02/07/2024 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB37 | |
| Executive Order 129 - Eliminating the Board of Barbers and Hairdressers | |
| Executive Order 127 - Eliminating the Board of Massage Therapists | |
| Executive Order 130 - Eliminating the Board of Certified Direct Entry Midwives | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | SB 37 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 7, 2024
3:17 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Zack Fields
MEMBERS ABSENT
Representative Dan Saddler
Representative Stanley Wright
Representative Ashley Carrick
COMMITTEE CALENDAR
SENATE BILL NO. 37
"An Act establishing the crime of airbag fraud."
- HEARD & HELD
EXECUTIVE ORDER 129 - ELIMINATING THE BOARD OF BARBERS AND
HAIRDRESSERS
CONSIDERED
EXECUTIVE ORDER 130 - ELIMINATING THE BOARD OF CERTIFIED DIRECT
ENTRY MIDWIVES
CONSIDERED
EXECUTIVE ORDER 127 - ELIMINATING THE BOARD OF MASSAGE
THERAPISTS
CONSIDERED
PREVIOUS COMMITTEE ACTION
BILL: SB 37
SHORT TITLE: CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
SPONSOR(s): SENATOR(s) CLAMAN
01/18/23 (S) PREFILE RELEASED 1/13/23
01/18/23 (S) READ THE FIRST TIME - REFERRALS
01/18/23 (S) JUD
01/27/23 (S) JUD AT 1:30 PM BUTROVICH 205
01/27/23 (S) Heard & Held
01/27/23 (S) MINUTE(JUD)
03/22/23 (S) JUD AT 1:30 PM BUTROVICH 205
03/22/23 (S) <Bill Hearing Canceled>
03/29/23 (S) JUD AT 1:30 PM BUTROVICH 205
03/29/23 (S) <Bill Hearing Canceled>
04/03/23 (S) JUD AT 1:30 PM BUTROVICH 205
04/03/23 (S) Moved SB 37 Out of Committee
04/03/23 (S) MINUTE(JUD)
04/05/23 (S) JUD RPT 1DP 3NR
04/05/23 (S) DP: CLAMAN
04/05/23 (S) NR: TOBIN, KAUFMAN, KIEHL
05/08/23 (S) TRANSMITTED TO (H)
05/08/23 (S) VERSION: SB 37
05/09/23 (H) READ THE FIRST TIME - REFERRALS
05/09/23 (H) L&C
01/26/24 (H) L&C AT 3:15 PM BARNES 124
01/26/24 (H) -- MEETING CANCELED --
01/31/24 (H) L&C AT 3:15 PM BARNES 124
01/31/24 (H) Scheduled but Not Heard
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) Scheduled but Not Heard
02/07/24 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
SENATOR MATT CLAMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented SB 37 as prime sponsor.
CARLY DENNIS, Staff
Senator Matt Claman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Read the sectional analysis for SB 37 on
behalf of Senator Claman, prime sponsor.
CRAIG ORLAN, State Relations Specialist
American Honda Motor Co.
Torrance, California
POSITION STATEMENT: Provided invited testimony in support of SB
37.
SEAN MILLS, Counsel
House Majority
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided an overview of EO 129.
SARA CHAMBERS, Boards and Regulations Advisor
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Presented Executive Orders 127, 129, and
130.
WENDY PALIN, representing self
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
129.
GLORIA BAMBERG-MERRITT, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
129.
MAE CANADY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
129.
VOLKER HRUBY, President
Alaska Chapter
American Massage Therapy Association
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
127.
SHANTI TREVELYAN, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
127.
TRACY GILMORE, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
127.
MARY ANAGAWA, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
JENNIFER JOZWIAK, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
HANNAH ST. GEORGE, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
BETHANY KIRILLOV, representing self
Matanuska-Susitna, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
LAURA LEMONS, representing self
Matanuska-Susitna, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
STACEY LOWE, representing self
Matanuska-Susitna, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
DENI OREN, representing self
Soldotna, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
MELANIE OVERMAN, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
EMILY HEALE, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
JENNIFER REDDING, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
MIRANDA BOWER, representing self
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
RACHEL PUGH, representing self
Eagle River, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
CHRISTIAN LOWE, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
KAYLEE PRESLEY, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
CHELSEA HAPONSKI, representing self
Ketchikan, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
MAX RONEY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
JESSICA JOHNSTON, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
MORGAN TURNER, President
Alaska Birth Collective
Eagle River, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
KATE TIMMONS, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
KAREN PERRY, representing self
Chugiak, Alaska
POSITION STATEMENT: Testified in opposition to EO 130.
DOMINIKA BUCK, representing self
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
KATE PARKS, Owner
AbleMidwife LLC
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
CYNTHIA EARLEY, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
ONICA SPROKKREEFF, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
EVIE OPHEIM, representing self
Palmer, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
LYNDSEY WARD, representing self
None given
POSITION STATEMENT: Testified in opposition to Executive Order
130.
JESSICA DACHOWSKI, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
ELEANOR OSSLER, representing self
Juneau, Alaska
POSITION STATEMENT: Testified in opposition to Executive Order
130.
ACTION NARRATIVE
3:17:18 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:17 p.m. Representatives Prax,
Fields, Ruffridge, and Sumner were present at the call to order.
SB 37-CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
3:17:48 PM
CHAIR SUMNER announced that the first order of business would be
SENATE BILL NO. 37, "An Act establishing the crime of airbag
fraud."
3:18:16 PM
SENATOR MATT CLAMAN, Alaska State Legislature, as prime sponsor,
presented SB 37. He read the sponsor statement [included in the
committee packet], which read as follows [original punctuation
provided]:
Senate Bill 37 establishes the crime of airbag fraud
for knowingly selling, installing, or manufacturing a
counterfeit or nonfunctioning airbag. Counterfeit
airbags are highly dangerous as they can be left empty
or filled with sawdust and newspaper and may
improperly deploy or not deploy at all. Currently in
Alaska, there is no law to prohibit the installation
or reinstallation of airbags that do not meet federal
safety standards. By establishing airbag fraud, Senate
Bill 37 prohibits dangerous actors from knowingly
selling, installing, or manufacturing these dangerous
and improper devices.
Similar legislation already exists in 30 states. For
example, the Michigan Penal Code establishes airbag
fraud as a felony punishable by four years of
imprisonment or a fine of $10,000.00. Michigan defines
airbag fraud as knowingly and intentionally importing,
manufacturing, offering for sale, distributing,
installing, or reinstalling counterfeit or
nonfunctioning airbag.
In October 2021, the non-profit corporation Automotive
Anti-Counterfeiting Council (A2C2) called on eBay to
prohibit the sale of all airbags after counterfeit
airbags and related components were shown to be
consistently available for sale on the site.
Senate Bill 37 creates criminal liability for the
crime of airbag fraud. It protects owners and
employees of motor vehicle dealerships if they are
unaware of counterfeit parts in a vehicle. It does not
create a duty for owners and employees to inspect a
vehicle for counterfeit parts before selling it.
3:21:45 PM
CARLY DENNIS, Staff, Senator Matt Claman, Alaska State
Legislature, on behalf of Senator Claman, prime sponsor, read
the sectional analysis [included in the committee packet], which
reads as follows [original punctuation provided]:
Section 1
AS 28.35.248. Airbag fraud
Establishes and defines airbag fraud as knowingly
selling, offering for sale, installing, reinstalling,
or manufacturing a counterfeit or nonfunctioning
airbag or device that is intended to conceal a
counterfeit or nonfunctioning airbag, or intentionally
selling, leasing or trading a vehicle that the person
knows has a counterfeit or nonfunctioning airbag.
Establishes airbag fraud as a class A misdemeanor or a
class C felony if death or serious physical injury to
another person occurs as a result of the counterfeit
or nonfunctioning airbag.
Establishes that the liability of any party in a civil
action is not precluded. Provides that this
legislation does not create a duty to inspect a
vehicle for a counterfeit or nonfunctioning airbag
before its sale.
3:23:07 PM
CRAIG ORLAN, State Relations Specialist, American Honda Motor
Co., shared that typically, when people think of counterfeit
goods, they don't think about the automotive industry; over the
past several years, there have been foreign and domestic
counterfeiters flooding the market with ineffective and cheap
airbags. He explained that the airbags are usually filled with
newspaper and Styrofoam, or are empty, and have resulted in
deaths across the country. He pointed out that this is not an
issue with the automotive supply chain, as these replacement
airbags are being bought over the Internet by unscrupulous
repair shops and installed in unknowing customers' cars after a
car crash. He said Alaska has some consumer protection laws
that would help in prosecuting repair shops that install faulty
airbags, but many prosecutors aren't confident that they have
the authority. Further, existing laws do not address the faulty
airbag manufacturers. This legislation would make knowingly
trafficking counterfeit and non-functioning airbags a crime,
which would do several things: allow people to prosecute repair
shops who do this, allow the targeting of actors who are
trafficking the airbags; promote state and federal cooperation
to keep the products out of customers' cars; and give law
enforcement more leverage over bad actors to get information
about other victims of airbag fraud. He relayed several
examples of people arrested who were connected to the
underground counterfeit market in the U.S.
3:26:34 PM
CHAIR SUMNER asked Senator Claman if he thinks Section 1 (3)(b)
should be excluded.
SENATOR CLAMAN answered that the intent is making it so selling
a parts car would not be liable towards the misdemeanor proposed
in the bill. He said people need to make a distinction as to
whether a car was re-constructed.
3:29:19 PM
REPRESENTATIVE FIELDS referred to page 6, line 1, about repair
shops and the shops buying faulty airbags.
SENATOR CLAMAN deferred the question to Mr. Orlin
3:30:10 PM
MR. ORLIN said that the bill is similar to other state laws. He
explained that airbag replacement is not a "do-it-yourself" job.
REPRESENTATIVE FIELDS asked where the airbags are being made.
MR. ORLIN responded that 95 percent are from China; many are
buying airbag covers without logos and then adding them on in
the states.
3:31:59 PM
CHAIR SUMNER announced that SB 37 was held over.
^EXECUTIVE ORDER 129 - ELIMINATING THE BOARD OF BARBERS AND
HAIRDRESSERS
EXECUTIVE ORDER 129 - ELIMINATING THE BOARD OF BARBERS AND
HAIRDRESSERS
3:32:10 PM
CHAIR SUMNER announced that the next order of business would be
Executive Order 129.
3:32:31 PM
SEAN MILLS, Counsel, House Majority, Alaska State Legislature,
provided an overview of Executive Order (EO) 129.
3:33:41 PM
REPRESENTATIVE FIELDS asked how much that would add to costs.
3:34:24 PM
SARA CHAMBERS, Boards and Regulations Advisor, Department of
Commerce, Community & Economic Development (DCCED), advised that
her comments cover all three of the orders before the committee
today. In addressing Representative Field's question about
costs, she noted that statements on cost, which were provided to
the committee, show that there is no expected increase in costs
for EO 129. She stated that the three executive orders seek to
shift regulatory decision making from an appointed board to
management under the DCCED to provide efficiency. She explained
that the orders will eliminate each quasi-judicial board
overseeing barbers and hairdressers, certified direct entry
midwifes, and massage therapists and move the decision-making
authority to the department; under current delegation of the
commissioner, the authority then would be with the director of
the Division of Corporations, Business, and Professional
Licensing. She said the change would reduce timeframes for
license application review, ensure swift action when challenges
with public safety arise, and reduce wait times in adopting
regulations. She stressed that the orders are not condemnations
of the board's work, they reflect concerns about how well the
existing structures serve the state as well as opportunities for
improvement.
3:36:51 PM
MS. CHAMBERS outlined possible delays involved with the board
system, which affect the board's ability to function and the
ability for professionals to get licensed. She said the wait
time for approving regulations as a board, rather than through
the department, doubles the wait time. She pointed out that a
staff restructuring that started in 2022, and was within the
2023 adopted budget, provided for 17 new positions. She noted
that, with board management, there are also delays in
disciplinary matters; shifting the responsibility to the
department will allow investigators to seek input on practice
matters from a qualified practitioner only when scope of
practice is in question. Further, violations of statutes or
regulation that do not contain practice matters, can be managed
by a staff investigator familiar with the program, and would
provide recommendation to the director for final action.
3:39:30 PM
MS. CHAMBERS relayed that division mandated investigative
timelines had reduced internal case management turnaround times.
She said regulation without a quasi-judicial board is a common
model in the U.S.; more than half of Alaska's professional
licensing programs are managed this way. She explained that
half of the professions under the Board of Barbers and
Hairdressers are managed by a board in other states, two-thirds
of massage therapy programs are regulated by boards, and 9 of 34
states that regulate direct-entry midwifery have industry-led
boards. She said that shifting away from quasi-judicial boards
opens opportunities for the department to hear feedback from
licensees and the public. She outlined how the department will
encourage public feedback; state law will still require the
department to seek and consider public input on regulations.
Ms. Chambers offered that the executive orders do not alter
licensure, certification standards, or practice of any of the
affected professions. She stated that the proposal of the
orders is not a first step toward de-regulation. She said any
change to state law affecting the professions would still
require action by the legislature, and any regulation change
would require input from the public. She commented that
licensees who are currently qualified for re-imbursement by
insurance and Medicaid would continue to be covered. She
explained that the time spent by staff for board management
would be re-invested in improving licensing turnaround times and
increasing expertise about the profession. She said staff would
be educated on matters important to the program, like
identifying human trafficking red flags in licensing
applications.
3:43:47 PM
MS. CHAMBERS explained that the Board of Barbers and
Hairdressers have identified needed changes in statute that
would improve policies or clarify persistent questions that are
creating confusion in the industry. She said the board failed
to act on the policy change needs, and that it had to cancel
meetings due to lack of quorum. She pointed out that, without a
board requirement, the department could have moved forward to
address industry concerns. She stated that the board, over
multiple years and member rotations, failed to do the work given
to it from the legislature; the staff time used toward the board
could have been used toward licensure applications. She
explained that moving the quasi-judicial decisions to the
department would protect the integrity of the process.
3:45:17 PM
MS. CHAMBERS shared that, within the last year, the board of
certified direct-entry midwifes has not addressed certain
application and investigation issues because a majority of the
board has a legal conflict with the subject; board conflicts
that require shifting the responsibilities to the Office of
Administrative Hearings would create more expenses. She added
that the administration has been unable to fill the physician
seat on the board, which has been vacant for more than two
years, and a lack of qualified candidates has made filling the
seat difficult. She said one of the recent legislative audits
recommended that the legislature look at alternative methods to
regulate the profession. She stressed that her testimony is not
a critique of the board members or of the profession; the
administration expresses its respect for board members'
professional expertise and willingness to serve, and the
administration's desire to gain that benefit through more
efficient means. She summarized that the purpose and outcome of
the orders are to improve regulatory efficiency without
sacrificing public engagement or safety.
3:48:14 PM
REPRESENTATIVE PRAX thanked Ms. Chambers for her work. He asked
her about leadership at the department.
MS. CHAMBERS relayed that, informally, the leadership at the
department encourages "right touch" regulation. She said that
any major change would need to be done via the legislature,
while the power to change regulation goes to the department.
She said the department is dedicated to creating structures that
would codify licensee input and participation.
3:51:27 PM
CHAIR SUMNER opened public testimony on EO 129.
3:51:37 PM
WENDY PALIN, representing self, said she's a member of the Board
of Barbers and Hairdressers. She stressed the importance of
keeping the board, as the primary reasonability of any
regulatory board is to keep the public from harm. She said the
board also upholds professional standards, and by making
practitioners undergo training, obtain licensure, and adhere to
a code of ethics, the quality level of services provided is
elevated and consumer trust is built; the beauty industry is
constantly evolving, and the board facilitates ongoing education
and professional development opportunities to ensure that
practitioners stay abreast of trends and best practices. She
said that, without regulatory oversight, there is a risk of
unscrupulous individuals engaging in unethical practices, like
unlicensed operation, misrepresentation of credentials, or
exploitation of vulnerable clients. She stated that a well-
regulated industry inspires confidence among consumers and
attracts investment, leading to growth and expansion
opportunities. She shared that she has seen incredible
transformations, as well as devastating outcomes, done by
practitioners in the beauty industry; it's crucial to prioritize
proper training and certification to ensure safety and optimal
results, as well as prevent unnecessary harm. She concluded
that the Board of Barbers and Hairdressers serves as a lynchpin
towards ongoing growth and success of the industry. She urged
members to keep the board intact.
3:56:31 PM
GLORIA BAMBERG-MERRITT, PHD, representing self, said she is a
researcher, has a doctorate in counseling, and is an instructor
in the area of barbering, nails and grating. She shared that
she has been able to pay off student loans through her work in
the barber and hairdresser industry. She asked why members of
the board and practitioners were not notified of EO 129, who the
authors of the executive order were, and where the
recommendation came from. She urged members to veto the
governor's order because of the economic impact it would have on
the state's 7,000 practitioners. She relayed a January
statement from Ms. Chambers regarding an inquiry into how much
discussion occurred within the industry, in which she said there
was no involvement. She pointed out that Ms. Chambers is the
advisor to the Board of Barbers and Hairdressers with the job of
helping the board make decisions more effectively. She further
relayed a statement from Ms. Chambers that there would be no
industry input cut out, but cited the earlier statement that the
industry was not notified of EO 129. She continued citing
earlier comments made by Ms. Chambers and said there appears to
be a divested interest in the practitioners. She urged members
to vote no on EO 129.
4:02:19 PM
MAE CANADY, representing self, shared that she has been a
hairdresser for 34 years and served on the Board of Barbers and
Hairdressers for four years. She shared that her concern is
there are many people who are confused as to what is going to
happen with EO 129. She stressed that one staff person would
not be able to take the place of seven board members who are
industry experts. She opined about the lack of communication to
practitioners about the proposed changes and said the public as
well as the industry needs to be more involved. She reiterated
that she does not see just one staff person doing the job of
seven board members.
4:07:24 PM
CHAIR SUMNER, after ascertaining that no one else wished to
testify, closed public testimony on EO 129.
^EXECUTIVE ORDER 127 - ELIMINATING THE BOARD OF MASSAGE
THERAPISTS
EXECUTIVE ORDER 127 - ELIMINATING THE BOARD OF MASSAGE
THERAPISTS
4:07:29 PM
CHAIR SUMNER announced that the next order of business would be
Executive Order 127.
CHAIR SUMNER opened public testimony on EO 127.
4:08:04 PM
VOLKER HRUBY, President, Alaska Chapter, American Massage
Therapy Association, said that getting rid of the Board of
Massage Therapists would increase costs for all massage
therapists in Alaska, which was a finding from legislative
auditors. He said that state staff does not have the knowledge
to fairly make decisions regarding the massage therapy industry,
like scope of practice, professional standards, or regulation
changes; unless state staff went to massage school and worked in
the field, he said there is no amount of additional training
that would give the staff such knowledge. He said there is a
danger to the public if the board is removed, as the board helps
to prevent criminal elements making it into the industries. He
urged the committee to disallow EO 127.
4:10:22 PM
SHANTI TREVELYAN, representing self, shared that she has been a
licensed massage therapist in Alaska for 25 years. She stated
that the profession is highly sexualized, and that only members
of the industry know just how sexualized it is and what to look
out for in order to protect the public and the therapist. She
stressed that there needs to be a strong relationship between
the board, the profession, and the regulations. She said she is
a "no" to EO 127.
4:13:11 PM
TRACY GILMORE, representing self, shared that she owns a massage
business, and is the past board chair of the Board of Massage.
She said EO 127 will encourage layers of bureaucracy, as two
positions would be created while the board made up of massage
industry experts would be eliminated. She explained that
positions would be created to accompany the licensing examiner
across all licensing programs, thereby increasing licensing
fees. She said that trading the passion and knowledge possessed
by therapists for training of short-term and rotating employees
would increase the probability of fraudulent applicants being
approved. She stressed that the massage industry is fraught
with the human trafficking of sex workers, and the board has
conveyed the message "turn around and get out." She concluded
that massage therapists want a seat at the table and want the
legislature to have oversight of programs, but do not want
licensing fees to increase without industry input.
4:16:21 PM
REPRESENTATIVE FIELDS said he was not aware that DCCED was
already adding staff in preparation of the executive orders. He
asked what Ms. Gilmore anticipates in increased costs after the
staff are added.
MS. GILMORE answered that she cannot speak to the dollar
amounts. She explained that there is now a receptionist for the
occupational license examiners, which adds another layer. She
said that program coordinators add another layer, because such
coordinators cost more to talk to than a license examiner. She
said additional employees will correlate in an increase in
license fees.
4:18:30 PM
CHAIR SUMNER, after ascertaining that no one else wished to
testify, closed public testimony on EO 127.
^EXECUTIVE ORDER 130 - ELIMINATING THE BOARD OF CERTIFIED DIRECT
ENTRY MIDWIVES
EXECUTIVE ORDER 130 - ELIMINATING THE BOARD OF CERTIFIED DIRECT
ENTRY MIDWIVES
4:18:36 PM
CHAIR SUMNER announced that the final order of business would be
Executive Order 130.
CHAIR SUMNER opened public testimony on EO 130.
4:19:02 PM
MARY ANAGAWA, representing self, shared that she is a licensed
certified direct-entry midwife that practices in Wasilla. She
urged members to oppose the EO, as the downstream consequences
in removing the board is still to be determined. She said the
administration suggested a possible advisory committee. She
said she does not know how removing an autonomous healthcare
profession's board and transferring its duties to an
understaffed division in the department would affect the health
and safety of Alaska families. She asked members to vote no on
EO 130. She offered a personal anecdote regarding her
apprentice's experience in becoming a midwife and the fear they
have about the uncertainty of midwifery in Alaska.
4:22:03 PM
JENNIFER JOZWIAK, DC, representing self, said she is a
chiropractor physician, who has used midwifery services, as well
as employed three massage therapists in her office. She urged
members to vote no on EO 130. She stated that the level of
education cannot be trained to state employes, and that she
fears that families and babies will suffer from lack of midwife
knowledge.
4:23:41 PM
HANNAH ST. GEORGE, representing self, said she is not a midwife,
but is the mother to 10 children, and has served on the Board of
Certified Direct Entry Midwifes for five years as a public
member. She stressed that the board is instrumental in
maintaining birth options, especially for the next generation.
She pointed out that decisions about Alaska midwives are being
made by experienced Alaska midwives, which is what would
fundamentally change under EO 130. She asked members to keep
the board.
4:26:26 PM
BETHANY KIRILLOV, representing self, said she disagrees with EO
130. She shared that she is a mother of four who were all born
with midwives. She pointed out that it costs the state far less
to pay a home birth midwife for a low risk out of hospital
delivery than it does the average hospital birth. She said
that, by removing the board, the state is taking the midwives'
collective experience and denying it. She said she was told
that insurance coverage will not change in the shift of power,
which she does not believe is true. She pointed out that
removal of the board would interrupt billing processes. She
urged members to vote no on EO 130.
4:28:52 PM
LAURA LEMONS, representing self, said she is a licensed direct
entry midwife and practices in and around Wasilla. She said
that she does not support EO 130, and that it is not in the best
interest of mothers and babies in Alaska. She said she is
concerned about how the state will manage the change, as well as
how the changes would affect midwifery. She stated that another
concern is that there is no plan for a midwife advisory board.
She said there was a time in Alaska's history where people
couldn't bill Medicaid or insurance, something that she sees as
a possibility in the future. She pointed out that all other
autonomous healthcare providers are represented by a board of
their peers, and that this should be the case for midwives. She
said that, in the last year, women have come in from rural areas
because they want a choice and don't want to give birth in the
hospital.
4:32:13 PM
STACEY LOWE, DC, representing self, said she is a chiropractic
physician who has been practicing in Wasilla for 19 years. She
said that 90 percent of her pregnant clients use direct entry
midwives. She said she is concerned about her patients' access
to insurance billing being denied at some point. She said that,
as an autonomous healthcare provider herself, direct-entry
midwives also act as primary care and have the authority to
diagnose and bill insurance; they may have their ability to
govern taken away. She cited comments by Ms. Chambers regarding
other healthcare providers in Alaska who do not have a self-
governing board and questioned whether such providers are as
autonomous in primary care as direct entry midwives are. She
offered that she knows of no other healthcare profession that
does not operate with a board of their peers, and she
questioned, if EO 130 is approved, which professional healthcare
board would be next. She urged members to vote no on EO 130.
4:34:29 PM
DENI OREN, representing self, said she is a mother of two and
that, as someone who birthed at both a hospital once and with a
midwife once, she is strongly opposed to EO 130. She shared
that her care was better with the midwives at the birthing
center than at the hospital. She urged members to oppose EO
130.
4:35:43 PM
MELANIE OVERMAN, representing self, said her life was greatly
changed by midwifery care, and she is opposed to EO 130.
4:36:25 PM
EMILY HEALE, representing self, said she opposes EO 130. She
said that she is not a midwife but has a child today thanks to
her midwife team. She said EO 130 would limit the already
limited options for women in Alaska.
4:37:08 PM
JENNIFER REDDING, representing self, shared that she survived a
birth in Alaska because she had a midwife with her. She said
that when western medicine forced her through a cascade of
unnecessary interventions for her first child, which lead to a
"c-section" delivery. She refused to go to the hospital for her
second child, and those that do not want to go to the hospital
are the ones that will suffer from the change proposed in EO
130.
4:38:41 PM
MIRANDA BOWER, representing self, said she is the owner of a
postpartum training company. She said that EO 130 dissolves the
board of direct-entry midwives in exchange for saving money and
streamlining administrative processes. She said that dissolving
the board would force the state to pay its employees to do the
work instead. She said most concerning is that there is no plan
regarding the impact of dissolving the board. She offered that
the Medicaid billing manual states that individuals who have a
current certificate for the Alaska Board of Certified Direct-
Entry Midwives to practice as direct-entry midwives may enroll
with Alaska medical assistance and cannot qualify for Medicaid
billing without the board. She pointed out that certified nurse
midwives (CNM) operate under a different board, and that one CNM
is informing legislators that voting for EO 130 will be okay,
but that is only because her business would not lose the ability
to bill Medicaid. She stressed that birth options will dwindle
as a result of EO 130.
4:42:16 PM
REPRESENTATIVE FIELDS noted that a CNM who submitted public
testimony was opposed to EO 130.
4:42:40 PM
RACHEL PUGH, representing self, said she is a certified
professional midwife, as well as a certified direct-entry
midwife, and serves on the Board of Certified Direct Entry
Midwives. She shared that her biggest concern is not what EO
130 states right now but what it doesn't state and what it could
mean for midwifery in Alaska. She pointed out that dissolving
the board into a state department has an immediate impact on
statutes and regulations because a process of changes would
happen that midwives won't have say in. She said there has been
talk of there being an advisory committee, but there has been no
communication as to who would be on the committee. She urged
members to vote no on EO 130.
4:44:27 PM
CHRISTIAN LOWE, representing self, shared about his wife and
three children, their first was delivered in a hospital and the
two after were home births. He stated that the at-home birth
with a midwife was a better experience than at the hospital. He
said EO 130 takes midwife regulation power away from
professionals and puts it in the hands of bureaucrats; it
introduces the possibility of a regulation being adopted that
would hinder the ability of a midwife to care for their client.
He asked members to vote no on EO 130.
4:45:56 PM
KAYLEE PRESLEY, representing self, said she is opposed to EO
130. She stated that all women have the right to choose where
they give birth, and that Alaska already has a good system with
plenty of birthing options with no change needed. She shared
that she did her birth via midwifery and had a great experience,
and after experiencing a non-midwife assisted birth, she'd
prefer the midwife assistance. She said EO 130 would be hurtful
to the women in the state that need care supervised by qualified
people. She stressed that women want the choice to use a
midwife who is overseen by other midwives, and that data shows
that midwives have a good delivery success rate. She urged
members to vote no on EO 130.
4:48:17 PM
CHELSEA HAPONSKI, representing self, shared that she is a
chiropractor in Ketchikan, and a mother of five; three of which
were delivered in a hospital and two through a direct-entry
midwife. She stated that "cleaning things up" and cost-
effectiveness are not legitimate reasons for EO 130, and that
she does not believe such things would happen under EO 130
anyway. She said she could not imagine any other healthcare
board being abolished and taken in by DCCED. She commented
that, if the midwifery board is moved into DCCED, she does not
see how it can be maintained without the input of the midwifery
community. She pointed out that midwives save the state
thousands of dollars annually by helping mothers with low-risk
pregnancies deliver at birth centers and at home. She
highlighted a letter from Director Lori Wing-Heier, where she
explained that the division believes that, if midwives are
billing insurance before EO 130, they would be able to bill
going forward; there is nothing that states with certainty that
payers are going to be required to cover services.
4:51:27 PM
MAX RONEY, representing self, shared that the scariest day of
his life was a year ago during the birth of his first child. He
explained that his wife saw a certified midwife and a certified
direct-entry midwife to help deliver the birth. He stated he
shutters to think of the word "efficiency" in the same sentence
as "midwifery birth," as midwives already do a good job. He
said he supports midwifery and opposes EO 130.
4:52:30 PM
JESSICA JOHNSTON, representing self, relayed that she is a
certified professional midwife and a perinatal workforce
development consultant. She said the Board of Certified Direct
Entry Midwives costs $0 and is paid for by revenue from
licensing fees. She stressed that midwifery saved the state and
Alaska Medicaid a minimum of $5 million a year by providing
Medicaid insured clients with home birth and birth center
services. She listed average billing fees. She said there are
outcomes with certified midwives, and zero maternal deaths in
the midwife area. She urged members to vote no on EO 130. She
relayed that midwives delivered 567 births in Alaska in 2022,
which saved Medicaid $5.1 million; the average fee a hospital
will bill Medicaid is $26,659, while the average birth center
fee is $2,603, and the only fee in an at-home birth is the one
for the midwife. She pointed out that Seward was no longer
considered a maternal care desert since labor and delivery
services were made available there.
4:54:15 PM
MS. JOHNSTON stated that improved outcomes have been
demonstrated under midwife care: caesarean section rate in
Alaska under midwife care at a birth center is 6 percent, versus
23 percent with other providers, but there have been zero
maternal deaths in the midwife provider population compared to
all other provider populations and locations of birth since the
pandemic. She said the board keeps costs down for families and
the state by ensuring that midwives are practicing at, and
above, national standards. She cited the Division of
Legislative Audit's October 14, 2022, report, which showed that
the board is the only agency authorized to license midwives in
the state and does not duplicate efforts of other agencies, and
that midwives have been in compliance with all audit
recommendations to move and streamline regulation process to
reduce costs and eliminate duplication of function away from
state oversight; which drove up licensing costs up because
licensing examinators didn't understand which cases needed to be
seen by investigators.
4:55:56 PM
MORGAN TURNER, President, Alaska Birth Collective, shared that
she is a mom, is currently training to be a licensed
professional counselor specializing in perinatal mood disorders,
and is president of the Alaska Birth Collective, which is a
resource for birthing people in Alaska. She urged members to
vote no on EO 130, as midwives should be autonomous in their
oversight; midwifery oversight is important for keeping
standards and quality of care high. She said she is concerned
about the unintended consequences that moving the EO forward may
have, namely, for Alaska families that use Medicaid to have a
baby. Further, for other Alaska families, if insurance can't be
billed for midwifery services, it would be harmful to families.
4:58:08 PM
KATE TIMMONS, representing self, shared that her first
pregnancies were through hospital, while later ones were through
midwives. She said that, after the stripping away of rights
after the pandemic, there is much demand for midwives now. She
urged members to vote no on EO 130. She noted that the board is
one of the most important volunteer boards. She pointed out
that, after the stripping of patient rights in the hospital
setting during the pandemic, there's increased demand for
midwives to support moms and advocate for birth rights as
essential.
4:59:43 PM
KAREN PERRY, representing self, said she is a mother of five,
all born in Alaska. She shared that one of her birth
experiences was attended by midwife Pam Weaver, who was
instrumental in getting certified midwives as a legal option in
Alaska. She stressed that she is against EO 130, and that
executive orders circumvent the voice of the people. She said
the board needs to be maintained, and that an educated and
informed board needs to be retained. She urged members to
support midwives, and that EO 130 be vetoed by the legislature.
5:01:39 PM
DOMINIKA BUCK, representing self, said she has been a birth
worker for five years and studied midwives, during which she
observed their strong care and safe decision making around
referring a mother to the hospital before, during, or after
labor. She said Alaka has many responsible midwives because the
board understands midwives; dissolving the board would
negatively affect families and communities through increased
costs, increased mortality rate, and mothers being forced to
give birth at a hospital. She urged members to vote no to EO
130.
5:04:32 PM
KATE PARKS, Owner, AbleMidwife LLC, shared her experience being
a licensed midwife since 2016 as well as a certified
professional midwife. She urged members to oppose EO 130, as
the Board of Certified Direct Entry Midwives has been in place
for decades. She advised that, when midwives are managed by
people who do not understand the profession, there is no clear
mission. She said that she is one of two certified direct-entry
midwives in the Fairbanks area. She said that midwives are not
commodities, they save lives and deserve to be governed by their
peers. She said that Alaska is a model of midwifery, as the
standards of care are a flagship for other states, but EO 130 is
not an example to be setting. She pointed out that Alaska has
the highest rate of people who choose to give birth at home or
at community birth centers. She said that EO 130 is not needed
and could impact accessibility of safe midwifery care.
5:08:24 PM
CYNTHIA EARLEY, representing self, shared that she has been a
licensed midwife in Alaska for eight years, and is also a
certified professional midwife. She urged members to oppose EO
130 as it would harm midwifery, families, and newborns. She
stated that EO 130 is neither pro-life nor pro-choice. She said
that Medicaid policy states that it reimburses service provided
a midwife licensed by a board, and if there is no board, then
there would be no reimbursement. She said Ms. Chamber's
reassurances are not believed because midwives witnessed their
license expiration date extended by three months in 2023; after
being reassured that Medicaid was informed, every midwife still
received a letter from Medicaid accusing them of having lapsed
licenses and denying coverage until the matter was resolved.
She stated that Ms. Chamber's comments regarding board delays
are only speculation, as she has not presented evidence of this.
She shared that she audited board minutes two years ago and
found that, of the 49 meeting minutes available online, either
certified nurse midwife member or the obstetrics member was not
present in 23 of them, and in five of those occasions, the
certified direct-entry midwife was not present. She said this
record shows that certified direct-entry midwives do know how to
run a board, show up, and do work.
5:10:36 PM
ONICA SPROKKREEFF, representing self, said she is a licensed
midwife, and president of the Midwife Association of Alaska. In
12 years of her practicing midwifery, she commented that the
state's department is at fault for many of the delays, not the
board of midwives; therefore, she is unsure how shifting duties
from the board to the department would make the process more
efficient. She advised that midwives are knowledgeable,
extensively trained, skilled professionals, and primary care
providers; they are the only providers who have specific
training in perinatal care in the community setting. She
stressed that eliminating the board is a big oversight and urged
members to oppose EO 130.
5:13:34 PM
EVIE OPHEIM, representing self, shared that she is the mother of
three children who were born in Alaska with the help of
midwives. She called on members to vote no on EO 130, as it
would limit already limited medical care options, limit access
to this form of care, and possibly lose insurance coverage for
future at-home births under midwifery care. She said she sees
no benefit in a state-run committee.
5:15:16 PM
LYNDSEY WARD, representing self, urged members to veto EO 130
and retain the Board of Certified Direct Entry Midwives. She
said that, after two traumatic hospital births, she swore to not
have kids at the hospital. She stated that hospital versus
midwifery care does not compare. She commented that midwifery
care needs to be protected and valued. She shared a personal
anecdote about receiving good care under a midwife. She asked
members to vote no on EO 130.
5:17:46 PM
JESSICA DACHOWSKI, DC, representing self, said that she is a
doctor in chiropractic, as well as an instructor for pediatrics,
pregnancy, and perinatal care in Alaska and out of state. She
shared that she had two at-home births that were assisted by a
midwife. She pointed out that it does not matter how a person
pays, as it is their choice. She stated that opposing the EO is
an opportunity to keep midwife care open for families.
5:20:42 PM
ELEANOR OSSLER, representing self, shared that she is a home-
birth mother of five and former midwifery student. She said
that removing the midwives board and moving to an advisory board
would lower the quality of care; this is not a good look for a
pro-life message. She said EO 130 is a slap in the face for
Alaska's elder midwives, who fought for the choice on how
children are born. She commended the state's regulation of out
of hospital births and said the regulations are good because of
the board. She stressed that EO 130 would be a deathblow to the
midwifery profession. She shared an anecdote about her own
birthing experiences, and that the 567 mothers who delivered
babies with certified direct entry midwifes last year have the
freedom to choose because the board rules well. She stated that
the board is self-sufficient by operating with the dues of
licensed midwives. She said it is nonsensical and inefficient
to dissolve the board and put decision making in the hands of
unqualified people; the fallout of the proposed change opens the
door to taxing an overburden healthcare system with low-risk
patients, as well as shrinking the access to care. She asked,
if the proposed change is healthy for the midwifery practice,
why the obstetrics and nursing boards are not being dissolved as
well. She urged members to vote down EO 130.
5:24:04 PM
CHAIR SUMNER, after ascertaining that no one else wished to
testify, closed public testimony on EO 130.
5:24:36 PM
MS. CHAMBERS offered to come back before the committee at a
later time.
5:25:07 PM
CHAIR SUMNER announced that EO 130 was held over.
5:25:14 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:25 p.m.