04/11/2016 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB234 | |
| Alaska Workers' Compensation Board | |
| HB271 | |
| SB127 | |
| SB142 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 234 | TELECONFERENCED | |
| += | HB 271 | TELECONFERENCED | |
| += | SB 127 | TELECONFERENCED | |
| += | SB 142 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 11, 2016
3:29 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
OTHER LEGISLATORS PRESENT
Representative Liz Vazquez
Senator Charlie Huggins
COMMITTEE CALENDAR
HOUSE BILL NO. 234
"An Act relating to insurance coverage for mental health
benefits provided through telemedicine."
- MOVED CSHB 234(L&C) OUT OF COMMITTEE
CONFIRMATION HEARING(S):
^Alaska State Board of Public Accountancy
Alaska State Board of Public Accountancy
Karen Brewer-Tarver
- CONFIRMATION(S) ADVANCED
^Alcoholic Beverage Control Board
Alcoholic Beverage Control Board
Robert Evans
- CONFIRMATION(S) ADVANCED
^State Board of Registration for Architects, Engineers, and Land
Surveyors
State Board of Registration for Architects, Engineers, and Land
Surveyors
Catherine Fritz
David Hale
Colin Maynard
Kathleen Schedler
Fred Wallis
- CONFIRMATION(S) ADVANCED
^Board of Barbers and Hairdressers
Board of Barbers and Hairdressers
Michelle Black
Willie Mae Canady
Kevin McKinley
- CONFIRMATIONS(S) ADVANCED
^Board of Chiropractic Examiners
Board of Chiropractic Examiners
John Aderhold
Jeffrey Reinhardt
- CONFIRMATION(S) ADVANCED
^Board of Certified Real Estate Appraisers
Board of Certified Real Estate Appraisers
Robert Tracy
- CONFIRMATION(S) ADVANCED
^Board of Dental Examiners
Board of Dental Examiners
Michael Moriarty
- CONFIRMATION(S) ADVANCED
^Alaska Gasline Development Corporation Board of Directors
Alaska Gasline Development Corporation Board of Directors
Dave Cruz
Luke Hopkins
- CONFIRMATION(S) ADVANCED
^Alaska Labor Relations Agency
Alaska Labor Relations Agency
Matthew McSorley
Jean Ward
- CONFIRMATION(S) ADVANCED
^Marijuana Control Board
Marijuana Control Board
Loren Jones
Peter Mlynarik
Mark Springer
- CONFIRMATION(S) ADVANCED
^Board of Marine Pilots
Board of Marine Pilots
Andrew Mack
Tom Rueter
- CONFIRMATION(S) ADVANCED
^Board of Marital and Family Therapy
Board of Marital and Family Therapy
Dorothea Goddard-Aguero
- CONFIRMATION(S) ADVANCED
^Board of Massage Therapists
Board of Massage Therapists
Ron Gibbs
- CONFIRMATION(S) ADVANCED
^Board of Certified Direct-Entry Midwives
Board of Certified Direct-Entry Midwives
Kathryn Roberts
Deborah Schneider
- CONFIRMATION(S) ADVANCED
^Board of Nursing
Board of Nursing
Tina Gillis
Jennifer Stuckey
Wendy Thon
- CONFIRMATION(S) ADVANCED
^Occupational Safety and Health Review Board
Occupational Safety and Health Review Board
Anthony Barnard
Keith Montgomery
- CONFIRMATION(S) ADVANCED
^Board of Examiners in Optometry
Board of Examiners in Optometry
Pam Steffes
- CONFIRMATION(S) ADVANCED
^Board of Pharmacy
Board of Pharmacy
Richard Holt
Phil Sanders
- CONFIRMATION(S) ADVANCED
^State Physical Therapy and Occupational Therapy Board
State Physical Therapy and Occupational Therapy Board
Ruth Kostik
James Parietti
M. Celeste Tydingco
- CONFIRMATION(S) ADVANCED
^Board of Psychologists and Psychological Associate Examiners
Board of Psychologists and Psychological Associate Examiners
Sarah Angstman
Allen Levy
Joel Wieman
- CONFIRMATION(S) ADVANCED
^Regulatory Commission of Alaska
Regulatory Commission of Alaska
Rebecca Pauli
- CONFIRMATION(S) ADVANCED
^Board of Social Work Examiners
Board of Social Work Examiners
Angela Christiansen
Rachel Olson
- CONFIRMATION(S) ADVANCED
^Board of Veterinary Examiners
Board of Veterinary Examiners
Rachel Berngartt
Hal Geiger
James Hagee
- CONFIRMATION(S) ADVANCED
^Workers' Compensation Appeals Commission
Workers' Compensation Appeals Commission
Michael Notar
James Rhodes
- CONFIRMATION(S) ADVANCED
^Alaska Workers' Compensation Board
Alaska Workers' Compensation Board
Bradley Austin
David Ellis
Sarah Lefebvre
Amy Steele
- CONFIRMATION(S) ADVANCED
HOUSE BILL NO. 271
"An Act relating to a money services business; relating to
transmitting value that substitutes for money; relating to
licensing requirements and registration through the Nationwide
Multistate Licensing System and Registry; relating to surety
bonding requirements; authorizing certain licensees to contract
to use subdelegates for reloading funds onto stored-value cards;
relating to record retention, reporting requirements, and
enforcement provisions; relating to exemptions; relating to
money services Internet activities; relating to definitions
regarding the transmitting value, currency, and money
transmission business activities; and providing for an effective
date."
- MOVED CSHB 271(L&C) OUT OF COMMITTEE
SENATE BILL NO. 127
"An Act relating to actions by insurers based on credit history
or insurance score; and providing for an exception to
consideration by an insurer of credit history or insurance
score."
- MOVED SB 127 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 142(L&C) AM
"An Act relating to insurance coverage for anti-cancer
medications."
- MOVED HCS CSSB 142(L&C) AM OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 234
SHORT TITLE: INSURANCE COVERAGE FOR TELEMEDICINE
SPONSOR(s): REPRESENTATIVE(s) VAZQUEZ
01/19/16 (H) PREFILE RELEASED 1/8/16
01/19/16 (H) READ THE FIRST TIME - REFERRALS
01/19/16 (H) HSS, L&C
03/15/16 (H) HSS AT 3:00 PM CAPITOL 106
03/15/16 (H) Heard & Held
03/15/16 (H) MINUTE(HSS)
03/17/16 (H) HSS AT 3:00 PM CAPITOL 106
03/17/16 (H) Moved HB 234 Out of Committee
03/17/16 (H) MINUTE(HSS)
03/18/16 (H) HSS RPT 3DP 1NR 1AM
03/18/16 (H) DP: TARR, VAZQUEZ, WOOL
03/18/16 (H) NR: TALERICO
03/18/16 (H) AM: SEATON
04/06/16 (H) L&C AT 3:15 PM BARNES 124
04/06/16 (H) Heard & Held
04/06/16 (H) MINUTE(L&C)
04/11/16 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 271
SHORT TITLE: MONEY SERVICES BUSINESS: REQS; LICENSING;
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
01/20/16 (H) READ THE FIRST TIME - REFERRALS
01/20/16 (H) L&C
04/01/16 (H) L&C AT 3:15 PM BARNES 124
04/01/16 (H) Heard & Held
04/01/16 (H) MINUTE(L&C)
04/11/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 127
SHORT TITLE: INSURER'S USE OF CREDIT HISTORY/SCORES
SPONSOR(s): HUGGINS
01/19/16 (S) READ THE FIRST TIME - REFERRALS
01/19/16 (S) STA, L&C
02/11/16 (S) STA AT 9:00 AM BUTROVICH 205
02/11/16 (S) Heard & Held
02/11/16 (S) MINUTE(STA)
02/16/16 (S) STA AT 9:00 AM BUTROVICH 205
02/16/16 (S) Moved SB 127 Out of Committee
02/16/16 (S) MINUTE(STA)
02/17/16 (S) STA RPT 4DP 1AM
02/17/16 (S) DP: STOLTZE, COGHILL, HUGGINS, MCGUIRE
02/17/16 (S) AM: WIELECHOWSKI
02/25/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/25/16 (S) Heard & Held
02/25/16 (S) MINUTE(L&C)
03/03/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/03/16 (S) Moved SB 127 Out of Committee
03/03/16 (S) MINUTE(L&C)
03/04/16 (S) L&C RPT 3DP
03/04/16 (S) DP: COSTELLO, GIESSEL, MEYER
03/11/16 (S) TRANSMITTED TO (H)
03/11/16 (S) VERSION: SB 127
03/14/16 (H) READ THE FIRST TIME - REFERRALS
03/14/16 (H) L&C
04/08/16 (H) L&C AT 3:15 PM BARNES 124
04/08/16 (H) Heard & Held
04/08/16 (H) MINUTE(L&C)
04/11/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 142
SHORT TITLE: INSURANCE FOR ANTI-CANCER MEDICATION
SPONSOR(s): GIESSEL
01/19/16 (S) READ THE FIRST TIME - REFERRALS
01/19/16 (S) L&C
02/04/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/04/16 (S) Heard & Held
02/04/16 (S) MINUTE(L&C)
02/16/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/16/16 (S) Moved CSSB 142(L&C) Out of Committee
02/16/16 (S) MINUTE(L&C)
02/17/16 (S) L&C RPT CS 4DP SAME TITLE
02/17/16 (S) DP: COSTELLO, GIESSEL, MEYER, STEVENS
03/02/16 (S) TRANSMITTED TO (H)
03/02/16 (S) VERSION: CSSB 142(L&C) AM
03/04/16 (H) READ THE FIRST TIME - REFERRALS
03/04/16 (H) L&C
04/06/16 (H) L&C AT 3:15 PM BARNES 124
04/06/16 (H) Heard & Held
04/06/16 (H) MINUTE(L&C)
04/11/16 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ANITA HALTERMAN, Staff
Representative Liz Vazquez
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the committee substitute (CS) for
HB 234, on behalf of Representative Vazquez, sponsor.
DAVE CRUZ, Appointee
Board of Directors
Alaska Gasline Development Corporation
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the board of
directors, Alaska Gasline Development Corporation.
LUKE HOPKINS, Appointee
Board of Directors
Alaska Gasline Development Corporation
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the board of
directors, Alaska Gasline Development Corporation.
REBECCA PAULI, Commissioner Designee
Regulatory Commission of Alaska
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Testified as appointed commissioner to the
Regulatory Commission of Alaska.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the governor's appointees to
various boards and commissions, on behalf of Representative
Olson, Chair of the House Labor and Commerce Standing Committee.
ED MARTIN
Cooper Landing, Alaska
POSITION STATEMENT: Testified with concern regarding
appointments to the Marijuana Control Board during the hearing
on the governor's appointees to boards and commissions.
KEVIN ANSELM, Director
Division of Banking and Securities
Anchorage Office
Department of Commerce, Community & Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Addressed the changes contained in the
committee substitute (CS) for HB 271.
TED MONINSKI
Anchorage, Alaska
POSITION STATEMENT: Testified during the hearing on SB 127.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Responded to questions on SB 127, as
previously raised by committee members, during the regular
meeting on 4/8/16.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Responded to questions, related to
Amendment 1, to the House committee substitute (CS) for CSSB
142(L&C)am.
ACTION NARRATIVE
3:29:46 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:29 p.m. Representatives Olson,
Hughes, Tilton, LeDoux, Kito, and Josephson were present at the
call to order. Representative Colver arrived as the meeting was
in progress. Representative Vazquez and Senator Huggins were
also present.
HB 234-INSURANCE COVERAGE FOR TELEMEDICINE
3:30:00 PM
CHAIR OLSON announced that the first order of business would be
HOUSE BILL NO. 234, "An Act relating to insurance coverage for
mental health benefits provided through telemedicine."
3:30:33 PM
REPRESENTATIVE HUGHES moved to adopt the committee substitute
(CS) for HB 234, labeled 29-LS1251\W, Wallace, 4/8/16, as the
working document.
CHAIR OLSON objected for discussion purposes.
3:31:12 PM
ANITA HALTERMAN, Staff to Representative Liz Vazquez, Alaska
State Legislature related that the Version W, moves the
provisions of law from AS 21.54, the group plan provisions, to
AS 21.42, the insurance contract provisions. The original
applies to both, and Version W moves those provisions as written
from one section of state law to another.
3:32:06 PM
CHAIR OLSON removed his objection. There being no further
objection, Version W was before the committee.
CHAIR OLSON opened public testimony. After ascertaining that no
one wished to testify, public testimony was closed.
3:33:15 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 234, labeled 29-LS1251\W, out of committee with the
accompanying fiscal notes and individual recommendations.
3:33:38 PM
REPRESENTATIVE JOSEPHSON objected, saying it is a good bill,
other than encouraging a system wherein people never meet their
therapist, which would not be best practice. He reiterated
previous testimony wherein this decision would ultimately be up
to the therapeutic community, and removed his objection.
REPRESENTATIVE HUGHES referred to comments that the bill opens
an avenue for Outside, Alaska-licensed providers. Although
there is a shortage [of providers] in some areas of Alaska, the
committee should be aware of the aforementioned possibility.
3:34:45 PM
There being no further objection, CSHB 234(L&C) was reported out
of the House Labor and Commerce Standing Committee.
3:35:15 PM
The committee took an at ease from 3:35 p.m. to 3:36 p.m.
^CONFIRMATION HEARING(S):
CONFIRMATION HEARING(S):
^Alaska State Board of Public Accountancy
Alaska State Board of Public Accountancy
^Alcoholic Beverage Control Board
Alcoholic Beverage Control Board
^State Board of Registration for Architects, Engineers, and Land
Surveyors
State Board of Registration for Architects, Engineers, and Land
Surveyors
^Board of Barbers and Hairdressers
Board of Barbers and Hairdressers
^Board of Chiropractic Examiners
Board of Chiropractic Examiners
^Board of Certified Real Estate Appraisers
Board of Certified Real Estate Appraisers
^Board of Dental Examiners
Board of Dental Examiners
^Alaska Gasline Development Corporation Board of Directors
Alaska Gasline Development Corporation Board of Directors
^Alaska Labor Relations Agency
Alaska Labor Relations Agency
^Marijuana Control Board
Marijuana Control Board
^Board of Marine Pilots
Board of Marine Pilots
^Board of Marital and Family Therapy
Board of Marital and Family Therapy
^Board of Massage Therapists
Board of Massage Therapists
^Board of Certified Direct-Entry Midwives
Board of Certified Direct-Entry Midwives
^Board of Nursing
Board of Nursing
^Occupational Safety and Health Review Board
Occupational Safety and Health Review Board
^Board of Examiners in Optometry
Board of Examiners in Optometry
^Board of Pharmacy
Board of Pharmacy
^State Physical Therapy and Occupational Therapy Board
State Physical Therapy and Occupational Therapy Board
^Board of Psychologists and Psychological Associate Examiners
Board of Psychologists and Psychological Associate Examiners
^Regulatory Commission of Alaska
Regulatory Commission of Alaska
^Board of Social Work Examiners
Board of Social Work Examiners
^Board of Veterinary Examiners
Board of Veterinary Examiners
^Workers' Compensation Appeals Commission
Workers' Compensation Appeals Commission
^Alaska Workers' Compensation Board
Alaska Workers' Compensation Board
3:36:52 PM
CHAIR OLSON announced that the next order of business would be
the confirmation hearings for the [governor's 53 appointments
for the] various boards and commissions. He advised two
nominees for the Marijuana Control Board were removed from [the
calendar] due to missing information.
[After discussion, it was clarified that three names were being
forwarded for the Marijuana Control Board, and two names were
being set aside pending receipt of their completed
applications.]
3:39:11 PM
DAVE CRUZ, appointee, board of directors, Alaska Gasline
Development Corporation (AGDC), Department of Commerce,
Community & Economic Development (DCCED), advised that he is
currently serving on the AGDC board, and was appointed during
the previous administration at the board's inception. He said
he is an asset with his 40 years of experience in the Alaska
construction and oil fields industries and is devoted to this
project. Further, this is Alaska's future and it is important
to maintain diligence to get a project up and going, the board
is functioning on the right path, and it is his honor to serve
on the board.
3:40:54 PM
LUKE HOPKINS, appointee, board of directors, Alaska Gasline
Development Corporation (AGDC), Department of Commerce,
Community & Economic Development (DCCED), advised he is
currently on the AGDC board.
CHAIR OLSON noted concerns that AGDC is becoming "top heavy"
with people previously on the Alaska Gasline Port Authority
(AGPA) board of directors, and asked about the appointee's
experience with AGPA.
MR. HOPKINS informed the committee he was elected to the
Fairbanks North Star Borough Assembly in 2006, and was nominated
and approved by the assembly to be an AGPA board member. At
that time AGPA was purchasing Fairbanks natural gas along with
the Golden Valley Electric Association (GVEA), and he attended
financial meetings in Seattle with the owners of Pentex and two
or three other members of the AGPA board during negotiations on
financing. Of course, he remarked, there were also submittals
of pipeline projects when the Alaska Gasline Inducement Act
(AGIA) process had an option of a pipeline route going to Valdez
from Delta Junction, as opposed to the alternative route through
the Lower 48. Negotiations to purchase the Pentex natural gas
operation by AGPA ended because there was a lack of financial
decisions and evaluations, and that purchase never came to pass.
In 2010, he became the mayor of [the Fairbanks North Star
Borough (FNSB)] and resigned from the board due to the municipal
code which prevented him from participation in any financial
actions proposed before the assembly.
CHAIR OLSON asked whether AGPA is still active in any manner.
MR. HOPKINS advised that AGPA has two municipal members, three
board members appointed by the Fairbanks North Star Borough
Assembly, and three members from the City of Valdez. He
remarked he is unaware of any financial contributions from the
FNSB, or of any other financial sources, and he could not answer
how active it is, but board meetings are occasionally posted for
public notice. In further response to Chair Olson, Mr. Hopkins
said he was unaware of any AGPA offices in the Fairbanks area or
in the City of Valdez.
3:46:23 PM
REPRESENTATIVE JOSEPHSON asked whether the governor nominated
Mr. Hopkins because he was once appointed by the Fairbanks North
Star Borough Assembly to AGPA, or because of his work as mayor.
MR. HOPKINS responded that his conversations with the governor
revolved around his municipal expertise in resolving natural gas
issues for the Interior. Further, the conversations involved
gas from Cook Inlet and gas from the North Slope in the form of
liquefied natural gas (LNG) to serve the Interior, Fairbanks and
military bases, and the economic stability sourcing natural gas
would create for large areas of the State of Alaska. There were
no discussions related to AGPA.
REPRESENTATIVE JOSEPHSON assumed that Mr. Hopkins had expertise
in Interior energy plans, and their various iterations, and the
natural gas demands of the Interior.
MR. HOPKINS said he has quite a bit of knowledge, information,
and background from his years on the assembly, and six years as
mayor leading an effort on those issues.
REPRESENTATIVE JOSEPHSON noted that important issues within
proposed SB 138 are the municipal advisory group and payment in
lieu of tax (PILT), and asked what [knowledge] he brings to the
board relative to those issues.
MR. HOPKINS responded that during six years as mayor, he
addressed annual significant issues in creating a budget having
to do with property taxes and revenues. Alyeska Pipeline
Service Company, the Trans-Alaska Pipeline System (TAPS) owners,
are FNSB's largest property taxpayers and, when issues brought
forward in SB 138 were being considered, he and other mayors
wanted a role in discussing, evaluating, and offering concerns
at a municipal level about the revenue stream that would come to
the State of Alaska, and to municipalities, with the Alaska LNG
Project (AKLNG) line. Of course, he said, the Alaska Stand-
Alone Pipeline (ASAP) project had property tax well structured,
but for AKLNG it was a much larger project. The municipal
representatives brought the issues of property tax and impact
funding forward, and former Governor Sean Parnell was interested
in input from mayors. He expressed appreciation that the
legislature created the Municipal Advisory Board so there could
be robust conversations with the four partners in the AKLNG
project, the group of mayors, and chief financial officers from
around the state.
3:51:41 PM
REPRESENTATIVE HUGHES pointed out that a lot of technical
background, knowledge, and expertise is needed in serving on the
AGDC board and last year there was "concern." She pointed to
the goal of Alaskans being well-served through this board, and
asked Mr. Hopkins to explain what he brings to the table in
specific technical work.
MR. HOPKINS responded that Chairman Dave Cruz assigned him to
three AGDC committees. The Commercial Committee involves
taxation and contracts, and his qualifications include numerous
discussions and activities at the municipal level with financial
institutions, legal involvements with valuations of taxation,
and U.S. Internal Revenue Service (IRS) rulings as mayor, all in
a confidential manner.
MR. HOPKINS advised he is on the Governor's Committee, and has
been involved in putting in place a mechanism for a search firm
to bring forward possible presidential candidates and make
recommendations for the Governor's Committee. The committee has
also taken up bylaws, and he has been involved with the bylaws
actions a number of times, especially working with purpose and
structure for commissions and appointed positions to local
groups in the Fairbanks North Star Borough.
MR. HOPKINS related the third committee is the Communications
Committee which he chairs. In 2016, the board approved a
massive communications plan to inform Alaskans and Outside of
the importance of the AKLNG project, explaining, especially to
Alaskans, what it means to get commercially available gas out to
as many communities as possible. The Communications Committee
is rolling out that plan now with regional contracts, "task
orders," and sub-contracts through its hired consultants. He
opined that would be one aspect of how he is technically
effective as a board member.
3:57:02 PM
MR. HOPKINS continued, noting that he has been involved in
multiple large-scale projects, and as mayor arranging the
financing and structuring of major projects. He has presented
voter-approved projects to the San Francisco financial offices
of Standard & Poor, and Fitch, evaluating the strength of the
Fairbanks North Star Borough, the strength of the project, and
the strength of the ability that the project will be successful
and paid back, and that it is a sound investment package. Of
course, he said, almost all of these have the backing of 70
percent, but it is the taxpayers and the amount of interest
placed on bond sales that determines the overall cost.
MR. HOPKINS pointed out that he has been involved in the open
public process as an elected official, which is an important
part for this board. Almost every meeting involves discussions
on the importance of limiting actions made in executive sessions
to those stated in the Open Meetings Act. It is important the
board's decisions and actions are posted so the public can gain
all of that information.
MR. HOPKINS related that during his 35-year career at the
University of Alaska, Fairbanks (UAF) he started out in the
trades and ended up as superintendent of maintenance for a
number of years. In terms of construction projects occurring at
the UAF campus, his involvement included: the interaction of
design components to the award of those projects; monitoring
projects and ensuring that the construction site was maintained
for safety; ensuring existing facilities were well attended;
ensuring there were not any delays; reducing risk; and ensuring
projects were completed efficiently and on time.
4:01:44 PM
REBECCA PAULI, Commissioner Designee, Regulatory Commission of
Alaska (RCA), advised she began her legal career when RCA was
called the Alaska Public Utilities Commission (APUC). She
related that this would be her last position with the state
serving Alaska's citizens' individual, economic, and business
interests. When the opportunity arose [to serve] she was
flattered, and she related that this is her home, she was born
and raised here, went to school, came back due to the student
loan wherein 50 percent of the balance was forgiven if the
student came back and lived for seven years, so the program
worked. Ms. Pauli said she has a vested interest in what
happens in the state, during this precarious time, and she would
like to help the state move forward and flourish.
4:04:28 PM
REPRESENTATIVE HUGHES moved to advance the confirmation of
appointees referred to the House Labor and Commerce Standing
Committee for consideration to the joint session of the House of
Representatives and Senate for consideration.
4:04:58 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, stated that all members have been provided a copy
of the memorandum directed to the Chief Clerk listing the
appointees and the boards and commissions to which they have
been appointed. Mr. Joey Merrick, Mr. Brandon Emmett, and Mr.
Bruce Schulte were removed from the memorandum. He reminded the
committee that there were four appointees to the Board of
Psychologists and Psychological Associate Examiners and one
appointee has withdrawn. All members have had an opportunity to
review the resumes of these appointees, with six appointees
requested to make themselves available for questions by the
members, which has taken place. He read the names of
individuals appointed by Governor Bill Walker into the record
[as listed in the Committee Calendar].
REPRESENTATIVE LEDOUX pointed out that there was legislation to
eliminate the Workers' Compensation Appeals Commission and asked
why people are being appointed to the commission.
MR. JACKSON advised that the relevant legislation has not passed
and in the event it does not pass, the vacancies need to be
filled.
4:10:26 PM
The committee took a brief at ease.
4:10:48 PM
CHAIR OLSON opened public testimony.
4:11:03 PM
ED MARTIN said he represents his wife and himself. Mr. Martin
said information on the appointees to the Marijuana Control
Board did not provide information to the committee and he did
not find information on the web page. He testified in the
Senate [Labor and Commerce Standing Committee] and he asked
specific questions from these members due to the relation of the
U. S. laws with relation to marijuana being a contraband, and
that the prior black market activities in the state that
currently exist has him concerned about the governor's
appointments. His concern is that there are members on that
board who actually carry out law and enforcement in communities
where the law has been denied. Alaskans voted for this in an
initiative which set up the groundwork for regulations to go
into place. Although these members may "ultimately pass the
muster," he believes there is a due diligence requirement on the
committee's behalf to be certain there is no conflict of
interest, financial, or otherwise, in the promulgation of the
regulations. Further, he said he has more concern that these
regulations went into force and effect before these nominees
were approved. This is a new board, and he said he could see
where the other appointments discussed today would have been to
boards that already exist. However, [marijuana] being a new
industry, the regulations have not passed the muster of what he
would call the basic principles of a representative form of
government. Alaskans have a governor that is appointing people,
some of which may be questionable, and regulations are being put
in place, which affect him and his wife's civil liberties, not
only on the federal level, but on the state level. He
encouraged the committee not to approve any one of "these
people," to bring the regulations into the committee for
administrative regulation and review, before going forward and
approving someone that may have participated in the deprivation
of rights under the color of law. The committee members are his
only hope that Alaskans receive a representative government at
this point in time. He challenged the committee to do the right
thing, put these people off, review the regulations, and then
see if they pass the muster.
MR. MARTIN reminded the committee that under Zobel v. Williams,
457 U.S. 55 (1982) a distinction was made, not only with the
Constitution of the United States and the Alaska Supreme Court,
with regard to residency, which is where his problem lies with
the regulations that have been enforced today: putting these
people in positions to create civil and criminal penalties
against Alaskans that were not named in the initiative or in the
legislation. He urged for corrections to be made because this
industry will create more revenue for the state but, he said,
"Do it right."
4:15:20 PM
CHAIR OLSON, after ascertaining no one further wished to
testify, closed public testimony.
4:15:47 PM
REPRESENTATIVE JOSEPHSON addressed the issue of vetting the
boards and commission nominees, and how the committee exercises
due diligence. He said he directs his staff to review the
documents provided, and sometimes people are known through the
press or are those who garner attention. However, he opined it
is incumbent upon Alaskans to provide legislators with
information [on appointees] whom committee members do not know.
Legislators need the assistance of Alaskans to communicate their
concerns with the legislature, and relative to the Marijuana
Control Board, he has not received an email advising there is an
issue.
CHAIR OLSON clarified that three names were pulled for the
Marijuana Control Board, and one for AGDC board, because they
did not file electronically, and for that reason their
applications haven't been signed. These individuals have been
given the opportunity to refile as quickly as possible.
REPRESENTATIVE HUGHES reminded members that their signature on
this committee report in no manner reflects the member's vote
during the joint floor session.
4:18:03 PM
The committee took an at ease from 4:18 p.m. to 4:20 p.m.
HB 271-MONEY SERVICES BUSINESS: REQS; LICENSING;
4:20:05 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 271, "An Act relating to a money services
business; relating to transmitting value that substitutes for
money; relating to licensing requirements and registration
through the Nationwide Multistate Licensing System and Registry;
relating to surety bonding requirements; authorizing certain
licensees to contract to use subdelegates for reloading funds
onto stored-value cards; relating to record retention, reporting
requirements, and enforcement provisions; relating to
exemptions; relating to money services Internet activities;
relating to definitions regarding the transmitting value,
currency, and money transmission business activities; and
providing for an effective date."
4:20:13 PM
REPRESENTATIVE HUGHES moved to adopt the committee substitute
for HB 271, Version [29-GH2067\H], Bannister, 4/4/16, as the
working document.
CHAIR OLSON objected for discussion purposes.
4:20:35 PM
KEVIN ANSELM, Director, Division of Banking and Securities,
Department of Commerce, Community & Economic Development
(DCCED), answered questions raised at a previous meeting
regarding the money services business, including some ancillary
issues such as gift cards and pre-paid cards. She provided a
copy of a Wikipedia sourced list of the various virtual
currencies available. Ms. Anselm paraphrased the summary of
changes made by Version H as follows [original punctuation
provided]:
In general, Legislative Counsel made conforming
drafting, legal and organizational improvements
throughout the bill including expanding definitions to
include related concepts, products or practices.
Summary of Changes
Article 1. Money Transmission Licenses. Sec. 1- 13. No
substantive changes.
Article 2. Currency Exchange Licenses. Sec. 14 - 22.
No substantive changes.
Article 3. Authorized Delegates. Sec. 23- 25.
Sec. 23. AS 06.55.301(b). Retains "remit"
definition from the current law in this Article
instead of in the definition section and adds a
listing of the financial institutions eligible to
receive authorized delegate deposits. Proposed
language relating to licensee responsibility for the
acts of an authorized representative was deleted.
(former Sec. 20)
MS. ANSELM explained the aforementioned language was deleted
because it was clear the division had the same authority
elsewhere in the bill.
Article 4. Examinations, Report and Records. Sec. 26-
37
Sec. 27. AS 06.55.402 Consultation was added to
"Cooperation" in the title of former Sec. 23 relating
to working with other regulators.
MS. ANSELM related that not only does the division cooperate but
also consults.
Sec. 31. AS 06.55.404(a) Modified former Sec. 27
to require a licensee to give the department notice of
a change of control 30 days before the proposed change
of control and request approval with the required
information and fee instead of within 15 days after
learning of a proposed change of control.
MS. ANSELM clarified that there is only one date, which is 30
days before a proposed change. Elsewhere in the law, there is a
provision to notify the division within 15 days, if there is a
change.
Article 5. Permissible Investments. Sec. 38-39. No
substantive changes.
Article 6. Enforcement. Sec. 40-49. No substantive
changes.
Article 7. Administrative Procedures. Sec. 50. No
substantive changes.
Article 8. Miscellaneous Provisions. Sec. 51- 54.Sec.
54. AS 06.55.855. New section that describes how
references to virtual currency will be construed.
4:23:58 PM
MS. ANSELM explained that in addition to a definition of virtual
currency, which has been expanded, there is also a description
in lay terms that describes how those references will be
construed.
Article 9. Definitions. Sec. 55 - 65. Sec. 56 - 65
reordered the definitions in former Sec. 50.
MS. ANSELM said the definitions were reordered. The definitions
already existing in law are in the same order, any changes stay
in the same order, and new definitions are added at the end.
The original bill had alphabetized the definitions and this will
place them back into "date" order.
Notable changes include:
Sec. 56. AS 06.55.990(3) "control" is more
precisely defined. Formerly Sec. 50(4)
Sec. 58. AS 06.55.990(15) "money transmission" is
expanded to include explanations of the activities
included in an informal transfer system, open-loop
stored value devices, virtual currency, and retail
conversion services, including those definitions or
referencing definitions that were formerly separated
in Sec. 50.
4:25:09 PM
MS. ANSELM related that this helps people to understand how
these various sorts of money transmission services meet.
Sec. 66-73. No substantive changes.
4:26:02 PM
CHAIR OLSON withdrew his objection. There being no further
objection, Version H was before the committee.
REPRESENTATIVE HUGHES commented that this is a complicated bill
and she requested a written updated sectional analysis,
including a summary of changes.
MS. ANSELM agreed to provide further information.
CHAIR OLSON noted that public testimony was closed during the
last meeting.
4:27:33 PM
REPRESENTATIVE KITO expressed concern regarding the regulating
of fees, and about having fees on cards identified as specific
profit centers by companies, so that a consumer might not be
aware that they are paying a lot of money in order to maintain
these instruments. He asked whether there is a way that the
legislature can protect consumers from overcharges on some of
these types of instruments.
MS. ANSELM advised that the division reviews the fees, during
examinations, as well as when the firms are initially licensed.
There are three different examples of fees being charged in
Alaska currently on prepaid cards. She explained that the
division doesn't have limits on those fees but that could be
done by regulation. She pointed out that nationally, similar
fees are substantial; it takes quite a bit of administrative
work to keep multiple accounts current. Ms. Anselm said she is
aware there are some costs involved, but she would research that
issue to determine whether it makes sense to regulate a
limitation on fees, and to see what other states do.
4:29:19 PM
REPRESENTATIVE HUGHES moved to report the committee substitute
for HB 271, [29-GH2067\H,] Bannister, 4/4/16, out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, CSHB 271(L&C), was reported
out of the House Labor and Commerce Standing Committee.
4:29:52 PM
The committee took an at ease from 4:29 p.m. to 4:32 p.m.
SB 127-INSURER'S USE OF CREDIT HISTORY/SCORES
4:32:02 PM
CHAIR OLSON announced that the next order of business would be
SENATE BILL NO. 127, "An Act relating to actions by insurers
based on credit history or insurance score; and providing for an
exception to consideration by an insurer of credit history or
insurance score."
CHAIR OLSON advised the bill was heard previously and he
reopened public testimony.
4:32:48 PM
TED MONINSKI stated support for SB 127, and commented that if
credit information is used to rate personal insurance policies
at the outset, it should continue to be a factor when the policy
is renewed. This situation does not exist under current law,
and his understanding is that consumers are allowed under the
current statute to request a waiver and thereby authorize the
insurer to use credit information at renewal. However, he
discovered this is not universally true and described himself as
one of those consumers who had his good credit considered at the
time the insurance policy was first written, and when it came
time for renewal he experienced a significant premium increase
when the effect of his good credit results were stripped away as
the law currently requires. In 2013, he requested in writing, a
waiver as outlined in the current version of AS 21.36.460(d)(1),
and his insurer denied his request explaining that given the way
its rate plan was structured and approved by the Division of
Insurance, the subsection (d)(1) waiver option was not available
to him. The Division of Insurance confirmed the answer he
received from his insurer. As a result, his premiums remained
dramatically higher than would have otherwise been the case if
the waiver option had been allowed. He urged the committee to
take care to ascertain that its intent in passing this bill is
clear. Given the deference given by the Division of Insurance
to the insurer's rate plans, any ambiguity that might exist will
be resolved in the rate plan process and may or may not meet the
legislature's expectations. He also requested that the
legislature make it clear how the revised bill will be applied,
as insurers may read the bill to say that they are now free to
consider credit information at the point of renewal. If the
statutory change only applies to customers initially subscribing
after the bill is enacted, it would be an unfortunate outcome
for existing subscribers such as himself. He pointed out that
the relief in the bill should apply to all renewals regardless
of whether they are existing or new customers. It would be
fundamentally unfair to force existing customers to start over
and, thereby, give up longevity discounts and other benefits
earned over time simply to avail themselves to the relief
included in SB 127.
4:36:40 PM
CHAIR OLSON, after ascertaining no one further wished to
testify, closed public testimony.
4:37:15 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community & Economic Development, read from a prepared
statement as follows:
Over the weekend we were presented with, I believe
there were three questions that were presented by the
committee. One was: How was credit used by actuaries
which drive insurance rates? The answer is:
Actuaries use the credit-based information of
applicants and insureds much like they use any other
risk characteristics in developing rates. Using
historical loss history data, the actuary performs
statistical tests to identify which risk
characteristics of the insured are most predictive of
the observed losses, such as the risk characteristics
that best explain the observed variation in losses
amongst the policyholder in the data set. This gives
the actuaries a set of potential risk characteristics
to use as variables in the rating schemes. The
actuary then performs additional testing and modeling
and ultimately exercises professional judgment, which
is -- which is performed in compliance, not only with
the standards, but in the professional standards or
with -- with compliance of the statutes, but the
professional standards of an actuary to determine the
final rate used. Another question is: Why should
credit have anything to do with ... rating a driver's
insurance rate? They have a premium record and
accident history to assess risk. Credit-based ... and
again, this is the answer -- credit-based risk
characteristics had been repeatedly -- been repeatedly
shown to be predictive of future losses even after
considering insureds' other risk characteristics
including payment record, accident history, and many
other risk characteristics that insurers use to price
their insurance products. Indeed, insurers provide
most -- most provide data and documentation to clearly
demonstrate to the Division of Insurance that the
insurers' proposed use of credit-based risk
characteristics accurately predict insureds' future
loss potential.
4:39:44 PM
The last question was: How does -- how do actuaries
use credit and the black box? What's in the box? The
black box is generally, by statute, considered
confidential under AS 21.39. However, insurers are
required to follow their credit-based insurance
scoring models with the DOI, the Division of
Insurance, and the Division of Insurance must approve
the filing before the insurer is able to use the
credit to calculate premiums. And, in doing so they
must have the rates must be -- they must be fair, they
must be adequate, they cannot be discriminatory. I
know there were questions about red lining that were
addressed [at the 4/8/16] hearing. So, the fact that
when we talk somewhat about, on [the 4/8/16] hearing,
of red lining in credit scoring, income is not a
factor that is considered. And, when I testified on
the Senate side that question did come up, and in
credit scoring income is not a factor that is
considered. And, in fact, there have been studies
done where there has been -- looking at low-income and
credit scoring and there has not been conclusive data
to say that low- income in credit scoring, that there
is a correlation as far as insurance scores.
And, I don't know if that answered all the questions
that were presented. I believe I got them Saturday
night or Sunday morning. And, I will have those -- I
apologize, I got called to a hearing earlier today
when I was finishing my letter, but I will have this
in writing for you for the record.
4:41:32 PM
REPRESENTATIVE KITO referred to the previous testifier and asked
whether someone with an existing policy benefits from the
"automatic" use of credit for renewal.
MS. WING-HEIER responded that they should be able to benefit
from renewal. The division received an email from the previous
testifier, and looked into the division's consumer complaints
and the telephone calls it has received on credit scoring for
the past two years. She acknowledged that the division has had
[complaints] regarding the waivers, but the division could not
find where it had denied a waiver. As stated, some insurance
companies do not use the waiver at all, and some insurance
companies opt not to use it on renewal, which is their option,
because of the cost to them or the administrative burden it puts
on them. However, the only thing found that the division has
done, is that some insurance companies have perhaps stretched
the definition of waiver when it says it must be done on each
renewal; in fact, in one case an insurance company was using
what the division determined was a power of attorney - Evergreen
- and the division stopped it from doing that. The division is
enforcing the statute that says a waiver has to be used on each
renewal; however, the division is not stopping an insurance
company from using a waiver to give the consumer the benefit of
the credit score on renewal.
REPRESENTATIVE HUGHES requested clarification that under current
law the insurance company decides whether to use waivers, and
Version W will remove the requirement for a waiver. She asked
whether an insurance company could still choose not to use
credit scores, as there is nothing in the bill that obligates
insurance companies to use credit scores.
MS. WING-HEIER replied correct; it is still the option of the
insurance company to use a credit insurance score, or not, but
it would not be required to use a waiver, at all, upon renewal.
4:44:09 PM
REPRESENTATIVE JOSEPHSON asked whether Ms. Wing-Heier had
testified that she saw a study showing no correlation between
financial status and credit scores.
MS. WING-HEIER responded:
... in mid-February I was asked by Senate State
Affairs [Standing Committee], and I then submitted
back to them that in 2007, the FTC, the Federal Trade
Commission report found that the individuals
categorized as low-income did tend to have lower
insurance scores than individuals categorized as high
income, though the correlation was weaker than in the
case of race or ethnicity. Because of its inability
to analyze individual data on income, the FTC was
hesitant to reach any firm conclusions regarding the
relationship between insurance scores and income.
REPRESENTATIVE JOSEPHSON referred to a report from the State of
Missouri, Department of Insurance - that is a dozen years old -
relating to insurance-based credit scores, which concludes there
is a correlation. He said he would have to give this entire
issue further consideration, and asked Ms. Wing-Heier to repeat
her statement.
MS. WING-HEIER repeated the foregoing statement.
4:46:54 PM
REPRESENTATIVE HUGHES moved to report SB 127, Version 29-
LS0529\W out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, SB 127
was reported out of the House Labor and Commerce Standing
Committee.
4:47:19 PM
The committee took a brief at ease.
SB 142-INSURANCE FOR ANTI-CANCER MEDICATION
[Due to technical difficulties, the record from 4:49:46 p.m. to
4:51:39 p.m. was reconstructed from the recording secretary's
log notes.]
4:49:46 PM
CHAIR OLSON announced that the final order of business would be
CS FOR SENATE BILL NO. 142(L&C) am, "An Act relating to
insurance coverage for anti-cancer medications."
[During the meeting of 4/6/16, Amendment 1, labeled 29-
LS1133\W.A.1, Wallace, 4/5/16, was objected to by Representative
LeDoux. Amendment 1 read:
Page 1, line 1, following "medications":
Insert "; and providing for an effective date"
Page 2, following line 14:
Insert a new bill section to read:
"* Sec. 3. This Act takes effect January 1,
2017."]
[Chair Olson stated that he objected to Amendment 1 at the
previous hearing.]
REPRESENTATIVE JOSEPHSON asked Ms. Wing-Heier to elaborate on
her previous testimony regarding an individual's choice of a
pharmacy.
4:51:51 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community & Economic Development (DCCED), explained
that if an individual goes to a pharmacy [out-of-network] they
will receive a higher copay, which is how the plans are written
within the individual's plan.
REPRESENTATIVE JOSEPHSON observed that an individual may choose
to go to an alternate pharmacy but would risk paying more.
MS. WING-HEIER agreed and stated that if the individual chooses
to go to a pharmacy out-of-network, just as they may choose to
go to a physician out-of-network, there would be a higher copay.
REPRESENTATIVE JOSEPHSON referred to the effective date of the
bill, and recalled testimony regarding the urgency of the
application if the bill becomes law, such as administrative
problems associated with the bill. He asked for clarification
of the effective date shown on page 2, line 12.
MS. WING-HEIER explained that the division must comply with the
effective date of the [Patient Protection and Affordable Care
Act of 2010 (PPACA)], and most of the plans now are dated
January 1. Therefore, the form filings and such have to be May
11, although they can be amended up until mid-August, but the
first form filings are due for the 2017 plans on May 11. The
division is beginning to receive form filings that are affected
by this and other pending bills, thus the division is "squeezed
into this 30-day period for bills that haven't passed, to be
signed, to go to the insurers, to be [put] into plan documents,
to be filed with ... the division, to be approved, and that's
the, the administrative heartache that we're asking for a
revised effective date."
4:53:50 PM
CHAIR OLSON removed his objection to Amendment 1 [and the
committee treated the objection made by Representative LeDoux as
withdrawn.] There being no further objection, Amendment 1 was
adopted.
CHAIR OLSON opened public testimony and after ascertaining no
one wished to testify, closed public testimony.
4:54:34 PM
REPRESENTATIVE TILTON moved to report the committee substitute
for CSSB 142(L&C)am, Version 29-LS1133\W.A, as amended, out of
committee with individual recommendations and the accompanying
zero fiscal notes. There being no objection, HCS CSSB 142(L&C)
was reported out of the House Labor and Commerce Standing
Committee.
4:54:56 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:54 p.m.