3/8/2021 1:30:00 PM
SB 87
SB 87 NAIC Credit for Reinsurance Model Law Briefing.pdf HL&C 4/12/2021 3:15:00 PM
SL&C 3/8/2021 1:30:00 PM
SB 87
SB 87 SLAC Answers to Members' Questions.pdf HL&C 4/12/2021 3:15:00 PM
SL&C 3/19/2021 1:30:00 PM
SB 87
Justin Ruffridge Board Application.pdf HL&C 4/12/2021 3:15:00 PM
HL&C Confirmations 2021
Rachel Berngartt Resume.pdf HL&C 4/12/2021 3:15:00 PM
HL&C Confirmations 2021
Justin Ruffridge Resume.pdf HL&C 4/12/2021 3:15:00 PM
HL&C Confirmations 2021
Mae Sprague Hayes Board Application.pdf HL&C 4/12/2021 3:15:00 PM
HL&C Confirmations 2021
HB 145 Support Received as of 4.10.21.pdf HL&C 4/12/2021 3:15:00 PM
HB 145
HB 90 Supporting Document, DOR Response 4.12.21.pdf HL&C 4/12/2021 3:15:00 PM
HB 90
HB 145 Support Received as of 4.12.21.pdf HL&C 4/12/2021 3:15:00 PM
HB 145