Legislature(2017 - 2018)SENATE FINANCE 532
02/05/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB4 | |
| SB37 | |
| SB126 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 37 | TELECONFERENCED | |
| + | SB 126 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 4 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
February 5, 2018
9:04 a.m.
9:04:44 AM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 9:04 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Peter Micciche
Senator Gary Stevens
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson
Senator Natasha von Imhof
ALSO PRESENT
Juli Lucky, Staff, Senator Anna MacKinnon; Sara Chambers,
Deputy Director, Division of Corporations, Business and
Professional Licensing, Community and Economic Development;
Senator Cathy Giessel, Sponsor; Jane Conway, Staff, Senator
Cathy Giessel; Janey McCullough, Director, Corporations,
Business, and Professional Licensing, Department of
Commerce, Community and Economic Development.
PRESENT VIA TELECONFERENCE
Richard Holt, Vice Chair, Alaska Board of Pharmacy, Eagle
River; Leif Holm, Chair, Alaska Board of Pharmacy, North
Pole; Barry Christensen, Legislative Co-Chair, Alaska
Pharmacy Association, Ketchikan; Derik White, Pharmacist,
Sitka; Dr. Jeffrey Moore, Physician, Orthopedic Physicians
of Alaska, Anchorage; Debora Stovern, Division of
Corporations, Business, and Professional Licensing,
Department of Commerce, Community and Economic Development.
SUMMARY
SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING
CSSS SB4(FIN) was REPORTED out of committee with
a "do pass" recommendation and with one new zero
fiscal note from Department of Environmental
Conservation, and one new fiscal note from
Department of Commerce, Community and Economic
Development.
SB 37 PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC
CSSB 37(FIN) was REPORTED out of committee with a
"do pass" recommendation and with one new fiscal
note from Department of Commerce, Community and
Economic Development.
SB 126 VISITING PHYSICIANS WITH SPORTS TEAMS
SB 126 was REPORTED out of committee with a "do
pass" recommendation and with one previously
published fiscal note: FN1(CED).
SENATE BILL NO. 4
"An Act relating to the Board of Barbers and
Hairdressers; and relating to a limited license to
practice non-chemical barbering."
9:05:42 AM
Vice-Chair Bishop MOVED to ADOPT the committee substitute
for SS SB 4, Work Draft 30-LS0078\U (Radford, 2/2/18).
Co-Chair MacKinnon OBJECTED for discussion.
9:06:08 AM
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, explained the
committee substitute. She directed committee attention to
Page 10, where language had been added in the transition
section to give the Department of Commerce, Community, and
Economic Development the authority to implement the changes
made by the bill.
9:06:55 AM
Co-Chair MacKinnon asked whether the sponsor supported the
legislation.
Senator Micciche replied in the affirmative.
9:07:25 AM
SARA CHAMBERS, DEPUTY DIRECTOR, DIVISION OF CORPORATIONS,
BUSINESS AND PROFESSIONAL LICENSING, COMMUNITY AND ECONOMIC
DEVELOPMENT, related that the CS met the need of the
division.
9:07:53 AM
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, it was so ordered.
Ms. Lucky discussed the fiscal note, which was revised but
still had no fiscal impact. She read the analysis:
The current version of the bill allows the
Department's existing regulations to be enforced by
the Board of Barbers and Hairdressers and maintains
the Department's ability to regulate and enforce
regulations pertaining to body piercing, tattooing,
and permanent cosmetic coloring.
The Department discontinued oversight of barbers,
hairdressers, manicurist, and esthetician facilities
in FY2016. Currently the Department's work is limited
to inspection of high-risk body art facilities which is
funded by a reimbursable services agreement with
DCCED. The duties and authorities are unchanged in the
proposed bill, and the result would have no fiscal
impact to the Department.
9:08:58 AM
Vice-Chair Bishop MOVED to REPORT CS SS SB 4(FIN), with
individual recommendations and accompanying fiscal notes.
CSSS SB4(FIN) was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal note from
Department of Environmental Conservation, and one new
fiscal note from Department of Commerce, Community and
Economic Development.
9:09:19 AM
AT EASE
9:10:50 AM
RECONVENED
SENATE BILL NO. 37
"An Act relating to the Board of Pharmacy; relating to
the licensing and inspection of certain facilities
located outside the state; relating to drug supply
chain security; and creating a position of executive
administrator for the Board of Pharmacy."
9:11:45 AM
SENATOR CATHY GIESSEL, SPONSOR, discussed the bill. She
noted that the bill would help the Board of Pharmacy but
assuring the safe practices of pharmacists and the safety
of medication entering the state. She offered a Sponsor
Statement:
Passage of Senate Bill 37 will create a more secure
drug supply chain by allowing for licensing and
inspection of wholesale drug distributors outside of
the state. Currently, Alaska is one of the few
remaining states that does not license out-of-state
wholesale drug distributors. With laws and regulations
varying from state to state, licensing an out-of-state
wholesale distributor can prove arduous. With this
legislation, Alaska can take action to eliminate
wholesalers looking for loopholes in the regulatory
system and ensure that out-of-state applicants seeking
licensure comply with the same regulations as Alaska
wholesalers.
This legislation is critical and necessary to bring
Alaska into compliance with the Drug Quality Security
Act (DQSA) and create a new license category for "Out-
of-State Wholesale Drug Distributors." Currently, the
Board of Pharmacy has no authority to regulate out-of-
state wholesale drug distributors or third-party
logistic providers (3PLs).
SB 37 would ensure safe delivery of controlled, non-
counterfeit medications to Alaskans. SB 37 would
require that any out-of-state wholesale drug
distributor or outsourcing facility follow specific
guidelines including obtaining a license, authorizing
inspection of the facility by a designee of the board,
and appointing an agent before shipping, mailing or
delivering prescription drugs to a licensee in the
state or advertising in the state.
Additionally, this legislation allows the Board of
Pharmacy to create a new position titled "Executive
Administrator" to serve as a liaison to the
legislative and executive branches of state
government, the media, and other state pharmacy
boards, as well as implement board statutes and
regulations, and aid in managing current licensees.
Senator Giessel stated that the fiscal note was receipt
services. She added that a recent audit had been completed
on the board, which currently had $275,000 in excess
revenues from licensing fees that would pay for the const
of the range 23 position identified in the bill.
9:16:50 AM
Co-Chair MacKinnon asked whether Alaska was the only state
that lacked the provision for out-of-state drug providers.
Senator Giessel believed that there were 4 states without
the provision.
9:17:22 AM
JANE CONWAY, STAFF, SENATOR CATHY GIESSEL, discussed the
Sectional Analysis (copy on file):
Section 1: Amends AS 08.80.030(b) by adding a new
subsection:
(14): Establishes qualifications and duties of
executive administrator. Executive administrator is
delegated authority in order to conduct board
business.
Section 2: Amends AS 08.80.030(b) by adding a new
subsection:
(15): Amends and allows licensing and inspection for
out-of-state drug distributors, third-party logistics
providers and outsourcing facilities;
Section 3: Amends AS 08.80.030 by adding a new
subsection:
AS 08.80.030(c): Specifications for facilities,
equipment, personnel, and procedures for control of
drugs in compliance with the federal Drug Supply Chain
Security Act.
Section 4: Amends AS 08.80.157 by adding a new
subsection:
(k): Requires wholesale drug distributors, third-party
logistics providers, and outsourcing facilities
outside the state under AS 08.80.159, to be licensed.
Section 5: Amends AS 08.80 by adding a new section:
Sec. 08.80.159: Requires that a wholesale drug
distributor, third party logistics provider, or
outsourcing facility have a license in Alaska before
shipping, mailing, or delivering prescription drugs to
a licensee in the state or before advertising in the
state, an agent must be appointed in the state, and a
designee of the board must authorize inspection of the
facility.
An outsourcing facility, in addition, must comply with
the federal Drug Quality and Security Act of 2013. The
board may require an inspection of facilities located
outside of the state, approve a designee to inspect.
The board shall adopt regulations to implement this
section.
Section 6: Amends AS 08.80 by adding new section to
Article 2:
Sec. 08.80.270: Allows the Board to create an
executive administrator position. Defines the role and
salary range of the executive administrator.
Section 7: Amends AS 08.80.480 by adding a new
paragraph:
AS 08.80.480(37): Defines "outsourcing facility"
AS 08.80.480(38): Defines "third party logistics
provider"
Section 8: Amends AS 39.25.120(c)(7) by adding
(Q) Board of Pharmacy
Sections 9, 10, 11:
Provides transition language and effective date
clause.
9:20:00 AM
Senator Micciche looked at Section 8. He asked about
television commercials that advertised for drugs in the
state.
Ms. Conway replied that the language was directed toward
the licensing for the wholesalers to reach out to
pharmacists to promote their drugs and not for
advertisements for drugs on television.
9:21:23 AM
RICHARD HOLT, VICE CHAIR, ALASKA BOARD OF PHARMACY, EAGLE
RIVER (via teleconference), agreed with Ms. Conway's
response.
9:21:43 AM
Mr. Holt added that the legislation had many positive
aspects. He believed that the bill would ultimately protect
the health and safety of Alaskans. He reiterated that the
bill would have no financial impact to Tribal Health
facility purchasing.
9:24:01 AM
LEIF HOLM, CHAIR, ALASKA BOARD OF PHARMACY, NORTH POLE (via
teleconference), testified in support of the legislation.
He echoed previous testimony. He stated that licensing
wholesalers in Alaska was important for the safety of
Alaskans. He said that it could be difficult for
pharmacists to know who they were doing business with and
the kinds of medications those businesses were offering. He
felt that the addition of the administrative position was
long overdue. He reiterated the non-fiscal impact of the
fiscal note.
9:28:36 AM
BARRY CHRISTENSEN, LEGISLATIVE CO-CHAIR, ALASKA PHARMACY
ASSOCIATION, KETCHIKAN (via teleconference), spoke in
strong support of the bill.
9:29:22 AM
Senator Micciche said that he had further questions for
DCCED.
9:29:33 AM
DERIK WHITE, PHARMACIST, SITKA (via teleconference),
testified in support of the legislation. He spoke of the
importance of regualtion of pharmaceutical ingredients and
storage.
9:31:26 AM
Senator Stevens asked whether the bill would affect the
many Alaskans who received their prescriptions through
Tribal Health and Veteran Associations.
Senator Geissel replied in the negative.
9:32:33 AM
Co-Chair MacKinnon CLOSED public testimony.
9:32:56 AM
Vice-Chair Bishop MOVED to ADOPT Amendment 1, 30-
LS0191\R.1, Radford, 2/2/18 (copy on file):
Page 6, line 25:
Delete "2018
Insert "2019"
Co-Chair MacKinnon OBJECTED for discussion.
9:33:06 AM
Co-Chair MacKinnon explained the amendment.
WITHDREW the OBJECTION. There being NO OBJECTION, it was so
ordered.
9:33:25 AM
Vice-Chair Bishop adopt Amendment 2, 30-LS0191\R.2,
Radford, 2/2/18 (copy on file):
Page 5, line 16, following "shall":
Insert "(1)"
Page 5, line 17, following "board":
Insert"; and
(2) serve as a liaison to the legislative
and executive branches of state government,
the media, and other state pharmacy boards"
Co-Chair MacKinnon OBJECTED for discussion.
Co-Chair MacKinnon explained the amendment.
Co-Chair MacKinnon WITHDREW the OBJECTION. There being NO
OBJECTION, it was so ordered.
9:34:30 AM
Senator Giessel supported the amendments.
9:35:04 AM
JANEY MCCULLOUGH, DIRECTOR, CORPORATIONS, BUSINESS, AND
PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT, related that she was available
for questions.
9:35:12 AM
Senator Micciche asked Ms. McCullough to explain that the
bill would be of no cost to the state.
Ms. McCullough explained that statute required any costs
associated with regulating an occupation would be covered
by licensing fees for said occupation.
9:36:40 AM
Ms. McCullough explained that an increase in revenue would
be offset any costs.
9:37:56 AM
Co-Chair MacKinnon asked Ms. McCullough to discuss the
fiscal note in further detail.
Ms. McCullough read from the analysis:
If the bill passes the following expenses will be
incurred: Personal Services: $136.5 (one permanent
full-time executive administrator, range 23)
Travel: $6.0 (one executive administrator to attend
four board meetings per year)
Services: $16.7 (legal costs to amend regulations,
printing, and postage in the first year) $15.0
(statewide core services RSAs: Human Resources,
financial support, mail, software licenses, and
department support costs)
Commodities: $10.0 (computer, office furniture, and
other one-time needs in the first year)
9:38:18 AM
Vice-Chair Bishop expressed support for the legislation.
9:38:46 AM
Vice-Chair Bishop MOVED to REPORT CS SB 37(FIN) out of
committee with individual recommendations and attached
fiscal notes. There being NO OBJECTION, it was so ordered.
CSSB 37(FIN) was REPORTED out of committee with a "do pass"
recommendation and with one new fiscal note from Department
of Commerce, Community and Economic Development.
9:39:13 AM
AT EASE
9:40:45 AM
RECONVENED
SENATE BILL NO. 126
"An Act providing for an exception to the regulation
of the practice of medicine for a physician who
provides medical services to an athletic team from
another state."
9:41:06 AM
JULI LUCKY, STAFF, SENATOR ANNA MACKINNON explained the
bill. She offered a Sectional Analysis:
Section 1: Adds a new exemption for athletic team
physicians to AS 08.64.370, which lists circumstances
where a person can practice medicine in our state
without being licensed by the State Medical Board. To
qualify for this new exemption, the physician must be
licensed to practice medicine in another state, under
a written agreement with an athletic team from that
state, and only provide services to members of the
team while traveling to/from or participating in a
sports event in Alaska.
Section 2: Adds a reference to this new exemption to
AS 14.30.142(d), which defines "qualified person" for
the purposes of evaluating a student athlete who has
been removed from a sporting event or practice for
suspicion of concussion.
Ms. Lucky specified that the bill would not allow
physicians to treat Alaskans, only members of the traveling
team. The purpose of the bill was to allow team members to
be treated by physicians that best knew them best.
9:43:17 AM
DR. JEFFREY MOORE, PHYSICIAN, ORTHOPEDIC PHYSICIANS OF
ALASKA, ANCHORAGE (via teleconference), spoke in support of
the bill. He said that other states had passed similar
legislation.
Co-Chair MacKinnon CLOSED public testimony.
Vice-Chair Bishop discussed the fiscal note from Department
of Commerce, Community and Economic Development, OMB number
2360. The cost for FY 19 was $2,500, with no cost in the
out-years. The note reflected receipt services.
9:45:28 AM
Senator Micciche commented that the bill was simple and
made sense. He was comfortable moving it with one committee
hearing.
9:45:56 AM
DEBORA STOVERN, DIVISION OF CORPORATIONS, BUSINESS, AND
PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT (via teleconference), said that
the State Medical Board had reviewed the bill, while they
had not adopted a position, the board had no concerns with
the proposed legislation.
9:46:52 AM
Vice-Chair Bishop MOVED to REPORT SB 126 out of committee
with individual recommendations and attached fiscal notes.
There being NO OBJECTION, it was so ordered.
SB 126 was REPORTED out of committee with a "do pass"
recommendation and with one previously published fiscal
note: FN1(CED).
9:47:13 AM
AT EASE
9:48:31 AM
RECONVENED
9:48:41 AM
Co-Chair MacKinnon discussed housekeeping.
ADJOURNMENT
9:49:14 AM
The meeting was adjourned at 9:49 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 4 CSSSSB 4 work draft version U.pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 4 |
| SB 37 Amendment 1 MacKinnon R.1 (002).pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 37 |
| SB 37 Amendment 2 Mackinnon R.2 (002).pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 37 |
| SB 126 Sectional Analysis.pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 126 |
| SB 126 Testimony.pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 126 |
| SB 126 Sponsor Statement.pdf |
SFIN 2/5/2018 9:00:00 AM |
SB 126 |