Legislature(2021 - 2022)BARNES 124
04/12/2021 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Board of Certified Real Estate Appraisers | |
| SB87 | |
| HB145 | |
| HB90 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 87 | TELECONFERENCED | |
| *+ | HB 145 | TELECONFERENCED | |
| += | HB 90 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 12, 2021
3:17 p.m.
DRAFT
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Liz Snyder
Representative David Nelson
Representative James Kaufman
Representative Ken McCarty
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Board of Pharmacy
Jason Ruffridge - Soldotna
HEARD AND HELD
Board of Veterinary Examiners
Rachel Berngartt - Juneau
HEARD AND HELD
Board of Certified Real Estate Appraisers
Mae Sprague - Wasilla
HEARD AND HELD
SENATE BILL NO. 87
"An Act relating to credit for reinsurance; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 145
"An Act relating to the Board of Pharmacy; relating to health
care services provided by pharmacists and pharmacy technicians;
and relating to the practice of pharmacy."
- HEARD & HELD
HOUSE BILL NO. 90
"An Act relating to rental vehicles; relating to vehicle rental
networks; relating to liability for vehicle rental taxes; and
providing for an effective date."
- MOVED HB 90 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 87
SHORT TITLE: REINSURANCE; CREDITS
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/22/21 (S) READ THE FIRST TIME - REFERRALS
02/22/21 (S) L&C
03/08/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/08/21 (S) Heard & Held
03/08/21 (S) MINUTE(L&C)
03/19/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/19/21 (S) Moved SB 87 Out of Committee
03/19/21 (S) MINUTE(L&C)
03/22/21 (S) L&C RPT 5DP
03/22/21 (S) DP: COSTELLO, GRAY-JACKSON, STEVENS,
REVAK, HOLLAND
03/31/21 (S) TRANSMITTED TO (H)
03/31/21 (S) VERSION: SB 87
04/05/21 (H) READ THE FIRST TIME - REFERRALS
04/05/21 (H) L&C
04/12/21 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 145
SHORT TITLE: EXPAND PHARMACIST AUTHORITY
SPONSOR(s): SNYDER
03/24/21 (H) READ THE FIRST TIME - REFERRALS
03/24/21 (H) L&C, HSS
04/12/21 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 90
SHORT TITLE: VEHICLE RENTALS & VEHICLE RENTAL NETWORKS
SPONSOR(s): WOOL
02/18/21 (H) READ THE FIRST TIME - REFERRALS
02/18/21 (H) L&C, FIN
04/09/21 (H) L&C AT 8:00 AM GRUENBERG 120
04/09/21 (H) Heard & Held
04/09/21 (H) MINUTE(L&C)
04/12/21 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JUSTIN RUFFRIDGE, PharmD, Appointee
Board of Pharmacy
Soldotna, Alaska
POSITION STATEMENT: Spoke as an appointee to the Board of
Pharmacy.
RACHEL BERNGARTT, DVM, Appointee
Board of Veterinary Examiners
Juneau, Alaska
POSITION STATEMENT: Spoke as an appointee to the Board of
Veterinary Examiners.
MAE SPRAGUE, Appointee
Board of Certified Real Estate Appraisers
Wasilla, Alaska
POSITION STATEMENT: Spoke as an appointee to the Board of
Certified Real Estate Appraisers.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Introduced SB 87 on behalf of the Senate
Rules Standing Committee, sponsor, by request of the governor.
ALLIANA SANGUIT, Staff
Representative Liz Snyder
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis of HB 145
on behalf of Representative Snyder, prime sponsor.
TOM WADSWORTH, Chief Administrative Officer
University of Alaska Anchorage/Idaho State University Doctor of
Pharmacy Program
Anchorage, Alaska
POSITION STATEMENT: Provided testimony during the hearing on HB
145.
GRETCHEN GLASPY, President
Alaska Pharmacists Association
Juneau, Alaska
POSITION STATEMENT: Provided testimony during the hearing on HB
145.
JUSTIN RUFFRIDGE, PharmD
Board of Pharmacy
Soldotna, Alaska
POSITION STATEMENT: Provided testimony during the hearing on HB
145.
REPRESENTATIVE ADAM WOOL
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided information and
answered questions during the hearing on HB 90.
MIKE BARNHILL, Deputy Commissioner
Department of Revenue
Juneau, Alaska
POSITION STATEMENT: Provided information during the hearing on
HB 90.
SEAN VINCK, Senior Counsel
Turo
San Francisco, California
POSITION STATEMENT: Testified in opposition to HB 90.
CARL SZABO, Vice President and General Counsel
NetChoice
Washington, D.C.
POSITION STATEMENT: Testified in opposition to HB 90.
BENJAMIN PALMER, Director of Government and Public Affairs
Enterprise Holdings Inc.
California
POSITION STATEMENT: Testified in support of HB 90.
ACTION NARRATIVE
3:17:39 PM
CO-CHAIR IVY SPOHNHOLZ called the House Labor and Commerce
Standing Committee meeting to order at 3:17 p.m.
Representatives Schrage, McCarty, Fields, Snyder, and Spohnholz
were present at the call to order. Representatives Kaufman and
Nelson arrived as the meeting was in progress.
^CONFIRMATION HEARING(S):
CONFIRMATION HEARING(S):
^Board of Pharmacy
Board of Pharmacy
^Board of Veterinary Examiners
Board of Veterinary Examiners
^Board of Certified Real Estate Appraisers
Board of Certified Real Estate Appraisers
3:19:09 PM
CO-CHAIR SPOHNHOLZ announced that the first order of business
would be confirmation hearings for consideration of the
governor's appointees to various boards.
3:19:22 PM
JUSTIN RUFFRIDGE, PharmD, Appointee, Board of Pharmacy, informed
the committee that he has been practicing in Soldotna since
2008. He said he owns three pharmacies within Alaska and has
been involved in several areas of the practice. He expressed
the hope of continuing to serve his committee through his
profession and public service.
3:21:46 PM
REPRESENTATIVE MCCARTY asked Dr. Ruffridge what concerns he has
for pharmacies in Alaska.
DR. RUFFRIDGE responded that he believes pharmacists, as
protectors of medicine, are the natural choice to help Alaskans
to progress in their health. Pharmacists have sometimes been
stuck between a rock and a hard place, he said, with a degree of
uncertainty about what their abilities and duties are in cases
where a patient needs a drug prescribed by a doctor. He
expressed that the Board of Pharmacy has gone to great lengths
to ensure pharmacists are aware of their duties and protections,
particularly in cases of opiate medications. He said he's seen
significant alterations of prescribing practices and durations
of therapy, and that Alaska is moving in the right direction.
REPRESENTATIVE MCCARTY asked what can be done in collaboration
with the Board of Medicine.
DR. RUFFRIDGE replied that the collaborative process is ongoing,
with a recent joint meeting between the two boards to discuss
prescription drug monitoring programs and ways for physicians to
collaborate with pharmacists to produce high-quality health
care. He noted that the current chair of the Board of Pharmacy
has gone "above and beyond" in collaboration efforts.
3:24:54 PM
CO-CHAIR SPOHNHOLZ thanked Dr. Ruffridge and expressed that he
has been a leader when it comes to "moving change" in Alaska.
3:25:29 PM
RACHEL BERNGARTT, DVM, Appointee, Board of Veterinary Examiners,
informed the committee that she has lived and worked in Alaska
since 2002 and is currently based in Juneau. She said she is
also a licensed member of the Alaska Bar Association. She said
she was initially confirmed to the Board of Veterinary Examiners
in 2016, and this confirmation would be a reinstatement. She
noted the need to recognize the role veterinarians play in
zoonotic disease risk management and the increased need for
veterinary services due to the surge in pet adoptions during
quarantine. She said on her previous work on the board she has
addressed the public's need for safe access to veterinary care
during the COVID-19 pandemic, providing best practices for
licensees for continued services, emergency regulation, and
ongoing monitoring and effects of state mandates. Dr. Berngartt
described her extensive participation in legislative testimony
and outreach. She said she would like to keep her momentum on
the board.
3:31:50 PM
REPRESENTATIVE NELSON asked Dr. Berngartt to talk about her
history as a veterinarian.
DR. BERNGARTT responded that she has served for 10 years as the
clinical director of the Juneau Humane Society and has been
involved in marine mammal science efforts at the Alaska Sea Life
Center. She said she has worked with seals in Antarctica,
provided equine care in Southeast Alaska, and currently
practices regular small-animal medicine in Juneau.
3:34:01 PM
MAE SPRAGUE, Appointee, Board of Certified Real Estate
Appraisers, said she is a certified real estate appraiser with
20 years' experience in real estate in Alaska, as well as an
operating principal in her husband's construction company. She
said she would like to serve on the board to become more
knowledgeable in issues within the field of real estate. She
said that she would bring to the board a perspective from other
fields.
3:35:54 PM
CO-CHAIR SPOHNHOLZ opened public testimony on the governor's
appointees to the Board of Pharmacy, Board of Veterinary
Examiners, and Board of Certified Real Estate Appraisers. After
ascertaining that no one wished to testify, she closed public
testimony.
SB 87-REINSURANCE; CREDITS
3:36:07 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be SENATE BILL NO. 87, "An Act relating to credit for
reinsurance; and providing for an effective date."
3:36:22 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community, and Economic Development, introduced SB 87
on behalf of the Senate Rules Standing Committee, sponsor, by
request of the governor. She explained that one of the most
important duties carried out by the Division of Insurance is
monitoring the solvency of insurance companies to ensure
adequate funds to pay claims. She said that in practice,
insurance companies only keep a portion of the risk; if a person
has a house worth $500,000, the insurance company may insure
only half of the worth, purchasing reinsurance for the other
half. Likewise, she said, the company may transfer only the
earthquake portion of the policy because the company doesn't
want to carry that risk. She recalled the 2008 financial
crisis, noting that the Division of Insurance was diligent in
monitoring insurance companies for solvency, but did not monitor
for reinsurance. She stated that the United States, along with
the United Kingdom and the European Union, developed what is
called the "covered agreement," a very detailed agreement
providing that insurance regulators in each country will
maintain the same financial standards for insurance companies.
The covered agreement with the European Union was signed by
President Barack Obama, and the covered agreement with the
United Kingdom was signed by President Donald Trump. As new
international insurers are launched, however, a need for
modification arises, which is the reason for SB 87.
MS. WING-HEIER directed the committee's attention to Section 1,
subsection (a), paragraph (6), of the proposed legislation,
detailed on pages 10 through 13, which would amend the
conditions for qualified reinsurers and the associated baseline
for allowing reinsurers to assume the liabilities of a domestic
insurer. Current domestic insurers, she said, are Alaska
National Insurance Company and Umialik Insurance Company. She
explained that "creditor reinsurance" is called as such because
when an insurance company buys reinsurance from a qualified
reinsurer, the company can get a credit for what was purchased
in reinsurance. Ms. Wing-Heier then summarized the relevant
sectional analysis, which read as follows [original punctuation
provided]:
AS 21.12.020(a)(6) is amended by adding conditions
that a qualified reinsurer must meet to assume
liabilities of a domestic insurer. The assuming
insurer shall:
(A) Have its head office or be domiciled in a
reciprocal jurisdiction;
(B) Have and maintain minimum capital and surplus, or
its equivalent, in an amount set out in regulation;
(C) Have and maintain a minimum solvency or capital
ratio in an amount set out in regulation;
(D) Agree to and provide adequate assurances to the
director (i)prompt written notice if the insurer falls
below the minimum requirements or if any regulatory
action is taken against it for serious non-compliance;
(ii) consent in writing to the jurisdiction of the
courts of this state and to the appointment of the
director as the agent for service of process; (iii)
consent in writing to pay all final judgments obtained
by the ceding insurer; (iv) agree that each
reinsurance agreement must provide security in an
amount equal to 100 percent of the assuming insurer's
liabilities; and (v) confirm that it is not
participating in any solvent scheme of arrangement
that involves this state's ceding insurers;
(E) Provide certain documentation to the director as
specified in regulation;
(F) Maintain a practice of prompt payment of claims;
(G) Confirm to the director on an annual basis that
the assuming insurer complies with requirement (B) and
(C);
(H) Agree that nothing in this paragraph precludes an
assuming insurer from providing the director with
information on a voluntary basis.
MS. WING-HEIER stated that the proposed legislation would also
provide a definition of a "reciprocal jurisdiction" and that the
reciprocal jurisdiction would include the countries in the
United Kingdom and the countries of the European Union.
3:40:58 PM
CO-CHAIR FIELDS commented that reinsurance seems to be more
broadly available to, and disproportionally benefit, people in
regions of low-frequency, high-consequence events like
earthquakes.
MS. WING-HEIER replied that such events are exactly what
reinsurance is for, noting that such events don't commonly occur
but are "catastrophic" when they do.
3:41:40 PM
CO-CHAIR SPOHNHOLZ announced that SB 87 was held over.
HB 145-EXPAND PHARMACIST AUTHORITY
3:41:55 PM
CO-CHAIR SPOHNHOLZ announced that the next order of business
would be HOUSE BILL NO. 145, "An Act relating to the Board of
Pharmacy; relating to health care services provided by
pharmacists and pharmacy technicians; and relating to the
practice of pharmacy."
3:42:29 PM
REPRESENTATIVE SNYDER, as prime sponsor, introduced HB 145,
which she described as a "housekeeping bill" as it pertains to
the business of pharmacy and pharmacy services. She paraphrased
the sponsor statement, which read as follows [original
punctuation provided]:
Passage of House Bill 145, "The Pharmacist
Mobilization Act," increases access to care and
ensures Alaska's pharmacists are reimbursed when
providing services.
I am introducing it at the request of the Alaska
Pharmacists Association in partnership with the Alaska
Board of Pharmacy and the University of Alaska/Idaho
State Doctor of Pharmacy Program.
The coronavirus pandemic has shown that pharmacists
can engage at an elevated level to help deliver
necessary healthcare to all Alaskans. Pharmacists have
provided COVID-19 testing, vaccinations, and
telehealth visits, and have helped patients manage
chronic health conditions. This bill will update
outdated statute so pharmacists can continue providing
these services.
HB 145 defines the patient care services that
pharmacists and pharmacy support staff can
independently provide, allows pharmacist technicians
to administer vaccines when under the direct
supervision of a licensed pharmacists, and empowers
the Board of Pharmacy to regulate pharmacists, student
pharmacists, and pharmacy support staff who provide
these services.
Furthermore, the bill updates the current provider
anti-discrimination statute to support insurance
coverage of these patient care services when provided
by a pharmacist. Currently, pharmacists are one of the
only healthcare professionals not listed in this
statute.
HB 145 largely updates outdated statutes to align with
current practices. Its passage benefits Alaskans by
increasing healthcare access during and after the
pandemic. Please support this common sense,
housekeeping bill that will help your local, patient-
oriented pharmacies continue to provide essential
services.
3:45:13 PM
ALLIANA SANGUIT, Staff, Representative Liz Snyder, Alaska State
Legislature, on behalf of Representative Snyder, prime sponsor,
detailed the sectional analysis of HB 145 [original punctuation
provided]:
Sec. 1: Adds language to AS 08.80.030(b) Powers and
Duties of the Board, statute that outlines the Board
of Pharmacy's powers, that allows the Board of
Pharmacy to adopt rules to regulate the independent
monitoring of drug therapy and independent pharmacist
prescribing of vaccines and naloxone.
Sec. 2: Adds a new subsection to AS 08.80.045
Nonprescription Drugs that aligns statute with the
current practice of pharmacists recommending non-
prescription medications and devices for treating
minor and self-limited conditions.
Sec. 3: Amends AS 08.80.155 Emergency Permit to
increase the Board of Pharmacy's flexibility to grant
emergency licenses for all relevant licenses used in
pharmacies.
Sec. 4: Amends AS 08.80.168(a) Administration of
Vaccines and Related Emergency Medications by adding
"prescribe" to existing vaccine administration
statute.
Sec. 5: Amends AS 08.80.168(b) by replacing "dispense"
with "prescribe and administer" in regards to
administering an opioid overdose drug.
Sec. 6: Adds a new subsection to AS 08.80.168 that
allows a pharmacy technician to administer a vaccine
or related emergency medication but only if they have
been authorized by the Board of Pharmacy to do so AND
if they are under the direct supervision of a licensed
pharmacist who meets the requirements in AS 08.80.168
(a).
Sec. 7: Adds language to AS 08.80.297(a) Prescription
Prices Available to Consumer that allows personnel who
are not licensed pharmacists to disclose the cost of
filling a prescription when directed by a pharmacist
working at the same institution.
Sec. 8: Amends AS 08.080 Pharmacists and Pharmacies by
adding a new section, AS 08.80.337 Other Patient Care
Services, that:
? Allows a pharmacist to provide patient care
services for a disease or condition with an
existing diagnosis under an agreement made with
and approved by a practitioner
? Limits patient care services that pharmacists
can provide to those that are minor,
selflimiting, and have a CLIA-waived laboratory
test which guides clinical decision making.
? Provides language that allows pharmacists to be
reimbursed for providing these services 04/07/21
Sec. 9: Amends AS 08.80.480 Definitions by removing
"dosage form" as a definition of "equivalent drug
product". This allows pharmacists to make minor, non-
therapeutic changes to prescriptions using clinical
judgement and expertise without contacting the
prescriber for verbal or written approval. This does
not allow a pharmacist to substitute a dosage form
that would negatively impact patient outcomes, safety,
or cost effectiveness. Examples of appropriate
substitutions under this section include changing from
a tablet form of medication to a capsule form of the
same medication and strength.
Sec. 10: Amends AS 08.80.480(30) by adding
"dispensing" and "independent prescribing" to the
definition of the "Practice of Pharmacy" to align with
the changes made in Section 4 & 5 (AS 08.80.168) of
this bill. These additions better represent actual
provision of naloxone and vaccine by pharmacists.
Sec. 11: Amends AS 21.36.090(d) Unfair Discrimination
to include "pharmacists" as protected health care
providers in the provider anti-discrimination statute.
This aligns the state statute with federal statute
(CFR 438.12) and afford pharmacists the same
protection as all other healthcare providers when
engaging health plans for covered services such as
ordering laboratory tests, point-of-care testing,
vaccine prescribing and administration, preventative
health services, managing minor self-limiting
conditions, and participating in collaborative disease
state management.
3:49:30 PM
TOM WADSWORTH, PharmD, Chief Administrative Officer, University
of Alaska/Idaho State University Doctor of Pharmacy Program,
informed the committee that his testimony doesn't represent any
official position of the University of Alaska and that he was
speaking as a practicing pharmacist and educator. He explained
that the Doctor of Pharmacy program trains students in every
area proposed under HB 145, noting that graduates of the program
are prepared to engage in a variety of patient care settings.
He said that only about half of all practicing pharmacists are
engaged in the community setting such as what one would find at
a Walgreen's or Safeway pharmacy; pharmacists are often embedded
inside physician clinics doing medicine management or post-
diagnostic disease management. Pharmacists can specialize in
pediatrics, oncology, infectious diseases, and psychiatry, he
explained, and in each case are medication experts tasked with
improving the medication experience for the patient. He
expressed that HB 145 is a needed update to pharmacy practice
laws, empowering the Board of Pharmacy to regulate patient care
services not related simply to dispensing.
3:51:59 PM
GRETCHEN GLASPY, PharmD, President, Alaska Pharmacists
Association, testified in support of HB 145. She informed the
committee that the Alaska Pharmacists Association represents
over 250 pharmacists, pharmacy technicians, and student
pharmacists in Alaska. She said she has been a pharmacist for
15 years and is presently with Bartlett Regional Hospital as a
clinical informatics pharmacist, or expert in pharmaceutical
technology. She stated her strong support for HB 145.
3:53:24 PM
JUSTIN RUFFRIDGE, PharmD, Board of Pharmacy, explained that the
Board of Pharmacy was tasked with regulating support for
pharmacists' COVID-19 response and having the emergency
regulations in place to take effect post-pandemic to facilitate
recovery and expanding access to healthcare. One of the most
difficult areas, he said, was consistent friction due to state
statutes existing in conflict with current pharmacy practices.
Current statutes, he said, are largely relevant only to
dispensing pharmacists, without considering the many other areas
of pharmaceutical practice. He characterized HB 145 as
legislation that would empower the Board of Pharmacy to continue
to regulate pharmacies, pharmacists, pharmacy technicians, and
interns at the highest possible level.
3:55:27 PM
REPRESENTATIVE NELSON asked for further explanation of Section 7
of HB 145.
DR. RUFFRIDGE explained that there is a wide variety of
opportunity for multiple individuals to use information related
to the cost of filling a prescription. Pharmacy technicians are
highly trained, he explained, and are usually engaged in
computer-based activity of billing, looking up prices, and
ordering medication. A pharmacist concentrates on the medicine,
looking out for things like interactions or side effects. He
characterized pharmacy technicians as "more adept and more in
the nitty gritty of the billing" than pharmacists and stated
that this is one of the ways the statutes could be aligned with
current practices.
3:57:53 PM
CO-CHAIR SPOHNHOLZ pointed out that most people visiting a
pharmacy speak with the pharmacy tech instead of a pharmacist.
3:58:12 PM
REPRESENTATIVE KAUFMAN expressed concern that parts of the
proposed legislation would encroach on primary care.
REPRESENTATIVE SNYDER replied that, while physicians and
physician groups have been contacted, no comments have been
received.
3:59:29 PM
DR. WADSWORTH explained that there is already a definition in
statute that addresses the duties of a pharmacist in providing
pharmaceutical care or drug therapy, in what is called "other
patient care services" for the intent of prevention and
treatment of disease. The goal of Section 8 of HB 145, he said,
is to determine exactly what patient care services the language
refers to. He said there are no activities outlined in Section
8 that have not been practiced by pharmacists for at least the
past 20-30 years; however, pharmacists in the private sector
have experienced difficulties in engaging health plans for
reimbursement, so such services have mainly been practiced by
pharmacists within organizations such as tribal health
organizations or U.S. Veterans Affairs facilities. He noted
that in a free market, services without a revenue stream cease
being offered. Dr. Wadsworth directed attention to Section 8,
subsection (a), describing a collaborative agreement to provide
patient care services along with a practitioner, which he said
is in accord with already-existing statutes and regulation
around what's referred to as the "pharmacist collaborative
authority," in effect since 2002.
DR. WADSWORTH addressed Section 8, subsection (b), which he said
defines what patient care services a pharmacist may provide
independently, noting that the subsection does not contain any
activity not already practiced by pharmacists. Areas such as
general health and wellness, smoking cessation, over-the-counter
recommendations, or disease prevention, he said, all are non-
prescriptive areas; minor or self-limiting conditions such as
athlete's foot are often presented to pharmacists. He discussed
certain types of tests performed by pharmacists and pointed out
that if HB 145 were to fail, these tests would still be
performed by pharmacists, just without reimbursement from health
care insurers. Collaborative agreements such as the pharmacist
collaborative authority, he said, are currently reviewed by the
Board of Pharmacy and the Board of Medicine; the clarity that HB
145 would provide regarding independent patient care services
would allow pharmacists to engage with health care plans and
companies to provide services. For instance, he said, a patient
who goes to a Soldotna pharmacy for a COVID-19 test would be
able to have it covered by insurance.
4:05:04 PM
REPRESENTATIVE KAUFMAN asked whether subsection (b) could lead
pharmacists to believe they have more authority than they
actually do.
4:06:27 PM
MR. RUFFRIDGE responded that the Board of Pharmacy discussed
subsection (b) in depth with providers, physicians, and
practitioners across the state. The intent, he said, is not to
promote prescription of medications outside of the current
purview of pharmacists. The vagueness of the subsection is to
allow for the "multitude of situations" encountered every day by
pharmacists to be covered by the proposed legislation. He
pointed out that under current statute, smoking cessation
recommendations could not specifically be made by a pharmacist.
REPRESENTATIVE KAUFMAN asked to be provided with more
information.
4:09:06 PM
CO-CHAIR FIELDS commented that he had the same question when he
initially read the proposed legislation, and expressed that HB
145 seems to "strike the right balance."
4:09:38 PM
REPRESENTATIVE MCCARTY expressed support for HB 145 discussed
having pharmacists offer eye exams.
4:11:09 PM
CO-CHAIR SPOHNHOLZ clarified that the invited testifiers are
Doctors of Pharmacy, not of medicine. She then asked whether HB
145 would allow pharmacists to perform eye exams.
4:12:10 PM
DR. WADSWORTH replied that HB 145 does not specifically propose
eye exams to be included in the covered activities, but that it
would not be above the purview of a pharmacist to have an eye
chart and perform a simple eye exam.
CO-CHAIR SPOHNHOLZ pointed out that Representative McCarty's
question referred to a test currently administered by people not
trained in healthcare or optometry, such as employees of the
Department of Motor Vehicles.
DR. WADSWORTH agreed and noted that there is a precedent for
every item in Section 8. He pointed out that the Board of
Pharmacy would be the regulator of the statute. He then said
that diabetes or high blood pressure screenings are performed by
pharmacists as part of the general disease prevention activities
in Section 8.
4:14:15 PM
REPRESENTATIVE SNYDER emphasized that HB 145 would update the
statute to reflect current, modern practices.
4:14:42 PM
CO-CHAIR SPOHNHOLZ announced that HB 145 was held over.
HB 90-VEHICLE RENTALS & VEHICLE RENTAL NETWORKS
4:14:57 PM
CO-CHAIR SPOHNHOLZ announced that the final order of business
would be HOUSE BILL NO. 90, "An Act relating to rental vehicles;
relating to vehicle rental networks; relating to liability for
vehicle rental taxes; and providing for an effective date."
4:15:20 PM
REPRESENTATIVE ADAM WOOL, Alaska State Legislature, as prime
sponsor, thanked the committee and said he would be open to any
questions.
4:15:37 PM
REPRESENTATIVE NELSON asked Representative Wool to comment on
the letter from the Department of Revenue (DOR) [included in the
committee packet].
REPRESENTATIVE WOOL responded that DOR has taken a neutral
position on the bill. He said the statement presented in the
PowerPoint presentation given during the House Labor and
Commerce Standing Committee meeting on April 9, 2021, was from a
DOR employee under the previous administration. He pointed out
that the letter stated DOR would continue to follow the law
regarding vehicle rental tax. He said it was established in the
same committee meeting that anyone renting a car to someone else
owes a vehicle rental tax, although there is no way to track
down individuals, which is the reason for the proposed
legislation.
REPRESENTATIVE NELSON opined that the quote gave the impression
that the current DOR supports HB 90.
4:17:39 PM
CO-CHAIR FIELDS said that as recently as last year DOR was
actively supporting the proposed legislation.
4:18:09 PM
MIKE BARNHILL, Deputy Commissioner, Department of Revenue,
confirmed that the current administration does not have a
position on HB 90.
4:18:26 PM
REPRESENTATIVE MCCARTY shared that he "likes" the proposed
legislation and noted that Turo doesn't even have an Alaska
business license. He wondered whether enforcing a vehicle
rental tax would cost more money than would be collected.
REPRESENTATIVE WOOL stressed Representative McCarty's point that
Turo has not applied for a business license in Alaska but is
receiving revenue through its operations within the state. Uber
does have a business license in Alaska, he said, and pays
corporate income taxes. He said Turo has indicated an initial
public offering (IPO) in 2021, making it a C Corp, which would
mandate corporate state income taxes; with that change, he said,
there may be more transparency in their revenue.
REPRESENTATIVE MCCARTY mentioned Turo and business licenses in
Alaska.
REPRESENTATIVE WOOL replied that it's already law that a
business must have an Alaska business license in order to
operate, and said that he doesn't think he needs the proposed
legislation to repeat the statute.
4:23:48 PM
REPRESENTATIVE NELSON asked Mr. Barnhill about the stance of DOR
on the previous iteration of the proposed legislation.
MR. BARNHILL said that while he believes the previous
administration supported an earlier version of the proposed
legislation, he's not aware of any position taken under the
current administration.
4:24:56 PM
REPRESENTATIVE KAUFMAN noted that the effective date of HB 90
would be immediate. He asked whether there would be a grace
period for implementation, and whether people hosting their cars
would owe back taxes.
REPRESENTATIVE WOOL responded that people renting out cars are
currently liable for the car rental tax. He said that this
proposed legislation would, in practice, add a line item for tax
on the payment page of the app. He said that the state would
not have the names of the hosts, so there would be no mechanism
for retroactive enforcement. He emphasized that car rental tax
is not a liability incurred by the car owner, but is passed on
to the buyer.
4:27:20 PM
CO-CHAIR SPOHNHOLZ noted that Section 8 of HB 90 states that the
act would take effect immediately and would not be retroactive.
4:27:47 PM
MR. BARNHILL said DOR would implement enforcement should HB 90
pass.
4:28:07 PM
REPRESENTATIVE KAUFMAN asked whether DOR anticipates litigation
to enforce the participation of the companies running the peer-
to-peer applications.
MR. BARNHILL replied that litigation seems possible but said he
is hesitant to speculate. He clarified that DOR would implement
any passed legislation in good faith and actively look for
efficient methods of enforcement.
4:30:07 PM
CO-CHAIR FIELDS stated his agreement that companies need to
follow the law, which should apply equally whether a company
does business through an app or a storefront. He said that with
the increasingly virtual environment facilitating the transfer
of goods and services, the law will need to adapt. He added:
The absence of a level playing field, conversely,
encourages companies to engage in what economists call
'rent-seeking activities' ... you don't want to
encourage rent-seeking activities. They're
inefficient, they tend to exist in an environment of
political corruption. It's incumbent on us to ensure
companies follow the law.
CO-CHAIR FIELDS opined that it seems obvious that using digital
transactions to facilitate services or the use of property can
be taxed equitably, noting that owners hosting properties
through Airbnb pay lodging tax. He expressed that the middle
class has experienced stagnant wages and rising costs and
governments have experienced growing fiscal constraints due in
part to some companies exploiting anachronisms existing in the
law regarding selling a good or service through an online
portal. He referred to Representative McCarty's earlier comment
that laws need to be current. He wondered how to maximize
public benefit as more goods and services migrate to digital
platforms, expressing that consumers should be able to see the
benefits and convenience of using digital platforms without the
concerns of sacrificing the state's fiscal position, the wages
of workers, or the public good.
4:33:09 PM
CO-CHAIR SPOHNHOLZ opened public testimony on HB 90.
4:33:22 PM
SEAN VINCK, Senior Counsel, Turo, testified in opposition to HB
90. He opined that the "basic thrust" of the proposed
legislation is to equate individual vehicle owners with
traditional multinational rental car corporations, imposing on
them the same obligations and burdens. He said that contrary to
what has been discussed, HB 90 would not transfer obligations
onto the vehicle sharing platforms, but impose collection
obligations on individuals who share vehicles through said
platforms. He said that, if the objective is to impose certain
obligations on out-of-state platforms facilitating digital
transactions in order to level the playing field, that's a
reasonable goal. The problem, he said, is that HB 90 would
impose those obligations on the individuals within Alaska. He
said HB 90 would have no effect on the bottom line of
corporations and suggested that other items to consider are
consumer protection, public safety, and insurance, and that
there exists a model for car sharing legislation on the national
level.
4:37:27 PM
CO-CHAIR FIELDS asked, "Do you think if General Motors had to
pay taxes and Ford did not, that would have an impact on their
competitiveness, vis--vis each other?"
MR. VINCK replied, "I assume that the answer is yes. I don't
represent either of those companies and don't know what their
financial situation is."
CO-CHAIR FIELDS stated, "Then, obviously, it would have an
impact on your competitiveness vis--vis bona fide local
businesses in Alaska that rent cars."
4:37:54 PM
REPRESENTATIVE KAUFMAN asked Mr. Vinck whether he was referring
to the subparagraph beginning on page 1, line 12, which read as
follows:
(B) vehicle rental business that arranged or executed
the rental through the vehicle rental network if the
rental was arranged or executed through a vehicle
rental network; and
REPRESENTATIVE KAUFMAN asked whether Mr. Vinck was discussing
his interpretation that the "rental business" terminology
referred to the individual hosting the car, rather than the
online broker arranging the rental.
MR. VINCK responded that Representative Kaufman highlighted the
section in question. He said that his interpretation is that
the objective is to impose tax collection obligations on both
the person who provides the vehicle and also on the vehicle
rental business as defined later in the text of the proposed
legislation. He said that, in his interpretation, the vehicle
rental business is the person or entity that owns the vehicle.
The network, he said, is the platform through which the owner of
the vehicle connects with the person who wants to share the
vehicle. The vehicle network as defined in the text, he said,
is not the same thing as the rental business. He said that the
proposed legislation would not put the obligation for tax
collection on the network, but on the business, which is defined
as the owner of the vehicle. He said that the issue of
ambiguity in the structure of the proposed legislation should
require broader discussion.
4:40:15 PM
CO-CHAIR SPOHNHOLZ asked whether Turo collects taxes on rentals
that take place in other states.
MR. VINCK replied that some states have been authorized to
deploy tax collection and remittance obligations to out of state
platforms, transferring the tax collection obligation from
vendors to platforms under certain circumstances. To that end,
he said, the law requires businesses to collect and remit sales
taxes on many transactions in approximately 24 states.
CO-CHAIR SPOHNHOLZ referred to Mr. Vinck's earlier assertion
that HB 90 "seeks to equate individuals who seeks to rent their
vehicles with multinational corporations." She asked whether
Turo operates outside of the United States.
MR. VINCK replied that Turo is a technology company and does not
own any vehicles, but that it provides the technology platform
to those who do own vehicles. He said, "My comment earlier was
to point out that this is trying to equate shared vehicle owners
with multinational corporations."
4:42:05 PM
REPRESENTATIVE MCCARTY asked whether individual car owners
collect payment and remit to Turo, or whether Turo collects
payment and remits to the car owners.
MR. VINCK asked whether Representative McCarty was referring to
taxes.
REPRESENTATIVE MCCARTY clarified his question.
MR. VINCK responded that the person who is renting the car
provides the payment through the digital platform, which then
remits compensation to the vehicle owner.
REPRESENTATIVE MCCARTY surmised that an individual pays Turo for
the service, and Turo subcontracts with entities within Alaska.
MR. VINCK replied that an individual pays Turo the total price,
and Turo remits to the vehicle owner the agreed amount.
REPRESENTATIVE MCCARTY concluded, "So that means Turo is really
doing business in Alaska."
MR. VINCK suggested that defined terms in statute mean that Turo
is not actually doing business in Alaska.
4:44:22 PM
CARL SZABO, Vice President and General Counsel, NetChoice,
testified in opposition to HB 90. He said that Alaska doesn't
have a statewide sales tax, which is what is affected by
established law. He said that saying the U.S. Supreme Court
decision in South Dakota v. Wayfair, Inc., No. 17-494 (U.S. Jun.
21, 2018), applies to car rental tax is a misrepresentation. He
mentioned Representative Kaufman's discussion of the effective
date and whether the tax obligation would be retroactive. He
said that no state treats peer-to-peer car sharing the same as
large rental car companies when it comes to taxes. He said that
Hertz and "Big Rental" own thousands of cars in Alaska, but Turo
doesn't own a single vehicle; likewise, those companies enjoy a
tax carve-out of approximately $4 billion nationwide, with $1.9
million in Alaska, for which Turo and individual car owners are
not eligible. Mr. Szabo suggested that digital platforms
facilitating car sharing are exactly the same as using the
classified page in the Anchorage Daily News, which has an app,
provides other services, and facilitates rentals. Therefore, he
opined, the Anchorage Daily News would be one of the "tax
scofflaws" addressed under HB 90. Either the proposed
legislation is way too overinclusive as a new tax, he said, or
it's a retroactive tax already in statute, in which case HB 90
is irrelevant and, if enacted, would face the same
constitutional issues as did North Dakota.
4:48:04 PM
CO-CHAIR FIELDS commented that it's ironic that NetChoice's
representative was inveighing against companies operating within
the state of Alaska while it's funded by Google, Alibaba,
Amazon.com, and some of the other largest multinational
companies on earth.
4:48:40 PM
BENJAMIN PALMER, Director of Government and Public Affairs,
Enterprise Holdings, Inc, testified in support of HB 90, stating
that it would clarify that peer-to-peer car rental platforms are
required to collect car rental taxes for transactions on their
platforms. He said that the tax would be paid by the consumer,
and that everyone renting a car in Alaska should expect to pay
the tax. As stated before, he said, the proposed legislation
would create a level playing field and ensure the state's
general fund doesn't lose out on revenue.
4:49:56 PM
REPRESENTATIVE MCCARTY asked whether Enterprise Holdings, Inc,
engages in peer-to-peer services.
MR. PALMER replied that Enterprise CarShare exists in some
locations, but that the corporation does not engage in
traditional peer-to-peer services.
4:50:29 PM
CO-CHAIR SPOHNHOLZ, after ascertaining that no one else wished
to testify, closed public testimony on HB 90.
4:50:37 PM
CO-CHAIR FIELDS moved to report HB 90 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 90 was reported out of the House
Labor and Commerce Standing Committee.
4:51:23 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:51 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 90 Opposition Received as of 4.10.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 145 Supporting Document - AK Pharmacists Association Fact Sheet.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 145 Sponsor Statement, Ver. A.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 145 Supporting Document - AK Pharmacists Association Talking Points.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 145 Ver. A.PDF |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 145 Fiscal Note - DCCED, 4.09.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 145 Sectional Analysis, Ver. A.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 90 v. A 2.18.21.PDF |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Sponsor Statement 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Sectional Analysis 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Supporting Document - State by State P2P Collecting Map 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Supporting Document - Anchorage Ordinance PVRN 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Supporting Document - Revenue Stream Chart 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Supporting Document - State by State DOR Collection Map 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Fiscal Note - DOR, 4.2.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Fiscal Note - DOA, 4.3.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 90 Sponsor Presentation 3.30.21.pdf |
HL&C 4/9/2021 8:00:00 AM HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| SB 87 Fiscal Note 1.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
| SB 87 v. A.PDF |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
| SB 87 Transmittal Letter.pdf |
HL&C 4/12/2021 3:15:00 PM |
SB 87 |
| SB 87 v. A Sectional Analysis.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
| SB 87 NAIC Credit for Reinsurance Model Law Briefing.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/8/2021 1:30:00 PM |
SB 87 |
| SB 87 SLAC Answers to Members' Questions.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/19/2021 1:30:00 PM |
SB 87 |
| Justin Ruffridge Board Application.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
| Rachel Berngartt Resume.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
| Justin Ruffridge Resume.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
| Mae Sprague Hayes Board Application.pdf |
HL&C 4/12/2021 3:15:00 PM |
HL&C Confirmations 2021 |
| HB 145 Support Received as of 4.10.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |
| HB 90 Supporting Document, DOR Response 4.12.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 90 |
| HB 145 Support Received as of 4.12.21.pdf |
HL&C 4/12/2021 3:15:00 PM |
HB 145 |