03/26/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB316 | |
| HB370 | |
| HB281 | |
| HB336 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 370 | TELECONFERENCED | |
| += | HB 281 | TELECONFERENCED | |
| *+ | HB 336 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 316 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 26, 2014
3:39 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Bob Herron
Representative Charisse Millett
Representative Dan Saddler
Representative Andy Josephson
MEMBERS ABSENT
Representative Mike Chenault
Representative Craig Johnson
COMMITTEE CALENDAR
HOUSE BILL NO. 316
"An Act relating to workers' compensation fees for medical
treatment and services; relating to workers' compensation
regulations; and providing for an effective date."
- MOVED CSHB 316(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 370
"An Act relating to employer drug testing; requiring the Alaska
Workers' Compensation Board to adopt regulations relating to the
prescription of controlled substances to employees; and limiting
the prescription of controlled substances to employees."
- HEARD & HELD
HOUSE BILL NO. 281
"An Act relating to prescription of drugs by a physician without
a physical examination."
- HEARD & HELD
HOUSE BILL NO. 336
"An Act relating to sales of alcoholic beverages near a school
or church."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 316
SHORT TITLE: WORKERS' COMPENSATION MEDICAL FEES
SPONSOR(s): LABOR & COMMERCE
02/19/14 (H) READ THE FIRST TIME - REFERRALS
02/19/14 (H) L&C
03/07/14 (H) L&C AT 3:15 PM BARNES 124
03/07/14 (H) Heard & Held
03/07/14 (H) MINUTE(L&C)
03/10/14 (H) L&C AT 3:15 PM BARNES 124
03/10/14 (H) Heard & Held
03/10/14 (H) MINUTE(L&C)
03/14/14 (H) L&C AT 3:15 PM BARNES 124
03/14/14 (H) Scheduled But Not Heard
03/17/14 (H) L&C AT 3:15 PM BARNES 124
03/17/14 (H) Heard & Held
03/17/14 (H) MINUTE(L&C)
03/24/14 (H) L&C AT 3:15 PM BARNES 124
03/24/14 (H) Heard & Held
03/24/14 (H) MINUTE(L&C)
03/26/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 370
SHORT TITLE: AWCB CONTROLLED SUBSTANCE PRESCRIPTIONS
SPONSOR(s): LABOR & COMMERCE
03/03/14 (H) READ THE FIRST TIME - REFERRALS
03/03/14 (H) L&C, JUD
03/19/14 (H) L&C AT 3:15 PM BARNES 124
03/19/14 (H) Heard & Held
03/19/14 (H) MINUTE(L&C)
03/26/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 281
SHORT TITLE: PRESCRIPTION WITHOUT PHYSICAL EXAMINATION
SPONSOR(s): GATTIS
01/27/14 (H) READ THE FIRST TIME - REFERRALS
01/27/14 (H) HSS, L&C
02/13/14 (H) HSS AT 3:00 PM CAPITOL 106
02/13/14 (H) Heard & Held
02/13/14 (H) MINUTE(HSS)
02/27/14 (H) HSS AT 3:00 PM CAPITOL 106
02/27/14 (H) Moved CSHB 281(HSS) Out of Committee
02/27/14 (H) MINUTE(HSS)
02/28/14 (H) HSS RPT CS(HSS) 4DP
02/28/14 (H) DP: SEATON, PRUITT, KELLER, HIGGINS
03/17/14 (H) L&C AT 3:15 PM BARNES 124
03/17/14 (H) Heard & Held
03/17/14 (H) MINUTE(L&C)
03/26/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 336
SHORT TITLE: ALCOHOL SALES NEAR SCHOOL/CHURCH
SPONSOR(s): TARR
02/24/14 (H) READ THE FIRST TIME - REFERRALS
02/24/14 (H) L&C
03/26/14 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ANNA LATHAM, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the proposed committee substitute
(CS) for HB 316, Version O, on behalf of the sponsor, the House
Labor & Commerce Committee, Representative Kurt Olson, Chair.
MICHAEL MONAGLE, Director
Central Office, Division of Workers' Compensation
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Answered questions regarding HB 316.
ANNA LATHAM, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed proposed HB 370 on behalf of the
sponsor, the House Labor & Commerce Committee, Representative
Kurt Olson, Chair.
DON ETHERIDGE, Lobbyist
Alaska State AFL-CIO
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 370.
RICK TRAINI, Business Representative
Teamsters Local 959;
Member, Alaska Workers' Compensation Board (WCB)
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition of HB 370.
REPRESENTATIVE LYNN GATTIS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 281.
LAURA BROOKS, Health Care Administrator
Office of the Commissioner - Anchorage
Department of Corrections
Galena, Alaska
POSITION STATEMENT: Testified during the hearing on HB 281.
ROBERT LAWRENCE, Doctor
Chief Medical Officer
Inmate Health
Department of Corrections
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 281.
KATE BURKHART, Executive Director
Alaska Mental Health Board
Department of Health and Social Services
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 281.
REPRESENTATIVE TARR
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified during the discussion of HB 336.
MIKE COONS
Palmer, Alaska
POSITION STATEMENT: Testified during the discussion of HB 336.
KEIRA NOGGLE, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
DEVIN OWENS, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
MARY WILLOYA, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
NYA NUER BIDIT, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
ALEXANDER ALVEREZ, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
ALYSHIA PATTERSON, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
DWYNE NICKOLS, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
DAVID COLLINS, Student
Clark Middle School
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 336.
PAUL FUHS, Lobbyist
Fairview Business Association
Anchorage, Alaska
POSITION STATEMENT: Testified during the discussion of HB 336.
ACTION NARRATIVE
3:39:17 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:39 p.m. Representatives
Saddler, Josephson, Herron, Millett (via teleconference)
Reinbold, and Olson were present at the call to order.
HB 316-WORKERS' COMPENSATION MEDICAL FEES
3:39:44 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 316 "An Act relating to workers' compensation
fees for medical treatment and services; relating to workers'
compensation regulations; and providing for an effective date."
[Version O was before the committee, adopted on 3/10/14.]
3:40:12 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State
Legislature, stated that HB 316 proposes to change the medical
schedule for workers' compensation from a usual and customary
and reasonable (URC) schedule with a geographical differential
built at the 90th percentile, which the state has been using for
the past ten years, to a fee schedule based on the Center for
Medicare and Medicaid Services, a resource-based relative value
scale, along with the conversion factor the Workers'
Compensation Board will set under the advisement of the Medical
Services Review Committee (MSRC).
3:41:06 PM
REPRESENTATIVE REINBOLD made a motion to adopt Amendment [2]
labeled 28-LS1362\O.5, Wallace, 3/24/14, which read as follows:
Page 4, line 16:
Delete "January 1, 2015"
Insert "July 1, 2015"
CHAIR OLSON objected for the purpose of discussion.
3:41:22 PM
MS. LATHAM explained that this change would give the MSRC an
additional six months to reconvene and set the original
conversion factors; the committee has not met since 2009.
CHAIR OLSON explained that [Amendment 2] is an attempt to [set
the fee schedule appropriately], and the additional six months
will allow the MSRC adequate time to make sure to get "all the
kinks out of it."
3:42:17 PM
REPRESENTATIVE SADDLER asked which organization will have the
delay.
MS. LATHAM answered that the MSRC will have the additional time
to reconvene. The MSRC will advise the Workers' Compensation
Board (WCB) on setting the conversion factors. She stated that
originally some concern was expressed about the WCB setting the
schedules since the board doesn't have the expertise, the
medical background, or experience to do so. She related that in
the proposed committee substitute, [Version O], the MSRC is
designated as the committee to advise the WCB.
CHAIR OLSON removed his objection. There being no further
objection, Amendment 2 was adopted.
3:43:23 PM
REPRESENTATIVE JOSEPHSON said he was unsure of the goal of the
bill and expressed concern that the legislature is delegating a
considerable amount and delegating some of that to the MSRC,
which has been defunct.
CHAIR OLSON suggested "inactive" might be a better choice.
REPRESENTATIVE JOSEPHSON agreed. He said he did not hear enough
testimony whether needs of injured workers will continue to be
met in workers' compensation law. The committee heard testimony
from concerned doctors who said if the rates are significantly
reduced, doctors will not be able to see these patients.
Additionally, an attorney, Michael J. Jensen, sent a letter to
that effect [in members' packets]. He recapped his fundamental
concerns, including concerns about prescription drugs, although
he acknowledged he may propose some amendments later.
CHAIR OLSON reminded Representative Josephson that the
prescription drugs are not part of this bill.
3:45:01 PM
REPRESENTATIVE JOSEPHSON argued that prescription benefits are
part of HB 316. He noted previous testimony from the Workers'
Compensation Committee of Alaska on March 7, 2014, indicating
that doctors have a "blank check" for two years without any
recourse to question or limit costs. He said that may or may
not be true; however, he expressed concern that too much
regulation might be occurring. Certainly, premium costs need to
be reduced. He questioned, as raised by testimony in an
unrelated bill, whether some of these premiums are related to
the high costs in Alaska since rates are high across the board,
not just for workers' compensation patients. Primarily, he
would like to afford injured workers time to get better access
to medical care.
CHAIR OLSON told him that he shares this goal.
3:46:14 PM
MICHAEL MONAGLE, Director, Central Office, Division of Workers'
Compensation, Department of Labor & Workforce Development
(DLWD), echoed the Chair's comments. It is certainly not the
department's intent to reduce medical fees to the point that
doctors will not treat injured workers and direct them elsewhere
to get the quality of treatment needed. Certainly, as the
department works with the MSRC and the WCB to achieve conversion
factors, it will not be his intent to reduce reimbursement to
doctors to the point that doctors refuse to treat injured
workers.
3:47:15 PM
REPRESENTATIVE JOSEPHSON declared a conflict of interest as he
has an existing workers' compensation claim of his own stemming
from a car accident injury. In response to a question, he
answered that it is incumbent upon him to make the record clear.
He then said, "I would love to vote."
CHAIR OLSON thanked him for declaring the conflict.
3:47:52 PM
CHAIR OLSON reported that Representative Millett is on-line.
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 316, Version O, labeled 28-LS1362\O,
Wallace, 3/10/14, as amended, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, the CSHB 316(L&C) was reported from the House
Labor and Commerce Standing Committee.
3:48:54 PM
The committee took an at-ease from 3:48 p.m. to 3:50 p.m.
HB 370-AWCB CONTROLLED SUBSTANCE PRESCRIPTIONS
3:50:46 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 370, "An Act relating to employer drug testing;
requiring the Alaska Workers' Compensation Board to adopt
regulations relating to the prescription of controlled
substances to employees; and limiting the prescription of
controlled substances to employees."
CHAIR OLSON reported HB 370 was previously heard on March 19,
2014 and the committee took public testimony.
3:50:55 PM
ANNA LATHAM, Staff, Representative Kurt Olson, Alaska State
Legislature, stated that Section 1 authorizes employers to drug
test injured workers for controlled substances listed in
Schedule IA of AS 11.71.140 if the employees have been
prescribed a controlled substance for over 90 days as the result
of a workplace injury. Section 2 would require the Alaska
Workers Compensation Board (AWCB) to adopt regulations
pertaining to the prescription of controlled substances to
implement Section 3. Section 3 would limit a physician's
prescription of a controlled substance listed in Schedule IA,
under AS 11.71.140, or a controlled opium substance listed in
Schedule III-A under AS.11.160, or in Schedule V-A under AS
11.71.180. This bill, HB 370, would discourage the use of long-
term opioids by restricting prescriptions to a 30-day supply.
In the event an employee's drug test is positive, meaning the
employee is taking their prescription to manage pain, no action
would be taken. The sole intent of the bill in the event that
an employee's drug test report is negative would be to deny
payment of the prescription as it relates to a workers'
compensation claim.
3:52:25 PM
CHAIR OLSON reopened public testimony.
DON ETHERIDGE, Lobbyist, Alaska State AFL-CIO, expressed concern
about the drug testing in Section 1. He asked what would happen
if an employee is not taking the proper amount of drugs being
prescribed for pain relief. Although he understands the intent
of the bill, nothing in the bill states that the claim won't be
controverted or that an employee might be ordered to go back to
work. He related a scenario in which a person had a broken
neck, but refused to take pain medications. The claims adjuster
suggested that the worker was not hurt that bad, even though the
worker had four steel plates in his neck. He related his own
experience with pain medication post-surgery, such that he might
take one or two pills the first day, but that he preferred to
avoid taking pain medication. The ramifications of not taking
prescription drugs should be clearly stated in the bill, he
said. He specified that the AFL-CIO does not object to the
provision limiting prescribed drugs to a 30-day limit. He
suggested that at the last hearing the implication was that all
injured workers are either drug addicts or are "peddling" drugs.
He [did not believe that was the case.]
CHAIR OLSON responded that he certainly did not think so. He
voiced his goal is to get employees back to work.
MR. ETHERIDGE related that was his only concern. He said that
if an employee is drug tested before employment or during work,
that the employee could be suspended or terminated. He would
like to know any ramifications by the employer if the injured
worker is taking too many or too few prescription drugs.
3:55:45 PM
RICK TRAINI, Business Representative, Teamsters Local 959;
Member, Alaska Workers' Compensation Board (WCB), urged members
not to support HB 370. He stated that the focus of the bill is
not treatment directed. He said he is serving his second term
on the WCB and has only experienced one instance of an employee
not taking prescribed medicine.
The committee took an at-ease from 3:57 p.m. to 3:59 p.m. due to
audio problems.
3:59:06 PM
MR. TRAINI restated that he has experienced only one case in
which an injured employee was not taking prescribed medication.
[HB 370 was held over.]
4:00:11 PM
The committee took an at-ease from 4:00 p.m. to 4:02 p.m.
HB 281-PRESCRIPTION WITHOUT PHYSICAL EXAMINATION
4:02:29 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 281, "An Act relating to prescription of drugs by
a physician without a physical examination." [Before the
committee was CSHB 281(HSS)].
4:02:39 PM
REPRESENTATIVE LYNN GATTIS, Alaska State Legislature, stated
that HB 281 clarifies in statute that physicians cannot be
sanctioned for dispensing or administering prescription
medications without conducting a physical exam of the patient if
some basic stipulations are met in a practice called
telemedicine. Under HB 281, care would be delivered by primary
care physicians licensed in Alaska, and patients would be able
to obtain over the phone or on-line consultations in which
physicians can diagnose an ailment and if necessary, prescribe
prescription medicine; however, physicians could not prescribe
controlled substances. At the last hearing, a concern was
raised about overprescribing. She reported that her information
shows that the national average prescribing rate for common
uncomplicated diagnoses is 82 percent in the "brick and mortar"
setting, and 77 percent in the telehealth setting, per Teladoc's
156,000 consultations. The efficient quality of the system
comes down to cost and access for the average citizen. These
practices can have favorable impacts because of access to care
for individuals living in rural and urban settings.
4:04:32 PM
CHAIR OLSON reported that his office received concerns from the
Department of Corrections (DOC). He anticipated a forthcoming
amendment that will be considered at a later hearing.
LAURA BROOKS, Health Care Administrator, Office of the
Commissioner, Department of Corrections, introduced herself.
4:05:39 PM
The committee took an at-ease from 4:05 to 4:21 p.m. due to
audio issues.
4:21:17 PM
ROBERT LAWRENCE, Doctor; Chief Medical Officer; Inmate Health,
Department of Corrections, with respect to DOC, discussed
different forms of telemedicine. One type of telemedicine that
has been practiced in the state involves provider-to-provider
communications, in which a nurse contacts a physician and orders
are given over the phone or via Internet. A second type of
telemedicine involves direct patient to medical provider
communication, specifically when a patient has a preexisting
relationship with the provider; however, this bill introduces a
new form of telemedicine to the state, in which a patient is
allowed to contact a medical provider without having a
preexisting doctor-to-patient relationship.
DR. LAWRENCE said DOC's concern is that the HB 281 inadvertently
hampers the department's ability to provide services in rural
Alaska using telemedicine in ways that are already approved by
the medical board, specifically in terms of controlled
substances. For example, a physician in the DOC often will be
called for a prescription involving a controlled substance for a
patient in a remote DOC facility. The department needs to
retain the ability to give the prescriptions at a distance
instead of sending the inmates to an emergency room or to ask
other providers to be available. Secondly, the department is
affected by the requirement on page 2 that the physician must be
physically located in the state in order to render care over the
phone or by other means. Those are the two primary concerns, he
said, and he understood the sponsor is working to accommodate
those. He appreciated working with the sponsor on these issues.
CHAIR OLSON acknowledged that the committee is working with the
sponsor and DOC on the aforementioned changes to the bill.
4:24:55 PM
KATE BURKHART, Executive Director, Alaska Mental Health Board,
Department of Health and Social Services (DHSS), stated the
Alaska Mental Health Board (AMHB) is the state planning council
for issues related to mental health. She said the board has
reviewed the bill and appreciates the sponsor's support for
telemedicine. She recalled earlier testimony about the types
and forms of telemedicine in the state. The AMHB acknowledged
that while the bill doesn't speak directly to tele-psychiatry,
it was important to place on the record how tele-psychiatry
works and its importance to patients.
MS. BURKHART explained that tele-psychiatry in the publically-
funded behavioral health system is integral to mental health
services. In many communities, the ability to recruit and
retain psychiatrists is hampered by geography and compensation.
She reported the current vacancy rate for psychiatrists is
almost 25 percent and many communities wait years to find a
psychiatrist. Community behavioral health centers and federally
qualified health centers that offer mental health services often
contract with psychiatrists who are licensed psychiatrists in
Washington but often practice in the Pacific Northwest. In
addition, psychiatrists from the University of Washington and
Children's Hospital are frequently contracted with to provide
tele-psychiatry services. These psychiatrists often prescribe
medications in the course of mental health treatment and some
are controlled substances; however, these drugs are not what
this bill intends to prevent being diverted into inappropriate
uses; rather, they are anti-anxiety medications and similar
medications that are part of an ongoing course of treatment.
MS. BURKHART stated that psychiatrists practicing through
telemedicine work in conjunction with community behavioral
health centers, where clients present and are impaneled at a
community behavioral health center for mental health services
such as therapy, case management, life skills, and
rehabilitative services. She further stated that psychiatrists
provide medications necessary to stabilize and manage chronic
health conditions, which is part of an ongoing relationship. In
fact, tele-psychiatry is not used in acute psychiatric
situations, but is part of ongoing care, although tele-
psychiatry is sometimes used in those situations in Bush Alaska
when a psychiatric emergency arises. In community behavioral
health centers, the importance of tele-psychiatry is to provide
ongoing mental health treatment. Although the bill does not
speak directly to psychiatry, the AMHB felt it was important to
provide an overall context of how tele-psychiatry works and the
importance of providing this access to rural Alaskans.
4:29:07 PM
CHAIR OLSON recalled a number of people in the medical community
in the late 1970s came to Alaska through the Bureau of Indian
Affairs or the military. He said these doctors received tuition
repayment for each year they stayed in Alaska, with about 75
percent remaining in the state. He asked whether that type of
program is currently happening.
MS. BURKHART replied that issues related to recruitment of
psychiatrists that he addresses includes practitioners who are
now retiring. She explained that recruiting doctors in the
early or middle part of their career is more difficult if the
doctors have not had experience in Alaska. Some attempts have
been made to establish a psychiatric residency in Alaska, since
doctors tend to practice in a close proximity of their
residency; however, the board has not been able to establish
that residency. The state has a relationship with the Western
Washington WWAMI program to help with recruitment, but part of
the issue is the cost of living and conditions. For example,
Fairbanks has struggled for years to recruit and retain
psychiatrists, in part because the military is a competitive
employer and pays a higher salary, thus the hospital and
community behavioral health center and tribal providers have had
trouble competing. In Ketchikan, Community Connections provides
services to people with developmental disabilities and early
childhood mental health, but also contracts with a psychiatrists
at Children's Hospital. Although the Ketchikan community has
recently had two psychiatrists, neither is a child psychiatrist.
She reported that all of the psychiatrists providing services in
the publically-funded system are licensed in the state, which is
the quality assurance mechanism.
4:32:09 PM
REPRESENTATIVE JOSEPHSON referred to the description of tele-
psychiatry, and he recalled that people in Alaska used providers
in Washington State. He asked whether the provider would have
licensure in Juneau.
MS. BURKHART stated that the integrated behavioral health
regulations require that the client be present at the behavioral
health center and a clinician is with them during the
appointment, in part, to navigate equipment and ensure
continuity of care. The state will not reimburse the
appointment without this method. Therefore, a client is not
being served at home with the tele-psychiatrist appointment.
4:33:39 PM
REPRESENTATIVE HERRON said that in his region communities have
contracted for services from someone in Minnesota. He asked for
the average vacancy rate in the Lower 48 and how it compares to
the 25-percent vacancy rate for psychiatrists in Alaska.
MS. BURKHART recalled the board had a presentation on the
vacancy rate, and an expected vacancy in the community health
system is 10 percent and anything over that requires planning
efforts. In the health care industry in Alaska, they are
looking at those fields with 11 percent or over, but psychiatry
has the highest rate.
REPRESENTATIVE HERRON asked whether this is a national trend.
MS. BURKHART said it depends on the community and the
subspecialty. For example, geriatric psychiatry has often been
in demand and is provided through tele-psychiatry in Alaska, but
the practice is robust in Florida. She offered to provide the
national average on vacancy rates for psychiatrists.
4:35:35 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 281.
[HB 281 was held over.]
The committee took a brief at-ease.
HB 336-ALCOHOL SALES NEAR SCHOOL/CHURCH
4:36:59 PM
CHAIR OLSON announced that the final order of business would be
the HOUSE BILL NO. 336, "An Act relating to sales of alcoholic
beverages near a school or church."
4:37:03 PM
REPRESENTATIVE TARR, Alaska State Legislature, as sponsor,
stated HB 336 was introduced at the request of students at Clark
Middle School. In her neighborhood several stores near schools
sell alcohol, and some students have encountered situations in
which they feel unsafe, including intoxicated individuals who
engage in inappropriate behavior such as urinating in public or
fighting. These students discussed the issues and suggested
this bill as one piece of that effort, noting students have also
been working on conditional use permits for liquor stores. This
is an opportunity to think about the future and contemplate
whether these uses are compatible uses. This bill would extend
the buffer zone for alcohol sales and schools from 200 feet to
400 feet. However, this isn't a new idea and bills were
previously introduced in 2001. Per the National Conference of
State Legislatures (NCSL), 35 other states have a distance
restriction, and of those, 25 have some limitation between 300
and 1,000 feet. Thus, the current 200-foot restriction is
relatively low and 400 feet seemed to be a good remedy for a
situation in which uses may not be compatible ones. The liquor
businesses are not at fault, and like any other businesses,
these stores provide jobs in the community. In addition, she
offered her appreciation for the economic impact businesses have
on the community; however, in these instances the incompatible
uses has arisen. Again, this bill would change the restriction
for alcohol sales from within 200 to within 400 feet from a
public entrance of a church or school.
4:40:33 PM
MIKE COONS stated that he is changing his testimony from an
earlier e-mail submission, since he now understands why this
bill is being brought forward. He asked whether any issues have
arisen with respect to the school, and if so, he was certain it
would have resulted in school lockdowns. He also wondered
whether students were sneaking out. Now that he is better
informed, he wonders how many schools will be affected and if
this problem is a statewide epidemic. He asked whether police
could patrol the vicinity when students are likely to be walking
near the schools. However, he did not see the need for a bill
to globally change the distance. He urged members not to pass
the bill and to let the communities make the needed changes.
REPRESENTATIVE REINBOLD said she appreciated his comments. She
related an instance in her community in which the Wal-Mart was
built and applied for a liquor license. The community council
voted against it but the assembly approved the license. She
said it was tough for the community to deal with the issue. She
appreciated this bill being brought forward.
4:43:26 PM
KEIRA NOGGLE, Student, Clark Middle School, spoke in support of
HB 336. She stated that preventing a store, bar, or club from
serving or selling liquor within 400 feet of a school is
important to her because she wants to feel safe going to and
from school. She has been harassed when she has walked past the
liquor store by inebriated people who whistled at her. She said
that these inebriates harm and harass students. It is unfair
that students at Clark Middle School must go through this. She
urged members to please support HB 336.
4:44:39 PM
DEVIN OWENS, Student, Clark Middle School, offered support for
HB 336, preventing a store, bar, or club from serving or selling
liquor within 400 feet of a school, which is important because
intoxicated people do thoughtless things to youth. This student
has personally experienced an intoxicated person trying to break
into a student's car while the car was occupied. Further,
intoxicated people try to pressure young adults to drink alcohol
and also harass them. She maintained that Clark Middle School
students should not be subjected to the inappropriate behavior.
4:45:42 PM
MARY WILLOYA, Student, Clark Middle School, offered support for
HB 336. This is important because people drink and sleep near
the schools and students encounter inebriates as they walk to
and from their homes and school. She said that she tries to
avoid the intoxicated people because they make her feel unsafe
and scared. She urged members to support HB 336.
4:46:34 PM
NYA NUER BIDIT, Student, Clark Middle School, offered her
support for HB 336. This is important because of drunk driving.
She has nearly been hit by an intoxicated driver while walking
home, which is not an experience students should encounter.
Students should not have to encounter intoxicated people. She
urged members to support HB 336.
4:47:23 PM
ALEXANDER ALVEREZ, Student, Clark Middle School, offered support
for HB 336, as it is important because students are harassed by
intoxicated people who are constantly asking for spare change
and money. He said he doesn't want that to happen to students.
He urged members to support HB 336.
ALYSHIA PATTERSON, Student, Clark Middle School, offered support
for HB 336 because she walks past both liquor stores daily and
is harassed. She described an incident in which intoxicated
people followed her and some of her friends. They yelled
inappropriate things and threw liquor bottles on the ground that
nearly injured her friend. Even trying to avoid inebriates by
turning corners wouldn't stop them. She offered her belief that
this can happen to any student walking home and she did not
think it was fair. She urged members to support HB 336.
4:49:08 PM
DWYNE NICKOLS, Student, Clark Middle School, offered support for
HB 336. This is important to him because students should be
afforded the same opportunities to walk in safe neighborhoods as
other students. He urged members to support HB 336.
4:49:54 PM
DAVID COLLINS, Student, Clark Middle School, offered support for
HB 336 because intoxicated people harass students, fight, and
ask for change. Many of them are near the school and liquor
store and walk on the school property, which is why he doesn't
want liquor stores to be near the school.
4:50:58 PM
REPRESENTATIVE HERRON asked whether the students have pursued
the Municipality of Anchorage's (MOA) nuisance provision
process. He said that if there is a constant stream of
complaints against a business the community can start a process
to close the business.
REPRESENTATIVE TARR responded that she and the students have
been trying to work through the permit renewal process. She
referred to an article in members packets entitled "Assembly
requires new permitting for [two] Mountain View liquor stores."
She said that she has been using the conditional use provisions
rather than attempting to close the stores down. If problems
can't be resolved using the conditional use process, the
nuisance process will be the next step. She related that the
store owners have come before the Mountain View Community
Council on several occasions and she appreciated the store
owners' positions as responsible business owners. She hoped
this bill would help keep a future action from happening.
4:52:46 PM
KEIRA NOGGLE said that the students haven't tried the nuisance
process but believe the bill is a great bill to pass.
4:53:15 PM
REPRESENTATIVE HERRON said the sponsor indicated the local
community council has been working on conditional use permits;
however, he recalled when he worked as a city manager one store
was difficult to work with so a nuisance law was put into place.
He suggested the sponsor could try parallel tracks to address
the issue since the nuisance process is different than the
conditional use permit. He said one aspect with the nuisance
process is that the police must respond to each complaint.
Again, if the students complain through the nuisance process it
would not interfere with the conditional use process. He also
suggested the nuisance process could help document the frequency
of problems.
4:54:37 PM
REPRESENTATIVE HERRON suggested increasing the restriction to
1,000 feet and aim high rather than to take the minimum
approach.
REPRESENTATIVE TARR appreciated the support. She reported that
most states restrict alcohol sales from 300-1000 feet, so the
starting point is 400 feet; however, she is open to extending
the buffer.
4:55:45 PM
REPRESENTATIVE MILLETT asked how many liquor stores are near
Clark Middle School that would fall within the 400 [feet] area.
REPRESENTATIVE TARR answered two liquor stores fall within 400
feet of Clark Middle School. She said that if this provision
was in place, that they would be need to be relocated.
4:56:34 PM
REPRESENTATIVE MILLETT asked whether liquor store owners were
contacted to find out if they were willing to cooperate.
REPRESENTATIVE TARR answered yes; that a subcommittee has been
working on it. She acknowledged that some tension exists since
businesses want to operate profitable businesses yet still meet
the requirements of the law. However, the businesses were aware
that students have encountered intoxicated individuals and feel
unsafe. The liquor stores have been receptive to the negative
community response. She reiterated she has been working with
the business owners to understand their position, noting that
these stores are operating legal businesses. She pointed out
that this really highlights the need for additional substance
abuse treatment, which is a long-term solution. She described
the bill and [nuisance process] as intermediate steps.
4:58:04 PM
REPRESENTATIVE MILLETT suggested that if the liquor store owners
had children attending the school they might better understand
the issue.
REPRESENTATIVE TARR agreed.
4:58:15 PM
REPRESENTATIVE SADDLER said he was not hearing that this problem
is statewide problem, but rather that it seems like a local
problem. He offered his support for the approach Representative
Herron suggested. He asked whether the current liquor stores
would be grandfathered in under the bill.
REPRESENTATIVE TARR agreed they would be grandfathered in.
4:58:50 PM
REPRESENTATIVE SADDLER related he did not know much about
zoning, but he was unsure how effective the bill would be for
new construction for bars. He suggested that the patrons of the
store seem to be the issue rather than the store. He wondered
how the additional 200 feet would address the problem since it
doesn't take long to walk that extra distance.
REPRESENTATIVE TARR recognizes this bill won't affect these
establishments, which is the reason to simultaneously pursue the
conditional use process. However any current schools or
churches will not be affected by the bill, but due to the
current discussion of charter schools and new school
development, this bill identifies a problem that might be
avoided in the future. She acknowledged that Representative
Herron's suggestion to extend the buffer is a good one. She
indicated that incompatible uses can exist and if 200 feet isn't
an adequate distance, she agreed extending the buffer could
help. This could be a useful tool worth considering, but she is
taking other steps to address the substance abuse, acknowledging
that although this bill is not about substance abuse issues, it
is one part of several things that can be done.
5:01:27 PM
REPRESENTATIVE SADDLER was unsure how is this is a useful tool
to combat alcohol abuse.
REPRESENTATIVE TARR said that one of the things is to discourage
kids from abusing alcohol. She would like to shield students
from the types of experiences they have had with inebriated
persons near the school. She suggested that students spend
their school day thinking about their future and how to be
responsible, but walk outside to see something in stark
contrast. She would prefer to have students walk away with
positive messages to mull over rather than having the negative
encounters and potentially be encouraged to try substances,
which should be avoided.
5:03:17 PM
PAUL FUHS, Lobbyist, Fairview Business Association, said that
the association has supported the bill, but it is part of a
general bigger problem. He suggested that if one store is
closed or is restricted it will show up someplace else. He said
that "we live with this every day." He anticipated that
legislators will hear more and more of this until something is
done to resolve it. He offered to provide written comments,
which suggests a "no sell list" for habitual problem drinkers to
focus on the problem and not on the business. The Fairview
Business Association further suggests a case-managed and
coordinated treatment program using alcohol tax funds. He said
an increase in alcohol taxes was passed to provide additional
funds for treatment.
5:04:18 PM
CHAIR OLSON asked if it was an increase in alcohol tax in 2002.
MR. FUHS agreed the increase was $.10 per drink with about half
of the amount currently being spent on treatment.
5:04:29 PM
MR. FUHS said that the Cabaret, Hotel, Restaurant, and
Retailer's Association's (CHARR) and the Municipality of
Anchorage's official position is that alcohol tax funds should
be spent on treatment. He characterized the current situation
as being unacceptable.
[HB 336 was held over.]
5:05:01 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:05 p.m.