Legislature(2003 - 2004)

03/25/2004 10:01 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                     SENATE FINANCE COMMITTEE                                                                                 
                          March 25, 2004                                                                                      
                             10:01 AM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
SFC-04 # 57,  Side A                                                                                                            
SFC 04 # 57,  Side B                                                                                                            
SFC 04 # 58,  Side A                                                                                                            
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Co-Chair  Gary Wilken convened  the meeting  at approximately  10:01                                                            
AM.                                                                                                                             
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Gary Wilken, Co-Chair                                                                                                   
Senator Lyda Green, Co-Chair                                                                                                    
Senator Con Bunde, Vice Chair                                                                                                   
Senator Fred Dyson                                                                                                              
Senator Ben Stevens                                                                                                             
Senator Donny Olson                                                                                                             
                                                                                                                                
Also Attending:   SENATOR RALPH SEEKINS; CLYDE JENSEN,  PhD, medical                                                          
educator  and researcher;  JASON  HARMON, Naturopathic  Doctor,  and                                                            
Vice  President,  Alaska  Association  of Naturopathic  Physicians,                                                             
Inc.;                                                                                                                           
                                                                                                                                
Attending via  Teleconference:  From Mat-Su: CATHERINE  WRIGHT; From                                                          
Homer: TOM GOODE;  From Anchorage: LYNN HORNBEIN,  family physician;                                                            
JEAN BROOKING,  patient of Dr. Hornbein;  MADELAINE MORRISON-YOUNG,                                                             
physician                                                                                                                       
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 366-STATE SALES TAX                                                                                                          
                                                                                                                                
The Committee  adopted a committee substitute. The  bill was held in                                                            
Committee.                                                                                                                      
                                                                                                                                
SB 306-NATUROPATHIC MEDICINE TASK FORCE                                                                                         
                                                                                                                                
The  Committee  heard  from  the  sponsor,  representatives  of  the                                                            
medical field  and members of the  public. An amendment was  adopted                                                            
and the bill was held in Committee.                                                                                             
                                                                                                                                
SB  35-APPROPRIATIONS: K-12, UNIVERSITY                                                                                         
                                                                                                                                
A committee substitute  was adopted and an amendment was amended and                                                            
adopted. The bill was held in Committee                                                                                         
                                                                                                                                
SB 298-OFF-ROAD VEHICLE USE ON DALTON HIGHWAY                                                                                   
                                                                                                                                
This bill was scheduled but not heard.                                                                                          
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 366                                                                                                        
     "An Act  relating to the levy  and collection of sales  and use                                                            
     taxes,  to the levy and collection  of municipal sales  and use                                                            
     taxes,  and  to municipal  sales  and  use taxes  on  alcoholic                                                            
     beverages; and providing for an effective date."                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Senator Dyson  moved to adopt  CS SB 366,  23-LS1051\V as a  working                                                            
document.                                                                                                                       
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator  B. Stevens explained  this committee  substitute  addresses                                                            
some  matters  discussed  at  the  previous  hearing,  including  an                                                            
exemption from  quarterly remittance  deadlines for businesses  with                                                            
less than $250 tax liability.  He explained this language on page 7,                                                            
lines 13  - 17 would provide  that the tax  liability could  be paid                                                            
the following tax quarter, or once the liability reaches $250.                                                                  
                                                                                                                                
Senator B.  Stevens next outlined  Section 21 on page 14,  following                                                            
line  17,  which   would  provide  a  transition  period   to  allow                                                            
municipalities  currently  collecting  a  sales tax  of  one to  2.9                                                            
percent,  a one-year  period to  change ordinances  to increase  the                                                            
local sales tax to three  percent to qualify for the additional one-                                                            
percent tax from the State portion.                                                                                             
                                                                                                                                
Senator B.  Stevens stated that subsection  (d) was added  on page 5                                                            
line 4  to Sec. 43.44.010.  Levy of  sales and  use tax; tax  rate.,                                                            
created in Section  17 that places a $60 tax limit  on each invoice.                                                            
                                                                                                                                
Senator B.  Stevens noted  that subsection  (11) to Sec.  43.44.020.                                                            
Exemptions.,  in Section  17 on  page 6,  lines 24  - 26 relates  to                                                            
property and services used for development of natural resources.                                                                
                                                                                                                                
Senator  B. Stevens  also pointed  out the addition  of diesel  fuel                                                            
used  for home  heating, and  water and  sewer utilities  held  by a                                                            
private entity,  as well as those  held by a municipality,  would be                                                            
exempted from  the sales tax, as reflected  on page 5, line  31, and                                                            
page 6, line 1, in Sec. 43.44.020(5) in Section 17.                                                                             
                                                                                                                                
Senator Dyson  referenced Sec. 43.44.020 (11) pertaining  to natural                                                            
resources  and  commented  the  language  is  not  "exhaustive".  He                                                            
suggested that  cultural products  and commercial gathering  of wild                                                            
berries should not be excluded from the sales tax.                                                                              
                                                                                                                                
Senator B. Stevens indicated he would review the matter.                                                                        
                                                                                                                                
Senator B.  Stevens characterized  the language added in  subsection                                                            
(f) to Sec. 43.44.030.  Collection of sales and use tax., in Section                                                            
17 on  page 7 lines  18 - 21  as a bundling  clause, explaining  the                                                            
maximum tax  amount would be based  on an invoice total rather  than                                                            
individual items.                                                                                                               
                                                                                                                                
Senator  B. Stevens  suggested the  Committee  adopt this  committee                                                            
substitute,  to allow the  Department of  Revenue to prepare  fiscal                                                            
notes  reflecting the  recent  version. He  informed  that he  would                                                            
continue developing  this legislation and that another  update would                                                            
be presented the following week.                                                                                                
                                                                                                                                
Co-Chair  Wilken  removed  his  objection  to the  adoption  of  the                                                            
committee substitute.                                                                                                           
                                                                                                                                
Senator Olson asked the  reason that tax liability would be deferred                                                            
until a business' liability reached $250.                                                                                       
                                                                                                                                
Senator B.  Stevens replied this resulted  from discussions  held on                                                            
this  proposal  during  Senate Finance  Committee  meetings  on  the                                                            
Conference  of  Alaskans proposals.  He  detailed  that  if a  small                                                            
vendor does  not have significant  tax liability,  payment  would be                                                            
deferred until the next tax quarter.                                                                                            
                                                                                                                                
Without objection the committee substitute was ADOPTED.                                                                         
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                
                                                                                                                                
     SENATE BILL NO. 306                                                                                                        
     "An Act relating to the practice of naturopathic medicine; and                                                             
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
This was the first hearing for this bill in the Senate Finance                                                                  
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken  stated this bill,  "updates current law  pertaining                                                            
to the practice  of naturopathic medicine.  This legislation  allows                                                            
for the  performing of minor  surgery and  prescribing of drugs  and                                                            
controlled substances previously prohibited."                                                                                   
                                                                                                                                
SENATOR RALPH SEEKINS, Sponsor, read his testimony into the record                                                              
as follows.                                                                                                                     
                                                                                                                                
     The proposed legislation  updates current law pertaining to the                                                            
     practice  of  naturopathic  medicine.  In  so  doing,  Alaskans                                                            
     accessibility to safe,  comprehensive, high quality health care                                                            
     services would be significantly enhanced.                                                                                  
                                                                                                                                
     The key elements of  this legislation include one: safeguarding                                                            
     Alaskan's  use  of  naturopathic   medicine.  By  ensuring  the                                                            
     highest  quality care possible  from licensed well-trained  and                                                            
     professionally   examined  naturopathic   practitioners.   Two:                                                            
     mandating    continuing    education    requirements    whereby                                                            
     practitioners  are subject to a State and national  examination                                                            
     process.  Three:  establishment   of a  scope  of  practice  to                                                            
     include  the use of natural substances,  homeopathic  medicine,                                                            
     dietary, nutritional,  health counseling, minor surgery and all                                                            
     necessary  diagnostic  and imaging studies.  Four: prescribing                                                             
     prescriptive    rights   authority   to   those   naturopathic                                                             
     practitioners  earning licensure. And five: establishment  of a                                                            
     qualified trade association  of naturopathic physicians to work                                                            
     with  the  Division  of  Occupational   Licensing  towards  the                                                            
     implementation  of  regulations  requiring specific  State  and                                                            
     federal examinations and licensure requirements.                                                                           
                                                                                                                                
     Like  allopathic  physicians  naturopathic  physicians  undergo                                                            
     four   years  of  undergraduate,   pre-professional   training,                                                            
     followed   by   an   intensive   four-year   doctoral   program                                                            
     emphasizing  both  academic  and clinical  studies  within  the                                                            
     scope  of primary care. Therefore  its important that  the laws                                                            
     in  Alaska that govern  the practice  of naturopathic  medicine                                                            
     reflect  the  high  quality  of  education  that  naturopathic                                                             
     physicians receive.                                                                                                        
                                                                                                                                
     The practice  of naturopathic  medicine was licensed  in Alaska                                                            
     17  years ago.  It's now  time to  revisit  these statutes  and                                                            
     apply  a fresh  coat of paint  where needed,  and the  proposed                                                            
      legislation neatly accomplishes this necessary purpose.                                                                   
                                                                                                                                
     Finally,   it  may  be  of  interest   to  note  that   similar                                                            
     legislation currently exists in 14 other states.                                                                           
                                                                                                                                
Senator  Seekins  proposed   an  amendment  to  the  bill  to  limit                                                            
prescription rights to  those drugs categorized as Schedule III, IV,                                                            
and V.                                                                                                                          
                                                                                                                                
Co-Chair Wilken  requested the proposed  amendment in written  form.                                                            
                                                                                                                                
Senator  Bunde  relayed  his  past  experience  with  the  field  of                                                            
naturopathic medicine  in which practitioners are  often critical of                                                            
traditional medicine  and "artificial treatment".  He questioned the                                                            
desire  of  these  critics  now  requesting  authority  to  dispense                                                            
traditional  medicine. He asked if  utilizing traditional  medicines                                                            
would undermine the naturopathic principle.                                                                                     
                                                                                                                                
Senator Seekins  deferred the question  to experts in the  field. He                                                            
commented that he never  discouraged enlightenment. He disputed that                                                            
naturopathic medicine has  no value, given the thousands of Alaskans                                                            
who believe  in its  benefits. However,  neither  was he willing  to                                                            
stop seeking medical care from his traditional physicians.                                                                      
                                                                                                                                
Senator  Dyson  disagreed with  the  generalization  of naturopaths                                                             
disregarding  the necessity  of traditional  medicines, saying  that                                                            
it, like  most generalizations  are inaccurate.  The naturopaths  he                                                            
knew are  enlightened and  not disparaging  of any medicine  that is                                                            
effective, including prescription medicine.                                                                                     
                                                                                                                                
Amendment #1: This amendment  changes language in Section 11 on page                                                            
5, lines 16  and 17, adding Sec. 08.45.120.  Authorized activities;                                                             
use of  titles.  The amended  language  of subsection  (4) reads  as                                                            
follows.                                                                                                                        
                                                                                                                                
                (4) after becoming registered with the federal Drug                                                             
     Enforcement Administration, prescribe only those controlled                                                                
     substances allowed under Schedules III, IV and V;                                                                          
                                                                                                                                
Senator Dyson moved for adoption.                                                                                               
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Senator  Seekins explained  the classification  of various  types of                                                            
scheduled  medicines.   He relayed   that  most  objections  to  the                                                            
granting of  authority to naturopaths  to prescribe medications  has                                                            
been related  to those medications  classified as Schedule  I or II.                                                            
In talking  with naturopaths, he learned  they are willing  to limit                                                            
their authority to Schedule III, IV and V medications.                                                                          
                                                                                                                                
Senator  Olson  further   explained  that  Schedule   II  drugs  are                                                            
considered   addictive,  not   only  for   patients  but  also   for                                                            
physicians. He  stated that Schedule I drugs are not  used for their                                                            
medical  benefits,  such  as heroin.  Schedule  II  medications,  he                                                            
stated, includes  other narcotics and stimulants,  including cocaine                                                            
and morphine.  He said Schedule III  drugs include other  narcotics,                                                            
Schedule  IV includes Valium,  and Schedule  V medications  have the                                                            
lowest  abuse potential,  usually no  more addictive  than over  the                                                            
counter drugs might be.                                                                                                         
                                                                                                                                
Senator  Olson   expressed  concern   about  granting  prescription                                                             
authority to naturopathic  doctors. He pointed out  that in addition                                                            
to addictive  qualities  of certain  drugs, many  drugs could  cause                                                            
severe  allergic  reactions  and must  be  carefully  monitored.  He                                                            
wanted  more information   on how  the naturopaths  would  be  self-                                                            
regulated to avoid drug  addictions and abuse. He recalled abuse and                                                            
addictions that  occurred in the United States during  the 1800s and                                                            
the  subsequent  adoption   of  the  Harrison  Act  in  1914,  which                                                            
instituted the federal drug enforcement agency.                                                                                 
                                                                                                                                
Senator  Bunde  asked  the  schedule  classification   of  the  drug                                                            
oxycontin, which has been abused.                                                                                               
                                                                                                                                
Senator Olson and Senator  Seekins replied it is a Schedule II drug.                                                            
                                                                                                                                
Senator  Seekins pointed  out that  a nurse  practitioner with  less                                                            
educational   background  than  a   naturopathic  practitioner   has                                                            
authority to  issue Schedule II and  higher, prescription  drugs. He                                                            
noted this amendment would  grant authority to naturopaths less than                                                            
that granted to nurse practitioners.                                                                                            
                                                                                                                                
Senator  Olson  stated that  only  medical  doctors and  doctors  of                                                            
allopathy are allowed to  prescribe Schedule II and higher drugs. He                                                            
remarked that  only experimental researchers  are allowed  access to                                                            
Schedule I drugs.                                                                                                               
                                                                                                                                
Senator Seekins  reiterated  that Schedule  I drugs usually  have no                                                            
medical uses.                                                                                                                   
                                                                                                                                
Without objection and the amendment was ADOPTED.                                                                                
                                                                                                                                
CATHERINE WRIGHT  testified via teleconference from  Mat-Su that she                                                            
and  her  family  utilize  naturopathic   care.  She  described  the                                                            
improvement  to her  personal  health in  the seven  to eight  years                                                            
since  she began  treatment  by  a naturopathic  doctor  with  fewer                                                            
missed workdays, and less  need for prescription medicine. She spoke                                                            
to her trust in naturopathic caregivers.                                                                                        
                                                                                                                                
Senator  Olson asked  why, since  the witness  has  "lost faith"  in                                                            
traditional  medical providers, she  supports granting authority  to                                                            
naturopaths to issue prescription medicine.                                                                                     
                                                                                                                                
Ms. Wright  clarified  that she has  not lost  faith in traditional                                                             
medical  care, but  rather that  her health  has  improved with  the                                                            
combination  of both types  of care. She  emphasized that she  still                                                            
receives traditional  medical care  when illness requires  treatment                                                            
with prescription medication.                                                                                                   
                                                                                                                                
CLYDE JENSEN,  PhD, medical educator and researcher,  testified that                                                            
he has traveled  to Juneau from Portland, Oregon at  his own expense                                                            
due to the  interest he has in the  integration of conventional  and                                                            
complementary  medicine. He told of the doctorate  of physiology and                                                            
pharmacology  he holds  from  the University  of  North Dakota,  his                                                            
positions as a faculty  member of a conventional medical school, and                                                            
a  medical school  administrator  and  noted he  is  the only  known                                                            
medical   educator  to   have  served   in  both   traditional   and                                                            
naturopathic fields of medicine.                                                                                                
                                                                                                                                
Dr. Jensen  indicated  he would  address four  questions related  to                                                            
this  legislation:  are  all  naturopaths  the same;  how  does  the                                                            
training  of naturopathic  physicians  compare  to  that of  medical                                                            
doctors  and  doctors  of  allopathy;  are  naturopaths   adequately                                                            
trained  to prescribe  medicines;  and, are  naturopaths  adequately                                                            
trained to perform minor surgery.                                                                                               
                                                                                                                                
Dr. Jensen remarked  that not all naturopaths are  trained the same.                                                            
Many states, he said, allow  anyone to use the name "naturopath" and                                                            
that those  who chose  to use natural  methods  to treat illness  or                                                            
disease in these jurisdictions  could adopt the title of naturopath.                                                            
However,  he noted that  Alaska regulates  naturopaths and  requires                                                            
certain training.  He surmised that  opposition to this legislation                                                             
could be  based on the  assumption that  untrained caregivers  could                                                            
claim to be naturopaths.                                                                                                        
                                                                                                                                
Dr.  Jensen  then compared  the  training  received  by traditional                                                             
physicians and  naturopaths. He noted that Alaska  statute prohibits                                                            
naturopaths  to be called  physicians, although  this is allowed  in                                                            
other states that regulate  naturopaths and that he is accustomed to                                                            
referring  to trained  naturopaths  as  doctors. He  described  four                                                            
linear steps  of naturopathic and  traditional medical training.  He                                                            
stated  that  the   premedical  education  of  four  years   college                                                            
education  and a  bachelor  degree required  for  admittance into  a                                                            
naturopathic  education  program  is  virtually  identical  to  that                                                            
required for admittance  into a medical doctor education program. He                                                            
furthered  that the  first two  years of preclinical  basic  science                                                            
education  is  similar  for  both fields  and  includes  courses  in                                                            
anatomy,  physiology,  histology,  microbiology,  biochemistry,  and                                                            
pharmacology. He assured  that the basic sciences courses taught for                                                            
naturopathic medicine are  of the same duration, of the same content                                                            
and are delivered in the  same "intensity". He qualified that he has                                                            
taught pharmacology  in each of the  three types of medical  schools                                                            
and that  he utilizes  the same  lecture notes  for each course.  He                                                            
also observed  that medical institutions  employ more professors  in                                                            
each department  who are  engaged primarily  in research  activities                                                            
and therefore,  may be more familiar with recent research  findings.                                                            
However,  he  attested  he  has  experienced   some  of  the  finest                                                            
instruction   at   naturopathic   educational    institutions   from                                                            
professors devoted full-time to teaching.                                                                                       
                                                                                                                                
Dr.   Jensen  continued   in  detailing   the   clinical   education                                                            
requirements that usually  occur during the third and fourth year of                                                            
medical school,  in which  students are exposed  to patients  and to                                                            
diagnostic and  therapeutic modalities consistent  with professional                                                            
practices.   He   commented   the  differences   in   training   for                                                            
naturopathic and  traditional medical students are  more significant                                                            
during  this portion  of schooling.  He explained  that traditional                                                             
medical  clinical   training  mostly  occurs  in  hospitals,   which                                                            
provides students with  the benefit of treating a high percentage of                                                            
sick  patients with  a broad  scope of  illnesses  and injuries.  By                                                            
contrast,  he stated  that  naturopathy  is practiced  primarily  in                                                            
outpatient  facilities,   and  subsequently  naturopathic   clinical                                                            
education is  mostly conducted in  outpatient settings. He  informed                                                            
that naturopathic  students are supervised by a naturopathic  doctor                                                            
and receive more training  in areas of nutrition, botanical medicine                                                            
and  physical   medicine,  and  less   training  with  prescription                                                             
medicines than traditional medicine students.                                                                                   
                                                                                                                                
Dr.  Jensen   concluded  with  the   graduate  portion  of   medical                                                            
education.  He stated that  medical doctors  upon earning a  medical                                                            
degree are  required in virtually  all jurisdictions to practice  at                                                            
least one year  in an internship program. In naturopathic  medicine,                                                            
he noted,  this is called  a rotation, and  is only available  for a                                                            
limited  number  of  graduates.  He  detailed  the  federal  funding                                                            
available  through Medicare  programs to  fund internship  programs,                                                            
which is  unavailable for  naturopathic rotations.  He assured  that                                                            
opportunities for rotations are increasing.                                                                                     
                                                                                                                                
Dr. Jensen  next addressed the question  of whether naturopaths  are                                                            
adequately trained  to prescribe drugs. He reported  that of the 200                                                            
most commonly  prescribed  medications,  42 percent  are of  natural                                                            
origin of  compounds naturopaths  currently  prescribe. He  stressed                                                            
that naturopaths are specifically  trained to administer these types                                                            
of drugs. He stated that  naturopathic physicians are likely to have                                                            
more training  with some  drugs. He qualified  that naturopaths  are                                                            
likely to  have less training  in administering  non-natural  drugs,                                                            
including controlled substances.                                                                                                
                                                                                                                                
                                                                                                                                
SFC 04 # 57, Side B 10:48 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Dr.  Jensen continued  that  most naturopaths  have  no application                                                             
training  for  controlled substances,  although  they  receive  some                                                            
basic training in the effects of these drugs.                                                                                   
                                                                                                                                
Dr. Jensen  spoke to  the ability  of naturopaths  to perform  minor                                                            
surgical  procedures. He  assured  that the procedures  proposed  in                                                            
this  legislation  "easily  falls  into" the  training  received  by                                                            
educated  naturopaths.   He  described  the  training   provided  to                                                            
instruct students  on suturing superficial lesions,  removing warts,                                                            
and  superficial   dermatological   procedures.  He  stressed   that                                                            
naturopaths  are  more  than adequately  trained  to  perform  minor                                                            
surgery.                                                                                                                        
                                                                                                                                
Senator  Bunde  pointed  to  limited  opportunities   for  receiving                                                            
continuing  education   in the  State.   He asked   whether  Alaskan                                                            
naturopaths  would  be required  to  relocate to  attend  continuing                                                            
education  courses  or  whether  these  requirements  could  be  met                                                            
through long-distance education.                                                                                                
                                                                                                                                
Dr.  Jensen clarified  between  continuing  education  and  graduate                                                            
education. Continuing  education, he noted is required  of all three                                                            
types  of physicians.   He surmised  that  if  the state  of  Alaska                                                            
mandated   45  hours  bi-annually   of   continuing  education   for                                                            
naturopath physicians,  such education could be received in the form                                                            
of   attending   lectures,   and   shadowing   other   health   care                                                            
professionals.  He was confident that  as the naturopath  profession                                                            
continues  to  emerge,  standards  for  continuing  education  would                                                            
mirror that required for other medical professions.                                                                             
                                                                                                                                
Senator  Bunde   asked  how  the   continuing  education   would  be                                                            
monitored,  whether by a board of  naturopathic practitioners  or by                                                            
the State.                                                                                                                      
                                                                                                                                
Senator  Seekins  replied the  Division  of  Occupational  Licensing                                                            
would determine  this. He noted that at least 15 hours  of education                                                            
must be in the area of pharmacology instruction.                                                                                
                                                                                                                                
Senator  Olson relayed that  continuing  education requirements  for                                                            
medical doctors and doctors  of allopathy are established in statute                                                            
and  approved.   He   stated  that   physicians   must  meet   these                                                            
requirements  every three  years, which does  not over encumber  the                                                            
Division. He  noted this legislation  would require a higher  number                                                            
of required training hours for naturopath physicians.                                                                           
                                                                                                                                
Senator  Bunde  commented  this legislation   is not  "breaking  new                                                            
ground"  but rather  following  guidelines established  for  medical                                                            
doctors,  as the  goal is  to require  naturopaths  to meet  similar                                                            
standards required  of medical doctors.  He surmised that  a medical                                                            
doctor could  become qualified  and practice  naturopathic  medicine                                                            
upon completion of continuing education training.                                                                               
                                                                                                                                
Senator Seekins  clarified that use of the term "naturopathy"  would                                                            
be  somewhat  harder  to  justify  without   some  training  in  the                                                            
naturopathic medicine.  He deferred to the Division  of Occupational                                                            
Licensing  to determine how  the term would  be defined and  its use                                                            
restricted.                                                                                                                     
                                                                                                                                
Senator  Olson pointed  out that  licensure of  medical doctors  and                                                            
doctors  of  allopathy,  specifies  the  practice  of  medicine  and                                                            
surgeries and contains no restrictions.                                                                                         
                                                                                                                                
JASON  HARMON,  Naturopathic  Doctor,  and  Vice  President,  Alaska                                                            
Association of  Naturopathic Physicians, Inc., testified  to medical                                                            
doctors who have  undertaken additional schooling  at a naturopathic                                                            
medical institution to  obtain a "duel degree". He informed that the                                                            
Division  of Occupational  Licensing requires  graduation from  both                                                            
programs  as well as passage  of examinations  for both traditional                                                             
and naturopathic  medicine  to be licensed  as a medical doctor  and                                                            
naturopathic practitioner.                                                                                                      
                                                                                                                                
Senator   B.   Stevens  referenced   Appendix   D:   Comparison   of                                                            
Naturopathic   Governance  in  Licensed   States,  to  the   report,                                                            
"Assuring Safe  Naturopathic Medical Practices for  Alaskans" by the                                                            
Alaska Association  of Naturopathic  Physicians, Inc. He  noted that                                                            
the state  of Arizona  grants naturopaths  full prescriptive  rights                                                            
and that most  of the other states  that regulate naturopathy  grant                                                            
"drug formulary".  He asked for a comparison of these  states to the                                                            
authority this legislation would provide.                                                                                       
                                                                                                                                
Senator  Seekins reiterated  that naturopaths  in Alaska would  have                                                            
full prescription  rights for all  drugs except those classified  as                                                            
Schedule I or II.                                                                                                               
                                                                                                                                
Senator B. Stevens asked  the definition of drug formulary. He noted                                                            
that the scope  of practice granted  to naturopaths in Alaska  would                                                            
no longer  prohibit  minor surgery  and asked if  any other  changes                                                            
would occur.                                                                                                                    
                                                                                                                                
Senator Seekins  replied that the existing stipulation  providing no                                                            
right  to laboratory  tests and  diagnostic tests  would likely  not                                                            
change.                                                                                                                         
                                                                                                                                
This was verified to be correct.                                                                                                
                                                                                                                                
Senator B. Stevens asked  for further explanation of drug formulary.                                                            
                                                                                                                                
Dr. Jensen  explained that  drug formulary  is a definitive  list of                                                            
drugs that naturopathic  physicians are authorized  to prescribe. He                                                            
noted that  the number of drugs included  in this list increases  as                                                            
new  drugs  are  developed  and  the  need  for  existing  drugs  is                                                            
justified.  He clarified that  drug formulas  not a contrivance  for                                                            
naturopathic  practice,   but are  instead   commonly  utilized  for                                                            
managed care providers.                                                                                                         
                                                                                                                                
Co-Chair Green  asked if statutory  change is required each  time an                                                            
additional drug is authorized in the drug formulary.                                                                            
                                                                                                                                
Dr. Jensen  responded that statutory  change is not required  in the                                                            
states  he is familiar.  Instead, he  told of  the board and  public                                                            
hearing processes utilized.                                                                                                     
                                                                                                                                
Co-Chair Wilken  understood that statutory change  would be required                                                            
in Alaska.                                                                                                                      
                                                                                                                                
UNIDENTIFIED  SPEAKER clarified  that the state  of Alaska  does not                                                            
operate with a drug formulary.                                                                                                  
                                                                                                                                
Co-Chair  Green suggested  a  drug formulary  could  be adopted  and                                                            
asked the drugs  and corresponding  schedules are usually  included.                                                            
                                                                                                                                
Dr. Jensen  replied  that the  drugs and  the schedule  levels  vary                                                            
significantly among the different jurisdictions.                                                                                
                                                                                                                                
Dr. Jensen  listed  his education  and professional  credentials  at                                                            
Senator  Olson's   request  as  follows:  undergraduate   degree  in                                                            
zoology,  Masters degree  in physiology,  PhD  in pharmacology;  his                                                            
first  position  was  as an  assistant  professor  at  the  Oklahoma                                                            
College  of  Osteopathic  Medicine  and  Surgery,  was  one  of  the                                                            
founding  faculty  and president  of  the  West Virginia  School  of                                                            
Osteopathic  Medicine. He  noted his position  at the West  Virginia                                                            
facility was at a time  when that state could not afford to fund all                                                            
three  of its medical  schools.  He stated  he was  hired to  either                                                            
identify  alternative methods  to allow operation  of the school  to                                                            
continue or to preside  over its closure. He remarked he was able to                                                            
implement continued  operations and subsequently "became  known as a                                                            
turn around  person for medical schools."   After this position,  he                                                            
held  a  number  of  positions  at  schools  offering  osteopathic,                                                             
allopathic,  naturopathic, and oriental  medicine programs  with the                                                            
charge of reviving troubled programs.                                                                                           
                                                                                                                                
Senator  Olson  clarified  the  witness  has  no  medical  doctorate                                                            
degree.                                                                                                                         
                                                                                                                                
Dr.  Jensen replied  that  although  he was  admitted  to a  medical                                                            
school,  he opted  to obtain  a PhD to  better achieve  his goal  of                                                            
becoming a medical researcher  and educator. He affirmed he holds no                                                            
medical doctorate degree.                                                                                                       
                                                                                                                                
Senator Olson cited the  definition of "naturopathy" and "healing in                                                            
the use of  physical defects" provided  in medical dictionaries.  He                                                            
asked that  because naturopathy care  is primarily based  on the use                                                            
of botanical  remedies,  why pharmacology  courses  are included  in                                                            
naturopath education programs.                                                                                                  
                                                                                                                                
Dr. Jensen replied  that many patients seeking care  from naturopath                                                            
physicians are currently  taking prescribed drugs. He furthered that                                                            
as  the   pharmaceutical   industry  has   incorporated   additional                                                            
products,  many of those  products were those  in which naturopaths                                                             
were trained to use as botanicals or nutrients.                                                                                 
                                                                                                                                
Senator   Olson  surmised   that   naturopathic   students   receive                                                            
pharmacology training was  not primarily with the intent of teaching                                                            
these students  how to prescribe the drugs, but rather  for exposure                                                            
to  potential  effects of  drugs  their patients  could  already  be                                                            
taking.                                                                                                                         
                                                                                                                                
Dr. Jensen agreed  this would be the reason in earlier  years of the                                                            
profession. He added that  the ability to distinguish between a drug                                                            
and a botanical herb has become more difficult.                                                                                 
                                                                                                                                
Senator  Olson   noted  that  allopathic   post-graduate   residency                                                            
programs have an emphasis  in prescription medicines. He pointed out                                                            
that a traditional  medical doctor could not become  licensed before                                                            
receiving two years in  residency training, but understood that this                                                            
training is not available for naturopaths.                                                                                      
                                                                                                                                
Dr. Jensen  affirmed and explained  that because residency  training                                                            
is unavailable,  naturopaths could  become licensed upon  completion                                                            
of their degree.                                                                                                                
                                                                                                                                
Senator Olson  told of the standardized  medical board examination,                                                             
of which  much of  the questioning  is related  to pharmacology.  He                                                            
remarked  that many medical  doctors  fail to pass  the exam  on the                                                            
first attempt,  and several  are never able  to pass. He  questioned                                                            
how  a naturopath   would perform  on  the  examination,  given  the                                                            
absence of residency experience.                                                                                                
                                                                                                                                
Dr. Jensen  expressed that  he would prefer  that "part one"  of the                                                            
United  States   Medical  Licensure   Examination  be  required   of                                                            
naturopaths,  however  this  is not  allowed.  Instead,  he  stated,                                                            
naturopaths  are administered the  Naturopathic Physician  Licensing                                                            
Examination,  which is  comparable. He  noted that  part two  of the                                                            
naturopath  board   examination  differs  from  the   medical  board                                                            
examination  counterpart   in  that  it  has  a  greater   focus  on                                                            
nutritional  and  nutrition,  botanical  medicine  and  other  areas                                                            
"foreign"  to allopathic medicine.  He added  that this process  has                                                            
begun and informed that  the state of Utah passed a Naturopathic Act                                                            
in 1995, which requires one year of residency training.                                                                         
                                                                                                                                
TOM GOODE testified  via teleconference  from Homer in favor  of the                                                            
bill. He cited the 100,000  deaths that occur in hospitals each year                                                            
as a  result of  adverse  drug reactions,  and attested  that  drugs                                                            
should not be  the only options available to patients.  He supported                                                            
treatment in conjunction  with nutrition and other therapy. He spoke                                                            
to  hostility   traditional  medical   doctors  demonstrate   toward                                                            
alternative health  care practices. He noted this  legislation would                                                            
provide  Alaskans with 30  additional primary  physicians to  choose                                                            
from.                                                                                                                           
                                                                                                                                
Senator Olson  asked why the witness supports granting  prescription                                                            
authority to additional  care providers, suspecting that more deaths                                                            
would occur.                                                                                                                    
                                                                                                                                
Mr. Goode  disagreed  and asserted  that sometimes  drug therapy  is                                                            
necessary.                                                                                                                      
                                                                                                                                
LYNN HORNBEIN,  family physician, testified via teleconference  from                                                            
Anchorage  as a conventional  doctor  in support  of this bill.  She                                                            
told of  her experiences  working  in conjunction  with naturopaths                                                             
during the  past five to  six years after  receiving referrals  from                                                            
naturopathic  physicians for their  patients requiring prescription                                                             
medications. She remarked  upon the difficulty many patients have in                                                            
visiting  two doctors,  including  the time,  expense,  and need  to                                                            
confide personal  information to another  physician. She  stated she                                                            
has a significant  waiting  list for new  patients and the  hardship                                                            
caused from  accepting new patients  with an existing care  provider                                                            
for the  sole purpose of  prescribing medication.  She talked  about                                                            
the ability of naturopaths to perform minor surgeries.                                                                          
                                                                                                                                
JEAN   BROOKING,   patient   of   Dr.   Hornbein,    testified   via                                                            
teleconference  from Anchorage that  she received naturopathic  care                                                            
before the costs were covered  by health insurance. She told how her                                                            
naturopathic  physician  earned  a  nurse  practitioner  license  to                                                            
obtain the ability to prescribe  drugs when necessary. She described                                                            
an illness her daughter  suffered, which the specialists at Virginia                                                            
Mason hospital were unable  to diagnose. Ms. Brookings reported that                                                            
a naturopath was  able to correctly diagnose and treat  the ailment.                                                            
                                                                                                                                
MADELAINE MORRISON-YOUNG,  physician,  testified via teleconference                                                             
from Anchorage  on behalf of herself and Dr. Mary  Miner in favor of                                                            
this bill.                                                                                                                      
                                                                                                                                
Senator Olson  noted that anesthesia  is required in minor  surgery,                                                            
and are often delivered  through fast acting intravenous medications                                                            
and inhalants.  He asked  what forms would  be permitted under  this                                                            
legislation.                                                                                                                    
                                                                                                                                
Dr. Jensen  informed that naturopath  physicians are trained  to use                                                            
anesthesia  for  local  use,  and are  also  trained  to  administer                                                            
intravenous vitamin therapy.  He expected that training in this area                                                            
would   constantly   expand  as   the   "scope  of   education   and                                                            
scholarliness  of practitioners expands."  He anticipated  the issue                                                            
would be revisited in 15 years as advances continue.                                                                            
                                                                                                                                
Senator  Olson   clarified  that   naturopathic  practitioners   are                                                            
currently allowed to administer naturopathic intravenously.                                                                     
                                                                                                                                
Mr. Rolfzen  affirmed this  is permitted  in some jurisdictions  and                                                            
training is provided in each of the schools.                                                                                    
                                                                                                                                
Senator Olson posed the  scenario of a patient's adverse reaction to                                                            
anesthesia  and the  lack of access  to emergency  medical care.  He                                                            
expressed concern that  adequate emergency care may not be available                                                            
in this situation.                                                                                                              
                                                                                                                                
Dr. Jensen indicated he  would "share that discomfort as well" if he                                                            
didn't  have access  to certain  drugs  used to  treat adverse  drug                                                            
reactions and  other prescription  drugs. He stated this  would be a                                                            
question for the practitioner to determine.                                                                                     
                                                                                                                                
Senator  Olson questioned  the reference  to  homeopath health  care                                                            
providers in the sponsor's testimony on the bill.                                                                               
                                                                                                                                
Senator Seekins  clarified if he did  include homeopathic  providers                                                            
in his testimony  it was in error  and that the intent is  this bill                                                            
only apply to naturopaths.                                                                                                      
                                                                                                                                
Dr.  Harmon   relayed  his  education   experience  at  the   Bastyr                                                            
University  in Seattle, Washington  and his four and one-half  years                                                            
of practicing naturopathic  medicine in Anchorage.  He asserted that                                                            
creating   teams  of   health  care   providers   is  an   important                                                            
accomplishment  that provides significant  benefits to patients.  He                                                            
declared  that  he does  not  oppose medicine,  but  rather  prefers                                                            
noninvasive treatment  when possible and he informed  that he serves                                                            
as  a resource  for  other  medical  doctors  on these  matters.  He                                                            
assured  that the  issue is  allowing  naturopaths  to better  serve                                                            
their  patients,  as  opposed  to  expanding  practices.  He  stated                                                            
naturopathy  is  a viable  option  for health  care  in rural  areas                                                            
unless the provider  is unable to dispense prescription  medication,                                                            
such as those  needed to treat hypertension. He commented  that most                                                            
medical doctors  are unaware of the  level of education naturopaths                                                             
receive.  He concluded  that both  naturopaths  and medical  doctors                                                            
have the ability to learn  from each other, with Alaskans benefiting                                                            
from these collaborations.                                                                                                      
                                                                                                                                
Co-Chair Wilken noted the  need to discuss self-regulation. He asked                                                            
that other concerns with this legislation be relayed to him.                                                                    
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in committee.                                                                             
                                                                                                                                
                                                                                                                                
     SPONSOR SUBSTITUTE FOR SENATE BILL NO. 35                                                                                  
     "An  Act  making appropriations   for the  operating  and  loan                                                            
     program  expenses of  state government,  for certain  programs,                                                            
     and to capitalize  funds; making appropriations  under art. IX,                                                            
     sec.  17(c), Constitution  of  the State  of  Alaska, from  the                                                            
     constitutional   budget reserve  fund;  and  providing  for  an                                                            
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This was  the second  hearing for  this bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Green moved for  adoption of CS SS SB 35, 23-GS1002\X, as a                                                            
working document.                                                                                                               
                                                                                                                                
The committee  substitute was ADOPTED as a working  document without                                                            
objection.                                                                                                                      
                                                                                                                                
Amendment #1: This amendment  deletes, "described and in the amounts                                                            
and  order  of  priority   set  out  in  the  department's   capital                                                            
improvement  projects (FY 2005) major  maintenance grant  fund final                                                            
agency  decision, dated  March  16, 2004."  from  subsection (b)  of                                                            
Section  4.  DEPARTMENT  OF  EDUCATION  AND  EARLY  DEVELOPMENT  AND                                                            
UNIVERSITY  OF ALASKA.  on page  4, lines  28 - 30  and inserts  new                                                            
language to read as follows.                                                                                                    
                                                                                                                                
          (b) If, and only if, each of the appropriations made in                                                               
     sec.  3(a),  (b),  (c),  and  (d)  of this  Act  pass  upon  an                                                            
     affirmative  vote of at least  three-fourths of the  members of                                                            
     each  house of the legislature  and subject  to sec. 5  of this                                                            
     Act,  the sum of $7,400,000  is appropriated  from the  general                                                            
     fund  to the major  maintenance grant  fund (AS 14.11.007)  for                                                            
     payment  as grants  by the  Department of  Education and  Early                                                            
     Development  to the  school districts  listed for the  projects                                                            
     described in the amounts set out:                                                                                          
                                                                                                                                
          SCHOOL DISTRICT      PROJECT                      ALLOCATION                                                          
          (1)Iditarod Area     Blackwell School new        $   90,179                                                           
                                 well, Anvik                                                                                    
          (2)Copper River      Glennallen Elementary        2,053,591                                                           
                                 School exterior                                                                                
                                 upgrade                                                                                        
          (3)Yukon-Koyukuk     Nulato  structural roof        812,850                                                           
                                 repair                                                                                         
          (4)Nenana City       Nenana boiler replacement/   373,737                                                             
                      heating system upgrade                                                                                    
          (5)Alaska  Gateway   Tetlin  School site civil     217,794                                                            
                                 improvements                                                                                   
          (6)Yukon-Koyukuk     Allakaket  renovate water/    297,846                                                            
                                 sewer facility                                                                                 
          (7)Saint Mary's      Elicavicuar Elementary         436,769                                                           
                                 exterior upgrades                                                                              
          (8)Kake City         Kake Elementary                354,626                                                           
                                 ventilation system                                                                             
                                 upgrade                                                                                        
          (9)Alaska  Gateway   Tetlin  School building        855,840                                                           
                                 improvements                                                                                   
          (10)Iditarod Area    David Lewis Memorial           176,525                                                           
                                 School emergency                                                                               
                                 repairs and boiler                                                                             
                                 relocation, Grayling                                                                           
          (11)Iditarod Area    Top of the Kuskokwim           170,030                                                           
                                 School boiler                                                                                  
                                 replacement, Nikolai                                                                           
          (12)Iditarod  Area   Innoko  River School tank      242,091                                                           
                                 farm pipeline and                                                                              
                                 remediation, Shageluk                                                                          
          (13)Iditarod Area    Holy Cross School              174,205                                                           
                                 vocational education                                                                           
                                 shop upgrade                                                                                   
          (14)Yukon-Koyukuk    Allakaket restroom             305,625                                                           
                                 renovation                                                                                     
          (15)Saint  Mary's    Andreafski  High School        170,911                                                           
                                 code upgrades                                                                                  
          (16)Annette  Island  Annette  Island schools        667,381                                                           
                                 security/safety and                                                                            
                                 major maintenance                                                                              
                                 upgrades                                                                                       
                                                                                                                                
Co-Chair Green moved for adoption.                                                                                              
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
Co-Chair Green  moved to amend the  amendment to correct  a spelling                                                            
error in subsection  (10). The amended language reads,  "David Louis                                                            
Memorial School"                                                                                                                
                                                                                                                                
Without objection the amendment was AMENDED.                                                                                    
                                                                                                                                
There was no objection and the amended amendment was ADOPTED.                                                                   
                                                                                                                                
Co-Chair Wilken  highlighted the changes  included in the  amendment                                                            
and the committee  substitute. He noted the title  change to include                                                            
"grants for costs  of school major maintenance" and  "appropriations                                                            
for facilities  in the Bering Strait School District  to provide for                                                            
bank stabilization at Shishmaref".                                                                                              
                                                                                                                                
Co-Chair  Wilken   explained  that   Section  1  of  the   committee                                                            
substitute includes the  provisions of the Governor's proposed FY 05                                                            
K-12  education budget  and reflects  a  change in  the per  student                                                            
funding  to $4,576. Section  2, Co-Chair  Wilken informed,  provides                                                            
funding for  the University of Alaska  as proposed by the  Governor.                                                            
                                                                                                                                
Co-Chair  Wilken stated  that language  in Sections  3 and 4  of the                                                            
committee  substitute  allow  access to  the  Constitutional  Budget                                                            
Reserve  Fund for  FY 04  and FY  05 budgets.  He  pointed out  that                                                            
Section 4 is  comprised of four subsections,  the first,  subsection                                                            
(a), providing  an increased  appropriation  of $82,530,000  million                                                            
for education,  from  the Governor's  proposal.  Subsection (b),  he                                                            
continued,  allocates funds for major  maintenance grants.  He noted                                                            
that Amendment #1 is included  in this subsection and consists of 16                                                            
projects  as prioritized by  the Department  of Education and  Early                                                            
Development  on March 16, 2004. He  continued that subparagraph  (c)                                                            
is a  reappropriation  of  $450,000 for  the school  in Shishmaref,                                                             
which  would be  leveraged  to garner  a total  of  $1.6 million  to                                                            
provide  seawall protection  for  the school.  He  then stated  that                                                            
subsection  (d) appropriates  $15.8  million  to the  University  of                                                            
Alaska  to fund  the  Public Employees  Retirement  System/Teachers                                                             
Retirement System  [PERS/TRS] component, as well as  represents "the                                                            
$10 million that currently resides in the capital budget.                                                                       
                                                                                                                                
Co-Chair  Wilken then  explained  that Section  5  of the  committee                                                            
substitute  stipulates that the provisions  of Sections 1  through 4                                                            
are contingent  upon passage of an increased per student  allocation                                                            
of at least $4,576.                                                                                                             
                                                                                                                                
AT EASE 11:35 AM / 11:36 AM                                                                                                     
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in committee.                                                                             
                                                                                                                                
                                                                                                                                
SFC 04 # 58, Side A 11:36 AM                                                                                                    
                                                                                                                                
                                                                                                                                
Co-Chair Wilken concluded the meeting.                                                                                          
                                                                                                                                
Senator Dyson provided an update on efforts to compile a proposed                                                               
committee substitute to SJR 3, a resolution providing for a                                                                     
constitutional spending limit.                                                                                                  
                                                                                                                                
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Co-Chair Gary Wilken adjourned the meeting at 11:36 AM                                                                          

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