04/02/2018 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB155 | |
| SB108 | |
| HB136 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 108 | TELECONFERENCED | |
| + | SB 155 | TELECONFERENCED | |
| + | HB 136 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 2, 2018
3:17 p.m.
MEMBERS PRESENT
Representative Sam Kito, Chair
Representative Adam Wool, Vice Chair
Representative Andy Josephson
Representative Louise Stutes
Representative Chris Birch
Representative Gary Knopp
Representative Colleen Sullivan-Leonard
MEMBERS ABSENT
Representative Mike Chenault (alternate)
Representative Bryce Edgmon (alternate)
COMMITTEE CALENDAR
CS FOR SENATE BILL NO. 155(FIN)
"An Act relating to the registration and regulation of real
estate appraisal management companies; relating to the
establishment of fees by the Department of Commerce, Community,
and Economic Development; relating to the Board of Certified
Real Estate Appraisers; relating to real estate appraisers; and
providing for an effective date."
- MOVED HCS CSSB 155(L&C) OUT OF COMMITTEE
CS FOR SS FOR SENATE BILL NO. 108(FIN)
"An Act relating to the State Medical Board; relating to the
licensing of physicians, osteopaths, and podiatrists; relating
to the certification of medical assistants; relating to the
practice of medicine; relating to the practice of podiatry;
relating to the practice of osteopathy; relating to assault of a
medical professional; and providing for an effective date."
- HEARD & HELD
CS FOR HOUSE BILL NO. 136(TRA)
"An Act relating to motor vehicle franchises, motor vehicle
dealers, motor vehicle manufacturers, and motor vehicle
distributors."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 155
SHORT TITLE: REAL ESTATE APPRAISAL MNGMT. COMPANIES
SPONSOR(s): SENATOR(s) MEYER
01/24/18 (S) READ THE FIRST TIME - REFERRALS
01/24/18 (S) L&C, FIN
02/08/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/08/18 (S) Moved SB 155 Out of Committee
02/08/18 (S) MINUTE(L&C)
02/09/18 (S) L&C RPT 1DP 2NR 2AM
02/09/18 (S) AM: COSTELLO, MICCICHE
02/09/18 (S) DP: MEYER
02/09/18 (S) NR: STEVENS, GARDNER
02/21/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/21/18 (S) Heard & Held
02/21/18 (S) MINUTE(FIN)
03/06/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/06/18 (S) Heard & Held
03/06/18 (S) MINUTE(FIN)
03/20/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/20/18 (S) Moved CSSB 155(FIN) Out of Committee
03/20/18 (S) MINUTE(FIN)
03/21/18 (S) FIN RPT CS 6DP NEW TITLE
03/21/18 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON
IMHOF, STEVENS, MICCICHE
03/23/18 (S) TRANSMITTED TO (H)
03/23/18 (S) VERSION: CSSB 155(FIN)
03/26/18 (H) READ THE FIRST TIME - REFERRALS
03/26/18 (H) L&C, FIN
04/02/18 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 108
SHORT TITLE: MEDICAL CARE/LICENSING/MEDICAL BOARD
SPONSOR(s): SENATOR(s) GIESSEL
04/07/17 (S) READ THE FIRST TIME - REFERRALS
04/07/17 (S) L&C, FIN
01/18/18 (S) SPONSOR SUBSTITUTE INTRODUCED-REFERRALS
01/18/18 (S) L&C, FIN
02/13/18 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/13/18 (S) Moved SSSB 108 Out of Committee
02/13/18 (S) MINUTE(L&C)
02/14/18 (S) L&C RPT 5DP
02/14/18 (S) DP: COSTELLO, STEVENS, MICCICHE, MEYER,
GARDNER
02/27/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
02/27/18 (S) Heard & Held
02/27/18 (S) MINUTE(FIN)
03/13/18 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/13/18 (S) Moved CSSSSB 108 Out of Committee
03/13/18 (S) MINUTE(FIN)
03/14/18 (S) FIN RPT CS 5DP 1NR SAME TITLE
03/14/18 (S) DP: HOFFMAN, MACKINNON, BISHOP, VON
IMHOF, STEVENS
03/14/18 (S) NR: OLSON
03/21/18 (S) TRANSMITTED TO (H)
03/21/18 (S) VERSION: CSSSSB 108(FIN)
03/22/18 (H) READ THE FIRST TIME - REFERRALS
03/22/18 (H) HSS, L&C, FIN
03/27/18 (H) HSS AT 3:00 PM CAPITOL 106
03/27/18 (H) -- MEETING CANCELED --
03/29/18 (H) HSS AT 3:00 PM CAPITOL 106
03/29/18 (H) Moved CSSSSB 108(FIN) Out of Committee
03/29/18 (H) MINUTE(HSS)
03/30/18 (H) HSS RPT 4DP 2NR 1AM
03/30/18 (H) DP: JOHNSTON, TARR, SULLIVAN-LEONARD,
SPOHNHOLZ
03/30/18 (H) NR: ZULKOSKY, KITO
03/30/18 (H) AM: EASTMAN
04/02/18 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 136
SHORT TITLE: MOTOR VEHICLE DEALER FRANCHISES
SPONSOR(s): REPRESENTATIVE(s) CLAMAN
02/20/17 (H) READ THE FIRST TIME - REFERRALS
02/20/17 (H) TRA, L&C
03/16/17 (H) TRA AT 1:00 PM CAPITOL 17
03/16/17 (H) <Bill Hearing Canceled>
03/21/17 (H) TRA AT 1:00 PM BARNES 124
03/21/17 (H) Heard & Held
03/21/17 (H) MINUTE(TRA)
04/13/17 (H) TRA AT 1:00 PM BARNES 124
04/13/17 (H) -- MEETING CANCELED --
03/27/18 (H) TRA AT 1:15 PM BARNES 124
03/27/18 (H) Heard & Held
03/27/18 (H) MINUTE(TRA)
03/29/18 (H) TRA AT 1:15 PM BARNES 124
03/29/18 (H) Moved CSHB 136(TRA) Out of Committee
03/29/18 (H) MINUTE(TRA)
03/30/18 (H) TRA RPT CS(TRA) NT 5DP
03/30/18 (H) DP: SULLIVAN-LEONARD, DRUMMOND, CLAMAN,
KOPP, WOOL
04/02/18 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
SENATOR KEVIN MEYER
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 115 as prime sponsor.
DAVID DERRY, Chair
Alaska Board of Real Estate Appraisers
Soldotna, Alaska
POSITION STATEMENT: Testified in support of SB 155.
MARK SCHIFFMAN
Real Estate Valuation Advocacy Association (REVAA)
Minneapolis, Minnesota
POSITION STATEMENT: Testified in support of SB 155.
SARA CHAMBERS, Deputy Director
Division of Insurance
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions in the hearing on SB
155.
THOMAS ATKINSON, Staff
Representative Andy Josephson
Alaska State Legislature
POSITION STATEMENT: Presented Amendments 1, 2, and 3 on behalf
of Representative Josephson.
EDRA MORLEDGE, Staff
Senator Kevin Meyer
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions in the hearing on SB
155.
SENATOR CATHY GIESSEL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 108 as prime sponsor.
FRED PARADY, Deputy Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions in the hearing on SB
108.
DEBORA STOVERN, Executive Secretary
State Medical Board
Division of Corporations, Businesses, and Profession Licensing
(DCBPL)
Department of Commerce, Community & Economic Development (DCCED)
POSITION STATEMENT: Answered questions in the hearing on SB
108.
JEANNIE MONK
Alaska State Hospital and Nursing Home Association (ASHNA)
Juneau, Alaska
POSITION STATEMENT: Testified in support of SB 108.
REPRESENTATIVE MATT CLAMAN
Alaska State Legislation
Juneau, Alaska
POSITION STATEMENT: Presented HB 136 as prime sponsor.
GARY SLEEPER, Attorney
Alaska Auto Dealer Association
POSITION STATEMENT: Testified in support of HB 136.
ACTION NARRATIVE
3:17:46 PM
CHAIR SAM KITO called the House Labor and Commerce Standing
Committee meeting to order at 3:17 p.m. All members were present
at the call to order.
SB 155-REAL ESTATE APPRAISAL MNGMT. COMPANIES
3:18:58 PM
CHAIR KITO announced that the first order of business would be
CS FOR SENATE BILL NO. 155(FIN), "An Act relating to the
registration and regulation of real estate appraisal management
companies; relating to the establishment of fees by the
Department of Commerce, Community, and Economic Development;
relating to the Board of Certified Real Estate Appraisers;
relating to real estate appraisers; and providing for an
effective date."
3:19:17 PM
SENATOR KEVIN MEYER, Alaska State Legislature, presented SB 155
as prime sponsor. He paraphrased the sponsor statement
[included in committee packet], which reads as follows [original
punctuation provided]:
An Appraisal Management Company, or AMC, is an
independent entity through which mortgage lenders
order residential real estate valuation services for
properties on which they are considering extending
loans to homebuyers. AMCs fulfill an administrative
function in the appraisal process, including selecting
an appraiser and delivering the appraisal report to
the lender. Individual appraisers who work for AMCs
provide the actual property valuation services.
AMCs existed well before the 2008 global financial
crisis, and today they play an increasingly important
role as a third-party service provider in the consumer
mortgage process. AMCs have become increasingly
popular by lenders across the country to ensure
federal and state regulatory compliance and
independence between lenders and appraisers as
required by the Dodd-Frank Wall Street Reform and
Consumer Protection Act of 2010. Dodd-Frank requires
that states that choose to regulate this sector of
industry enact comprehensive AMC oversight and
registration programs with an August 10, 2018,
deadline.
SB 155 aims to promote public trust and consumer
protection and establish oversight and enforcement
where there is none today.
SENATOR MEYER added that Alaska is one of only four states
without the legislation in place. He said that states vary
regarding the surety bond. He added that due to the deadline,
the department requested a waiver. The original version of the
proposed bill contains contingency language in the event that
the waiver was not granted. He stated the version would
establish a firm effective date on 1 January 2019, and a
registration date of 1 March 2019.
3:24:11 PM
REPRESENTATIVE STUTES stated there is confusion over whether the
state will be able to transact with "Freddie May and Fannie Mac"
without the proposed legislation in place.
SENATOR MEYER said there is some concern that it would impact
some of the loans.
3:25:00 PM
CHAIR KITO stated the difference in the CS is only to update the
effective date.
3:25:13 PM
REPRESENTATIVE WOOL moved to adopt House committee substitute
(HCS) for CSSB 155(FIN), Version R as the working document.
There being no objection, Version R was adopted as the working
document.
3:25:52 PM
DAVID DERRY, Chair, Alaska Board of Real Estate Appraisers,
testified in support of SB 155. He said the board thinks it is
a key to have the maximum available mortgage for residents in
Alaska, and it provides a basis for oversight of AMCs operating
in Alaska. He said the board requests a change on page 5 line
25 about the control person is effectively established as the
responsible person. The board requesting it be changed to a
certified appraiser in the state of Alaska. He indicated the
original bill version had contained the detail, but it had been
changed. He said the objection to the change is that other
states don't make that requirement. He suggested the mortgage
meltdown 2010 had created problems in other states, while Alaska
wasn't hit with the meltdown. He added it may be why there was
no AMC legislation enacted in the state previously.
REPRESENTATIVE JOSEPHSON asked whether the federal subcommittee
expressed a preference that the designated controlling person be
in Alaska.
MR. DERRY answered that the term controlling person is not even
addressed by the federal subcommittee, so there was no
preference expressed.
REPRESENTATIVE JOSEPHSON asked for confirmation that the federal
subcommittee could not take a position on it in any case.
MR DERRY answered that is correct.
3:32:18 PM
MARK SCHIFFMAN, Real Estate Valuation Advocacy Association
(REVAA), testified in support of SB 155. He stated that there
is not a uniqueness to Alaska that would require that the
designated person be in Alaska.
REPRESENTATIVE WOOL mentioned hiring an extra person and asked
for confirmation that the cost would be spread around programs.
3:34:47 PM
SARA CHAMBERS, Deputy Director, Division of Insurance,
Department of Commerce, Community & Economic Development
(DCCED), answered questions in the hearing on SB 155. She
stated there would be a new person required, but their time
would be charged on a 15-minute increments to this program. She
added that they may work part-time on another program, and that
program would cover those costs.
3:35:42 PM
CHAIR KITO opened public testimony on SB 155. Upon ascertaining
that no one was available to testify, he closed public
testimony.
3:36:20 PM
REPRESENTATIVE STUTES asked whether not enacting the proposed
legislation would prohibit all institution from giving FHA loans
or prohibit only certain institutions from providing federal
loans to Alaskans.
MR. DERRY answered the loans could still be carried out by
lenders. He named banks that don't use AMCs. He said there
would be complications with handling federally related
transactions.
REPRESENTATIVE STUTES asked whether not enacting the proposed
legislation would prohibit certain lending institutes from
lending Freddie Mac, Fannie May, and FHA funds to buyers.
MR. DERRY said the question is what a federally related
transaction is. He said that without AMC legislation, a lender
would not be prohibited from working through a federal loan.
3:40:08 PM
REPRESENTATIVE WOOL asked whether it is up to the bank whether
to use AMCs or not. He asked whether an appraiser can work
independently and for an AMC at the same time.
MR. DERRY answered in the affirmative. He said it is more a
matter of convenience. He said an appraiser could sign up with
an AMC and also serve as an independent appraiser.
3:41:46 PM
REPRESENTATIVE JOSEPHSON moved Amendment 1.
Page 5, line 25:
Delete "a state"
Insert "the state under this chapter"
3:42:45 PM
THOMAS ATKINSON, Staff, Representative Andy Josephson, presented
Amendment 1 on behalf of Representative Josephson. He stated
there are no homegrown AMCs. He said the suggestion is to
support small Alaska businesses rather than larger national
businesses.
CHAIR KITO asked whether the amendment would prohibit national
businesses from using their AMC in Alaska.
MR. ATKINSON answered that it would not. He underlined that the
provision would not require that the designated person be in
Alaska, only that they be certified as an appraiser in Alaska.
He added this could be done through reciprocity.
CHAIR KITO suggested if someone is working on a lending project
and the appraiser does not meet the licensure requirements, the
loan would be on hold until the appraiser met those
requirements.
MR. ATKINSON answered in the affirmative. He deferred to the
invited testimony.
3:45:47 PM
CHAIR KITO asked whether passing the amendment would impede the
ability of the state to allow appraiser to provide services in
the state.
MS. CHAMBERS answered that the amendment would require the
controlling person - the person the board would work with that
is in a management roll - to have understanding and awareness of
Alaska. She explained that person would have decision-making
authority, but that person may or may not be the boots on the
ground appraiser. She said the board stated it was important
to them because of Alaska's unique geography. She clarified
that, should this amendment be adopted, it wouldn't change
anything for the boots on the ground appraiser.
CHAIR KITO asked whether it is anticipated that a large number
of individuals would want licensure through reciprocity.
MS. CHAMBERS said it was estimated about 200 AMCs and it is
expected the controlling person for each of them would be
seeking licensure to operate in the state.
3:50:06 PM
EDRA MORLEDGE, Staff, Senator Kevin Meyer, Alaska State
Legislature, answered questions in the hearing on SB 155 on
behalf of Senator Meyer, prime sponsor. She stated the sponsor
was not supportive of the amendment.
3:51:10 PM
A roll call vote was taken. Representatives Stutes, Josephson,
and Knopp voted in favor of Amendment 1. Representatives Wool,
Birch, Kito, and Sullivan-Leonard voted against it. Therefore,
Amendment 1 failed by a vote of 4-3.
3:52:02 PM
REPRESENTATIVE JOSEPHSON offered Amendment 2.
Page 9, line 31:
Delete "includes"
Insert "means"
Page 10, lines 2 - 3:
Delete "or an officer or director of a real estate
appraisal management company"
Page 10, following line 3:
Insert a new subparagraph to read:
"(B) is an officer or director of a real estate
appraisal management company;"
Reletter the following subparagraphs accordingly.
Page 10, line 7:
Delete "and"
Insert "or"
3:52:12 PM
MR. ATKINSON explained Amendment 2 on behalf of Representative
Josephson. He said without the amendment, a controlling person
would have to meet all three definitions. He said, "It would be
a strange arrangement to be both the owner and employee."
3:53:47 PM
MS. MORLEGE stated the sponsor had no opposition to the proposed
amendment.
3:53:58 PM
CHAIR KITO removed his objection. There being no other
objection, Amendment 2 was adopted.
3:54:09 PM
REPRESENTATIVE JOSEPHSON moved to adopt Amendment 3.
Page 3, line 29, following "chapter":
Insert ";
(4) conduct background investigations as provided in
AS 08.87.135(c)"
Page 5, line 21:
Delete "and"
Page 5, line 23, following "$50,000":
Insert "; and
(9) is owned by persons who meet the requirements
under (c) of this section"
Page 5, following line 31:
Insert a new subsection to read:
"(c) A person who owns at least 10 percent of a real
estate appraisal management company required to be
registered under this chapter must be of good moral
character as determined by the board and shall submit
to a background investigation conducted by the board."
Reletter the following subsections accordingly.
Page 6, line 5:
Delete "of (a) and (b)"
Insert "under (a) - (c)"
3:54:13 PM
MR. ATKINSON explained Amendment 3 on behalf of Representative
Josephson. He said it is clear that if a person owns more than
ten percent of an AMC, they would need a state background check.
He said he had confirmation that it is required in statute.
REPRESENTATIVE WOOL asked about background investigations.
MR. ATKINSON answered that the details of what constitutes
background checks are not stipulated by the state.
REPRESENTATIVE WOOL asked what the state would plan on doing if
it were left to the states.
MR. ATKINSON answered that he thinks they would run the same
background check that they run on appraisers.
3:56:12 PM
MS. MORLEDGE stated that the sponsor is in support of the
amendment.
3:56:29 PM
REPRESENTATIVE WOOL suggested if there were 200 AMCs who wanted
to do business in Alaska, all would have to submit fingerprints
to the state.
MR. ATKINSON answered that he did not know the answer.
3:57:32 PM
MS. CHAMBERS answered that currently for real estate appraisers
the department does not have the authority to require
fingerprints. She said the supposition that those owners of ten
percent or more of an AMC would have to submit an application is
correct.
REPRESENTATIVE WOOL spoke to the fiscal note. He asked whether
the one person to be hired would be able to handle 500
applications with background checks.
MS. CHAMBERS answered that, should this amendment become a part
of the bill, the department may allocate more of that person's
time to the program.
3:59:32 PM
REPRESENTATIVE WOOL objected to Amendment 3.
A roll call vote was taken. Representatives Sullivan-Leonard,
Stutes, Josephson, Birch, and Knopp voted in favor of Amendment
3. Representatives Wool and Kito voted against it. Therefore,
Amendment 3 passed by a vote of 5-2.
4:00:27 PM
REPRESENTATIVE STUTES expressed her concerns about increased
costs as a result of the proposed bill.
4:01:23 PM
REPRESENTATIVE BIRCH stated he supports the proposal.
4:01:53 PM
REPRESENTATIVE WOOL moved to report HCS CSSB 155(FIN), Version
R, as amended, out of committee with individual recommendations
and the accompanying fiscal notes. There being no objection, it
was so ordered.
4:02:10 PM
The committee took an at-ease from 4:02 p.m. to 4:05 p.m.
[CHAIR KITO passed the gavel to Vice Chair Wool.]
SB 108-MEDICAL CARE/LICENSING/MEDICAL BOARD
4:05:27 PM
VICE CHAIR WOOL announced that the next order of business would
be CS FOR SPONSOR SUBSTITUTE FOR SENATE BILL NO. 108(FIN), "An
Act relating to the State Medical Board; relating to the
licensing of physicians, osteopaths, and podiatrists; relating
to the certification of medical assistants; relating to the
practice of medicine; relating to the practice of podiatry;
relating to the practice of osteopathy; relating to assault of a
medical professional; and providing for an effective date."
4:05:43 PM
SENATOR CATHY GIESSEL, Alaska State Legislature, presented SB
108 as prime sponsor. She indicated her PowerPoint presentation
would also serve a sectional analysis of the proposed bill.
4:06:58 PM
SENATOR GIESSEL pointed to slide 2, "Purpose":
1. Streamline Physician Licensing
2. Need for office assistants
a. Unlicensed
b. Licensed
1. Streamline MD licensing
Section 1, 2, 8, 9, 10
State Medical Board to write regulations to
delegate to EXECUTIVE SECRETARY:
1. review applications and grant license if
requirements are met
2. review applications and issue temporary
license if requirements are met
3. grant certification if requirements are met
4. spells out prohibitions to this delegate
authority
SENATOR GIESSEL explained that the documentation is
maintained until the state Medical Board meets, but the
board only meets four times per year. She said this
creates a backlog. She said that one the examiner looks at
the documentation, it would be forwarded to the executive
secretary who would review the applications and make
appropriate action.
4:09:09 PM
REPRESENTATIVE KNOPP asked why it is not the responsibility of
the executive secretary to prepare the documentation for the
board.
SENATOR GIESSEL reviewed the application process. She stated
the applications could be approved immediately or go to the
board if there were issues with an application.
SENATOR GIESSEL continued to slide 4, "Streamline MD Licensing":
Section 10, 11
1. Allows another person, designated by the board, to
help the Executive Secretary to issue temporary
license.
2. Outlines when this could happen
SENATOR GIESSEL shared that the process is used by the
largest licensing board in the state.
4:14:29 PM
SENATOR GIESSEL moved to slide 5-6, "2.a. Unlicensed Assistive
Personnel":
Unlicensed personnel trained in "routine medical
tasks"
Section 3 Regulations will
o authorize delegation to unlicensed person
o prohibit delegation of pain management or
opioid related activities
o define "routine medical tasks"
Section 6
adds person, performing delegated "routine
medical duties" to exception under "License to
practice medicine, podiatry, or osteopathy"
Section 12
Adds "medical assistant" to list to practice
medicine
Section 14
adds "medical assistants" to definition of
"medical professional" under Title 12 Criminal
Procedure
SENATOR GIESSEL said the bill would correct a gap in the board's
laws.
4:17:00 PM
REPRESENTATIVE JOSEPHSON asked whether there would be a need to
ensure that the unlicensed people have specific training.
SENATOR GIESSEL answered that initially all that was required
was a high school diploma but now there was some education
available. She added there would be a higher level of education
required.
REPRESENTATIVE WOOL asked for confirmation that this first group
of medical assistants won't need a license in the future, but
the physician will be able to delegate to them.
SENATOR GIESSEL answered in the affirmative.
SENATOR GIESSEL progressed to slide 7-8, "2.b. medical
Assistants - license/certification":
Why?
Prescription Drug Monitoring Program (PDMP)
~prohibits access by any unlicensed person
~envisioned clinician delegates "look up" before
prescribing
Problem
~No licensed people in MD clinic, other than the
MD
~Frequent need to check PDMP (AS 17.30.200
requires license).
Solution recognize training and certification
Training programs accredited by
o Commission on Accreditation of Allied Health
Education Programs (CAAHEP)
o Accrediting Bureau of Health Education Schools
(ABHES)
National exams for Certification
Alaska's community colleges training programs
Recognized in many other states/territories.
WA, CA, TX, FL, PA, OH, IL, MT, MS, ND, SD, WY
4:21:17 PM
SENATOR GIESSEL addressed slide 9, "2.b. Medical assistant with
certification process":
Section 4
Certifying process defined in regulation by Board
Section 5
Limits use of term "certified"
Section 13
Certification is equivalent to a license
4:22:41 PM
VICE CHAIR WOOL suggested the licensure is simply to check the
PDMP and maybe enters the new data. He suggested this would be
creating another licensed person who would need training,
licensure, and a background check.
SENATOR GIESSEL corrected that the pharmacist enters the data
into the PDMP. She said the other statement was correct.
VICE CHAIR WOOL suggested a physician could remove themselves
from vulnerability to revocation of their license by having
another licensed person in the office.
SENATOR GIESSEL answered that each licensed person is
accountable for their actions under their license.
4:25:09 PM
REPRESENTATIVE JOSEPHSON suggested that the physician would
still be held responsible [from a legal standpoint].
4:25:43 PM
REPRESENTATIVE BIRCH asked how many applications are rejected a
year.
SENATOR GIESSEL deferred to the department and to the executive
secretary of the state medical board.
REPRESENTATIVE BIRCH said there are a lot of confidentiality
issues in a medical office. He asked whether the proposal was
to certify everyone in a medical office.
SENATOR GIESSEL answered that the provision would not include
the bookkeepers.
4:28:12 PM
SENATOR GIESSEL briefly addressed "Urgent need for SB 108" on
slide 10-11.
Efficient, expeditious and effective licensing of MDs
Legal clarity for delegation of "routine medical
duties" to unlicensed personnel (medical assistants)
More legally stringent delegated activities to
licensed entity, a medical assistant who has achieved
certification
These changes needed this session
SUPPORT:
State Medical Board (requested)
Dept of Commerce
Alaska State Hospital and Nursing Home Association
Alaska State Medical Association
Foundation Health Partners (Fairbanks)
No opposition
4:30:35 PM
FRED PARADY, Deputy Commissioner, Department of Commerce,
Community & Economic Development (DCCED), answered questions in
the hearing on SB 108. He said his department had seen an
increase in requests for licensure. He said the department had
an initiative to streamline the application process. He
indicated the issues that slowed the process had been
identified. He added that only around ten percent of the
applications were complete when they were sent it. He described
changes to the online process that would be implemented.
4:34:41 PM
REPRESENTATIVE SULLIVAN-LEONARD shared her understanding that
the aim was to streamline the process. She asked whether
licensure could be invoked when the coursework is completed.
MR. PARADY said he had not heard that suggestion before but that
it seemed interesting.
REPRESENTATIVE SULLIVAN-LEONARD shared that her hesitation to
fully support the proposal was due to the apparent "double duty"
in the process.
MR. PARADY answered that he thought the school would be quite a
logical location for the online process.
4:36:26 PM
VICE CHAIR WOOL asked whether the licensure was a statutory
responsibility of the state licensing board.
MR. PARADY deferred to the sponsor. He said he thinks it
recognizes the limited board meeting schedule and ability to
address problem-free applications.
4:37:33 PM
DEBORA STOVERN, Executive Secretary, State Medical Board,
Division of Corporations, Businesses, and Profession Licensing
(DCBPL), answered questions in the hearing on SB 108. She said
it is important to note that the board is allowed to grant that
limited authority to the executive secretary under specific
conditions. She added the any application with adverse
information would still require the board to review for approval
of temporary or permanent licenses. She said it would continue
to require specific delegation by the board on an annual basis.
REPRESENTATIVE BIRCH asked how many applicants are rejected.
MS. STOVERN answered that the board actually denies only a
couple of applications per year as an outright denial. She said
other applications that have adverse information or information
of concern would be asked to come into an in-person interview.
REPRESENTATIVE BIRCH said it seemed like a low-risk proposal.
4:42:43 PM
REPRESENTATIVE JOSEPHSON asked what is being licensed. He asked
if someone has done an internship and a residency, what is being
granted with licensure.
MS. STOVERN answered the board issues licenses to practice
medicine in the state.
4:43:45 PM
JEANNIE MONK, Alaska State Hospital and Nursing Home Association
(ASHNA), testified in support of SB 108. She said ASHNA is in
support of fixing the statutory deficiency to allow physicians
to delegate the tasks.
VICE CHAIR WOOL asked about the Certified Medical Assistant
license.
MS. MONK answered there are some concerns about creating new
certified personnel, but it was not enough to avoid supporting
the proposed bill.
VICE CHAIR WOOL asked whether the medical assistant would have
to acquire a new range of skills.
MS. MONK answered that would be left to the board. She added
that she thinks other states do have certified medical
assistants.
4:46:38 PM
VICE CHAIR WOOL opened public testimony on SB 108.
4:46:52 PM
VICE CHAIR WOOL asked whether Certified Medical Assistant is a
one-off certification.
SENATOR GIESSEL answered that the position requirement may
expand. She suggested that if a person is going to pay for the
licensing exam and fees, they may cost more to hire.
VICE CHAIR WOOL held over SB 108.
HB 136-MOTOR VEHICLE DEALER FRANCHISES
4:50:01 PM
VICE CHAIR WOOL announced that the final order of business would
be HOUSE BILL NO. 136, "An Act relating to motor vehicle
franchises, motor vehicle transactions, motor vehicle dealers,
motor vehicle manufacturers, and motor vehicle distributors."
4:50:27 PM
REPRESENTATIVE MATT CLAMAN, Alaska State Legislation, presented
HB 136 as prime sponsor. He paraphrased the sponsor statement
to the CS to HB 136, Version R, [included on committee packet}
which reads as follows [original punctuation provided]:
House Bill 136 updates Alaska statutes dealing with
franchise agreements between Alaska's auto-dealers and
the automobile manufacturers and distributors. The
need for a change in franchise agreements became
apparent after the 2008 market crash when General
Motors and Chrysler terminated roughly 2,000
dealerships. As of 2016, Alaska dealerships directly
or indirectly employed 6,876 people. In the same year,
car sales accounted for 14.1% of total retail sales in
Alaska. House Bill 136 recognizes the contributions of
auto-dealers and manufacturers to Alaska's economy and
updates Alaska statute to update protections for both.
The work draft CS HB 136 Version R - is a product of
extensive negotiations between the Alaska Automobile
Dealers Association and the Alliance of Automobile
Manufacturers. Both groups have worked together to
find solutions that protect the consumer, protect the
investments of Alaska's auto-dealers, and maintain the
brands of the manufacturers.
House Bill 136 updates statutes relating to warranty
repair work, requiring a manufacture to pay for
warranty work at a competitive rate that is consistent
with the retail rate for non-warranty work. It also
outlines the requirements for warranty repairs for
consumers who are 100 miles or more away from a
dealership. The bill expands upon dealership
terminations. It sets out good cause for terminations
and sets out the manufacturers and auto-dealers'
financial responsibilities during terminations. The
bill also updates the provisions and terms for
transferring or selling a dealership. Manufactures may
not unreasonably prevent the transfer of a dealership
to someone who meets their standards. Manufacturers
may use the right of first refusal except in
circumstances involving the transfer of a dealership
to family members or managing employees owning more
than 15% of the dealership. Lastly, the bill defines
certain unfair practices.
House Bill 136 brings the auto dealer franchise
agreements in-line with similar laws in other states.
It is the intent that with this legislation, we may
provide support for an industry that services and
employs thousands of Alaskans.
4:52:41 PM
REPRESENTATIVE CLAMAN addressed the sectional analysis, which
reads as follows:
Section 1
Adds legislative intent language to uncodified law:
It is in the public interest to protect have warranty
service for new motor vehicles and maintain fair
competition among auto manufacturers and auto dealers.
Section 2
Amends AS 45.25.010:
Applicability: AS 45.25.020 -045.25.310 apply to
franchise agreements between manufacturers and Alaska
auto dealers.
Section 3
Amends AS 45.25.110(a):
Manufacturers may not terminate an auto dealer unless
they have complied with notice requirements and shown
good cause for termination. Auto dealers have up to
120 days to correct areas out of compliance with the
franchise agreement. The manufacturer may terminate a
franchise if the dealer has systemically engaged in
fraud.
Section 4
Adds new subsection to AS 45.25.110:
Good cause to terminate a franchise does not include
the failure of an auto dealer to meet sales or service
goals due to factors beyond the control of the dealer
including market conditions or insufficient supply of
new motor vehicles.
Section 5
Amends AS 45.25.140(a):
Updates and amends the manufacturers repurchase
requirements upon termination of a franchise
agreement. The manufacturer must repurchase current
year models of new motor vehicles, certain new motor
vehicle models from the prior year, parts, trademark
signs and equipment, special tools, computer,
printers, and electronic hardware.
Section 6
Amends AS 45.25.150(b)
If a franchise termination occurs, auto dealers have
an obligation to mitigate damages under a lease and
mitigate the costs of facility relocations,
alterations or remodels.
Section 7
Adds new subsection to AS 45.25.150:
If a franchise termination occurs, manufacturers must
pay the costs of relocation, alteration or remodeling
of an auto dealers facilities if they were required by
the manufacturer and were completed within three years
of termination.
Section 8
Repeals and reenacts AS 45.25.160:
This section establishes a procedure for the proposed
transfer of a dealership.
• Manufacturers may not prevent the sale of a
franchise to a potential buyer who is capable of
being licensed as an auto dealer and who meets
the manufacturers' standards.
• Upon receipt of the notice to transfer the
franchise, manufacturers have 30 days to request
supplemental information after which the
manufacturer has 75 days to give notice of
rejection of the transfer.
• The manufacturer has the right of first refusal
to a transfer with limitations. The manufacturer
has the same notice requirements for the right of
first refusal as they have for rejecting the
transfer outright. A manufacturer may not
exercise the right of first refusal if the
transfer of the franchise is to a family member
or a managerial employee owning 15% or more of
the dealership. If a manufacturer exercises the
right of first refusal, then the manufacturer
must provide the auto dealer with the same
compensation as offered by the proposed buyer.
The manufacturers must also pay the legal fees
incurred for the preparation of the void transfer
agreement.
Section 9
Amends AS 45.25.180(d)
Expands the factors that the superior court must
consider in a lawsuit addressing whether good cause
exists to establish or relocate a dealership.
Section 10
Adds new subsection to AS 45.25.180
Establishes the burden of proof in a franchise
lawsuit. A manufacturer has the burden of proof to
establish good cause for establishing or relocating a
dealership that the manufacturer has proposed. An auto
dealer must establish good cause for any establishment
or relocation that the auto dealer proposes.
Section 11
Amends AS 45.25.190
This section updates the statutory references in the
arbitration section.
Section 12
Adds new sections to article 2 of AS 45.25
This section addresses warranty work and pay rates for
warranty work:
Sec 45.25.200: A manufacturer must pay an auto
dealer for all warranty work if the auto dealer
provides documentation of the need for the
repairs. The auto dealer must submit the claim
within 90 days of the completed warranty work,
and a manufacturer must approve the claim within
30 days of receipt. If the manufacturer rejects
the claim they must provide notice of their
reasons to the auto dealers, who may correct the
issues within 30 days of receipt of the
rejection. A manufacturer may conduct an audit of
warranty repairs performed, which must be done
within a year of the claim. Only one audit can be
performed per year.
Sec 45.25.210: A manufacturer must provide auto
dealers with a schedule of compensation for
warranty work. The rates may not be less than the
rates that the auto dealer charges customers for
similar retail work. To establish this warranty
rate, auto dealers shall submit 100 sequentially
ordered claims. Rates for special events and
manufacturer specials are not considered in this
calculation.
Sec 45.25.220: If a vehicle needs warranty
repairs and is located in a remote location, the
manufacturer shall make reasonable efforts to
repair the vehicle in the remote location. If the
repairs cannot be made on site, the manufacturer
may arrange, at no cost to the owner, to ship the
vehicle to a location where repairs can be
completed. The manufacturer is responsible for
returning the repaired vehicle to the remote
location. The manufacturer may direct auto
dealers to refer customers in remote locations to
the manufacturer. Auto dealers may subcontract
warranty work in a remote location. 'Remote
location' refers to a location that is not
accessible by road or is 100 road miles or more
from an auto dealer.
Sec 45.25.230: Manufacturers shall provide auto
dealers with specific instructions for the
preparation of new vehicles before delivery to
buyers, compensation for the preparation, and the
amount of time allowed for preparation.
Section 13
Repeals and reenacts AS 45.25.300
Regarding unfair practices, manufacturers may not:
• Require or coerce auto dealers to relocate or
remodel their facilities if the changes are
unreasonable.
• Require auto dealers to purchase a set number of
certified pre-owned vehicles or lease return
vehicles
• Refuse to deliver for sale a line or make of
vehicles that manufacturer makes.
• Require auto dealers to purchase unreasonable
advertising displays or an unreasonable number of
signs.
• Require auto dealers to accept vehicles, parts,
accessories or equipment they did not voluntarily
order.
• Increase the price of a vehicle ordered by the
auto dealer between the time of order and the
time of payment.
• Require or coerce auto dealers to join an
advertising association or contribute to an
advertising campaign.
Section 14
Repeals and reenacts AS 45.25.990(19)
Defines "terminate" for this chapter.
Section 15
Adds new paragraph to AS 45.25.990
Defines 'schedule of compensation" and "warranty work"
for this chapter.
Section 16
Repeals AS 45.25.320
4:58:33 PM
REPRESENTATIVE JOSEPHSON asked whether the bill represents an
agreement between the two sides.
REPRESENTATIVE CLAMAN said the dealers would present what they
like about the proposed bill and the manufacturers would do the
same.
4:59:46 PM
GARY SLEEPER, Attorney, testified in support of HB 136. He said
the automobile manufacturers present franchise agreements on a
"take it or leave it" basis. He mentioned requirements for
remodeling dealership premises, payment for warranty repairs on
manufacturing defects at 70 percent or less, or termination due
to a failure to meet sales goals. He explained that in Alaska,
the law governing automobile franchises was adopted in 2002 and
has not been updated. He highlighted Section 12 of the proposed
bill, which provides for manufactures to pay for warranty
repairs at the same rate as paid by consumers for similar non-
warranty work.
5:07:51 PM
MR. SLEEPER shared his appreciation for Representative Claman's
work on the proposed bill.
5:09:08 PM
VICE CHAIR WOOL opened public testimony on HB 136.
VICE CHAIR WOOL held over HB 136.
5:09:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:10 p.m.