Legislature(2023 - 2024)BELTZ 105 (TSBldg)
03/24/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| SB51 | |
| SB93 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 89 | TELECONFERENCED | |
| + | SB 51 | TELECONFERENCED | |
| *+ | SB 93 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 24, 2023
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 89
"An Act relating to tobacco, tobacco products, electronic
smoking products, nicotine, and products containing nicotine;
raising the minimum age to purchase, sell, exchange, or possess
tobacco, a product containing nicotine, or an electronic smoking
product; relating to the taxation of electronic smoking products
and vapor products; and providing for an effective date."
- HEARD & HELD
SENATE BILL NO. 51
"An Act exempting veterinarians from the requirements of the
controlled substance prescription database; and providing for an
effective date."
- HEARD & HELD
SENATE BILL NO. 93
"An Act relating to claims against protection and indemnity
insurance policies of vessel owners; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 89
SHORT TITLE: AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
SPONSOR(s): SENATOR(s) STEVENS
03/01/23 (S) READ THE FIRST TIME - REFERRALS
03/01/23 (S) L&C, FIN
03/24/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 51
SHORT TITLE: CONTROLLED SUB. DATA: EXEMPT VETERINARIAN
SPONSOR(s): SENATOR(s) TOBIN
02/01/23 (S) READ THE FIRST TIME - REFERRALS
02/01/23 (S) HSS, L&C
02/28/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/28/23 (S) Heard & Held
02/28/23 (S) MINUTE(HSS)
03/09/23 (S) HSS AT 3:30 PM BUTROVICH 205
03/09/23 (S) Moved SB 51 Out of Committee
03/09/23 (S) MINUTE(HSS)
03/10/23 (S) HSS RPT 5DP
03/10/23 (S) DP: WILSON, TOBIN, KAUFMAN, DUNBAR,
GIESSEL
03/24/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 93
SHORT TITLE: FISHERMEN'S FUND: VESSEL OWNER CLAIMS
SPONSOR(s): LABOR & COMMERCE BY REQUEST
03/08/23 (S) READ THE FIRST TIME - REFERRALS
03/08/23 (S) L&C
03/24/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR GARY STEVENS, District C
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 89.
TIM LAMKIN, Staff
Senator Gary Stevens
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave a presentation on SB 89.
KAREN BLOXSOM, Assistant Principal
Wasilla High School
Wasilla, Alaska
POSITION STATEMENT: Offered invited testimony on SB 89.
KATIE STEFFENS, Deputy Program Manager
Tobacco Prevention Control Program
Division of Public Health
Department of Health
Anchorage, Alaska
POSITION STATEMENT: Offered invited testimony on SB 89.
JOE DARNELL, Chief Investigator
Tobacco Enforcement Program
Division of Behavioral Health
Department of Health (DOH)
Anchorage, Alaska
POSITION STATEMENT: Offered invited testimony on SB 89.
BRANDON SPANOS, Deputy Director
Tax Division
Department of Revenue (DOR)
Anchorage, Alaska
POSITION STATEMENT: Provided an explanation of the DOR fiscal
note for SB 89.
SENATOR LÖKI TOBIN, District I
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 51.
TREVOR BAILLY, Staff
Senator Löki Tobin
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented the sectional analysis for SB 51.
DR. RACHEL BERNGARTT, Chair
Board of Veterinary Examiners
Juneau, Alaska
POSITION STATEMENT: Presented a slideshow on exempting
veterinarians from the prescription drug monitoring program
during the hearing on SB 51.
LAURA ACHEE, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Reviewed the explanation of changes for the
CS for SB 51 from version A to version B.
DR. CIARA VOLLARO, Member
Alaska Board of Veterinary Examiners
Department of Commerce, Community and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony on SB 51.
LAURA ACHEE, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Introduced SB 93 on behalf of the Senate
Labor and Commerce Committee and presented the sectional
analysis.
CHARLES COLLINS, Director
Workers' Compensation Division and the Fishermen's Fund
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Provided information about the Alaska
Fishermen's Fund during the hearing on SB 93.
VELMA THOMAS, Program Coordinator and Administrator
Fishermen's Fund Advisory and Appeals Council
Division of Workers' Compensation
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Gave invited testimony on SB 93.
TRACY WELCH, Executive Director
United Fishermen of Alaska
Petersburg, Alaska
POSITION STATEMENT: Testified in support of SB 93.
JERRY MCCUNE, President
Cordova District Fishermen United
Cordova, Alaska
POSITION STATEMENT: Testified in support of SB 93.
ACTION NARRATIVE
1:33:20 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:33 p.m. Present at the
call to order were Senators Merrick, Gray-Jackson, Bishop,
Dunbar, and Chair Bjorkman.
SB 89-AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
1:34:02 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 89
"An Act relating to tobacco, tobacco products, electronic
smoking products, nicotine, and products containing nicotine;
raising the minimum age to purchase, sell, exchange, or possess
tobacco, a product containing nicotine, or an electronic smoking
product; relating to the taxation of electronic smoking products
and vapor products; and providing for an effective date."
This was the first hearing of SB 89. Chair Bjorkman invited
Senator Gary Stevens to introduce his bill.
1:34:48 PM
SENATOR GARY STEVENS, District C, Alaska State Legislature,
Juneau, Alaska, Sponsor of SB 89, paraphrased from the following
sponsor statement:
SPONSOR STATEMENT
SENATE BILL 89
Increasing the Minimal Age for Tobacco and E-
Cigarettes: "T-21"
Senate Bill 89 proposes two key policies: 1) to align
state law with federal law in raising the minimum age
to buy, sell or possess tobacco and electronic smoking
products (ESPs) from age 19 to 21; and 2) to establish
a sales tax for ESPs.
In December 2019, Congress passed and the President
signed into law a provision raising the age of sale
for all tobacco, nicotine and ESP products to age 21
nationally *with no exceptions*.
Preventing illegal vendor sales is a critical part of
the overall effort to prevent and reduce youth
smoking. Alaska has an active underage sales
enforcement program which has been effective in
reducing sales of smoking products to minors. Updating
Alaska statutes from 19 to 21 to mirror the federal
minimum age of sale of these products will allow the
state enforcement program to be effective.
The latest Tobacco Facts 2022 Update issued by the
Alaska Dept. of Health, Division of Public Health
shows an increasing trend among young Alaskans in high
school, indicating 26 percent of the statewide
population as active users of ESPs in 2019 alone, and
46 percent of students having "tried" ESPs. Those
statewide figures, along with national ones, are
projected to have grown substantially since then.
Despite claims that e-cigarettes help adults quit
smoking, or offer adults a "safe" alternative to
smoking tobacco, ESPs are under-regulated and have not
been found by the Food and Drug Administration (FDA)
to be effective in helping smokers actually quit, let
alone to be legitimately "safe." Nearly all e-
cigarettes contain some amount of nicotine, and some
contain as much or more nicotine as a pack of
cigarettes. It is not yet known with any certainty
what other compounds these vapor products are
delivering into users' airways, let alone the long-
term effect these products have on human health.
Meanwhile, taxes have been proven to reduce youth
tobacco use, resulting in fewer kids becoming lifelong
smokers, and thus ultimately reducing healthcare
costs. In addition to deterring kids from beginning to
use these products, taxes help adults who actually
want to quit, do so.
Thank you for your consideration of this important
piece of legislation.
1:37:36 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, gave a presentation on SB 89.
MR. LAMKIN began the E-Cigarette presentation with slide 1, with
the explanation that SB 89 would align Alaska's state law with
federal law.
E-cigarettes, emerged in the United States in 2005-2007, though
they were originally patented during WWII. The decline of
cigarette use has since caused the e-cigarette market to
explode. He described the components of an e-cigarette,
explaining that a battery is used to heat up a liquid containing
nicotine, flavoring, and a broad swath of chemicals. Users
inhale the aerosol into their lungs. E-cigarettes typically
consist of a few basic parts: a cartridge or reservoir, a
heating element such as a battery, and a mouthpiece.
A substantial part of the market consists of closed-unit e-
cigarettes, intended to be used and then thrown away. These
disposable e-cigarettes are inexpensive and readily available in
convenience stores. Open-unit e-cigarettes can be taken apart
and the components are replaceable and customizable.
MR. LAMKIN advanced to slide 2, Cigarette Marketing. He said
e-cigarette manufacturers have secured their position in the
foreseeable market by using old tobacco marketing techniques.
Promoting the modern e-cigarette by mirroring fashionable
vintage tobacco advertisements has been exceedingly effective.
These marketing methods are unregulated. For instance, unlike
tobacco, e-cigarette commercials play freely on public radio
stations. Marketing tactics include highlighting celebrity use
of e-cigarettes, also known as vaping, aligning the product with
sex appeal and coolness.
MR. LAMKIN advanced to slide 3, Social Media -
Instagram/Twitter/YouTube. He explained that e-cigarette
companies manage a wide and diverse network of brand promotions
and campaigns across popular social media platforms. This kind
of messaging from influencers has resulted in a substantial
population of parents and kids who believe that these products
are safe.
MR. LAMKIN advanced to slide 4, Recent Confiscations. The
slide provided images, and he brought examples of confiscated e-
cigarette products, to illustrate their portability and ease of
discretion. In addition, he recently surveyed educators about e-
cigarettes to gather a sampling of raw data on the public
consensus and found that e-cigarette use is a problem across the
state.
1:45:32 PM
MR. LAMKIN advanced to slide 5, Sample Disposable Vaping
Product Pricing - January 2023.
1:45:58 PM
MR. LAMKIN advanced to slide 6, Cigs in a Pod. He discussed
how e-cigarettes compare to traditional cigarettes. The average
price of a pack of cigarettes was $16. There are 7.5 puffs per
cigarette, so there are 150 puffs in a pack of 20 cigarettes.
The inherent value of smoking is the satisfaction of inhaling
each puff; that value is then quantified at 11 cents per puff.
E-cigarettes can have 1900-5000 hits in a single pod. In a JUUL
pod, which sells for $24, one puff is 2 cents. When purchased
online that drops to 0.5 cents per puff. Though some may argue
that this tax might be too high, he posited that it may not be
high enough.
1:48:59 PM
MR. LAMKIN advanced to slide 7, 1994 The "Waxman Hearings."
After 50 years, the leading CEOs in the United States stood up
under oath on record before Congress and avowed that nicotine
and tobacco products were neither addictive nor harmful to
consumers.
Tobacco and e-cigarette industry manufacturers are presently
claiming that their products are safe, non-addictive, and non-
toxic.
He said that e-cigs might be a pathway to quitting smoking
traditional cigarettes. However, these e-cigarettes are not
outright safe and do not end addiction; they merely replace the
delivery system.
An 18-year-old can join the military, but cannot use tobacco or
e-cigarette products on the base; recruits need to be healthy
enough to perform physical activity without losing their breath.
MR. LAMKIN relayed a personal story about his father passing
away from lung cancer, intimating that he wanted to protect his
son from the same fate.
1:52:12 PM
SENATOR DUNBAR commented that when the Anchorage Assembly passed
a similar ordinance, there were 19- and 20-year-olds who were
going to be put out of work. He asked Mr. Lamkin whether a 19-
year-old who worked at a gas station that happened to sell e-
cigarettes would lose their job if SB 89 passed.
1:53:24 PM
MR. LAMKIN referred to the text on page 22, lines 19-22 and
said, grandfathering is specifically included in this bill as a
result of a compromise.
SENATOR DUNBAR offered his understanding of the answer.
MR. LAMKIN clarified that employees of establishments that sell
e-cigarettes and tobacco products who are 19 and 20 years old on
the date the bill becomes effective may continue working at
those jobs.
SENATOR DUNBAR asked if that was only for the tobacco shops or
all places that may sell these products.
MR. LAMKIN answered yes, however, when a vendor sells these
products, especially with alcohol sales, a manager will step in
to execute the transaction.
1:55:10 PM
CHAIR BJORKMAN segued to invited testimony.
1:55:41 PM
KAREN BLOXSOM, Assistant Principal, Wasilla High School,
Wasilla, Alaska, offered invited testimony on SB 89, declaring
that the number of students caught vaping or in possession of a
vape is on the rise each year. Students start to vape in middle
school and are addicted by the time they are first-year students
in high school. The Wasilla Police Department has given out 31
citations for students caught vaping. Students in the Mat-Su
school district who are caught vaping a second time are given a
$500 citation.
More students are choosing to get nicotine from vapes because of
the flavoring. They do not realize they are inhaling more
nicotine in a day from a vape than if they smoked a pack of
cigarettes. Most students tell her that they would never smoke
cigarettes, but they would use a vape or an e-cigarette if there
weren't the threat of citation.
1:57:35 PM
KATIE STEFFENS, Deputy Program Manager, Tobacco Prevention
Control Program, Division of Public Health, Department of
Health, Anchorage, Alaska, offered invited testimony on SB 89,
speaking to how tobacco and nicotine products affect Alaskan
youth and proven strategies for preventing youth from starting
use of such products and reducing their current use.
Tobacco is the leading cause of preventable death in Alaska.
Smoking is linked to about 600 deaths each year. Alaska loses an
estimated $400 million because of smoking-related illness
effects on workers unable to perform their duties.
There is an ongoing epidemic of e-cigarette use. According to
the 2019 Alaska Youth Risk Behavior Survey, one out of four high
school students in Alaska were using e-cigarettes and almost
half had tried them. Only one in twenty adult Alaskans use these
products. The National Youth Tobacco Survey indicated that in
2022, 2.5 million youths nationwide were using e-cigarettes.
During the 2021-22 school year, there were 964 tobacco-related
suspensions among students in grades 1-12. The number of
suspensions has increased 232 percent since the 2015-16 school
year.
She stated that increasing the price of tobacco products is the
single most effective way to prevent initiation and reduce
consumption. Young adults are more likely to respond to price
increases on tobacco products, which prove even more effective
when implemented in combination with other strategies such as
increasing the minimum legal age to purchase tobacco and e-
cigarette products.
She stated that SB 89 includes both approaches and creates
additional protection for youth by restricting online sales,
implementing age verification when transporting products, and
limiting nicotine content in e-cigarette devices.
2:01:12 PM
JOE DARNELL, Chief Investigator, Tobacco Enforcement Program,
Division of Behavioral Health, Department of Health (DOH),
Anchorage, Alaska, offered invited testimony on SB 89. Pulling
from his field experience, he posited that the state should
increase the minimum legal age for using tobacco products from
19 to 21 to make the law fair to retailers. Some retailers are
opting not to enforce the federal age requirement that e-
cigarette purchasers be 21 years of age; they are only enforcing
the state law at 19 years of age. Increasing the minimum legal
age would also make it easier for retailers to verify
identification. State driver's licenses are set up so that if
the holder is over 21 the license has a horizontal layout; a
vertical layout gives them heads up to thoroughly check the
identification.
The division collaborates with schools around the state. He
received a call from Dillingham saying that there is an increase
in vape products. A state trooper told him that schools on
Prince of Wales Island are being inundated with vape products
and they dont know what to do with them.
He emphasized the importance of getting together the key
stakeholders, such as the legislature, national partners,
schools, and retailers. He said it comes down to working
together to protect Alaska's youths.
2:04:10 PM
BRANDON SPANOS, Deputy Director, Tax Division, Department of
Revenue (DOR), Anchorage, Alaska, provided an explanation for
DOR's fiscal note for SB 89. The tax would generate $3.2 million
in FY24, and $3.3 million in FY25. The division anticipates
growth in the market. He explained that the cost to implement
the tax is high because SB 89 is a new kind of bill and
additional personnel will be required.
2:06:20 PM
CHAIR BJORKMAN asked him to speak about the ease of using the
point-of-sale system to implement the tax on the retail level.
MR. SPANOS replied that most retailers would have point-of-sale
software that includes a tax line. The retailer would insert the
tax rate for the product, the software would calculate the tax,
and the retailer would collect the tax. The department's online
system is robust and by January 2024 taxpayers will be able to
file tax returns online, including new taxes like this one.
2:07:59 PM
CHAIR BJORKMAN announced the committee will not take public
testimony or hear the sectional analysis today. He held SB 89 in
committee.
2:08:34 PM
At ease.
SB 51-CONTROLLED SUB. DATA: EXEMPT VETERINARIAN
2:10:14 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 51 "An Act exempting
veterinarians from the requirements of the controlled substance
prescription database; and providing for an effective date."
2:10:43 PM
SENATOR LÖKI TOBIN, District I, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 51, paraphrased the following
sponsor statement:
[Original punctuation provided.]
In 2008, in response to the nationwide opioid
epidemic, the Alaska State Legislature created the
Prescription Drug Monitoring Program (PDMP). This
program created a database of prescriptions for
controlled substances in Alaska, with the stated
intent was to place obstacles in front of individuals
seeking opioids from multiple providers. In 2016, the
Legislature expanded the program to include
veterinarians. Unfortunately, the program failed to
account for the major differences between the practice
of human medicine and veterinary medicine. SB 51
addresses this conflict by exempting veterinarians
from the Prescription Drug Monitoring Program.
Eliminating the requirement for veterinarians in
Alaska to use the PDMP does not cause deregulation.
Veterinarians will continue to be covered by federal
statutes and regulated by the Drug Enforcement Agency
(DEA) and the Alaska Board of Veterinary Examiners.
Additionally, provisions in state statute will
continue to limit the number of opioids a veterinarian
can prescribe to a seven-day prescription, with two
exceptions. Those exceptions are if the prescription
is part of long-term chronic care, or if there is
logistical or travel barrier to returning within seven
days.
Prescription drug monitoring is not unique to Alaska.
All 50 states have some variation of prescription drug
monitoring, with over 30 states exempting
veterinarians. Previously, 10 of those states mandated
veterinarians be part of prescription drug monitoring
efforts; however, those states soon realized that
including veterinarians had no clear benefit. Instead,
these states found that including veterinarians in
their prescription drug monitoring programs placed
unnecessary time-consuming barriers on those who
practice veterinary medicine. In Alaska, the PDMP
fails to be effective because animal patients do not
have identifiers such as social security numbers. As a
result, veterinarians must try to get the private
health data of those who seek care for their animals
prior to treating the animal. This is both inefficient
and an invasion of privacy.
Senate Bill 51 seeks to correct an overexpansion of
the Prescription Drug Monitoring Program to ensure
continued access to veterinary care in Alaska.
2:13:51 PM
TREVOR BAILLY, Staff, Senator Löki Tobin, Alaska State
Legislature, Juneau, Alaska, presented the sectional analysis
for SB 51.
[Original punctuation provided.]
Senate Bill 51
"Controlled Substances Data Exemption for
Veterinarians"
Version: 33-LS0339\A
Section 1
Deletes the requirement that the Board of Veterinary
Examiners to notify the Board of Pharmacy when a
practitioner registers with the controlled substance
prescription database.
Section 2
Creates a new subsection in the controlled substance
prescription database statutes that exempts
veterinarians from the requirements of the controlled
substance prescription database.
Section 3
Repeals the subsection that requires veterinarians
register with the controlled substance prescription
database.
Section 4
The act takes effect immediately upon passage.
2:15:30 PM
CHAIR BJORKMAN invited Dr. Berngartt to put herself on the
record and begin her presentation.
2:15:42 PM
DR. RACHEL BERNGARTT, Chair, Board of Veterinary Examiners,
Juneau, Alaska, presented a slideshow on exempting veterinarians
from the prescription drug monitoring program during the hearing
on SB 51.
DR. BERNGARTT displayed slides 2 and 3 and paraphrased the
following:
SB 51: AN ACT EXEMPTING VETERINARIANS FROM THE
REQUIREMENTS OF THE CONTROLLED SUBSTANCE PRESCRIPTION
DATABASE.
THE ALASKA STATE VETERINARY MEDICAL ASSOCIATION
(AKVMA) SUPPORTS SB 51.
THE ALASKA BOARD OF VETERINARY EXAMINERS (BOVE)
SUPPORTS SB 51.
THE ALASKA BOARD OF PHARMACY SUPPORTS EXEMPTING
VETERINARIANS FROM PARTICIPATING IN THE PDMP
2.18.2022 Board of Pharmacy Meeting
Voted and Passed Motion to Support
2:17:19 PM
DR. BERNGARTT reviewed slide 4, Background: The PDMP." It read:
2008: Alaska's PDMP established by SB 196.
2017: In reaction to growing opioid epidemic, the PDMP
was amended by via HB 159 to include all DEA permit
holders, including veterinarians.
Neither AKVMA nor BOVE were consulted regarding this
amendment.
PDMP reporting is required for all actively licensed
practitioners who hold a Federal Drug Enforcement
Agency registration number and who prescribe,
administer, or dispense federally scheduled II IV
controlled substances in the state.
DR. BERNGARTT reported that the Alaska State Medical
Association expressed that it did not oppose exempting
veterinarians from the Prescription Drug Monitoring Program
(PDMP).
2:18:25 PM
DR. BERNGARTT spoke to the following points on slide 5, Why It
Makes Sense to Exempt." It read:
The PDMP is not an effective database for
veterinarians or our patients.
The PDMP was established for human medicine.
Querying of PDMP data for animals is not possible
with the PDMP (and reported drugs for an animal are
not visible in the PDMP database).
A query is made on the individual(s) that bring the
animal to the veterinarian and human data is
obtained, not animal data.
Human data obtained from the PDMP query is not
usable for the veterinarian. Veterinarians are not
trained in human medicine to understand what the
dosages mean.
2:20:31 PM
DR. BERNGARTT spoke to the following points on slide 6, Why It
Makes Sense to Exempt." It read:
Querying of human PDMP information is invasion into an
individual's medical privacy.
Clients find it intrusive when the veterinarian is
required to query their private health data in the
PDMP.
An individual's private medication information
becomes known to the veterinarian for certain drugs,
such as narcotics, sedatives, and stimulants.
Examples of some common medications seen include,
but are not limited to: Adderall, Ritalin, anabolic
steroids such as testosterone, postpartum depression
medications, sex hormones, Xanax, Klonopin, Valium,
Ativan, Domar, and sleep aids like Ambien and Lunesta.
2:21:58 PM
DR. BERNGARTT spoke to the following points on slide 7, Why It
Makes Sense to Exempt." It read:
Veterinarians are monitored by the Drug Enforcement
Agency and must adhere to controlled substance
regulations.
Veterinarians who prescribe or dispense controlled
substances are licensed through the Drug Enforcement
Agency (DEA). There is already a significant level
of accountability, record keeping, and medication
storage requirements that veterinarians must adhere
to.
Distributors of controlled substances monitor
utilization patterns of veterinarians. The
Suspicious Order Monitoring System is in place and
data is gathered by distribution companies who are
required by the DEA to monitor and report unusual
purchase patterns a veterinarian may have.
Distributors are required to flag purchases that
fall outside of norms for either previous purchase
history or the norms for practices of similar
size/type. DEA oversight is to control/prevent
diversion from licensed professionals to drug
dealers and users.
2:23:24 PM
DR. BERNGARTT spoke to the following points on slide 8, Why It
Makes Sense to Exempt." It read:
33 other states have exempted veterinarians from
participating in the PDMP.
10 states formerly mandated veterinary reporting but
repealed their inclusion due to the problems
experienced, lack of identified benefits to
veterinary participation, and demonstration that
exempting veterinarians does not decrease protection
of public health and safety. These states are
Alabama, Arizona, Idaho, Illinois, Kansas, Kentucky,
Louisiana, New Mexico, West Virginia (2021), and
Wyoming.
Missouri was the last state to implement a PDMP in
2021 and did not require veterinarians to
participate.
2:23:50 PM
DR. BERNGARTT spoke to the following points on slide 9, Why It
Makes Sense to Exempt." It read:
Veterinarians are not a source of the drugs of primary
concern.
Synthetic opioids excluding methadone overdose deaths
increased 97-fold
Psychostimulants with abuse potential (primarily
methamphetamine) overdose deaths increased 59-fold
Cocaine increased 6.4-fold
Rx opioid deaths increased 4.9-fold
Opioid medications prescribed by veterinarians
(728,223) were only 0.34% of the total opioid
prescriptions (214 million) that were dispensed by
U.S. retail pharmacies in 2017.
2:24:53 PM
DR. BERNGARTT spoke to the following on slide 10, Why It Makes
Sense to Exempt." It read:
The unwieldy PDMP leads to costly and burdensome
investigations of veterinarians by the Alaska Board of
Veterinary Examiners.
Costly and onerous requirements for monitoring
veterinarians have been placed on the board of
veterinary examiners (BOVE).
2:25:39 PM
DR. BERNGARTT spoke to the following points on slide 11, Why It
Makes Sense to Exempt." It read:
Licensing fees for veterinarians will likely increase
as a result of the cost to conduct needless
investigations of veterinarians with DEA licenses. The
cost of doing business will be passed on to consumers.
Alaska has the highest licensing fees for
veterinarians in the country.
Licensing fees are expected to increase in the State
of Alaska as a result of the cost of PDMP
investigations.
Charging veterinarians for the cost of enforcement of
an unusable PDMP system, and regulations with which
they are unable to comply, is not responsible
stewardship of resources.
2:26:20 PM
DR. BERNGARTT reviewed the following summary of SB 51 on slide
12:
AKVMA and BOVE ASK FOR SUPPORT of SB 51
An Exemption of Veterinarians from participating in
the PDMP:
Will allow veterinarians to provide the
appropriate, timely, medical management
appropriate for each patient.
Will increase the efficiency of the PDMP system
for its intended purpose, by allowing for
accurate interpretation of data and trends in
human medicine.
Will allow continued judicious use of controlled
substances that is already practiced by
veterinarians.
Will eliminate unnecessary and disproportionate
business burdens for veterinarians.
2:27:23 PM
SENATOR BISHOP moved to adopt the committee substitute (CS) for
SB 51 as the working document.
2:27:38 PM
CHAIR BJORKMAN objected for purposes of an explanation.
2:27:45 PM
At ease.
2:28:07 PM
CHAIR BJORKMAN reconvened the meeting.
2:28:09 PM
SENATOR BISHOP restated his previous motion and moved to adopt
the committee substitute (CS) for SB 51, work order 33-LS0339\B,
as the working document.
CHAIR BJORKMAN objected for the purpose of explanation. He
invited Ms. Achee to walk through the changes in the CS.
2:28:42 PM
LAURA ACHEE, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, reviewed the explanation of changes
from version A to version B for SB 51. In addition to issues
related to the PDMP, the Alaska Board of Veterinary Examiners
has asked that the statute be expanded to include additional
means by which qualified veterinarians can be certified. Like
many industries in Alaska, veterinary medicine has shortages;
these changes could even help in the important task of
attracting veterinarians to the state.
CHAIR BJORKMAN asked Ms. Achee to review the changes in the CS.
MS. ACHEE reviewed the following changes in the CS for SB 51:
Section 1 would amend AS 08.98.050(b) to authorize the Board of
Veterinary Examiners to adopt a certification process for
veterinarians to become licensed to practice in Alaska.
Section 2 would amend AS 08.98.165(a) to allow the board to
accept certification through the Program for the Assessment of
Veterinary Education Equivalence in place of attending an
accredited program in the United States. The language in this
section would also allow the boards the discretion to approve
other certification processes.
Section 3 would amend AS 08.98.184 to contain the same changes
as in Section 2.
The remainder of the sections are unchanged.
2:31:47 PM
DR. CIARA VOLLARO, Member, Alaska Board of Veterinary Examiners,
Anchorage, Alaska, provided invited testimony on SB 51. She
paraphrased from the following prepared testimony:
In order to improve the quality and availability of
veterinary services in the state of Alaska, the board
is requesting statutory changes to licensing
requirements for foreign veterinary graduates.
Currently the Alaska statutes mandate educational
commission for foreign veterinary graduate
certification. This program is the original program
developed in 1971 by the American Veterinary Medical
Association to ensure competency equivalent to
graduates of American and Canadian veterinary schools.
The American Association of Veterinary State Boards
(AAVSB) created a similar certification program
entitled PAVE, Program for the Assessment of
Veterinary Education Equivalence in 2001. The AAVSB
supervises the veterinary state boards of all states
and is an organization Alaska actually utilizes in the
veterinary licensing process. Forty-six United States
states and territories, all Canadian provinces and
territories, Australia and New Zealand recognize this
newer program. The two programs, the educational
commission for foreign veterinary graduates
certification and PAVE are very similar in their
requirements and require years to complete the many
phases to prove competency. Furthermore, like any
student from an American credited veterinary school,
Canadians still have to pass the National American
Veterinary Licensing Exam, which is mandatory for
veterinary licensing throughout the United States.
Most state veterinary legislations only specify the
educational commission for veterinary graduate
certification in their statutes and regulations
initially, resulting in having to go through
legislative updates to add PAVE. When making this
change, states have adopted different strategies and
wording. The Board of Veterinary Examiners are
requesting the amendment to these statutes to include
PAVE or another certification approved by the board to
prevent the need to provide statutes again in the
future. The wording requested mimics 23 other states.
In conclusion, the outdated statute unnecessarily
creates a barrier to Alaska increasing the ability of
veterinarians to provide care to the public. To date,
at least two veterinary internal medicine specialists
are known who are licensed in other US states that did
not apply for an Alaskan license because they
graduated from a foreign veterinary college and have
received certification from PAVE. That means it is
unknown exactly how many veterinarians Alaska has
missed out on licensing because state requirements are
outdated by not including PAVE.
2:34:50 PM
CHAIR BJORKMAN removed his objection. He found no further
objection and the CS for SB 51, work order 33-LS0339\B, was
adopted as the working document.
CHAIR BJORKMAN said the committee would hear public testimony
during the next hearing of the bill. He reminded the public that
written testimony may be submitted to slac@akleg.gov.
CHAIR BJORKMAN held SB 51 in committee.
2:35:42 PM
At ease.
SB 93-FISHERMEN'S FUND: VESSEL OWNER CLAIMS
2:36:40 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 93 "An Act relating to claims
against protection and indemnity insurance policies of vessel
owners; and providing for an effective date."
He noted there was a committee substitute (CS) for the committee
to consider. He solicited a motion.
2:37:02 PM
SENATOR BISHOP moved to adopt the committee substitute (CS) for
SB 93, work order 33-LS0538\B, as the working document.
CHAIR BJORKMAN asked Ms. Achee to walk the committee through the
bill, including the changes in the committee substitute.
2:37:24 PM
LAURA ACHEE, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, introduced SB 93 on behalf of the
Senate Labor and Commerce Committee. The Fishermes Fund
Advisory and Repeals Council has requested that the maximum
reimbursement that a vessel owner can receive when filing a
claim for the injury or illness of a crew member be raised from
the current value of $5,000. The council proposed raising it to
$10,000, which matches the deductible on many of the policies
owned by vessel owners. In the House Fisheries Committee the
House companion bill was amended to increase the maximum claim
amount to $15,000, because $10,000 isn't always enough to cover
the deductible. Even with the increase, the projected
disbursements from the fund leave the balance stable.
2:40:03 PM
CHAIR BJORKMAN removed his objection; he found no further
objection, and the CS for SB 93, work order 33-LS0538\B, was
adopted as the working document.
2:421:03 PM
CHARLES COLLINS, Director, Division of Workers' Compensation,
which includes the Fishermen's Fund, Department of Labor and
Workforce Development (DOLWD), Juneau, Alaska, testified by
invitation on SB 93. He said the Fishermen's Fund Council tasked
the division with representing their wishes and protecting the
long-standing Fishermen's Fund. The Fund has served commercial
fishermen since inception and the division take the business of
protecting the fund seriously.
2:42:02 PM
VELMA THOMAS, Program Coordinator for the Division of Workers'
Compensation and Administrator for the Fishermen's Fund Advisory
and Appeals Council, Department of Labor and Workforce
Development (DOLWD), Juneau, Alaska, stated that the vessel
owner reimbursement portion of the Fishermen's Fund changed in
2010. In 2012 the benefit cap was $2,500 and the vessel owner
could be reimbursed up to 50 percent. That has not had a
negative effect on the fund. The council requested an increase
in the benefit cap to $10,000. She noted that a House committee
amended the companion bill to provide a $15,000 reimbursement
for the vessel owner and also $15,000 for an injured crew
member. She reviewed the revenue and payouts for nine years,
which included the highest benefit payments and the lowest
revenue stream, and determined the Fund would not be
significantly affected. She explained that the Fishermen's Fund
is self-funded with a percentage of the money from commercial
fishing permits and crew licenses. She stated that the agency's
role is to support the council. It reviews all claims that are
over the fund limit and any claims that request benefits beyond
that. The council also reviews the claims that are denied. The
council members are loyal and enthusiastic about the fund's
management and growth.
2:46:11 PM
SENATOR BISHOP asked if she modeled this research herself.
MS. THOMAS answered that she began the research, and the
division completed the work.
SENATOR BISHOP commented that he was comfortable with the
numbers. He asked Mr. Collins whether he would step up to make
adjustments if the stability of the fund was threatened.
2:46:50 PM
MR. COLLINS answered that the division takes the fund very
seriously and wants to make sure the Fishermens Fund stays
around.
2:47:35 PM
CHAIR BJORKMAN asked what crew members, deck hands, vessel
owners must do to be eligible to receive money from the
Fishermen's Fund.
MS. THOMAS answered that the primary criteria is that the injury
must have occurred in Alaska, and the individual must have a
valid crew member license or permit. The injury or illness must
be related to commercial fishing and treatment must be sought
within 120 days. The grace period used to be 60 days, but the
council found that hardy workers like fishermen prefer to work
through the season, so the treatment period was extended. They
have one year to file a claim. If they are not able to file a
claim, they can then present their case to the council for
consideration. Crew members and vessel owners have ample
opportunities to make claims. Claims are down and the current
system serves as a good support for the commercial fishing
industry.
2:50:39 PM
MR. COLLINS commented that since the fund is a payer of last
resort, the vessel owners would have had to have filed and have
protection and indemnity (P&I) insurance. They would have to
file and the Fishermens Fund would reimburse a part of the
portion that the insurance company was not covering. The fund is
not set up to allow a windfall.
2:51:25 PM
SENATOR GRAY-JACKSON asked what happens if a fishing vessel is
lost at sea.
MR. COLLINS replied that Workers' Compensation is not part of
the conversation; fishers are not covered by Workers
Compensation under the Jones Act. The Fishermen's Fund is the
payer of last resort. If a vessel or crew members are lost at
sea, they hopefully have insurance. The fund would perhaps pay
the deductible or some other cost that the insurance did not
cover.
SENATOR GRAY-JACKSON said she asked because she had a friend who
was on a vessel lost at sea.
2:52:51 PM
CHAIR BJORKMAN asked whether insurance is required in order to
receive money from the fund.
MR. COLLINS answered that the fund is not set up as the
insurance for the industry; it is there to backstop the
insurance. The impetus for the request for this increase is that
the deductibles and the cost of insurance have continually
risen. Vessel owners have opted for higher deductibles to save
money. A lot of vessels work on a shared wage/reward but it is a
dangerous occupation, so while a vessel owner may carry
insurance it may have a fairly high deductible. The purpose of
SB 93 is to help the industry self-regulate and stay healthy.
2:54:06 PM
CHAIR BJORKMAN opened public testimony on SB 93.
2:54:31 PM
TRACY WELCH, Executive Director, United Fishermen of Alaska
(UFA), Petersburg, Alaska, testified in support of SB 93. The
United Fishermen of Alaska support the deductible reimbursement
for vessel owners. The fund is healthy; it is paid for by
fishermen and for fishermen. This is an opportunity to help
fishermen and provide an incentive for them to carry insurance
on their boat and crew. She stated that UFA also supports the
House companion bill.
2:55:57 PM
JERRY MCCUNE, President, Cordova District Fishermen United,
Cordova, Alaska, testified in support of SB 93. He believes that
$15,000 each for the vessel owner and crew members is fair. He
recalled that when the reimbursement was raised to $10,000 for
the fishermen, one could barely walk in the ER for that amount.
Insurance rates have gone up. Keeping the fund solvent is
important.
2:57:28 PM
CHAIR BJORKMAN closed public testimony on SB 93 and held the
bill in committee.
2:57:58 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:57 p.m.