Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/11/2016 01:30 PM JUDICIARY

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Public Testimony --
+= SB 108 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Moved CSSB 108(L&C) Out of Committee
+ SB 113 NEW DRUGS FOR THE TERMINALLY ILL TELECONFERENCED
Moved CSSB 113(HSS) Out of Committee
*+ SB 211 RECOVERY OF FALSE CLAIMS FOR STATE FUNDS TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
                    ALASKA STATE LEGISLATURE                                                                                  
              SENATE JUDICIARY STANDING COMMITTEE                                                                             
                         April 11, 2016                                                                                         
                           1:38 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lesil McGuire, Chair                                                                                                    
Senator John Coghill, Vice Chair                                                                                                
Senator Mia Costello                                                                                                            
Senator Bill Wielechowski                                                                                                       
Senator Peter Micciche                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present.                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 108                                                                                                             
"An  Act  repealing and  reenacting  the  Alaska Securities  Act,                                                               
including   provisions   relating   to  exempt   securities   and                                                               
transactions; relating to registration  of securities, firms, and                                                               
agents  that  offer or  sell  securities  and investment  advice;                                                               
relating  to  administrative,  civil,  and  criminal  enforcement                                                               
provisions,  including   restitution  and  civil   penalties  for                                                               
violations; allowing  certain civil penalties  to be used  for an                                                               
investor  training fund;  establishing increased  civil penalties                                                               
for  harming  older  Alaskans;  retaining  provisions  concerning                                                               
corporations organized under the  Alaska Native Claims Settlement                                                               
Act; amending Rules  4, 5, 54, 65, and 90,  Alaska Rules of Civil                                                               
Procedure; and providing for an effective date."                                                                                
                                                                                                                                
     - MOVED CSSB 108(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 113                                                                                                             
"An Act  relating to  prescribing, dispensing,  and administering                                                               
an  investigational  drug,  biological   product,  or  device  by                                                               
physicians  for patients  who are  terminally ill;  and providing                                                               
immunity  for persons  manufacturing, distributing,  or providing                                                               
investigational drugs, biological products, or devices."                                                                        
                                                                                                                                
     - MOVED CSSB 113(HSS) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 211                                                                                                             
"An Act  relating to  the limitation period  to commence  a false                                                               
claims action;  relating to recovery  for false claims  for state                                                               
or  municipal funds;  and amending  Rules 4,  24, and  46, Alaska                                                               
Rules of Civil Procedure."                                                                                                      
                                                                                                                                
     - SCHEDULED BUT NOT HEARD                                                                                                  
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 108                                                                                                                  
SHORT TITLE: AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
04/13/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/15       (S)       L&C, JUD, FIN                                                                                          
02/09/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/09/16       (S)       Scheduled but Not Heard                                                                                
02/11/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/11/16       (S)       Heard & Held                                                                                           
02/11/16       (S)       MINUTE (L&C)                                                                                           
02/18/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/18/16       (S)       Heard & Held                                                                                           
02/18/16       (S)       MINUTE (L&C)                                                                                           
03/03/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/03/16       (S)       Moved CSSB 108(L&C) Out of Committee                                                                   
03/03/16       (S)       MINUTE (L&C)                                                                                           
03/04/16       (S)       L&C RPT CS 2DP 1NR NEW TITLE                                                                           
03/04/16       (S)       DP: COSTELLO, GIESSEL                                                                                  
03/04/16       (S)       NR: MEYER                                                                                              
04/04/16       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/16       (S)       Scheduled but Not Heard                                                                                
04/11/16       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 113                                                                                                                  
SHORT TITLE: NEW DRUGS FOR THE TERMINALLY ILL                                                                                   
SPONSOR(s): WIELECHOWSKI                                                                                                        
                                                                                                                                
04/17/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/17/15       (S)       HSS, JUD                                                                                               
02/24/16       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/24/16       (S)       Heard & Held                                                                                           
02/24/16       (S)       MINUTE (HSS)                                                                                           
03/30/16       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
03/30/16       (S)       Moved CSSB 113(HSS) Out of Committee                                                                   
03/30/16       (S)       MINUTE (HSS)                                                                                           
04/01/16       (S)       HSS RPT CS 1DP 2NR NEW TITLE                                                                           
04/01/16       (S)       DP: ELLIS                                                                                              
04/01/16       (S)       NR: STEDMAN, STOLTZE                                                                                   
04/11/16       (S)       JUD AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
KEVIN ANSELM, Director                                                                                                          
Division of Banking and Securities                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Introduced SB 108 on behalf of the                                                                       
administration.                                                                                                                 
                                                                                                                                
KRISTY NAYLOR, Securities Examiner                                                                                              
Division of Banking and Securities                                                                                              
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Stated the department has no concerns with                                                               
the way SB 108 is drafted.                                                                                                      
                                                                                                                                
BROOKE IVY, Staff                                                                                                               
Senator Bill Wielechowski                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced SB 113 on behalf of the sponsor.                                                              
                                                                                                                                
KURT ALTMAN, Attorney                                                                                                           
Goldwater Institute                                                                                                             
Phoenix, Arizona                                                                                                                
POSITION STATEMENT:  Testified in support of SB 113.                                                                          
                                                                                                                                
MICHAEL MAHARREY, National Communications Director                                                                              
10th Amendment Center                                                                                                           
Lexington, Kentucky                                                                                                             
POSITION STATEMENT:  Testified in support of SB 113.                                                                          
                                                                                                                                
CHARLOTTE WHITELEY, representing herself                                                                                        
Homer, Alaska                                                                                                                   
POSITION STATEMENT:  Testified in support of SB 113.                                                                          
                                                                                                                                
KEN LANDFIELD, representing himself                                                                                             
POSITION STATEMENT:  Testified in support of SB 113.                                                                          
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:38:40 PM                                                                                                                    
CHAIR  LESIL   MCGUIRE  called  the  Senate   Judiciary  Standing                                                             
Committee meeting to  order at 1:38 p.m.  Present  at the call to                                                               
order were  Senators Wielechowski,  Coghill, Costello,  and Chair                                                               
McGuire. Senator  Micciche arrived soon thereafter.  She reviewed                                                               
the agenda and noted that SB 211 would not be heard.                                                                            
                                                                                                                                
        SB 108-AK SECURITIES ACT; PENALTIES; CRT. RULES                                                                     
                                                                                                                                
1:39:30 PM                                                                                                                    
CHAIR MCGUIRE  announced the consideration  of SB 108.  She noted                                                               
that this is  the first hearing and the  committee is considering                                                               
CSSB 108(L&C).                                                                                                                  
                                                                                                                                
1:39:58 PM                                                                                                                    
KEVIN  ANSELM,  Director,  Division of  Banking  and  Securities,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), introduced SB  108 on behalf of  the administration. She                                                               
informed  the  committee  that   the  bill  separates  securities                                                               
statutes  from the  Alaska Native  Claims Settlement  Act (ANCSA)                                                               
statutes to  reduce confusion and  improve understanding  of both                                                               
acts. It  recognizes and incorporates current  industry standards                                                               
and  terms. It  synthesizes with  other states'  laws to  make it                                                               
easier   for   businesses,   entrepreneurs,  and   investors   to                                                               
understand their  rights, responsibilities, and  opportunities in                                                               
Alaska  through  adopting  many of  the  Uniform  Securities  Act                                                               
provisions from  the 2002 model  act. The bill  deters investment                                                               
scams  and harm  to Alaskans  by increasing  civil penalties  and                                                               
providing resources from those  penalties for investor, consumer,                                                               
or  entrepreneurial education.  SB  108  also enhances  penalties                                                               
against people who harm older Alaskans.                                                                                         
                                                                                                                                
MS. ANSELM offered to review  the summary of changes from version                                                               
A to version W and the sectional analysis.                                                                                      
                                                                                                                                
1:41:13 PM                                                                                                                    
SENATOR COGHILL requested a review of the changes.                                                                              
                                                                                                                                
CHAIR MCGUIRE  asked Ms. Anselm  to review the changes  and noted                                                               
that Senator Micciche joined the committee.                                                                                     
                                                                                                                                
1:41:34 PM                                                                                                                    
MS. ANSELM read the following  summary of changes between version                                                               
A and version W of SB 108.                                                                                                      
                                                                                                                                
     Structural Changes. The order of the sections has been                                                                     
     reorganized. SB 108A was drafted with the new AS 45.56                                                                     
     Alaska  Securities Act  at the  beginning  of the  bill                                                                    
     with other  statutes amended in numerical  order at the                                                                    
     end. SB 108 CS W now  follows the order of the statutes                                                                    
     amended beginning with Title 06.                                                                                           
                                                                                                                                
     Drafting. Legislative Counsel  made conforming drafting                                                                    
     and  legal improvements  throughout the  bill including                                                                    
     consolidating   definitions   into   Article   7,   Sec                                                                    
     45.56.740 or  citing to  existing definitions  in other                                                                    
     statutes.                                                                                                                  
                                                                                                                                
     Sec. 1  - 24. Renumbered  from SB108A and moved  to the                                                                  
     front of  the bill. SB  108 A, Sec. 7.  AS 21.42.315(k)                                                                    
     is deleted  because 'variable annuity' is  removed from                                                                    
     the definition of security (see Article 7 Definitions)                                                                     
                                                                                                                                
     Sec. 25. Chapter 56. Alaska Securities Act (pg. 14)                                                                      
                                                                                                                                
     Article 1. General Provisions. No changes.                                                                               
                                                                                                                                
     Article 2. Exemptions  from Registration of Securities.                                                                  
     Small intrastate  securities offerings (referred  to as                                                                    
     "Crowdfunding") was  removed at  the request  of Senate                                                                    
     Labor   and   Commerce   (SB   126   contains   similar                                                                    
     provisions)                                                                                                                
                                                                                                                                
     Article  3.  Registration   of  Securities  and  Notice                                                                  
     Filing  of Federal  Covered Securities.  No substantive                                                                  
     changes.                                                                                                                   
                                                                                                                                
     Article    4.   Broker-dealers,    Agents,   Investment                                                                  
     Advisers,   Investment  Adviser   Representatives,  and                                                                  
     Federal  Covered  Investment Advisers.  No  substantive                                                                  
     changes.                                                                                                                   
                                                                                                                                
     Article  5.  Fraud   and  Liabilities.  No  substantive                                                                  
     changes.                                                                                                                   
                                                                                                                                
     Article  6. Administration  and  Judicial Review.  (pp.                                                                  
     66-86)                                                                                                                   
                                                                                                                              
     Sec. 45.56.605(e) relating  to the securities education                                                                  
     and training  fund was  moved to  a new  Sec. 45.56.625                                                                  
     Securities investor education and training fund.                                                                         
                                                                                                                                
     Sec.  45.56.625  Jurisdiction  contents  were  combined                                                                  
     with Sec. 45.56.635 Applicability of the chapter.                                                                        
                                                                                                                                
     Sec.  45.56.660.  Civil  liability  and  Sec  45.56.665                                                                  
     Rescission  Offers.  The  legal rate  of  interest  for                                                                  
     rescission and  civil enforcement is the  legal rate of                                                                    
     interest under  AS 09.30.970 or  eight percent  a year,                                                                  
     whichever is greater. (Bold is new)                                                                                      
                                                                                                                                
     Article   7.  Miscellaneous   and  Additional   General                                                                  
     Provisions.                                                                                                              
                                                                                                                              
     Sec. 45.56.900. Definitions.                                                                                             
                                                                                                                              
     (23) Older  Person (formerly Older Alaskan)-  a natural                                                                    
     person  that  is  age  60 or  older  (adapted  from  AS                                                                    
     47.26.290(6))                                                                                                              
                                                                                                                                
     (32) Security - "variable  annuity" is deleted from the                                                                    
     definition                                                                                                                 
                                                                                                                                
     Sections 26- 35. No substantive changes.                                                                               
                                                                                                                                
1:44:49 PM                                                                                                                    
SENATOR  COGHILL asked  if the  two statutes  were separated  for                                                               
ease of application.                                                                                                            
                                                                                                                                
MS. ANSELM confirmed  that it will be much easier  for the public                                                               
and the corporations  if the statutes relating  to securities are                                                               
lifted  out of  the statutes  that  relate to  the Alaska  Native                                                               
Claims Settlement Act proxy solicitations.                                                                                      
                                                                                                                                
SENATOR COGHILL asked why variable annuity was removed.                                                                         
                                                                                                                                
MS.  ANSELM  said  the  insurance   industry  is  concerned  that                                                               
including variable annuity in the  Securities Act would result in                                                               
more regulation over  that section of the  industry. The division                                                               
does not  agree and  the topic  will likely  be discussed  in the                                                               
future.                                                                                                                         
                                                                                                                                
SENATOR  WIELECHOWSKI  asked  how   variable  annuities  will  be                                                               
regulated in Alaska                                                                                                             
                                                                                                                                
MS. ANSELM  replied the same  as they  are now, which  is through                                                               
the Insurance Act.                                                                                                              
                                                                                                                                
SENATOR  WIELECHOWSKI asked  if that  is standard  practice among                                                               
states.                                                                                                                         
                                                                                                                                
MS.  ANSELM said  they're regulated  a variety  of ways  and it's                                                               
something the division  wants to vet further  before bringing the                                                               
issue up again.                                                                                                                 
                                                                                                                                
SENATOR  WIELECHOWSKI   asked  if  the  division   has  had  many                                                               
complaints about  the way  variable annuities  are dealt  with in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MS. ANSELM said there have  been complaints and often they bridge                                                               
insurance and  securities because  variable annuity  sales people                                                               
are  often  also  registered  as  securities  sales  people.  She                                                               
reported that  the two  divisions work  well together  to address                                                               
the complaints.                                                                                                                 
                                                                                                                                
CHAIR MCGUIRE informed the committee  that Renee Wardlaw with the                                                               
Department of Law and Kristy  Naylor with the Division of Banking                                                               
and Securities are available to answer questions.                                                                               
                                                                                                                                
SENATOR COGHILL asked if either has concerns with the bill.                                                                     
                                                                                                                                
1:48:54 PM                                                                                                                    
KRISTY  NAYLOR,  Securities  Examiner, Division  of  Banking  and                                                               
Securities,  Department  of   Commerce,  Community  and  Economic                                                               
Development (DCCED),  stated the department has  no concerns with                                                               
the way SB 108 is drafted.                                                                                                      
                                                                                                                                
1:49:23 PM                                                                                                                    
CHAIR MCGUIRE closed public testimony on SB 108.                                                                                
                                                                                                                                
1:49:36 PM                                                                                                                    
SENATOR  COGHILL moved  to report  the  CS for  SB 108(L&C)  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR MCGUIRE announced that without  objection, CSSB 108(L&C) is                                                               
reported from Senate Judiciary Standing Committee.                                                                              
                                                                                                                                
            SB 113-NEW DRUGS FOR THE TERMINALLY ILL                                                                         
                                                                                                                                
1:50:02 PM                                                                                                                    
CHAIR MCGUIRE  announced the  consideration of  SB 113.  [This is                                                               
the first hearing and CSSB 113(HSS) is before the committee.]                                                                   
                                                                                                                                
1:50:27 PM                                                                                                                    
SENATOR  WIELECHOWSKI, Alaska  State  Legislature  sponsor of  SB                                                               
113,  introduced  the  bill speaking  to  the  following  sponsor                                                               
statement:                                                                                                                      
                                                                                                                                
     Senate Bill 113  would create a legal  climate in which                                                                    
     terminally  ill  patients   who  have  exhausted  other                                                                    
     available treatments  and do  not qualify  for clinical                                                                    
     trials   could  gain   faster  access   to  safe,   but                                                                    
     experimental  drugs  in an  effort  to  save their  own                                                                    
     lives. By  providing certain immunities  to prescribing                                                                    
     physicians,  manufacturers and  distributors acting  in                                                                    
     good faith,  this bill  would allow  terminal patients,                                                                    
     in consultation  with their doctor, the  freedom to try                                                                    
     new treatments  as they fight  to survive,  without the                                                                    
     burden of waiting for federal approval.                                                                                    
                                                                                                                                
     The   United  States   Food  and   Drug  Administration                                                                    
     currently    offers    an    "expanded    access"    or                                                                    
     "compassionate  use" exemption  that allows  terminally                                                                    
     ill  patients  that  meet certain  criteria  to  access                                                                    
     drugs  in  the  clinical  trial phase,  but  not  fully                                                                    
     approved. However, even with  recent efforts by the FDA                                                                    
     to streamline  the application process,  this exemption                                                                    
     program  is known  to be  arduous and  can take  longer                                                                    
     than patients facing terminal illness can wait.                                                                            
                                                                                                                                
     Since  2014, at  least 44  states have  seen "right  to                                                                    
     try"  legislation introduced,  12 of  which still  have                                                                    
     bills pending  and 25 of  which have signed  bills into                                                                    
     law   with  strong,   largely  unanimous,   bi-partisan                                                                    
     support.  It is  clear this  is a  human issue  and one                                                                    
     that goes beyond state and party lines.                                                                                    
                                                                                                                                
     In providing  terminal patients  the ability  to access                                                                    
     safe,  but experimental  drugs in  consultation with  a                                                                    
     doctor they trust,  this bill offers new  hope when all                                                                    
     FDA-approved options have been exhausted.                                                                                  
                                                                                                                                
SENATOR  WIELECHOWSKI  said this  bill  is  intended for  the  97                                                               
percent of  terminally ill people  who apply for  clinical trials                                                               
but are not accepted.                                                                                                           
                                                                                                                                
1:52:28 PM                                                                                                                    
BROOKE   IVY,   Staff,    Senator   Wielechowski   Alaska   State                                                               
Legislature, explained  that the goal  of SB  113 is to  create a                                                               
legal climate  so that  terminally ill  people can  work directly                                                               
with   their  doctor   and  the   drug  manufacturer   to  access                                                               
experimental drugs that have passed phase 1 of the FDA review                                                                   
process.                                                                                                                        
                                                                                                                                
MS. IVY reviewed the sections of SB 113.                                                                                        
                                                                                                                                
     Section 1: Prohibits  disciplinary action of physicians                                                                  
     by the State Medical  Board for prescribing, dispensing                                                                    
     or  administering an  investigational drug,  biological                                                                    
     product or  device to terminally ill  patients that are                                                                    
     ineligible  or  unable  to  participate  in  a  current                                                                    
     clinical  trial, have  considered  all other  treatment                                                                    
     options approved  by the FDA and  have provided written                                                                    
     consent.  Defines  "investigational  drugs,  biological                                                                    
     products and  devices" as those that  have successfully                                                                    
     completed Phase  1 of the  FDA drug review  process and                                                                    
     remain in  ongoing Phase  2 or  3 clinical  trials, but                                                                    
     have  not  been  approved   for  general  use.  Defines                                                                    
     "terminal  illness" as  a disease  that will  result in                                                                    
     death  in  the  near   future  or  permanent  state  of                                                                    
     unconsciousness from which recovery is unlikely.                                                                           
                                                                                                                                
     Section   2:  Establishes   immunity  for   physicians,                                                                  
     medical  team members,  manufacturers and  distributors                                                                    
     in  the case  of injury  or death  of a  terminally ill                                                                    
     patient  from  the  use  of  an  investigational  drug,                                                                    
     biological   product  or   device,  provided   informed                                                                    
     consent  was obtained  from the  patient and  notice of                                                                    
     immunity was given in advance.                                                                                             
                                                                                                                                
     Section  3:  Amends  statute   limiting  the  sale  and                                                                  
     distribution of new  drugs (AS 17.20.110) so  as not to                                                                    
     apply  to   physicians  prescribing   or  administering                                                                    
     investigational drugs under  the conditions established                                                                    
     in Section 1.                                                                                                              
                                                                                                                                
     Section  4:  Prohibits  the Department  of  Health  and                                                                  
     Social Services  from requiring a licensed  health care                                                                    
     facility   to   increase   its   services   solely   to                                                                    
     accommodate   physicians  prescribing,   dispensing  or                                                                    
     administering investigational drugs to a patient.                                                                          
                                                                                                                                
1:55:12 PM                                                                                                                    
KURT  ALTMAN, Attorney,  Goldwater  Institute, Phoenix,  Arizona,                                                               
testified in support  of SB 113. He related he  is the drafter of                                                               
the model legislation  commonly referred to as "The  Right to Try                                                               
Bill" and he  has traveled across the country  advocating for the                                                               
legislation.   He  pointed   out  that   there  are   significant                                                               
protections  in the  bill  and that  this is  a  last chance  for                                                               
terminally  ill  patients.  For investigational  medicine  to  be                                                               
eligible  under right  to try  laws, it  has to  have passed  the                                                               
safety  testing  phase  1  of  the  FDA  approval  process.  More                                                               
importantly,  the drug  must be  in ongoing  phase 2  or phase  3                                                               
clinical trials. He confirmed that this  is for the 97 percent of                                                               
terminally ill  people who aren't accepted  into clinical trials.                                                               
By the end  of this legislative session, he expects  that quite a                                                               
few more  states will have  passed similar legislation.  This has                                                               
been a two to three year  process and patients are finally taking                                                               
advantage of right to try laws, he said.                                                                                        
                                                                                                                                
1:58:45 PM                                                                                                                    
SENATOR  COGHILL asked  if there  have been  liability issues  or                                                               
families that  feel somebody  has been  coerced into  a treatment                                                               
program.                                                                                                                        
                                                                                                                                
MR. ALTMAN said  there has been no litigation to  date with right                                                               
to try  laws. For someone to  receive a trial drug,  there has to                                                               
be  a detailed  informed  consent  on behalf  of  the doctor  and                                                               
patient.  In  practice, the  manufacturers  that  have agreed  to                                                               
provide  these   drugs  also  require  a   significant,  detailed                                                               
informed consent liability  waiver. Each law that  has passed has                                                               
a similar liability waiver as SB  113 for any adverse effect from                                                               
the  investigational  drug.  It  does not  waive  any  claims  of                                                               
medical malpractice.                                                                                                            
                                                                                                                                
SENATOR  COGHILL asked  how  the prohibition  in  Section 4  will                                                               
work.                                                                                                                           
                                                                                                                                
2:00:53 PM                                                                                                                    
MS.  IVY said  the provision  seeks to  allay concerns  of health                                                               
care  facilities and  hospitals  about  potentially losing  their                                                               
certificate for  Medicare or Medicaid.  Other states  have passed                                                               
this legislation  with a  similar provision.  She noted  that the                                                               
Department of  Health and Social  Services (DHSS)  has determined                                                               
that  SB  113  does  not  impact their  operations  due  to  that                                                               
provision in SB 113.                                                                                                            
                                                                                                                                
2:02:11 PM                                                                                                                    
MICHAEL   MAHARREY,   National  Communications   Director,   10th                                                               
Amendment Center,  testified in support  of SB 113. He  said that                                                               
when  the  Center  heard  about  the  issue  from  the  Goldwater                                                               
Institute, they  knew they could support  it without reservation.                                                               
SB  113  will  take  the   decision-making  process  regarding  a                                                               
patient's  treatment  options  out   of  the  hands  of  detached                                                               
individuals and  put it  where it belongs,  with the  patient and                                                               
their physician.  He commented  on the  FDA approval  process for                                                               
new drugs  that is  slow and cumbersome,  and described  right to                                                               
try  laws  as  a  bridge  that  spans  the  gap  between  federal                                                               
regulations and  the needs of  terminally ill patients.  He urged                                                               
the committee to pass SB 113.                                                                                                   
                                                                                                                                
2:04:52 PM                                                                                                                    
CHARLOTTE  WHITELEY, representing  herself, testified  in support                                                               
of SB 113.  She shared a story  about her father who  was able to                                                               
participate in  an experimental drug  trial that helped  him live                                                               
an extra  3 years. It was  particularly important to him  to know                                                               
that his  data would be used  to help future generations  who get                                                               
multiple myeloma.  She also described  the case of a  friend with                                                               
multiple  sclerosis   who  participated   in  a  drug   trial  in                                                               
Switzerland.  A new  and  better  drug is  being  developed as  a                                                               
result of that  trial. SB 113 allows people who  are going to die                                                               
from their disease, a chance to give to the future.                                                                             
                                                                                                                                
2:06:35 PM                                                                                                                    
KEN LANDFIELD,  representing himself, testified in  support of SB                                                               
113. He  said the  situation is  clear; the  bill is  designed to                                                               
provide  a last  ditch option  for someone  who is  going to  die                                                               
anyway. This  is an opportunity  for legislators to do  the right                                                               
thing and  it has no downside  he can see. Further,  it will cost                                                               
virtually nothing.                                                                                                              
                                                                                                                                
2:08:22 PM                                                                                                                    
CHAIR MCGUIRE  closed public  testimony on SB  113. She  shared a                                                               
story  about  her  physician  father who  made  the  decision  to                                                               
develop  a pilot  program  after the  FDA denied  the  use of  an                                                               
innovative scientific technique for his patients.                                                                               
                                                                                                                                
SENATOR COGHILL asked if a report goes  back to the FDA to add to                                                               
the data on the experimental drug                                                                                               
                                                                                                                                
MS. IVY said  SB 113 does not include  reporting requirements but                                                               
her understanding  is that it  is a requirement in  the contracts                                                               
with  manufacturers under  both  compassionate use  and right  to                                                               
try.                                                                                                                            
                                                                                                                                
SENATOR COGHILL expressed satisfaction.                                                                                         
                                                                                                                                
CHAIR MCGUIRE commented  further on the pilot  program her father                                                               
developed.                                                                                                                      
                                                                                                                                
2:13:23 PM                                                                                                                    
SENATOR COGHILL  moved to report the  CS for SB 113,  labeled 29-                                                               
LS0783\E,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
2:14:04 PM                                                                                                                    
SENATOR WIELECHOWSKI said  he was surprised and  pleased to learn                                                               
that  the  Goldwater  Institute   supports  the  legislation.  He                                                               
credited  his   staff  for   doing  comprehensive   research  and                                                               
described SB  113 as  good legislation that  could save  lives in                                                               
Alaska.                                                                                                                         
                                                                                                                                
2:14:25 PM                                                                                                                    
CHAIR MCGUIRE announced that without  objection, CSSB 113(HSS) is                                                               
reported from Senate Judiciary Standing Committee.                                                                              
                                                                                                                                
2:14:29 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair McGuire  adjourned the Senate Judiciary  Standing Committee                                                               
at 2:14 p.m.                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
SB 113 Explanation of Changes ver A to ver H.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 Fiscal Note - DCCED-CBPL-02-19-16.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 Supporting Document - Legislative Map 3-31-16.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 Supporting Document - Letter of Support Charlotte Whiteley 2-24-16.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB211 - Version A.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Sectional Analysis.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Sponsor Statement.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Supporting Document - Alaska Policy Forum Report.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Supporting Document - Alaska Bar Rag Article.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Sponsor Statement.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
CSSB113 ver E (HSS).pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 ver E Sectional Analysis.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 Explanation of Changes A to E.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB211 - Version W.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Explanation of Changes Version A to W.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB211 Sectional Analysis Ver W.pdf SJUD 4/11/2016 1:30:00 PM
SB 211
SB 113 - Opposing Document - Letter from Alaska State Medical Board - 4-7-16.pdf SJUD 4/11/2016 1:30:00 PM
SB 113
SB 113 - Supporting Document - Sen Wielechowski to Alaska State Medical Board - 4-11-16.pdf SJUD 4/11/2016 1:30:00 PM
SB 113