Legislature(2013 - 2014)BARNES 124
04/02/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Adjourn | |
| Start | |
| HB309 | |
| HB152 | |
| HB160 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 309 | TELECONFERENCED | |
| += | HB 152 | TELECONFERENCED | |
| *+ | HB 160 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 2, 2014
3:19 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Lora Reinbold, Vice Chair
Representative Mike Chenault
Representative Bob Herron
Representative Charisse Millett
Representative Dan Saddler
Representative Andy Josephson
MEMBERS ABSENT
Representative Craig Johnson
COMMITTEE CALENDAR
HOUSE BILL NO. 309
"An Act relating to a craft distillery license."
- MOVED CSHB 309(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 152
"An Act requiring certain employers who terminate participation
in the defined benefit retirement plan or the defined
contribution retirement plan of the Public Employees' Retirement
System to make contributions related to past service liability
and pay termination costs; repealing a requirement that
employers who terminate participation in the defined
contribution retirement plan or the defined benefit retirement
plan of the Public Employees' Retirement System pay for a
termination cost study; and providing for an effective date."
- MOVED CSHB 152(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 160
"An Act relating to the licensing and regulation of athletic
trainers."
- MOVED HB 160 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 309
SHORT TITLE: CRAFT DISTILLERY LICENSE
SPONSOR(s): REPRESENTATIVE(s) TUCK
02/17/14 (H) READ THE FIRST TIME - REFERRALS
02/17/14 (H) L&C
04/02/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 152
SHORT TITLE: PERS TERMINATION COSTS
SPONSOR(s): REPRESENTATIVE(s) THOMPSON
03/04/13 (H) READ THE FIRST TIME - REFERRALS
03/04/13 (H) L&C, FIN
04/05/13 (H) L&C AT 3:15 PM BARNES 124
04/05/13 (H) Heard & Held
04/05/13 (H) MINUTE(L&C)
03/05/14 (H) L&C AT 3:15 PM BARNES 124
03/05/14 (H) -- MEETING CANCELED --
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)
03/19/14 (H) L&C AT 3:15 PM BARNES 124
03/19/14 (H) Heard & Held
03/19/14 (H) MINUTE(L&C)
04/02/14 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 160
SHORT TITLE: LICENSING OF ATHLETIC TRAINERS
SPONSOR(s): REPRESENTATIVE(s) THOMPSON BY REQUEST
03/11/13 (H) READ THE FIRST TIME - REFERRALS
03/11/13 (H) L&C, FIN
04/02/14 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
REPRESENTATIVE CHRIS TUCK
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as the prime sponsor of HB 309.
GEORGE ASCOT, Staff
Representative Chris Tuck
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the prime sponsor,
Representative Chris Tuck.
HEATHER SHADE, Co-owner
Port Chilkoot Distillery
Haines, Alaska
POSITION STATEMENT: Testified during the discussion of HB 309.
FELICIA KEITH-JONES, Owner
High Mark Distillery
Sterling, Alaska
POSITION STATEMENT: Testified during the discussion of HB 309.
DALE FOX, President/Chief Executive Officer
Alaska Cabaret, Hotel, Restaurant, and Retailer's Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 309.
REPRESENTATIVE STEVE THOMPSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as the prime sponsor of HB 152.
JANE PIERSON, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the prime sponsor of
HB 152.
SALLIE STUVEK, Human Resources Director
Fairbanks North Star Borough (FNSB)
Fairbanks, Alaska
POSITION STATEMENT: Testified during the discussion of HB 152.
REPRESENTATIVE STEVE THOMPSON
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified as prime sponsor of HB 160.
BRODIE ANDERSON, Staff
Representative Steve Thompson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Testified on behalf of the prime sponsor of
HB 160, Representative Steve Thompson.
LYNN YOUNG, Secretary/Treasurer
Alaska Athletic Trainers Association (AATA)
Eagle River Alaska
POSITION STATEMENT: Testified during the discussion of HB 160.
SARA CHAMBERS, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community, & Economic Development
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions during the
discussion of HB 160.
CARY KELLER, Orthopedic Surgeon
Fairbanks, Alaska
POSITION STATEMENT: Testified during the discussion of HB 160.
CHRISTOPHER DEAN, Certified Athletic Trainer
President, Alaska Athletic Trainers Association (AATA)
Fairbanks, Alaska
POSITION STATEMENT: Testified during the discussion of HB 160.
ACTION NARRATIVE
3:19:38 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Herron,
Reinbold, Josephson, Saddler, and Olson were present at the call
to order. Representatives Chenault and Millett arrived as the
meeting was in progress.
HB 309-CRAFT DISTILLERY LICENSE
3:19:48 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 309, "An Act relating to a craft distillery
license."
REPRESENTATIVE REINBOLD moved to adopt the proposed committee
substitute (CS) for HB 309, labeled 28-LS0698\Y, Strasbaugh,
3/6/14, [Version Y] as the working document.
CHAIR OLSON objected for the purpose of discussion.
3:20:55 PM
REPRESENTATIVE TUCK, Alaska State Legislature, stated that HB
309 will not have any impact on the state but will modernize the
distillery laws in Alaska so they more closely mirror those for
wineries and breweries by giving distilleries the ability to
attract customers by hosting tours of their facilities and offer
samples and sell products.
REPRESENTATIVE TUCK explained the changes in the proposed
committee substitute (CS) for HB 309, Version Y, will allow
local distilleries take part in the tourism industry. This
could contribute more to the economy and create jobs by allowing
for the sales of up to one gallon of the product directly to the
public for consumption off premises. This bill would also allow
for the sale of not more than three ounces for consumption on
premises and for the public to sample small portions of the
product free of charge. Similar to wineries and breweries, HB
309 would prevent distilleries from acting as a de facto bar by
prohibiting bar-like amenities such as limited hours of
operation. This bill has received the support of all five of
Alaska's small distilleries, the Brewers Guild of Alaska, the
Haines Chamber of Commerce, Explorer Fairbanks, the Kenai
Peninsula Tourism Marketing Council, the Alaska Farm Bureau, and
Alaska Cabaret, Hotel, Restaurant, and Retailer's Association
(CHARR). He reported that HB 309 does not have any opposition.
3:22:24 PM
REPRESENTATIVE TUCK provided a section-by-section analysis of HB
309, Version Y. He referred to page 1, lines 3-9, Section 1, to
AS 04.11.170, related to distillery licenses. Current law only
allows for the distillery operation and sales to licensees. He
said that HB 309 will allow the holder of the distillery license
to sell alcoholic beverages directly to the public for
consumption off premises, limited to one gallon. He explained
that previously a distributor could only sell to licensees.
3:23:36 PM
REPRESENTATIVE TUCK referred to page 1, lines 8-9, of Version Y,
noting the prohibition of selling less than five gallons is
removed at the request of industry since there wasn't a clear
reason for the restriction. He referred to page 1, lines 10-15,
Section 2, which allows for free samples in small portions with
exceptions for intoxicated persons. He related that subsection
(e) allows for sales of up to three ounces a day to a person for
consumption on the premises, similar to provisions for
breweries. He highlighted prohibitions in Version Y against
live entertainment, televisions, pool tables, dancing, games,
game tables, or other recreational or gaming opportunities on
the premises where the product is served, and seats at a bar.
Additionally, this section would limit hours from 9 a.m. to 8
p.m. He stated that these restrictions are intended to prevent
distilleries from acting as de facto bars. He noted two
amendments in members' packets are pending.
3:25:12 PM
REPRESENTATIVE SADDLER asked how many distilleries are located
in Alaska.
REPRESENTATIVE TUCK answered that five distilleries are located
in Alaska, with one in Matanuska-Susitna area, one in Anchorage,
one in Haines, and one located on the Kenai-Peninsula.
3:26:09 PM
GEORGE ASCOT, Staff, Representative Chris Tuck, Alaska State
Legislature, identified the five distilleries in Alaska. He
stated that the Alaska Distillery is located in Wasilla, the
Bare Distillery, Alaska, LLC is located in Anchorage, the High
Mark Distillery, Inc. is located in Sterling, the Port Chilkoot
Distillery is located in Haines, and Ursa Major Distilling is
located in Fairbanks.
3:26:48 PM
REPRESENTATIVE REINBOLD asked about the fiscal note.
REPRESENTATIVE TUCK said it is a false fiscal note. It is a
zero fiscal note, but the false fiscal note of $10 million per
year indefinitely was intended as an April Fools' Day joke.
3:27:30 PM
REPRESENTATIVE REINBOLD moved to adopt Amendment 1, labeled 28-
LS0698\Y.1, Strasbaugh, 3/28/14, which read as follows:
Page 2, following line 7:
Insert a new bill section to read:
"* Sec. 3. AS 04.21.065(a) is amended to read:
(a) A holder of one of the following types of
licenses or permits shall post on the licensed or
designated premises three separate warning signs as
described in (b) of this section:
(1) beverage dispensary license;
(2) restaurant or eating place license;
(3) club license;
(4) brewery license; this paragraph applies
only to a brewery that permits a person to sample
portions of the brewery's product;
(5) package store license;
(6) common carrier dispensary license;
(7) recreational site license;
(8) pub license;
(9) winery license; this paragraph applies
only to a winery that permits a person to sample
portions of the winery's product;
(10) distillery license; this paragraph
applies only to a distillery that permits a person to
sample portions of the distillery's product;
(11) caterer's permit;
(12) [(11)] special events permit;
(13) [(12)] conditional contractor's
permit;
(14) [(13)] another license or permit
issued by the board authorizing consumption of
alcoholic beverages."
CHAIR OLSON objected for the purpose of discussion.
3:27:54 PM
REPRESENTATIVE TUCK explained that Amendment 1 adds a new
section that requires posting of warning signs to caution that
drinking and smoking during pregnancy can lead to birth defects.
It would also inform people that a person providing alcohol to a
person under the age of 21 can receive up to five years in
prison and a fine of $50,000. Additionally, Amendment 1 would
identify that a person under 21 years of age entering the
premises could be subject to a fine up to $1,000, which is the
same as for any type of establishment that serves alcohol.
3:28:39 PM
CHAIR OLSON removed his objection. There being no further
objection, Amendment 1 was adopted.
3:28:50 PM
REPRESENTATIVE REINBOLD moved to adopt Amendment 2, labeled 28-
LS0698\Y.2, Strasbaugh, 3/28/14, which read as follows:
Page 2, following line 7:
Insert a new bill section to read:
"* Sec. 3. AS 04.21.025(a) is amended to read:
(a) As a condition of issuance or renewal of a
license and selling alcoholic beverages under a
license, the board shall require a licensee who sells
or serves alcoholic beverages and a licensee's agents
and employees who sell or serve alcoholic beverages or
check the identification of a patron to complete an
alcohol server education course approved by the board,
if the license is for a
(1) beverage dispensary;
(2) restaurant or eating place;
(3) club;
(4) package store;
(5) recreational site;
(6) pub;
(7) distillery;
(8) conditional contractor."
CHAIR OLSON objected for the purpose of discussion.
REPRESENTATIVE TUCK stated that Amendment 2 adds a new bill
section related to alcohol server education courses. He
explained that distilleries, their agents, and employees who
sell or serve alcohol must complete an alcohol server course
approved by the board. He said that it has been known as
[Techniques of Alcohol Management] (TAM), but the new card is
now called a [Training for Alcohol Professionals] (TAP) card.
He noted that anyone serving alcohol has the same
responsibilities and requirements to get certified as for any
other establishment.
CHAIR OLSON removed his objection. There being no further
objection, Amendment 2 was adopted.
3:30:17 PM
HEATHER SHADE, Co-owner, Port Chilkoot Distillery, stated that
the distillery produces hand crafted small batches of whiskey,
gin, and vodka in Southeast Alaska. She wished she could invite
members to visit the distillery, which is in a restored
historical building; however, existing laws prohibit this
invitation. Five distilleries are located in Alaska, with each
representing a unique region of the state. She compared this to
over 450 small distilleries nationwide. She reported that most
states have updated their distillery laws to allow for on-site
tastings and sales. She stated that this has led to great
economic success. Idaho passed their distillery bill several
weeks ago, which is similar to the one before members today.
The distilleries in Alaska are already contributing to the
state's economy, supporting other industries in Alaska. She
advised members that her distillery buys Alaska grown
agricultural products, which are used to make the craft spirits
and also creates export products for the state and provides
jobs. She predicted that if this law is updated she will hire
two additional people to accommodate the visitor aspect of the
business. It is difficult to compete with national distilled
products so this bill will model what microbreweries have done.
She noted the importance of distilleries being able to promote
their products on site to be competitive. In fact, it is often
the personal connection with the customer that sets the small
distilleries apart from imported mass-produced products. She
related the many challenges that businesses face in Alaska,
including the seasonal market, the high-cost of exportation, and
difficult shipping logistics, and the bill would help the
distilleries be in a better position to absorb the costs by
operating the distilleries as visitor destinations.
3:34:06 PM
MS. SHADE related that the community of Haines has been a big
supporter of their distillery business and many people are
excited to show it off. She pointed out that the business is
located next to the cruise ship dock and she hopes to be able to
invite visitors to the distillery. Essentially this bill has
been the result of teamwork with distilleries, the breweries,
the tourism industry, the farm bureau, and the chambers of
commerce. She concluded that the local communities are hoping
to see these new businesses survive. Similar bills in other
states have proved to be a huge success and this one is good for
Alaska's businesses. She hoped members would support the bill.
3:35:04 PM
FELICIA KEITH-JONES, Owner, High Mark Distillery, stated that
her distillery is a hand-crafted one. She said that HB 309 will
mean tastings, tours, and bottle sales from her own distillery.
She emphasized that this needs to happen to modernize the
industry guidelines currently being enjoyed by breweries and
wineries across Alaska. She characterized the system as being a
little antiquated only since distilleries did not previously
exist in Alaska. The state has five distilleries and it is time
to catch up with the rest of the industry. The current
guidelines are rather restricting and confusing, for example,
the federal government requires the distilleries to train and
establish distilleries across the U.S. She personally trained
in Spokane at Dry Fly Distillery and at Jack Daniels Distillery.
These distilleries are used as models for running an Alaskan
distillery; however, she was informed that Alaska's guidelines
do not follow the same federal guidelines that the distilleries
providing the training follow. She said she is passionate about
HB 309 due to the sales potential and the ability to capture
lost revenue. In fact, distilleries are anchors for tourism,
and the Kenai Peninsula has already lost potential revenue. For
example, the Alaska General Contractors, Inc. and political
functions would like to use the Alaskan spirits, but cannot
currently sample the products. The bill would also help support
buying Alaskan products. Fishing derbies and dipnetting brings
thousands of visitors to the region and many want tasting
parties for chartered clients. Hotels have reported that the
distillery gives people a reason to stay an extra day to visit.
MS. KEITH-JONES stated that the Kenai-Peninsula currently has
five breweries, one winery, and her distillery. It keeps people
in the communities for a longer length of time. She personally
turned away three carloads of people who wanted to visit
yesterday so the word is out. On average, tasting rooms command
$45,000 to $150,000 per year in purchases. Alaskan distilleries
also are subject to three taxes totaling 40 percent for each
bottle sold, which is currently lost revenue to the state.
3:39:47 PM
MS. KEITH stated that her company provides an interesting place
to go, and the distillery is an example of applied chemistry.
She pointed out lost revenue to the state and local government.
She also noted that her distillery could expand her staff from
four to six or seven employees if she has a tasting room. In
addition, her distillery uses all Alaskan or U.S. goods. Last
year she paid $28,000 in shipping to one company in Alaska.
This industry has been viable and is growing and she hopes it
will to continue to grow. The distillery uses renewable
resources, including grain and water and donates spent mash to
chicken farmers. She also employs a veteran. Distilled spirits
are one of the main products that can easily be exported, at a
profit, to the Lower 48 and internationally. In fact, her
products are requested internationally. She also highlighted
key successes in hand crafted spirits, noting the Kenai-
Peninsula has shown overwhelming support towards the distillery.
She reported that High Mark Distillery has been chosen two years
in a row for people's choice awards at the "Taste of the Kenai"
event and was selected as Wells Fargo's successful entrepreneur
of the year for 2013. The Haines Chilkoot Distillery and the
High Mark Distillery were chosen by the small business
development center as success stories for 2014. She said this
industry is a highly motivated one that has proven to bring in
income and create jobs. Many non-profits have mentioned they
depend on her distillery's contributions to sustain them. She
concluded by mentioning letters of support in members' packets
from many organizations. She urged members to allow the
distilleries to use the "Buy Alaska" stamp.
3:44:03 PM
REPRESENTATIVE MILLETT asked whether anyone has talked to
Mothers against Drunk Driving.
REPRESENTATIVE TUCK answered no; but commented that he has not
had any push back so far.
3:44:40 PM
DALE FOX, President & CEO, Alaska Cabaret, Hotel, Restaurant,
and Retailer's Association (CHARR), testified in support of HB
309, noting the CHARR's government affairs committee unanimously
supported the intent of HB 309 to help the Alaska distilleries
and to give them the same rights that have been given to
breweries and wineries. He complimented the sponsor and the
distilleries for doing a great job on outreach and communicating
with all of the parties to ensure that the bill had all the
needed elements. He characterized the bill as a good bill that
is worthy of members' support.
3:45:38 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 309.
CHAIR OLSON removed his objection. There being no further
objection, Version Y was before the committee.
REPRESENTATIVE JOSEPHSON said it seems like a good bill and it
is a niche that could be enhanced for this type of opportunity.
He suggested the committee support it.
3:46:43 PM
REPRESENTATIVE HERRON asked to put a question on the record. He
recalled that a distillery sells its products at the Anchorage
Airport. He assumed that this would not be a place at which
samples could be given.
REPRESENTATIVE TUCK was unsure if the bill limits location, that
if the distillery is licensed and wishes to dispense products
they could do so.
REPRESENTATIVE MILLETT said she likes the bill.
REPRESENTATIVE TUCK clarified that the distillery is limited to
spirits.
3:47:47 PM
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 309, labeled 28-LS0698\Y, Strasbaugh,
3/16/14, as amended, out of committee with individual
recommendations and the accompanying fiscal note. There being
no objection, the CSHB 309(L&C) was reported from the House
Labor and Commerce Standing Committee.
3:48:09 PM
The committee took an at-ease from 3:48 p.m. to 3:50 p.m.
HB 152-PERS TERMINATION COSTS
3:50:22 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 152, "An Act requiring certain employers who
terminate participation in the defined benefit retirement plan
or the defined contribution retirement plan of the Public
Employees' Retirement System to make contributions related to
past service liability and pay termination costs; repealing a
requirement that employers who terminate participation in the
defined contribution retirement plan or the defined benefit
retirement plan of the Public Employees' Retirement System pay
for a termination cost study; and providing for an effective
date."
3:50:29 PM
CHAIR OLSON explained the committee heard this bill last year
and had hearings on March 5, March 10 and March 19, 2014. The
committee adopted a proposed committee substitute (CS), Version
Y, on March 10, 2014, and took public testimony.
3:50:52 PM
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature, as
prime sponsor of HB 152, stated that he is very passionate about
this bill. He said passage of HB 152 would mean viability and
existence for many small communities and villages in the state.
He emphasized that the state has experienced declining revenues
with less revenue sharing. He explained that with layoffs,
termination studies add to the debt. For example, the community
of Galena pays over $20,000 per month for debt and it means this
small community has less money to keep people employed. He said
he doesn't want to see the communities go bankrupt.
3:53:21 PM
SALLIE STUVEK, Human Resources Director, Fairbanks North Star
Borough (FNSB), asked to testify in support of HB 152. She said
the FNSB believes that infusing money into the unfunded PERS and
TRS system will save the state and municipalities future
contributions. Prefunding will allow the FNSB to reduce
contributions in future years and allow for interest earnings to
be utilized now, increasing the funding ratio for both systems.
In addition, the repeal of the termination study requirement
will allow municipal employers necessary operational flexibility
to manage their programs and services. Municipalities should be
able to adjust their workforce without concern for an
administrative decision today having long lasting financial
impacts to the municipality's PERS liability. She reported that
the FNSB assembly passed a resolution on January 30, 2014,
supporting this and reiterated the FNSB's support of HB 152.
3:54:53 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 152.
3:55:13 PM
REPRESENTATIVE REINBOLD referred to the 4/2/14 fiscal note and
asked for clarification.
JANE PIERSON, Staff, Representative Steve Thompson, Alaska State
Legislature referred to a March 4, 2014, fiscal note from the
Department of Administration that is indeterminate; however, the
last line on page 2 of the fiscal note reads, "Termination costs
would be approximately $75,000,000."
REPRESENTATIVE REINBOLD said the fiscal note is $75 million.
MS. PIERSON agreed that is correct. She said it assumes that 20
percent of the workforce would be laid off.
3:56:28 PM
REPRESENTATIVE JOSEPHSON expressed concern that this could
increase local government contributions. He expressed further
concern that it will grow unfunded liability. He acknowledged
the problem exists for small communities, which is why he
thought the original version of the bill was more compelling.
He understood the need to privatize the work force, but he
remains concerned about what happened in the Municipality of
Anchorage last year. Yesterday an election result was arguably
a referendum on last year's events, although the results of the
election are not yet clear. He highlighted his concerns about
unnecessarily privatizing the public sector since it can be more
responsive to public need than the private sector since it is
difficult to know who to direct a complaint to in the private
sector. He acknowledged that this issue is complicated. He was
unsure whether Version Y is the right mechanism, particularly
since it is vastly different from the original version. He did
not think he would recommend its passage.
3:59:01 PM
CHAIR OLSON offered his belief that it is important to bring
forth the issue to the public; however, with such a large fiscal
impact he wondered if it would have a tough time in the next
committee of referral.
REPRESENTATIVE JOSEPHSON acknowledged that Representative
Thompson was previously a city mayor, which provides him with a
unique perspective.
REPRESENTATIVE THOMPSON provided some history, noting that years
ago the state went to villages, communities, and boroughs to ask
them to join in the retirement system to enhance their hiring
ability, stabilize the retirement benefit package, and become a
tool for communities. He said most joined and it was good for
communities until the state discovered its actuary misquoted the
debt. The state outlined the percentage of payment, and
communities complied. Through no fault of their own, these
communities have been assessed a portion of unfunded liability
that is detrimental to the future of some of the communities.
He hoped that the state and governor would provide a PERS fix to
address the unfunded liability; however, in the meantime the
state could lose small communities. He said that if 20 percent
of the employees were all laid off, it could result in $75
million. Some communities are not closing departments or
terminating employees because they can't afford the termination
costs. He characterized this as being a big problem and he
reiterated the importance of not losing communities.
4:01:54 PM
CHAIR OLSON said that this has been an issue for several years.
REPRESENTATIVE HERRON concurred with Representative Thompson.
He said that the choice has negative connotations, but he
emphasized the importance of protecting the "little people."
REPRESENTATIVE REINBOLD pointed out she knows where to go in the
private sector. She offered her belief that businesses are very
responsive. She thanked the sponsor for bringing this issue up.
4:03:08 PM
REPRESENTATIVE REINBOLD moved to report the proposed committee
substitute (CS) for HB 152, labeled 28-LS-272\Y, Wayne, 2/26/14
out of committee with individual recommendations and the
accompanying fiscal notes. There being no objection, the CSHB
152(L&C) was reported from the House Labor and Commerce Standing
Committee.
4:03:41 PM
The committee took an at-ease from 4:03 p.m. to 4:04 p.m.
HB 160-LICENSING OF ATHLETIC TRAINERS
4:04:59 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 160, "An Act relating to the licensing and
regulation of athletic trainers."
4:05:04 PM
REPRESENTATIVE STEVE THOMPSON, Alaska State Legislature,
speaking as sponsor, stated that HB 160 would amend current
statutes to establish licensing and regulation of athletic
trainers in Alaska. He explained that athletic trainers are
health care professionals who collaborate with physicians to
ensure the practice of sports medicine clients. He said that
this profession plays a significant role in the management,
prevention, recognition, and rehabilitation of injured athletes
under the supervision of a licensed physician. Trainers are a
vital resource in administrating injury prevention and treatment
programs as well as immediate emergency care for the support in
the athletic community. He reported that Alaska is one of two
states without licensure of athletic trainers. He related that
HB 160 will require athletic trainers to have a license to
practice in the state and will hold them accountable to the
rigorous standards of the Board of Certification, Inc. (BOC),
which is a national agency created to certify health care
professionals and assure protection of the public. As Alaskans
become increasingly active, the need for properly trained and
licensed athletic trainers becomes imperative.
4:06:40 PM
BRODIE ANDERSON, Staff, Representative Steve Thompson, Alaska
State Legislature, provided a section-by-section analysis of HB
160. He stated that Section 1 would add a new paragraph to
license athletic trainers. Section 2 would add a new chapter,
chapter 7, for athletic trainers, AS 08.07.010, outlining the
licensing requirements and exemptions.
MR. ANDERSON referred to a new section, AS 08.07.020, that
identifies the qualifications, fees, and renewal process for
athletic trainers. He said that AS 08.07.030 adds a new section
that identifies the scope of practice for athletic trainers. He
identified that AS 08.07.040 outlines the regulations for
athletic trainers that the department will need to adopt. He
stated that AS 08.07.049 provides definitions and AS 09.65.300
inserts athletic trainers to the list of health care providers.
MR. ANDERSON explained the final two sections, Sec. 4 and 5,
amends AS 47.17.290 (13) adds an athletic trainer to
"practitioner of the healing arts" and adds a new section of
uncodified law outlining the applicability of the bill.
4:08:41 PM
REPRESENTATIVE HERRON asked for the catalyst for introducing the
bill.
REPRESENTATIVE THOMPSON answered that some athletic trainers
asked him to assist them in obtaining certification and
licensure since 48 states currently offer it.
4:09:14 PM
REPRESENTATIVE HERRON asked whether any recent incidents
highlight the need for the bill due to lack of skills.
REPRESENTATIVE THOMPSON said that he is aware of some but did
not have sufficient information to discuss.
MR. ANDERSON anticipated testimony by Lynn Young, Treasurer for
the Alaska Athletic Trainers Association (AATA). He said the
Association came forward since Alaska is one of the few states
that don't regulate athletic trainers. Concerns have previously
been expressed that people might take a couple of online courses
and then hold themselves out as athletic trainers.
CHAIR OLSON answered that this concept has been a work in
progress for several years. He commended the current version as
being "the cleanest" version to date.
MR. ANDERSON explained the fiscal note dated 3/28/14. He
reported that in FY 15 $48.1, and for each consecutive year for
FY 16-20 at $5.0 thousand to establish the licensing program.
4:11:40 PM
REPRESENTATIVE CHENAULT asked whether adding athletic trainer
costs associated with injuries will be passed on to insurance
companies.
MR. ANDERSON answered that he didn't know, but he offered to
check and report back to the committee.
4:12:38 PM
LYNN YOUNG, Secretary/Treasurer, Alaska Athletic Trainers
Association (ATTA), stated that she is also the chair for the
governmental affairs committee and is a certified athletic
trainer. She explained that athletic trainers are highly
trained multi-skilled professionals who are part of the allied
health care profession. She reported that athletic trainers
work, collaborate, and work under the direction of physicians.
She stated that services provided by athletic trainers are
prevention, emergency care, clinical assessment, therapeutic
intervention, and rehabilitation of injuries and medical
conditions. Individuals who wish to become athletic trainers
must earn a degree from an accredited athletic training
curriculum, and sit for the national board of certification
exam, and upon passage can call themselves a certified athletic
trainer. Athletic trainers must adhere to 50 hours biennial
continuing education approved by the national BOC, of which 10
hours must be part of an evidenced based curriculum.
Additionally, athletic trainers must obtain a current
certification in emergency cardiac care at a minimum of a
professional rescuer level or above. She reported that Alaska
is one of two states to not yet license athletic trainers. She
indicated that the trainers are proactive in asking for this.
She was not aware of any improper behavior; however, they do not
want to wait [until an issue occurs] and be reactive. In 2011,
athletic trainers also testified on HB 15, which relates to
concussions, and athletic trainers are one of the health care
providers who can assist with the prevention, recognition, and
proper care of concussions. Due to the severity and risk of
concussions, athletic trainers do not want anyone holding
themselves out to be an athletic trainer and putting school age
children at risk. She urged members to regulate athletic
trainers to ensure at a minimum that people calling themselves
athletic trainers have the basic education and qualifications.
4:16:06 PM
REPRESENTATIVE MILLETT asked which sports have the highest
incidence of concussions.
MS. YOUNG answered that football has the highest incidence, and
she added girls' soccer, boys' soccer, girls' basketball, and
boys' basketball; however, not enough data exists for ice hockey
since not every state has ice hockey programs. She surmised
that ice hockey probably would rank as high as football.
4:16:44 PM
REPRESENTATIVE MILLETT asked whether helmet design has improved,
if they are helpful, or if it is just the nature of sports.
MS. YOUNG answered that helmets are "marketed," as concussion-
proof; however, the anatomy of the brain is such that it sits in
fluid and nothing can prevent concussions. She noted that skull
fractures or structural problems can be minimized, but the brain
will slosh against the skull, which can cause concussions when
injured. She offered her belief that "concussion proof" helmets
help prevent skull fractures help but they will not eliminate
the risk of concussions.
4:17:36 PM
REPRESENTATIVE JOSEPHSON asked for examples of what an athletic
trainer does.
MS. YOUNG explained that the traditional setting for athletic
trainers is on the sidelines of sporting events. Some military
and other employers hire athletic trainers to minimize injuries.
She stated that athletic trainers provide education and provide
emergency health care and assess whether the treatment falls
within their scope of practice. Athletic trainers can provide
post-surgery therapeutic exercises and provide rehabilitation to
safely return them to their sports activities.
4:19:20 PM
REPRESENTATIVE JOSEPHSON asked why California does not currently
have regulation for licensed athletic trainers.
MS. YOUNG answered that California is a big state with
significant licensure of professions so the state is trying to
figure out the athletic trainer's role. She said that she has
held discussions with California's governmental affair's agency,
and their director indicated that it is in part due to the size
of the state, but also due to the politics involved.
4:20:02 PM
REPRESENTATIVE SADDLER asked her to discuss the national BOC and
the relationship to athletic trainers and if the BOC certifies
other professions.
MS. YOUNG answered that the BOC is the board for the national
Athletic Trainers' Association. It regulates and certifies
athletic trainers and ensures that competencies are met. The
BOC establishes the basic educational and clinical components
necessary to show competency in order for applicants to sit for
the exam. The BOC outlines the practice standards, code of
professional responsibility, ethics, and establishes continuing
education. Athletic trainers must maintain 50 hours of
continuing education biennially and the DOC assesses, documents,
and certifies the athletic trainers have met continuing
education.
4:21:26 PM
REPRESENTATIVE SADDLER asked how this bill will affect athletic
trainer's income or reimbursement rate.
MS. YOUNG answered it probably will not have much impact in
terms of insurance and fees, but HB 160 will improve youth
safety. She related that currently athletic trainers are
looking nationally at reimbursement, but she thought that will
take years to implement. Currently, athletic trainers are
employed by schools, orthopedic groups, or hospitals to help
ensure safety of their clients. She said some athletic trainers
work in the capacity of physician extenders so the athletic
trainer services would be billed similar to a medical assistant,
under the license of a physician.
4:22:40 PM
REPRESENTATIVE REINBOLD related her own experience when her son
played football. She said she bought an expensive concussion-
proof helmet, but her son suffered a concussion anyway. She
asked if there was a website parents can go to for information.
MS. YOUNG answered that some sites, such as the centers for
disease control and the national athletic trainers' websites
acknowledged that good helmets decrease the risk of skull
fractures, but they do not endorse statements that helmets will
prevent concussions. She acknowledged that unfortunately
marketing will make claims; however, she said it is likely that
she decreased a worst-case scenario, in which her son may have
avoided a skull fracture.
4:24:56 PM
SARA CHAMBERS, Director, Professional Licensing, Division of
Corporations, Business, and Professional Licensing, Department
of Commerce, Community, & Economic Development (DCCED), asked to
discuss the fiscal note and the basic process of licensing fees.
She said that the fiscal note estimates $180 for the first year,
followed by $100-$150 per year for an biennial license fee.
4:27:02 PM
REPRESENTATIVE SADDLER asked whether any economy of scale exists
to set up two boards at the same time.
MS. CHAMBERS answered that she would need to ponder it; however,
AS 08.01.065 dictates how the division sets licensing fees. She
explained that this statute requires each cost must be borne by
the licensees. She described it as a fairly rigorous process to
identify costs that directly support individual programs. She
suggested it is unlikely there would be substantial savings to
do so.
4:28:16 PM
REPRESENTATIVE SADDLER remarked that several new licensing
programs are likely headed her way.
MS. CHAMBERS answered that it is possible potential savings
could occur if multiple licensing programs share work. She
offered to check into it for the committee.
4:28:52 PM
CARY KELLER, Orthopedic Surgeon, stated that he has offices in
Fairbanks and Sitka. He said that he probably has more
experience than anyone in Alaska in terms of athletic trainers.
He related that he has cared for collegiate and high school
athletes and has worked closely with athletic trainers. He
currently is the chair of Alaska State Activities Association
Sports Medicine advisory committee and he has served nationally
on the National Federation of High Schools' sports medicine
advisory committee. He explained that the national federation
is the National Collegiate Athletic Association (NCAA) of high
school sports. He indicated that he is a former trustee and
fellow of the American College of Sports Medicine. He has also
served as the team physician for the University of Alaska
Fairbanks and for the schools in the Fairbanks North Star
Borough School District for 30 years. He offered his belief
that athletic trainers are incredibly important in the school
setting and also a tremendous help to persons outside the school
setting. It has become increasingly clear that the public
schools and university have responsibility to student athletes
to help prevent injuries, evaluate injuries when they occur, and
to care for those injuries - both the acute care and the
rehabilitation as Ms. Young described. He offered his belief
that it has been clear since the months following the state's
passage of concussion legislation that schools are poorly
prepared to take on the responsibility in the absence of
athletic trainers in the schools. Therefore, the AATA and the
schools have worked together to establish protocols for taking
care of and protecting concussed athletes.
4:31:53 PM
DR. KELLER offered his belief that the schools that do the best
job with concussions are ones with athletic trainers and other
schools have difficulty finding substitutes. He suggested the
best substitute is the school nurse. Concussions are just one
example since athletes obtain all kinds of injuries, and the
schools are poorly prepared to take care of all of the injuries.
He recalled that in the 1980s he performed a study in Alaska of
all injuries in two seasons in the FNSBSD. Once athletic
trainers were added another study was conducted over two years.
He concluded that with the presence of athletic trainers, a 70
percent reduction of injuries happened and the associated
medical costs decreased by 50 percent. He said the statistics
emphasize the value of the athletic trainers. He has worked
closely with ASAA, and its board passed a motion recommending
all schools have athletic trainers and they further recommended
that the University of Alaska develop a curriculum to train
athletic trainers to meet the needs of the state. He
complimented the sponsor and encouraged passage of HB 160.
4:34:33 PM
CHRISTOPHER DEAN, Certified Athletic Trainer; President, Alaska
Athletic Trainers Association (AATA), thanked members for the
opportunity to address the committee. He explained that
athletic trainers are allied health care professionals who serve
communities at many levels, including youth competitive teams
through high school, collegiate, and professional athletic
teams. He reiterated that Alaska and California are the only
states that do not license athletic trainers. He asked the 49th
state to be the 49th state to pass licensure. He acknowledged
that some confusion exists between personal trainer and athletic
trainers. He said Ms. Young has highlighted the role,
qualifications, and duties of athletic trainers. He emphasized
that athletic trainers are not personal trainers.
MR. DEAN offered his belief that the greatest consideration for
licensure is public safety. He recalled that House Bill 15 was
enacted in 2011 and specifically named athletic trainers as a
qualified health care provider who can evaluate, manage and
treat concussions; however, currently in Alaska, anyone could
call his/herself an athletic trainer. The Alaska State
Activities Association (ASAA), the Anchorage School District,
and the FNSB School District have worked hard to promote
concussion education and awareness and identify athletic
trainers as a qualified health care provider to treat concussed
student athletes. Further, a parent, student, and coach should
be assured that the athletic trainer is a certified trainer and
has the necessary education and competency to provide quality
health care. Earlier, a question was asked about any negative
events in Alaska regarding athletic trainers. He related a
scenario in which a 14-year-old student who suffered a
concussion that took 3.5 weeks to heal. The student completed
the return-to-play protocol as defined by ASAA, which is
standard in the medical community and returned to full
participation on a Wednesday. He played again and suffered
another concussion, was helped off the field by the coaches, and
sat on the sideline in pain for 30 minutes. At the end of the
game the mother was informed that her son was simply scared, but
the coach insisted her son did not have a concussion. Although
she asked whether the coach was an athletic trainer and
qualified to make the determination and he said he was, he was
not. The scenario highlights an instance in which someone
represented himself incorrectly and placed a student athlete at
risk, he said.
4:39:06 PM
MR. DEAN, in response to an earlier question, related that
insurance billing is an area he would like to pursue.
Currently, athletic trainers cannot bill because they are not
licensed providers. He said his number one priority after
obtaining licensure will be to ask insurers to recognize them,
as other states have, to identify them as health care providers.
In further response to a question on employment opportunities,
he indicated one physical therapist's office has the
authorization to hire five athletic trainers once this bill is
passed. He emphasized that this bill will help, and he thanked
members for the opportunity to testify.
4:40:24 PM
REPRESENTATIVE REINBOLD surmised that injuries likely happen
more often since coaches need players to win and may not "have
the will" to identify the injury. She suggested that it is
better to have a more objective person make these decisions.
She thanked him for his testimony.
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 160.
4:41:17 PM
REPRESENTATIVE REINBOLD moved to report HB 160 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 160 was reported from the
House Labor & Commerce Standing Committee.
4:41:43 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:41 p.m.