Legislature(2011 - 2012)BELTZ 105 (TSBldg)

03/01/2012 01:30 PM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 217 PHARMACY AUDITS TELECONFERENCED
Heard & Held
+ SB 199 VOCATIONAL EDUCATION FUNDING FACTOR TELECONFERENCED
Moved SB 199 Out of Committee
+= HB 168 INJUNCTION SECURITY: INDUSTRIAL OPERATION TELECONFERENCED
Heard & Held
Bills Previously Heard/Scheduled
+= SB 190 BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
Moved CSSB 190(L&C) Out of Committee
= SB 116 WORKERS' COMP.: COLL BARGAINING/MEDIATION
Heard & Held
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 1, 2012                                                                                          
                           1:33 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Dennis Egan, Chair                                                                                                      
Senator Joe Paskvan, Vice Chair                                                                                                 
Senator Linda Menard                                                                                                            
Senator Bettye Davis                                                                                                            
Senator Cathy Giessel                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 190                                                                                                             
"An  Act   relating  to  activities,  including   violations  and                                                               
penalties,  under  the supervision  of  the  Big Game  Commercial                                                               
Services  Board;  and creating  a  retired  status master  guide-                                                               
outfitter license."                                                                                                             
                                                                                                                                
     - MOVED CSSB 190(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SENATE BILL NO. 116                                                                                                             
"An  Act offering  mediation  of  disputed workers'  compensation                                                               
claims by a  hearing officer or other classified  employee of the                                                               
division  of   workers'  compensation  and   allowing  collective                                                               
bargaining  agreements to  supersede  certain  provisions of  the                                                               
Alaska Workers' Compensation Act;  and providing for an effective                                                               
date."                                                                                                                          
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 199                                                                                                             
"An  Act relating  to the  vocational  and technical  instruction                                                               
funding factor for public school funding."                                                                                      
                                                                                                                                
     - MOVED SB 199 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 168(JUD)                                                                                
"An Act  requiring the amount  of the  security given by  a party                                                               
seeking an injunction or order  vacating or staying the operation                                                               
of  a permit  affecting  an industrial  operation  to include  an                                                               
amount for the payment of wages and benefits for employees and                                                                  
payments to contractors and subcontractors that may be lost if                                                                  
the industrial operation is wrongfully enjoined."                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 217                                                                                                             
"An Act establishing procedures and guidelines for auditing                                                                     
pharmacy records; and providing for an effective date."                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 190                                                                                                                  
SHORT TITLE: BIG GAME COMMERCIAL SERVICES BOARD                                                                                 
SPONSOR(s): SENATOR(s) MENARD                                                                                                   
                                                                                                                                
02/08/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/08/12       (S)       L&C, JUD                                                                                               
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/12       (S)       Heard & Held                                                                                           
02/28/12       (S)       MINUTE(L&C)                                                                                            
03/01/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 116                                                                                                                  
SHORT TITLE: WORKERS' COMP.: COLL BARGAINING/MEDIATION                                                                          
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
03/25/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/11       (S)       L&C, FIN                                                                                               
04/05/11       (S)       L&C AT 2:00 PM BELTZ 105 (TSBldg)                                                                      
04/05/11       (S)       Heard & Held                                                                                           
04/05/11       (S)       MINUTE(L&C)                                                                                            
01/19/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
01/19/12       (S)       Heard & Held                                                                                           
01/19/12       (S)       MINUTE(L&C)                                                                                            
02/21/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/21/12       (S)       -- MEETING CANCELED --                                                                                 
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       Scheduled But Not Heard                                                                                
02/28/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/12       (S)       Scheduled But Not Heard                                                                                
03/01/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 199                                                                                                                  
SHORT TITLE: VOCATIONAL EDUCATION FUNDING FACTOR                                                                                
SPONSOR(s): MEYER                                                                                                               
                                                                                                                                
02/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/12       (S)       EDC, L&C                                                                                               
02/22/12       (S)       EDC RPT 4DP 1NR                                                                                        
02/22/12       (S)       DP: MEYER, THOMAS, FRENCH, DAVIS                                                                       
02/22/12       (S)       NR: STEVENS                                                                                            
02/22/12       (S)       EDC AT 8:00 AM BELTZ 105 (TSBldg)                                                                      
02/22/12       (S)       Moved SB 199 Out of Committee                                                                          
02/22/12       (S)       MINUTE(EDC)                                                                                            
03/01/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 168                                                                                                                  
SHORT TITLE: INJUNCTION SECURITY: INDUSTRIAL OPERATION                                                                          
SPONSOR(s): FEIGE                                                                                                               
                                                                                                                                
02/23/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/23/11       (H)       JUD                                                                                                    
02/25/11       (H)       BILL REPRINTED 2/24/11                                                                                 
03/21/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/21/11       (H)       Heard & Held                                                                                           
03/21/11       (H)       MINUTE(JUD)                                                                                            
03/23/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/23/11       (H)       <Bill Hearing Canceled>                                                                                
03/30/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/30/11       (H)       Scheduled But Not Heard                                                                                
04/04/11       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/04/11       (H)       Moved CSHB 168(JUD) Out of Committee                                                                   
04/04/11       (H)       MINUTE(JUD)                                                                                            
04/05/11       (H)       JUD RPT CS(JUD) 3DP 2NR                                                                                
04/05/11       (H)       DP: KELLER, PRUITT, THOMPSON                                                                           
04/05/11       (H)       NR: GRUENBERG, HOLMES                                                                                  
04/07/11       (H)       TRANSMITTED TO (S)                                                                                     
04/07/11       (H)       VERSION: CSHB 168(JUD)                                                                                 
04/08/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/11       (S)       L&C, JUD                                                                                               
02/23/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/23/12       (S)       <Bill Hearing Postponed>                                                                               
03/01/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 217                                                                                                                  
SHORT TITLE: PHARMACY AUDITS                                                                                                    
SPONSOR(s): LABOR & COMMERCE                                                                                                    
                                                                                                                                
02/22/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/22/12       (S)       L&C, FIN                                                                                               
03/01/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                              
WITNESS REGISTER                                                                                                              
                                                                                                                                
MICHAEL ROVITO, Chief of Staff                                                                                                  
Senator Linda Menard                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on SB 190.                                                                                      
                                                                                                                                
DANA OWEN, Staff                                                                                                                
Senate Labor and Commerce Committee                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on SB 190 and SB 217 for the                                                                    
sponsor.                                                                                                                        
                                                                                                                                
DENNIS BAILEY, Legislative Counsel                                                                                              
Legislative Affairs Agency                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Was available to answer questions on SB 116.                                                              
                                                                                                                                
SHARON LONG, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained amendment to SB 116.                                                                            
                                                                                                                                
SENATOR KEVIN MEYER                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of SB 199.                                                                                        
                                                                                                                                
EDRA MORELEDGE, Staff                                                                                                           
Senator Kevin Meyer                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Available for comments on SB 199 on behalf                                                                
of the sponsor.                                                                                                                 
                                                                                                                                
MARGARET SODEN, President                                                                                                       
Alaska Pharmacists Association                                                                                                  
Fairbanks, AK                                                                                                                   
POSITION STATEMENT: Supported SB 217.                                                                                         
                                                                                                                                
BARRY CHRISTENSEN, Co-Chair                                                                                                     
Legislative Committee,                                                                                                          
Alaska Pharmacists Association                                                                                                  
Ketchikan, AK                                                                                                                   
POSITION STATEMENT: Supported SB 217.                                                                                         
                                                                                                                                
DIRK WHITE, Vice Chairman                                                                                                       
Board of Pharmacy                                                                                                               
Sitka, AK                                                                                                                       
POSITION STATEMENT: Supported SB 217.                                                                                         
                                                                                                                                
CINDY LAUBACHER, Senior Director                                                                                                
Government Affairs                                                                                                              
Medco Health Solutions                                                                                                          
POSITION STATEMENT: Opposed SB 217.                                                                                           
                                                                                                                                
SCOTT WATTS, Owner                                                                                                              
Ron's Apothecary Shop                                                                                                           
Juneau, AK                                                                                                                      
POSITION STATEMENT: Supported SB 217.                                                                                         
                                                                                                                                
REPRESENTATIVE ERIC FEIGE                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HB 168.                                                                                        
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:33:08 PM                                                                                                                    
CHAIR DENNIS EGAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order at 1:33  p.m. Present at the  call to                                                               
order  were Senators  Giessel, Paskvan,  and Chair  Egan. Senator                                                               
Menard joined the committee shortly after.                                                                                      
                                                                                                                                
           SB 190-BIG GAME COMMERCIAL SERVICES BOARD                                                                        
                                                                                                                                
1:35:52 PM                                                                                                                    
CHAIR EGAN announced SB 190 to be up for consideration. [CSSB                                                                   
190 (), version 27-LS1328\M, was being considered for adoption].                                                                
                                                                                                                                
1:35:59 PM                                                                                                                    
SENATOR DAVIS joined the committee.                                                                                             
                                                                                                                                
1:36:07 PM                                                                                                                    
MICHAEL ROVITO, Chief of Staff  for Senator Menard, sponsor of SB                                                               
190, related the Big Game  Commercial Services Board spent a year                                                               
working on the changes in this bill.                                                                                            
                                                                                                                                
1:37:03 PM                                                                                                                    
SENATOR PASKVAN moved to report CSSB 190( ), [version 27-                                                                       
LS1328\M],  from committee  with  individual recommendations  and                                                               
attached  zero fiscal  note. Chair  Egan  removed his  objection.                                                               
There were  no further  objections and  CSSB 190(L&C)  moved from                                                               
committee.                                                                                                                      
                                                                                                                                
1:37:32 PM                                                                                                                    
At ease from 1:37 to 1:38 p.m.                                                                                                  
                                                                                                                                
        SB 116-WORKERS' COMP.: COLL BARGAINING/MEDIATION                                                                    
                                                                                                                                
1:38:54 PM                                                                                                                    
CHAIR EGAN announced SB 116 to be up for consideration.                                                                         
                                                                                                                                
SENATOR  PASKVAN  moved to  bring  CSSB  116 (L&C),  labeled  27-                                                               
LS0549\X, before the committee. There were no objections.                                                                       
                                                                                                                                
DANA  OWEN, staff  to the  Senate Labor  and Commerce  Committee,                                                               
said this  CS clarifies issues  that were raised in  the previous                                                               
hearing of the bill and adds  one item that was not discussed. He                                                               
said  the  title  was  expanded   to  add,  "An  Act  authorizing                                                               
employers   and   employees    to   mediate   disputed   workers'                                                               
compensation  claims and  to  negotiate  a collective  bargaining                                                               
agreement that offers mediation  and mandates arbitration..." The                                                               
remainder  of the  title stays  the same.  Section 1  remains the                                                               
same.                                                                                                                           
                                                                                                                                
He said  the changes  begin in  Section 2,  collective bargaining                                                               
agreements.  Subsection (a)  expands  language in  (a)(1) of  the                                                               
previous bill and  provides more details of  the appeals process.                                                               
Changes begin  on line  28 where the  bill establishes  a process                                                               
for resolving  disputes through  mediation, arbitration  or both.                                                               
The  parties  must  agree  before a  particular  dispute  may  be                                                               
submitted to mediation. Then if  mediation fails, it provides for                                                               
arbitration.                                                                                                                    
                                                                                                                                
1:42:27 PM                                                                                                                    
MR. OWEN pointed  out that lines 2  and 3 of page  2 specify that                                                               
the arbitration will be conducted under  AS 09.43. Title 9 is the                                                               
code  of  civil procedure  and  chapter  43 is  arbitration;  the                                                               
sections that  are cited, 300  to 595, constitute Article  3, the                                                               
Revised Uniform Arbitration  Act. In the last  meeting they heard                                                               
there was  some confusion  over how the  arbitration was  to take                                                               
place.  The drafter  suggested that  it would  be most  direct to                                                               
establish the arbitration as taking  place under AS 09.43 because                                                               
attorneys  and courts  are familiar  with  it; everyone  involved                                                               
should be familiar with it.                                                                                                     
                                                                                                                                
1:43:58 PM                                                                                                                    
He also said  that placing it under AS 09.43  implies a different                                                               
appeals process  than the Workers'  Compensation Act  where there                                                               
is an appeal  to the Workers' Compensation  Commission. This will                                                               
obviate  that  as appeals  will  no  longer  go to  the  Workers'                                                               
Compensation Commission (the original intent of the bill).                                                                      
                                                                                                                                
MR. OWEN  said the bill  clarifies that mediation  or arbitration                                                               
will govern  the dispute resolution  process under  this chapter.                                                               
It  also  says the  dispute  resolution  process must  result  in                                                               
findings  of fact,  award in  a final  order or  decision by  the                                                               
arbitrator and  that award order  or decision has the  same force                                                               
and effect  as a finding  of fact, award  order or decision  of a                                                               
hearing  officer   under  AS  23.30.005   (Workers'  Compensation                                                               
Board). This  means the arbitrator's ruling  under a collectively                                                               
bargained agreement  will have  the same effect  and force  as an                                                               
order of the board.                                                                                                             
                                                                                                                                
Subsection (b)  on page 2, line  25, of the bill  guarantees that                                                               
benefits under  Chapter 23.30 (Workers' Compensation  Act) cannot                                                               
be bargained  away. It further  clarifies that the  agreement and                                                               
processes  negotiated   under  this  law  cannot   themselves  be                                                               
considered a reduction of benefits.                                                                                             
                                                                                                                                
1:45:39 PM                                                                                                                    
Subsection (c)  on line 30  insures that physicians can  meet and                                                               
communicate  with parties  to  a negotiation  in  the process  of                                                               
establishing lists  of physicians  who are the  exclusive medical                                                               
providers  in  a  collectively  bargained  agreement.  Currently,                                                               
physicians are prevented by law  from collaborating on contracts,                                                               
fees and  things like  that. Alaska has  a very  narrow exception                                                               
carved  out  in  statute  and   this  would  be  the  only  other                                                               
exception. Currently  physicians are allowed  to do that  only if                                                               
they are negotiating a managed  benefits organization. This would                                                               
allow physicians  to talk to  one another  if they were  going to                                                               
try and  get on  to the  list that would  be established  under a                                                               
collectively bargained agreement under this statute.                                                                            
                                                                                                                                
1:47:20 PM                                                                                                                    
DENNIS  BAILEY, drafting  attorney,  Legislative Affairs  Agency,                                                               
Alaska  State  Legislature,  said  he  was  available  to  answer                                                               
questions on SB 116.                                                                                                            
                                                                                                                                
SENATOR GIESSEL  said as a  health care provider  her overarching                                                               
concern is patients'  choice in one of the  most intimate aspects                                                               
of their  lives. She  invited her staff  to explain  her proposed                                                               
amendment.                                                                                                                      
                                                                                                                                
1:48:32 PM                                                                                                                    
                                                 27-LS0549\X.1                                                                  
                                                       Bailey                                                                   
                       A M E N D M E N T                                                                                    
                                                                                                                                
     OFFERED IN THE SENATE               BY SENATOR GIESSEL                                                                     
     TO:  CSSB 116(L&C), Draft Version "X"                                                                                      
                                                                                                                                
     Page 3, lines 13 - 15:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following paragraphs accordingly.                                                                             
                                                                                                                                
     Page 3, line 26, following "not":                                                                                          
          Insert "(1)"                                                                                                          
                                                                                                                                
     Page 3, lines 26 - 27:                                                                                                     
          Delete ". For purposes of this subsection"                                                                            
          Insert "; for purposes of this paragraph"                                                                             
                                                                                                                                
     Page 3, line 29, following "chapter":                                                                                      
          Insert "; or                                                                                                          
               (2)  identify health care providers who are                                                                      
       the exclusive source of medical treatment provided                                                                       
      under this chapter; in this paragraph, "health care                                                                       
     provider" has the meaning given in AS 09.55.560"                                                                           
                                                                                                                                
     Page 3, line 30, through page 4, line 4:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Reletter the following subsection accordingly.                                                                             
                                                                                                                                
SHARON LONG,  staff to Senator  Giessel, directed them to  page 3                                                               
of  the amendment  where  lines  13-15 were  deleted  to show  up                                                               
later. The second change begins on  line 26 and inserts "1" after                                                               
"not"  and deletes  "for  the purposes  of  this subsection"  and                                                               
inserts "for the purposes of this  paragraph." On line 29, "2" is                                                               
inserted  after "chapter."  The  language that  was deleted  from                                                               
lines 13-15 is inserted after "chapter."                                                                                        
                                                                                                                                
The last change deletes lines 30 and  31 on page 3 through line 4                                                               
on  page 4.  This preserves  the right  currently in  statute for                                                               
injured workers to choose their own health care provider.                                                                       
                                                                                                                                
SENATOR PASKVAN said he understands  that now there are generally                                                               
exclusive providers designated  under plans and asked  if that is                                                               
true and assuming it is, does this prohibit that in the future.                                                                 
                                                                                                                                
SENATOR GIESSEL replied the main  purpose is to allow the patient                                                               
to choose  whatever health care  provider they want to:  in other                                                               
words, their  private physician  or if  they are  part of  a plan                                                               
that  designates   a  physician.  This  addresses   a  collective                                                               
bargaining  agreement  not  a  person   who  is  not  part  of  a                                                               
collective bargaining agreement.                                                                                                
                                                                                                                                
SENATOR  PASKVAN said  his  belief is  if  you want  to  go to  a                                                               
dentist, there  are dentists the state  has said are on  the list                                                               
and  those dentists  have agreed  with the  state of  Alaska, for                                                               
instance, that  they will do a  cavity for $100. His  question is                                                               
if this would prohibit the  State of Alaska from negotiating with                                                               
dentists to get a lower collective price for that service.                                                                      
                                                                                                                                
SENATOR GIESSEL  said it wasn't  her intent  to do that,  but the                                                               
drafter could help answer that.                                                                                                 
                                                                                                                                
MR. BAILEY  said the  focus of  the bill  allows an  employer and                                                               
their  employees in  a  union  to negotiate  a  mediation and  an                                                               
arbitration process. As part of  that process they are allowed to                                                               
negotiate the  selection of health  care providers that  would be                                                               
permitted to  provide services to  the union members  (in section                                                               
2).  The normal  operation of  the workers'  compensation statute                                                               
that allows employers to negotiate  with health care providers to                                                               
provide  services  under  their  workers'  compensation  coverage                                                               
isn't  affected by  this  bill.  The bill  is  restricted to  the                                                               
concept of  negotiating different  terms under the  provisions of                                                               
the collective bargaining agreement.                                                                                            
                                                                                                                                
SENATOR PASKVAN  remarked that the  short answer  is no or  he is                                                               
confused. He rephrased his question;  if you allow full choice to                                                               
the employee who  goes to a dentist that charges  $150 instead of                                                               
a contracted dentist who charges $100, who pays the $50?                                                                        
                                                                                                                                
MR.  BAILEY  replied  under  the  current  workers'  compensation                                                               
statute  outside   of  a  collective  bargaining   agreement  the                                                               
employee  who  makes  a  claim can  choose  his/her  health  care                                                               
provider and an alternate. The  issue really is choosing who your                                                               
health  care provider  is. There  may be  circumstances where  an                                                               
employer chooses  the health  care provider  for an  employee who                                                               
makes a claim,  but that is limited to employees  that don't make                                                               
their own  choice. It  may be that  the employer  could negotiate                                                               
with   a  group   of  physicians   to  provide   that  in   those                                                               
circumstances,  but the  general  rule is  the  employee gets  to                                                               
choose  their own  physician in  workers'  compensation. So,  the                                                               
question  of negotiating  a lower  rate is  more applicable  to a                                                               
health  care   plan  not  within   the  context  of   a  workers'                                                               
compensation claim.                                                                                                             
                                                                                                                                
SENATOR PASKVAN  said he thinks  where it talks  about "competing                                                               
physicians  may  meet  and communicate"  means  with  respect  to                                                               
whether they  are participants in  an exclusive  source agreement                                                               
with  an employer.  His  perception is  if  you have  competitors                                                               
meeting,  you have  price  fixing  and wanted  to  know what  the                                                               
result of that would be.                                                                                                        
                                                                                                                                
MR.  BAILEY  replied  the  purpose   of  allowing  physicians  to                                                               
communicate  concerning  providing  services   by  the  group  is                                                               
intended  under AS  23.50. In  the  absence of  a provision  like                                                               
that, whoever  is negotiating  with the  physicians could  go and                                                               
negotiate  with each  physician and  pit one  against another  to                                                               
negotiate a  lower price. It's  included in this bill  because it                                                               
provides for a  negotiation of who the medical  providers are. In                                                               
that negotiation  physicians, presumably,  would want to  be able                                                               
to negotiate as a group not  individually. That is the purpose of                                                               
Section (c).                                                                                                                    
                                                                                                                                
SENATOR GIESSEL said the amendment would remove that section.                                                                   
                                                                                                                                
MR.  BAILEY said  the  amendment takes  out  the provision  about                                                               
negotiating who  the health  care provider is.  It says  we don't                                                               
want  you  to negotiate  who  the  physicians  are; we  want  the                                                               
existing method  that allows  an individual  to choose  their own                                                               
provider to apply instead.                                                                                                      
                                                                                                                                
2:01:51 PM                                                                                                                    
MS. LONG  said the  amendment takes away  the ability  to bargain                                                               
away  one's  right   to  choose  a  physician   in  a  bargaining                                                               
agreement,  but  it  doesn't change  the  ability  of  physicians                                                               
getting  together  to decide  to  provide  a service  through  an                                                               
employer at  certain rates. It  doesn't take away  the provisions                                                               
of  the physicians  under AS  23.50.020 outside  of a  bargaining                                                               
agreement.                                                                                                                      
                                                                                                                                
MR. BAILEY added that AS  23.50 allows physicians to negotiate as                                                               
a  group under  certain  circumstances. The  only  reason it  was                                                               
included  originally   was  as  it  applies   to  the  collective                                                               
bargaining  agreement  sections.  If  you  take  it  out  of  the                                                               
collective bargaining  agreement context, it does  not affect the                                                               
remainder of AS 23.50 which relates to bargaining by physicians.                                                                
                                                                                                                                
SENATOR GIESSEL  said Mr. Owen  referred to a managed  care group                                                               
and that provision is still there.                                                                                              
                                                                                                                                
2:04:20 PM                                                                                                                    
SENATOR   PASKVAN  said   the   operative   term  is   "competing                                                               
physicians." If the physicians formed as  a group they are not in                                                               
competition with each  other, but the question is  if that second                                                               
group is comprised of competing  individuals and how that affects                                                               
the analysis.                                                                                                                   
                                                                                                                                
MR. BAILEY  replied that you  have to keep  it in the  context of                                                               
this  bill that  relates to  collective bargaining  for mediation                                                               
(to  decide who  the  health  care providers  are  for the  union                                                               
employees).   When a collective  bargaining agreement  allows for                                                               
(it's not mandated) designating a  certain group of physicians to                                                               
provide medical services, then the  provisions of (c) apply.  So,                                                               
by taking that  section out, you're saying that  it doesn't apply                                                               
here  because  a  particular  physician  isn't  being  chosen  to                                                               
provide services.                                                                                                               
                                                                                                                                
SENATOR PASKVAN stated that lines  13-17 of the amendment say the                                                               
agreement  may not  identify health  care providers  who are  the                                                               
exclusive source of medical treatment,  but the inference is that                                                               
there is a list of exclusive source  and you can't give it to the                                                               
employee. Is that a misunderstanding?                                                                                           
                                                                                                                                
MS. LONG replied that she didn't understand the question.                                                                       
                                                                                                                                
SENATOR  PASKVAN asked  why put  an amendment  in that  says they                                                               
cannot identify the list if they never put a list together.                                                                     
                                                                                                                                
SENATOR GIESSEL said this bill  deals with a disputed works claim                                                               
issue (collective  bargaining agreements) that would  have a list                                                               
of exclusive health care providers.  The injured worker would now                                                               
be confined to an exclusive list  that might or might not include                                                               
their own  personal healthcare  provider. That  is the  piece the                                                               
amendment  removes.  It would  allow  them  to  go to  their  own                                                               
healthcare provider.                                                                                                            
                                                                                                                                
CHAIR EGAN stated  that he wanted to make sure  the committee had                                                               
enough time to  get answers to the questions  before passing this                                                               
bill.                                                                                                                           
                                                                                                                                
MR.  BAILEY said  the amendment  removes  negotiation of  medical                                                               
providers under the collective bargaining agreement.                                                                            
                                                                                                                                
2:11:51 PM                                                                                                                    
SENATOR  PASKVAN clarified  that  it  has no  one  with which  to                                                               
negotiate reduced prices.                                                                                                       
                                                                                                                                
SENATOR DAVIS said she would  feel comfortable acting on the bill                                                               
if Mr. Bailey could answer the question.                                                                                        
                                                                                                                                
MR.  BAILEY said  the amendment  does one  thing: it  removes the                                                               
negotiation of medical providers  under the collective bargaining                                                               
agreement.  The  results  of  the   provisions  of  the  existing                                                               
workers' compensation  statute, which  allows you to  choose your                                                               
own  treating physician  in a  claim would  continue to  apply as                                                               
they  normally  do.  Section   (c)  (about  competing  physicians                                                               
negotiating) doesn't apply anymore  because there wouldn't be any                                                               
specified physicians under the collective bargaining agreement.                                                                 
                                                                                                                                
SENATOR PASKVAN remarked so this  removes any negotiation between                                                               
an employer  and physicians with  respect to  providing services,                                                               
and asked  if it  also means  that the employer  has no  one with                                                               
whom they  can negotiate  reduced prices as  a package  for their                                                               
employees.                                                                                                                      
                                                                                                                                
MR. BAILEY replied  that the employer and the  employee under the                                                               
existing  bill  without the  amendment  negotiate  that. If  that                                                               
section is removed,  there isn't going to be  a negotiation under                                                               
the  collective  bargaining  agreement for  selecting  particular                                                               
employees.  So  the  employer  would  not be  in  a  position  to                                                               
negotiate with  physicians about  what they  provide or  what the                                                               
costs of their services are.                                                                                                    
                                                                                                                                
SENATOR  PASKVAN agreed  that no  price negotiation  follows, but                                                               
pointed that  out as a potential  loss to the employees  when the                                                               
employers' superior  bargaining strength might be  able to obtain                                                               
a discounted price.                                                                                                             
                                                                                                                                
MR. BAILEY said  there is no negotiation by the  employer for the                                                               
cost of  paying for  the employee's  physician and  that wouldn't                                                               
change  if the  amendment is  adopted. If  it doesn't  pass, then                                                               
both  the employer  and employee  negotiate that  already in  the                                                               
collective bargaining agreement.                                                                                                
                                                                                                                                
SENATOR GIESSEL said  the strength of having a  person being able                                                               
to choose  their own health  care provider  is that they  will be                                                               
continuing to see that person  and that healthcare provider knows                                                               
their physical  condition both before  the injury and  after, how                                                               
they are progressing  through it, family history  and things like                                                               
that.                                                                                                                           
                                                                                                                                
CHAIR EGAN said he would hold SB 116 for a future meeting.                                                                      
                                                                                                                                
           SB 199-VOCATIONAL EDUCATION FUNDING FACTOR                                                                       
                                                                                                                                
2:16:20 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 199.                                                                                   
                                                                                                                                
2:16:24 PM                                                                                                                    
SENATOR KEVIN MEYER,  sponsor of SB 199, said he  and Senator Joe                                                               
Thomas  introduced  SB  84  last year  that  created  a  separate                                                               
funding factor  for vocational education  programs for  grades 9-                                                               
12. Voc-Ed funding  was 1 percent of the  base student allocation                                                               
(BSA) and since  this bill was signed, the  school districts have                                                               
said it  was a good program.  The only problem is  that it didn't                                                               
include middle school. So, SB  199 expands the program to include                                                               
middle school.                                                                                                                  
                                                                                                                                
2:17:46 PM                                                                                                                    
EDRA MORELEDGE,  staff to Senator  Meyer, had nothing  further to                                                               
add.                                                                                                                            
                                                                                                                                
2:18:03 PM                                                                                                                    
SENATOR  PASKVAN  moved to  report  SB  199 from  committee  with                                                               
individual recommendations  and attached fiscal note.  There were                                                               
no objections and it was so ordered.                                                                                            
                                                                                                                                
2:18:42 PM                                                                                                                    
At ease from 2:18 to 2:20 p.m.                                                                                                  
                                                                                                                                
                     SB 217-PHARMACY AUDITS                                                                                 
                                                                                                                                
2:20:34 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 217.                                                                                   
                                                                                                                                
DANA  OWEN, staff  to the  Senate Labor  and Commerce  Committee,                                                               
sponsor of  SB 217, said  the issue  of pharmacy audits  has been                                                               
brought  forward  numerous times  by  local  pharmacists, and  an                                                               
identical  bill  was introduced  into  the  other body.  He  said                                                               
Alaskan  pharmacists are  being  bombarded with  audits from  the                                                               
pharmacy   benefits   management   companies   (PBM),   insurance                                                               
companies and other state health  care providers. SB 217 attempts                                                               
to standardize  the audit process  in order to  allow pharmacists                                                               
to spend  less time on paperwork  and focus more time  on patient                                                               
health.                                                                                                                         
                                                                                                                                
Additionally,  this legislation  seeks to  bring fairness  to the                                                               
unregulated and expanding practices  of pharmacy audits by ending                                                               
abusive  practices   that  have  harassed  and   harmed  pharmacy                                                               
businesses. While  audits are necessary  and even a  welcome part                                                               
of a good  business practice, pharmacy audits  have become unduly                                                               
burdensome  and, in  many  cases, predatory.  So  acute has  this                                                               
problem become that  national companies have been  formed to help                                                               
pharmacists   with  audits   recover  millions   of  dollars   of                                                               
inappropriate audit charge backs.                                                                                               
                                                                                                                                
SB 217 will  ease the burden on pharmacists  by requiring uniform                                                               
common  sense standards  and criteria  for  all pharmacy  audits,                                                               
requiring written notice of at  least two weeks before an on-site                                                               
pharmacy  audit, requiring  that an  on-site audit  not interfere                                                               
with the  health care services  being provided by  pharmacists by                                                               
banning  audits during  the  first seven  calendar  days of  each                                                               
month  when patient  volume is  highest unless  the pharmacy  and                                                               
auditor agree otherwise.                                                                                                        
                                                                                                                                
MR.  OWEN said  that SB  217  will further  eliminate the  highly                                                               
questionable  practice  of  extrapolation  as  justification  for                                                               
taking back claim  money. It will eliminate the  unfair take back                                                               
of  money  in  cases  of  simple  typographical  errors  when  no                                                               
financial harm  has occurred  to the plan's  sponsor, the  PBM or                                                               
the  patient.  It  will further  require  that  audits  involving                                                               
clinical  or   professional  judgment  be  conducted   by  or  in                                                               
consultation with a pharmacist licensed in the state.                                                                           
                                                                                                                                
For  small  pharmacies,  especially, audit  practices  that  have                                                               
become common  are much  more than mere  nuisances. The  time and                                                               
money lost can  threaten the very viability  of these businesses,                                                               
and SB  217 seeks  to bring fairness  and predictability  back to                                                               
the practice of pharmacy audits.                                                                                                
                                                                                                                                
SENATOR  PASKVAN  moved to  bring  SB  217, version  27-LS1411\A,                                                               
before the committee for discussion purposes.                                                                                   
                                                                                                                                
CHAIR EGAN objected.                                                                                                            
                                                                                                                                
2:25:44 PM                                                                                                                    
MARGARET  SODEN,  Alaska  Pharmacists Association,  said  she  is                                                               
mostly  retired  as  a community  pharmacist  in  Fairbanks.  She                                                               
supported SB  217. When she  started being a pharmacist  45 years                                                               
ago, most  patients paid  cash for  their prescriptions.  Now the                                                               
majority of prescriptions  are billed to third  parties and along                                                               
with that  has come audits  of prescription records. SB  217 just                                                               
brings some standardization and  fairness into the audit process.                                                               
The  provisions of  this bill  allow pharmacists  time to  comply                                                               
with  this audit  request but  cause less  disruption to  patient                                                               
care that pharmacies provide every day.                                                                                         
                                                                                                                                
2:26:43 PM                                                                                                                    
BARRY  CHRISTENSEN,   Co-Chair,  Legislative   Committee,  Alaska                                                               
Pharmacists  Association, Ketchikan,  supported SB  217. He  said                                                               
their  members   work  hard  every  day   in  retail  pharmacies,                                                               
hospitals, nursing  homes and medical clinic  settings throughout                                                               
the state.  This legislation  would help  create a  level playing                                                               
field for pharmacists when dealing  with pharmacy audits.   Their                                                               
membership has  made this their number  one legislative priority.                                                               
They support  the needs  for audits to  ensure that  fraud, waste                                                               
and abusive  activities are checked,  but they must  be conducted                                                               
in a  fair and  balanced manner  allowing for  a fair  appeal and                                                               
payment for  all services performed within  the patient's benefit                                                               
structure.                                                                                                                      
                                                                                                                                
He said pharmacies generally contract  with PBMs in order to fill                                                               
and bill for  consumers as part of the health  benefit plan. PBMs                                                               
are names  like Express Scripts,  Medco and Caremark.  Nearly all                                                               
prescriptions are  filled electronically  in real time.  That is,                                                               
the pharmacy  sends prescription  information to  the PBM  and in                                                               
turn it sends  back authorization for payment  and other clinical                                                               
edits of  concern like high  dose warnings, drug  interactions et                                                               
cetera.  Pharmacies   are  reimbursed   back  for  the   cost  of                                                               
medication plus a dispensing fee  that covers the pharmacy's cost                                                               
of  doing  business.  Typically,  either the  PBM  or  an  entity                                                               
contracted  by   the  PBM  will  perform   audits  on  contracted                                                               
pharmacies to legitimately protect against fraud and abuse.                                                                     
                                                                                                                                
MR.  CHRISTENSEN  said  it  has   been  suggested  by  some  that                                                               
pharmacies  should  be  able to  contractually  deal  with  their                                                               
auditing  concerns   directly  with  a  PBM,   but  most  Alaskan                                                               
pharmacists  have never  been  able  to alter  the  terms of  the                                                               
contract  given to  them except  for the  dispensing fees.  It is                                                               
usually a take it or leave it  offer. That is why they are asking                                                               
for some  standardization in auditing practices  to be applicable                                                               
to all plans and pharmacies in the state.                                                                                       
                                                                                                                                
2:30:25 PM                                                                                                                    
DIRK  WHITE, Vice  Chairman, Board  of Pharmacy,  Sitka, said  he                                                               
also  serves   on  the  Legislative  Committee   for  the  Alaska                                                               
Pharmacists Association.  He supported SB 217.  At their February                                                               
meeting they voted  unanimous support for the House  bill on this                                                               
issue. He said  the audits are onerous and  emphasized that there                                                               
are   no  errors   on  these   prescriptions.   They  are   valid                                                               
prescriptions,  and  the  patient  has  received  it  from  their                                                               
physician and brought it to the  pharmacist who has filled it; it                                                               
has  been  legally  transposed and  complies  with  the  patient,                                                               
pharmacist and  physician triad working  together to  improve the                                                               
health of the patient.                                                                                                          
                                                                                                                                
He  said the  PBMs, on  their own,  have come  up with  arbitrary                                                               
reasons for  bringing these errors  up, and  a lot of  times it's                                                               
fishing expeditions  for more  money for  them. It  doesn't apply                                                               
just to pharmaceuticals;  he and his wife, who works  with him as                                                               
a pharmacist (and providing  durable medical equipment), received                                                               
a bench audit for information on  two wheel chairs from 2008. One                                                               
of them was $3,500 and  the other was $3,800. These prescriptions                                                               
came from  a physician;  they measured and  got the  wheel chair;                                                               
the  patients   received  the  wheel  chair   and  they  received                                                               
wonderful benefit  from them.  Now if he  cannot produce  all the                                                               
paperwork that the PBM wants, they  will take that money back. It                                                               
may very  well close  down that portion  of his  business because                                                               
they made only about $500 on each one of those wheel chairs.                                                                    
                                                                                                                                
SENATOR PASKVAN  asked if there  is any regulation or  control on                                                               
how much  of the  savings is passed  on to  the employer/consumer                                                               
when they negotiate prices. How transparent is that?                                                                            
                                                                                                                                
MR. WHITE  said he  didn't know  if any of  that money  even goes                                                               
back to the insurance companies. It's not transparent to him.                                                                   
                                                                                                                                
SENATOR GIESSEL asked  how many other states have  these kinds of                                                               
sidebars on an audit process.                                                                                                   
                                                                                                                                
MR. WHITE replied 15 other states.                                                                                              
                                                                                                                                
SENATOR  MENARD said  she personally  thought  two weeks'  notice                                                               
before the audit  is too little time and asked  what other states                                                               
are doing.                                                                                                                      
                                                                                                                                
MR.  WHITE answered  that  he was  speculating,  because this  is                                                               
model legislation that came from  the National Community Pharmacy                                                               
Association. He would  think that it's fairly  similar. He agreed                                                               
with her.                                                                                                                       
                                                                                                                                
CHAIR EGAN said he assumed it's no time now.                                                                                    
                                                                                                                                
MR. WHITE responded that they  generally try to give some notice;                                                               
it could be an hour or two.                                                                                                     
                                                                                                                                
SENATOR  MENARD  asked  him  to   clarify  what  happens  if  the                                                               
prescription  is for  30  pills but  at some  point  you give  31                                                               
because a person might traveling or something.                                                                                  
                                                                                                                                
MR. WHITE  replied that they  might have been talking  more about                                                               
the number of days' supply. A pharmacist  may put it down as a 31                                                               
day supply or  the physician has written a  prescription for just                                                               
a 30  day supply and  the patient has  asked for more  because he                                                               
would be gone  longer. In that case, he would  call the physician                                                               
and explain and ask for an  extra week or so. For whatever reason                                                               
the PBMs might not like that.                                                                                                   
                                                                                                                                
SENATOR  MENARD thanked  him for  that clarification.  She missed                                                               
the step that the physician is  directing him that he may add one                                                               
or two pills.                                                                                                                   
                                                                                                                                
MR.  WHITE said  taking it  upon himself  to do  that would  be a                                                               
violation of the Board's rules and regulations.                                                                                 
                                                                                                                                
2:37:08 PM                                                                                                                    
CINDY  LAUBACHER, Senior  Director of  Government Affairs,  Medco                                                               
Health Solutions,  opposed SB 217. She  said Medco is one  of the                                                               
PBMs they have been hearing  about this afternoon. They currently                                                               
manage the pharmacy  benefit for approximately 20  percent of the                                                               
residents  of Alaska.  They are  here today  because they  have a                                                               
responsibility to their clients who  rely on them to protect them                                                               
from fraud,  waste and abuse  that may occur within  the pharmacy                                                               
network  they  contract  with  Medco  to  use.  The  auditing  of                                                               
prescription  claim reimbursement  is  a  necessary component  of                                                               
participation  in  that  prescription drug  program.  Their  plan                                                               
sponsors,  which include  labor unions,  health plans,  state and                                                               
federal governments require them to  perform a number of services                                                               
including  monitoring   of  prescription   claim  reimbursements,                                                               
conducting  audits of  prescription  claims and  the recovery  of                                                               
overpayments to the pharmacy by the plan's sponsor.                                                                             
                                                                                                                                
She said they  are required to audit not only  to the State Board                                                               
of  Pharmacy  rules  but  also to  the  plan  requirements.  That                                                               
includes  Medicare  Part B  and  maybe  30 other  clients.  Their                                                               
pharmacy  audit  program  focuses   on  a  number  of  activities                                                               
including  on-site   and  desk  audits,  patient   and  physician                                                               
analysis  of  Medicare  Part  B claims  and  claims  analysis  to                                                               
identify potentially  aberrant trends. Their clients  demand that                                                               
they   minimize  the   number  prescriptions   claims  that   are                                                               
inaccurate,  involve  fraud,  waste  or   abuse  or  are  not  in                                                               
accordance  with plan  requirements. An  effective audit  program                                                               
helps to protect the financial  integrity of the pharmacy network                                                               
by  identifying those  claims that  resulted in  overpayments and                                                               
recovering overcharges  where appropriate. She  emphasized, "When                                                               
we recover,  we're recovering  on behalf  our clients;  the money                                                               
doesn't go to us. This is money owed to our clients."                                                                           
                                                                                                                                
SENATOR MENARD asked  if they act like a collection  agency or do                                                               
they have to pay someone to go through that process.                                                                            
                                                                                                                                
MS. LAUBACHER  replied that their  auditors are internal  and the                                                               
auditors are  paid pursuant to the  contract as set forth  by the                                                               
client.                                                                                                                         
                                                                                                                                
SENATOR  PASKVAN  asked what  percentage  of  the audits  uncover                                                               
fraud.                                                                                                                          
                                                                                                                                
MS. LAUBACHER  replied that she  would have  to get a  number for                                                               
him, but it is a big  problem in the Medicaid business. They have                                                               
a pharmacy  network of  some 58,000  pharmacies and  do quarterly                                                               
analyses to look for trends.                                                                                                    
                                                                                                                                
2:41:23 PM                                                                                                                    
SENATOR PASKVAN said  he understood this to  be draft legislation                                                               
that  has been  adopted by  a national  organization and  assumed                                                               
that  this  language  does  not   violate  Medicare  or  Medicaid                                                               
standards.                                                                                                                      
                                                                                                                                
MS.  LAUBACHER  didn't  agree.   The  rules  under  Medicare  and                                                               
Medicaid  are much  different  than what  this  allows for.  This                                                               
would restrict how  far back they can look, but  they can go back                                                               
10  years for  Medicare. This  bill doesn't  exempt Medicare  and                                                               
Medicaid yet, but it probably will because of that.                                                                             
                                                                                                                                
SENATOR  PASKVAN asked  if  state law  can  overrule the  federal                                                               
standard of Medicare and Medicaid.                                                                                              
                                                                                                                                
MR. LAUBACHER answered no. There  are typically exemptions in the                                                               
law for  Medicare and  Medicaid, but even  if there  weren't they                                                               
would argue a  claim involving Medicaid or Medicare  would not be                                                               
subject to this statute.                                                                                                        
                                                                                                                                
2:43:29 PM                                                                                                                    
SENATOR  GIESSEL  said  the  sidebars of  the  audit  seem  quite                                                               
reasonable. Certainly,  pharmacies are incredibly busy  the first                                                               
seven days of  a month and asked what  specifically wouldn't work                                                               
for Medco.                                                                                                                      
                                                                                                                                
MR.  LAUBACHER replied  that the  problem with  the timeframe  is                                                               
that lots  of states  are restricting the  time for  audits. That                                                               
reduces the  amount of time they  have to go into  all pharmacies                                                               
by about a week.  The amount  of notice has to do with preventing                                                               
fraud. They  have had  instances where  they notify  someone that                                                               
they're coming in to do an  audit, and the "bad actors" disappear                                                               
or cover up by making changes  in the "scrips." She wasn't saying                                                               
that happened in the State of Alaska, however.                                                                                  
                                                                                                                                
2:45:36 PM                                                                                                                    
SCOTT  WATTS,  owner,  Ron's Apothecary  Shop,  Juneau,  said  he                                                               
supported SB 217. He explained  that contracts they sign with the                                                               
PBMs are "pretty much take it  or leave it." This bill levels the                                                               
playing  field so  they  can't  be taken  advantage  of by  these                                                               
audits.                                                                                                                         
                                                                                                                                
CHAIR EGAN  said that  concluded public testimony  on SB  217 for                                                               
today and that it would be held.                                                                                                
                                                                                                                                
        HB 168-INJUNCTION SECURITY: INDUSTRIAL OPERATION                                                                    
                                                                                                                                
2:48:27 PM                                                                                                                    
CHAIR EGAN announced  consideration of HB 168  [CSHB 168(JUD) was                                                               
before the committee.].                                                                                                         
                                                                                                                                
2:48:55 PM                                                                                                                    
REPRESENTATIVE ERIC FEIGE, sponsor of  HB 168, said over the past                                                               
several  years a  few  courts have  issued  injunctions or  stays                                                               
against  companies   engaged  in  the  development   of  resource                                                               
extraction  and   other  large  legally   permitted  construction                                                               
projects. These  court actions  have had  the effect  of delaying                                                               
worthwhile projects  and curtailing  employment within  the state                                                               
of  Alaska.  In some  cases  projects  have  been shut  down  and                                                               
employees  laid off.  More  often than  not,  the litigation  has                                                               
failed  or had  an  extremely  limited effect  in  hand with  the                                                               
stated objectives of the original  lawsuit. The overall objective                                                               
is not  often what is  stated in the suit  but merely to  delay a                                                               
project or prevent it from coming to fruition.                                                                                  
                                                                                                                                
HB  168 seeks  to  remedy  this situation  by  requiring a  party                                                               
seeking a  restraining order, a  preliminary injunction  or order                                                               
vacating  or staying  the  operation of  permit  that affects  an                                                               
industrial  operation to  give security  in an  amount the  court                                                               
considers  proper.    HB  168  asks  that  part  of  the  court's                                                               
deliberation  shall  take  into  account  payment  of  wages  and                                                               
benefits   for  employees   and   payment   to  contractors   and                                                               
subcontractors of the industrial operation.                                                                                     
                                                                                                                                
In  this  legislation  an  industrial  operation  is  defined  to                                                               
include a construction, energy or  timber activity, an oil gas or                                                               
mineral exploration development and production.                                                                                 
                                                                                                                                
He said  that HB 168  parallels the requirements of  Alaska Civil                                                               
Rule 65(c),  which already requires  a court to require  a person                                                               
seeking an  injunction to  provide security  to protect  a person                                                               
who  may  be  wrongfully  restrained or  enjoined.  It  does  not                                                               
prohibit  a  person  who  is  wrongly  enjoined  from  relief  or                                                               
otherwise  limit the  amount that  a  person may  recover in  the                                                               
action. It also  does not specify an amount that  is required and                                                               
does not  affect the  discretion of the  judge to  determine that                                                               
amount.                                                                                                                         
                                                                                                                                
REPRESENTATIVE FEIGE offered his  understanding that state courts                                                               
do not  see very many of  these cases since most  involve federal                                                               
permits.  For those  few instances,  HB  168 seeks  to level  the                                                               
legal playing  field without infringing  on any parties  right to                                                               
bring a legitimate issue to court.                                                                                              
                                                                                                                                
CHAIR  EGAN said  public testimony  would  be taken  at the  next                                                               
meeting.                                                                                                                        
                                                                                                                                
[HB 168 was held in committee.]                                                                                                 
                                                                                                                                
2:53:08 PM                                                                                                                    
Finding no  other business  to come  before the  committee, Chair                                                               
Egan adjourned  the Senate Labor and  Commerce Standing Committee                                                               
meeting at 2:53 p.m.                                                                                                            

Document Name Date/Time Subjects
SB 175 Senate L&C follow up, Hurlburt.pdf SL&C 3/1/2012 1:30:00 PM
SB 175
SB 175 expanded list of medications currently authorized 022912.pdf SL&C 3/1/2012 1:30:00 PM
SB 175
SB 116 L&C v X.pdf SL&C 3/1/2012 1:30:00 PM
SB 116
SB 116 Amendment X.1, Giessel 030112.PDF SL&C 3/1/2012 1:30:00 PM
SB 116
SB 199 Kodiak Daily Mirror Article.pdf SL&C 3/1/2012 1:30:00 PM
SB 199
SB 199 Secondary School Definition.pdf SL&C 3/1/2012 1:30:00 PM
SB 199
SB 199 Sectional Analysis.pdf SL&C 3/1/2012 1:30:00 PM
SB 199
SB 199 Where Did the Money Go.pdf SL&C 3/1/2012 1:30:00 PM
SB 199
HB 168 Legal memo, Bailey 022912.pdf SL&C 3/1/2012 1:30:00 PM
HB 168
HB 168 Legal memo, Bailey 032111.PDF SL&C 3/1/2012 1:30:00 PM
HB 168
HB 168 lttr supporting, Alaska Chamber February 2, 2012.pdf SL&C 3/1/2012 1:30:00 PM
HB 168
HB 168 Press release, Rep. Feige 040711.PDF SL&C 3/1/2012 1:30:00 PM
HB 168
HB 168 white paper ACV 041011.pdf SL&C 3/1/2012 1:30:00 PM
HB 168
SB 217 Sponsor Statement.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Sectional Analysis.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB217-DOA-DRB-2-27-12.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB217-DCCED-CBPL-02-24-12.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 testimony opposing, Eric Douglas, CVS Caremark.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 testimony NCPA.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Survey of Community Pharmacies, National Community Pharmacists Association.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Opposing Testimony to HB259 by Eric Douglas - CVS Caremark 022712.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Model Audit Guidelines for Pharmacy Claims by the Academy of Managed Care Pharmacy, January 2012.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 lttr supporting, National Community Pharmacists Association 013012.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 lttr supporting, Alaska Pharmacists Association, 020312.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 lttr supporting, Alaska Board of Pharmacy - Holm 030112.PDF SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 lttr supporitng, National Association of Chain Drug Stores 020212.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 List of Supporters.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Examples of State Audit Laws, Alaska Pharmacists Association, 020512.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Examples of Abusive Auditing Practices in Alaska, Alaska Pharmacists Association 021012.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 Commercial Pharmaceutical Supply Chain - flow chart, Health Strategies Consultancy.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
SB 217 audit_guidelines_final (hi res).pdf SL&C 3/1/2012 1:30:00 PM
SB 217
NCPA Support SB217.pdf SL&C 3/1/2012 1:30:00 PM
SB 217
HB 168 lttr supporting, RDC 3-5-12.pdf SL&C 3/1/2012 1:30:00 PM
HB 168