Legislature(2011 - 2012)BELTZ 105 (TSBldg)

04/10/2012 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Moved CSHB 50(JUD) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved SCS CSHB 252(L&C) Out of Committee
Moved SCS CSHB 301(L&C) Out of Committee
Moved CSSB 128(L&C) Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 10, 2012                                                                                         
                           1:31 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                                                                                                            
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 252(FIN)                                                                                
"An  Act exempting  certain small  businesses from  the corporate                                                               
income tax; and providing for an effective date."                                                                               
     - MOVED SCS CSHB 252(L&C) OUT OF COMMITTEE                                                                                 
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 301(FIN)                                                                                
"An  Act  relating to  enforcement  of  boating safety  statutes;                                                               
amending  the termination  date of  certain statutes  relating to                                                               
the  use, operation,  and regulation  of boats,  a uniform  state                                                               
waterway  marking system,  and civil  liability for  boat owners;                                                               
providing for  an effective date  by amending the  effective date                                                               
of secs. 3, 5, 7, 9, 11, 14,  16, 18, 20, 23, 26, and 27, ch. 28,                                                               
SLA 2000, as amended; and providing for an effective date."                                                                     
     - MOVED SCS CSHB 301(L&C) OUT OF COMMITTEE                                                                                 
SENATE BILL NO. 128                                                                                                             
"An Act relating to brewery licenses."                                                                                          
     - MOVED CSSB 128(L&C) OUT OF COMMITTEE                                                                                     
SENATE BILL NO. 166                                                                                                             
"An Act relating  to the licensing of  medical laboratory science                                                               
professionals; and providing for an effective date."                                                                            
     - HEARD & HELD                                                                                                             
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 50(JUD)                                                                                 
"An Act relating to the purchase of alcoholic beverages at a                                                                    
club and to access by certain persons under 21 years of age to a                                                                
club's licensed premises when alcoholic beverages are present."                                                                 
     - MOVED CSHB 50(JUD) OUT OF COMMITTEE                                                                                      
PREVIOUS COMMITTEE ACTION                                                                                                     
BILL: HB 252                                                                                                                  
SHORT TITLE: SMALL BUSINESS INCOME TAX EXEMPTION                                                                                
SPONSOR(s): REPRESENTATIVE(s) COSTELLO                                                                                          
01/17/12       (H)       PREFILE RELEASED 1/6/12                                                                                
01/17/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (H)       L&C, FIN                                                                                               
02/22/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/22/12       (H)       Moved CSHB 252(L&C) Out of Committee                                                                   
02/22/12       (H)       MINUTE(L&C)                                                                                            
02/24/12       (H)       L&C RPT CS(L&C) 6DP 1NR                                                                                
02/24/12       (H)       DP: THOMPSON, JOHNSON, SADDLER, HOLMES,                                                                
                         MILLER, OLSON                                                                                          
02/24/12       (H)       NR: CHENAULT                                                                                           
02/29/12       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
02/29/12       (H)       Heard & Held                                                                                           
02/29/12       (H)       MINUTE(FIN)                                                                                            
03/13/12       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
03/13/12       (H)       Moved CSHB 252(FIN) Out of Committee                                                                   
03/13/12       (H)       MINUTE(FIN)                                                                                            
03/14/12       (H)       FIN RPT CS(FIN) 8DP 3NR                                                                                
03/14/12       (H)       DP: GARA, GUTTENBERG, JOULE, COSTELLO,                                                                 
                         EDGMON, DOOGAN, STOLTZE, THOMAS                                                                        
03/14/12       (H)       NR: FAIRCLOUGH, T.WILSON, NEUMAN                                                                       
03/23/12       (H)       TRANSMITTED TO (S)                                                                                     
03/23/12       (H)       VERSION: CSHB 252(FIN)                                                                                 
03/26/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/26/12       (S)       L&C, FIN                                                                                               
04/03/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/12       (S)       Heard & Held                                                                                           
04/03/12       (S)       MINUTE(L&C)                                                                                            
04/05/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/05/12       (S)       BOATING REGULATION: SUNSET/ENFORCEMENT                                                                 
04/10/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: HB 301                                                                                                                  
SHORT TITLE: BOATING REGULATION: SUNSET/ENFORCEMENT                                                                             
SPONSOR(s): REPRESENTATIVE(s) AUSTERMAN                                                                                         
01/27/12       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/12       (H)       L&C                                                                                                    
02/22/12       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/22/12       (H)       Moved Out of Committee                                                                                 
02/22/12       (H)       MINUTE(L&C)                                                                                            
02/24/12       (H)       L&C RPT 7DP                                                                                            
02/24/12       (H)       DP:    CHENAULT,   THOMPSON,    SADDLER,                                                               
                         JOHNSON, HOLMES, MILLER, OLSON                                                                         
02/24/12       (H)       FIN REFERRAL ADDED AFTER L&C                                                                           
03/07/12       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
03/07/12       (H)       Scheduled But Not Heard                                                                                
03/15/12       (H)       FIN RPT CS(FIN) NT 10DP                                                                                
03/15/12       (H)       DP: FAIRCLOUGH, GARA, JOULE, T.WILSON,                                                                 
                         GUTTENBERG, NEUMAN, COSTELLO, EDGMON,                                                                  
03/15/12       (H)       STOLTZE, THOMAS                                                                                        
03/15/12       (H)       FIN AT 8:30 AM HOUSE FINANCE 519                                                                       
03/15/12       (H)       Moved CSHB 301(FIN) Out of Committee                                                                   
03/15/12       (H)       MINUTE(FIN)                                                                                            
03/23/12       (H)       TRANSMITTED TO (S)                                                                                     
03/23/12       (H)       VERSION: CSHB 301(FIN)                                                                                 
03/26/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/26/12       (S)       L&C, FIN                                                                                               
04/03/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/12       (S)       Heard & Held                                                                                           
04/03/12       (S)       MINUTE(L&C)                                                                                            
04/05/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/05/12       (S)       LABORATORY      SCIENCE     PROFESSIONAL                                                               
04/10/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: SB 128                                                                                                                  
SHORT TITLE: BREWERY LICENSES/PERMITS                                                                                           
SPONSOR(s): SENATOR(s) MCGUIRE                                                                                                  
04/15/11       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/15/11       (S)       L&C, JUD                                                                                               
03/29/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/29/12       (S)       Heard & Held                                                                                           
03/29/12       (S)       MINUTE(L&C)                                                                                            
04/03/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/03/12       (S)       <Bill Hearing Canceled>                                                                                
04/05/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/10/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: SB 166                                                                                                                  
SHORT TITLE: LABORATORY SCIENCE PROFESSIONAL LICENSING                                                                          
SPONSOR(s): SENATOR(s) DAVIS                                                                                                    
01/17/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/17/12       (S)       L&C, FIN                                                                                               
04/05/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/05/12       (S)       BREWERY LICENSES/PERMITS                                                                               
04/10/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
BILL: HB  50                                                                                                                  
SHORT TITLE: ACCESS TO LICENSED PREMISES                                                                                        
SPONSOR(s): REPRESENTATIVE(s) SADDLER                                                                                           
01/18/11       (H)       PREFILE RELEASED 1/7/11                                                                                
01/18/11       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/11       (H)       L&C, JUD                                                                                               
04/04/11       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/04/11       (H)       Moved Out of Committee                                                                                 
04/04/11       (H)       MINUTE(L&C)                                                                                            
04/05/11       (H)       L&C RPT 5DP 2NR                                                                                        
04/05/11       (H)       DP:    CHENAULT,   THOMPSON,    SADDLER,                                                               
                         JOHNSON, OLSON                                                                                         
04/05/11       (H)       NR: HOLMES, MILLER                                                                                     
03/14/12       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/14/12       (H)       Heard & Held                                                                                           
03/14/12       (H)       MINUTE(JUD)                                                                                            
03/16/12       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
03/16/12       (H)       Moved CSHB  50(JUD) Out of Committee                                                                   
03/16/12       (H)       MINUTE(JUD)                                                                                            
03/21/12       (H)       JUD RPT CS(JUD) 6DP                                                                                    
03/21/12       (H)       DP: LYNN, GRUENBERG, KELLER, PRUITT,                                                                   
                        THOMPSON, GATTO                                                                                         
04/05/12       (H)       TRANSMITTED TO (S)                                                                                     
04/05/12       (H)       VERSION: CSHB 50(JUD)                                                                                  
04/06/12       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/06/12       (S)       L&C, JUD                                                                                               
04/10/12       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
WITNESS REGISTER                                                                                                              
JOSHUA WALTON, Staff                                                                                                            
Representative Mia Costello                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Commented on HB 252 for the sponsor.                                                                      
REPRESENTATIVE Alan AUSTERMAN                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HB 301.                                                                                        
GENEVIEVE WOTJUSIK, Staff                                                                                                       
Senator Lesil McGuire                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained the changes in CSSB 128( ),                                                                     
version \D.                                                                                                                     
SASSAN MOSSANEN                                                                                                                 
Denali Brewing Company                                                                                                          
Talkeetna, AK                                                                                                                   
POSITION STATEMENT: Supported SB 128.                                                                                         
KAREN BERGER, part-owner                                                                                                        
Homer Brewing Company                                                                                                           
Homer, AK                                                                                                                       
POSITION STATEMENT: Supported SB 128.                                                                                         
ZACH HENRY                                                                                                                      
St. Elias Brewing Company                                                                                                       
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported SB 128.                                                                                         
ALICE KERKVLIET, owner                                                                                                          
Michael's Restaurant                                                                                                            
Soldotna, AK                                                                                                                    
POSITION STATEMENT: Supported SB 128.                                                                                         
TOM OBERMEYER, Staff                                                                                                            
Senator Bettye Davis                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Explained the changes in CSSB 166( ),                                                                     
version \I.                                                                                                                     
WARD HURLBURT, Director                                                                                                         
Division of Public Health                                                                                                       
Department of Health and Social Services (DHSS)                                                                                 
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Explained how SB 166 would affect his                                                                     
GLORIA TOMICH                                                                                                                   
University of Alaska Anchorage                                                                                                  
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Supported SB 166.                                                                                         
WILLIE RUMBO, medical technologist representing himself                                                                         
Anchorage, AK                                                                                                                   
POSITION STATEMENT: Opposed SB 166.                                                                                           
DON HABEGER, Director                                                                                                           
Division of Corporations                                                                                                        
Business and Professional Licensing Section                                                                                     
Department  of  Commerce,   Community  and  Economic  Development                                                               
Juneau, AK                                                                                                                      
POSITION  STATEMENT: Answered  questions about  how SB  166 would                                                             
affect his department.                                                                                                          
REPRESENTATIVE DAN SADDLER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, AK                                                                                                                      
POSITION STATEMENT: Sponsor of HB 50.                                                                                         
ACTION NARRATIVE                                                                                                              
1:31:56 PM                                                                                                                    
CHAIR DENNIS EGAN  called the Senate Labor  and Commerce Standing                                                             
Committee meeting  to order  at 1:31  p.m. Present  were Senators                                                               
Giessel, Davis and Chair Egan.                                                                                                  
           HB 252-SMALL BUSINESS INCOME TAX EXEMPTION                                                                       
1:33:18 PM                                                                                                                    
CHAIR EGAN announced consideration of  HB 252. [CSHB 252(FIN) was                                                               
before the committee.]                                                                                                          
SENATOR MENARD joined the committee.                                                                                            
1:33:31 PM                                                                                                                    
JOSHUA WALTON,  staff to Representative Mia  Costello, sponsor of                                                               
HB 252, said that Senator  Paskvan had prepared an amendment that                                                               
provides  additional  sideboards  to  the bill  by  limiting  the                                                               
amount of time  that a company can qualify for  this exemption to                                                               
10  years after  they  first  have taxable  income.  He said  the                                                               
sponsor did not object to the amendment.                                                                                        
SENATOR DAVIS moved to adopt Amendment 1, labeled 27-LS1085\D.2.                                                                
                          AMENDMENT 1                                                                                       
     OFFERED IN THE SENATE                                                                                                      
     TO:  CSHB 252(FIN)                                                                                                         
     Page 1, line 9:                                                                                                            
          Delete "a tax year"                                                                                               
          Insert "the 10 tax years"                                                                                         
          Following "2012,":                                                                                                
          Insert "or for the 10 tax years immediately                                                                       
       following the first year a corporation has taxable                                                                   
CHAIR EGAN found no objection, and Amendment 1 was adopted.                                                                     
1:35:02 PM                                                                                                                    
At ease from 1:35:02 to 1:35:38 p.m.                                                                                            
1:35:38 PM                                                                                                                    
SENATOR DAVIS moved to report CSHB 252(FIN), as amended, from                                                                   
committee with individual recommendations and attached fiscal                                                                   
CHAIR EGAN found no objection, therefore SCS CSHB 252(L&C) moved                                                                
from the Senate Labor and Commerce Standing Committee.                                                                          
1:35:57 PM                                                                                                                    
At ease from 1:35 to 1:38 p.m.                                                                                                  
1:38:02 PM                                                                                                                    
CHAIR EGAN reconvened the Senate Labor and Commerce Standing                                                                    
Committee meeting and recognized Senator Menard.                                                                                
SENATOR MENARD asked the committee to take a moment of silence                                                                  
in memory of Representative Carl Gatto.                                                                                         
         HB 301-BOATING REGULATION: SUNSET/ENFORCEMENT                                                                      
CHAIR EGAN announced consideration of HB 301 [SCS CSHB 301(L&C)                                                                 
was before the committee with an objection by Senator Paskvan].                                                                 
1:39:28 PM                                                                                                                    
REPRESENTATIVE ALAN AUSTERMAN, sponsor of  HB 301, said this bill                                                               
is  about a  program  that  has proven  to  save  lives. It  also                                                               
teaches people  and makes them aware  of the dangers of  being on                                                               
the water.  This bill has had  a sunset just about  every time it                                                               
has passed and it will continue to  have a sunset in a little bit                                                               
different form this time. The  specific date in the sunset clause                                                               
was removed leaving language that  said if federal funds go away,                                                               
the legislature would  have to decide whether they  would want to                                                               
use state dollars to continue it.                                                                                               
CHAIR EGAN noted that Senator  Paskvan had objected to the Senate                                                               
CS because he had a question.  The question was answered, but the                                                               
objection needed  to be removed  in order  to move the  bill from                                                               
SENATOR MENARD stated support for HB 301.                                                                                       
1:43:25 PM                                                                                                                    
At ease from 1:43:25 to 1:44:08 p.m.                                                                                            
1:44:08 PM                                                                                                                    
CHAIR EGAN reconvened the meeting at 1:44 p.m.                                                                                  
SENATOR  DAVIS  moved  to  lift  the  objection.  There  were  no                                                               
objections, and it was so ordered.                                                                                              
1:44:36 PM                                                                                                                    
SENATOR  MENARD  moved  to  report HB  301  from  committee  with                                                               
individual  recommendations and  attached  fiscal note(s).  There                                                               
were no objections,  and SCS CSHB 301(L&C) moved  from the Senate                                                               
Labor and Commerce Standing Committee.                                                                                          
1:45:21 PM                                                                                                                    
At ease from 1:45 to 1:47 p.m.                                                                                                  
                SB 128-BREWERY LICENSES/PERMITS                                                                             
1:47:32 PM                                                                                                                    
CHAIR EGAN announced consideration of SB 128.                                                                                   
SENATOR MENARD moved to adopt CSSB 128 ( ), version 27-LS0647\D.                                                                
CHAIR EGAN objected for discussion purposes.                                                                                    
GENEVIEVE  WOTJUSIK, staff  to Senator  Lesil McGuire,  explained                                                               
that  this version  clarifies some  things that  were brought  to                                                               
their attention  in committee  last week. The  chairs at  the bar                                                               
and  live entertainment  would only  happen during  fives special                                                               
events that are permitted per year.  Changing the hours from 8 to                                                               
10 would be  year round. It also adds that  each brewery employee                                                               
must  have a  Tams card  (alcohol awareness  training). Breweries                                                               
are pretty  new to the  state and  that was not  required before,                                                               
because the statute is old.                                                                                                     
CHAIR EGAN withdrew his objection.                                                                                              
SENATOR PASKVAN joined the committee.                                                                                           
CHAIR EGAN  asked Senator Paskvan  if he had any  questions since                                                               
he had talked about the Tams cards.                                                                                             
SENATOR PASKVAN replied that his concern had been cured.                                                                        
SENATOR  MENARD asked  if a  brewery would  be held  to the  same                                                               
scrutiny  when   it  holds  an   event  as  a   regular  licensed                                                               
MS. WOTJUSIK answered yes.                                                                                                      
1:50:09 PM                                                                                                                    
SASSAN MOSSANEN, Denali Brewing  Company, Talkeetna, said he sent                                                               
a letter  of support  to the  committee on SB  128 and  wanted to                                                               
read it. The letter related that  their tasting room is closed by                                                               
6 p.m. for seven months of  the year, but in the remaining months                                                               
it is critical  for them to be able to  serve small quantities of                                                               
product to  interested folks. By  providing a  quality experience                                                               
for  their guests,  they bring  attention to  what a  great state                                                               
Alaska is to  visit. Without exception, he said,  they don't have                                                               
a single evening during the summer  season where they do not have                                                               
to turn  guests away.  Many of the  folks are  local, hardworking                                                               
Alaskans that  take advantage of the  longer days to work  past 8                                                               
p.m. and  would prefer  to support their  local brewery.  Some of                                                               
them  have  driven  two  hours  from  Anchorage  to  enjoy  their                                                               
favorite  beer,  only  to  be   told  "no."  The  nuance  of  the                                                               
difference between a  brew pub and a brewery escape  many of them                                                               
He read further:                                                                                                                
     Equally important  are the visitors  to the  state that                                                                    
     are  here to  experience  genuine Alaskan  hospitality.                                                                    
     People from  all over  the world  come to  Talkeetna to                                                                    
     experience the  mountains, rivers, and create  a flavor                                                                    
     that  can only  be found  here. Sadly,  after a  day of                                                                    
     fishing  or exploring  our backyard,  we are  forced to                                                                    
     hastily  usher these  folks out  of our  establishment.                                                                    
     There is  no way to  gain support for a  local industry                                                                    
     that has a  long tradition of bringing  visitors to our                                                                    
     state and  employing many.  Manufacturing in  Alaska is                                                                    
     not easy.  SB 128  gives small business  owners further                                                                    
     freedom to manage their business responsibly.                                                                              
MR. MOSSANEN said he was available to answer questions.                                                                         
SENATOR MENARD  said she  resides in the  Mat-Su Borough  that is                                                               
famous  for  the  Alaska  State   Fair  and  that  several  other                                                               
communities have  a fair, too.  She asked if this  special events                                                               
permit would  allow a brewery  to set up an  off-premise location                                                               
in which to vend their beer.                                                                                                    
MR. MOSSANEN  replied that Denali  Brewing had been  the official                                                               
brewery  of the  Alaska  State Fair  last year  and  will be  the                                                               
official  brewery  again  this  year.   The  way  they  win  that                                                               
distinction is  by winning  the Mat-Su  Beer Festival.  He didn't                                                               
know if this would  enable them to set up a  vending booth at the                                                               
Fair. Their  interest has  been primarily  to work  through their                                                               
distributor. The Alaska  State Fair, over the course  of the last                                                               
two  years,  has been  putting  a  genuine effort  into  bringing                                                               
attention to  the local  breweries in  Alaska and  Denali Brewery                                                               
intends to continue using that avenue.                                                                                          
1:56:31 PM                                                                                                                    
KAREN   BERGER,  part-owner,   Homer   Brewing  Company,   Homer,                                                               
supported  SB 128.  They definitely  know the  difference between                                                               
being  a brewery  and a  brew  pub, she  said, and  they are  not                                                               
intending to go into competition  with their customers, which are                                                               
the finer  eating and  drinking establishments  in the  town. She                                                               
believed that  breweries have  enhanced all  the licenses  in the                                                               
state  by providing  locally made  product with  "a whole  lot of                                                               
She  said that  breweries have  become an  economic force  in the                                                               
state and that  having a special events permit would  give them a                                                               
chance to showcase  their operation and allow the  public to have                                                               
a  more personal  connection to  these businesses.  All are  non-                                                               
smoking  establishments.   She  couldn't   imagine  any   of  the                                                               
breweries in  the state  not having their  key personnel  being a                                                               
card-carrying member of Tams card.                                                                                              
SENATOR MENARD  asked how  many new  breweries have  opened since                                                               
MS.  BERGER  replied  about  13  or 15  and  they  had  all  been                                                               
2:00:59 PM                                                                                                                    
ZACH  HENRY, St.  Elias Brewing  Company, Soldotna,  supported SB                                                               
128.  He  said  they  have  a  "restaurant  eating  place  public                                                               
convenience license"  and operate like  a brew pub with  beer and                                                               
wine on site and no hard  liquor. He thought their friends across                                                               
the  state that  own breweries  should be  able to  operate their                                                               
businesses  until  10 p.m.  and  didn't  see the  special  events                                                               
permit five times a year as any competition to them.                                                                            
MS. WOTJUSIK clarified that there are  10 brew pubs, 1 pub and 16                                                               
breweries in the state.                                                                                                         
2:02:58 PM                                                                                                                    
ALICE   KERKVLIET,   owner,   Michael's   Restaurant,   Soldotna,                                                               
supported SB 128. Her two brewery  neighbors made her aware of SB                                                               
128;  they  are  good  companies  doing  good  things  for  their                                                               
community, running  their businesses responsibly. She  didn't see                                                               
a problem with them having a special events permit.                                                                             
CHAIR EGAN stated that the amendment was adopted.                                                                               
SENATOR MENARD moved to report  CSSB 128( ), labeled 27-LS0647\D,                                                               
from committee to the next  committee of referral with individual                                                               
recommendations and  attached fiscal note as  amended. There were                                                               
no objections, and it was so ordered.                                                                                           
2:05:28 PM                                                                                                                    
At ease from 2:05 p.m. to 2:06 p.m.                                                                                             
        SB 166-LABORATORY SCIENCE PROFESSIONAL LICENSING                                                                    
2:06:40 PM                                                                                                                    
CHAIR  EGAN announced  consideration  of SB  166,  [CSSB 166(  ),                                                               
labeled 27-LS1163\I was before the committee].                                                                                  
2:07:12 PM                                                                                                                    
TOM  OBERMEYER,  staff  to  Senator Bettye  Davis,  said  SB  166                                                               
establishes a  seven-member board of clinical  laboratory science                                                               
professionals that includes one  public member, five members that                                                               
are  licensed by  the board  (a medical  laboratory scientist,  a                                                               
laboratory   technician,  a   medical  laboratory   assistant,  a                                                               
phlebotomy technician, a public health  scientist and (in the CS)                                                               
a medical laboratory director.                                                                                                  
He  said that  SB 166  requires licensing  of medical  laboratory                                                               
science professionals  under Title 8.  Today, medicine is  a team                                                               
effort, which  requires the highest  quality and  coordination of                                                               
all   occupations  in   provider  services.   Most  health   care                                                               
professions  are licensed  in Alaska  to protect  the public  and                                                               
define the scope  of practice and training required  to engage in                                                               
them.  However,  medical  laboratory  science  professionals  and                                                               
radiologic technologists  are not licensed, yet  they perform the                                                               
majority of diagnostic testing in Alaska.                                                                                       
MR. OBERMEYER said at least  70 percent of laboratory results are                                                               
used  for   direct  patient  care,  diagnostic,   therapeutic  or                                                               
management  decisions   and  that  inaccurate  test   results  by                                                               
unqualified medical professionals can  delay appropriate care and                                                               
lead  to inappropriate  or harmful  diagnoses or  treatments that                                                               
could result  in injury or  death. The complexity  and importance                                                               
of laboratory science in modern  medicine makes it necessary that                                                               
medical   laboratory   personnel   possess   the   qualifications                                                               
necessary to  ensure their professional competence.  That is what                                                               
SB 166 does. The CS also  has transition clauses that provide for                                                               
continuing  part-time,   full-time  and   non-resident  temporary                                                               
medical technician workers.                                                                                                     
SENATOR PASKVAN moved  to bring version CSSB 166(  ), version 27-                                                               
LS1163\I, before the committee for discussion purposes.                                                                         
CHAIR EGAN objected for discussion purposes.                                                                                    
MR.  OBERMEYER   explained  that   the  CS  would   increase  the                                                               
composition of  the board from  five members to seven;  the board                                                               
will   now  have   five  licensed   medical  laboratory   science                                                               
professionals,  the medical  laboratory director  and one  public                                                               
member. Their scope of  practice is set out on pages  3 and 4. He                                                               
explained  that  version  I  of  SB  166  increases  the  initial                                                               
staggered  terms for  three members  who will  serve three  years                                                               
instead of two  (the previous M version provided  for two members                                                               
who will serve one year). The  number of members on the board was                                                               
increased  as well  as the  terms staggered  to provide  for this                                                               
change.  The   CS  also  changes   the  definition   of  "medical                                                               
laboratory science director" to  a management director "in charge                                                               
of personnel and  the performance of laboratory tests"   (page 8,                                                               
lines 5-8).                                                                                                                     
MR.  OBERMEYER said  the  medical  director also  need  not be  a                                                               
licensed  allopathic   physician,  which  was  required   in  the                                                               
original version  but was  changed in version  M. The  CS deletes                                                               
the  duties  of  the  board  to  establish  continuing  education                                                               
requirements, because  another section (830) of  this new chapter                                                               
already  covers competency.  The  CS  changes responsibility  for                                                               
examination and licensing from the department to the board.                                                                     
On  page  7, lines  16-18,  under  the  list of  exemptions  from                                                               
license  requirements,  number   (8)  specifies  that  allopathic                                                               
physicians  or  osteopaths with  a  specialty  in pathology  will                                                               
assist  in  preparing  for postmortem  examinations.  Number  (9)                                                               
provides  an exemption  for a  certified cytotechnologist  with a                                                               
revised  list  of  their  duties   under  the  supervision  of  a                                                               
physician or osteopath (page 7, lines 19-20).                                                                                   
Finally, Mr.  Obermeyer said, the CS  provides grandfathering for                                                               
currently  employed persons  under the  applicability section  to                                                               
the licensing  requirement on page  8. Grandfathering  is limited                                                               
to two  years for those  employed in the  state for three  of the                                                               
last five years who have  documented advanced education, training                                                               
and   experience  in   lieu  of   certification  by   a  national                                                               
credentialing agency (page 8, line 30 to page 9, line 7).                                                                       
The transition section  on page 9 says licensing  is not required                                                               
for up to one year following the  effective date of the act for a                                                               
half-time worker with at least  1,040 hours of acceptable medical                                                               
laboratory testing  experience during two of  the preceding three                                                               
calendar years  and who submits  the documented  job descriptions                                                               
for  the positions  in which  he acquired  the experience  to the                                                               
board. It  also exempts  non-resident workers  from certification                                                               
or  the  licensing requirement  who  come  into  the state  on  a                                                               
temporary basis  for up to  13 weeks  in a 12-month  period. That                                                               
refers back to exemption number (6).                                                                                            
2:14:28 PM                                                                                                                    
He noted that penalties are not  included in either versions I, B                                                               
or M, because  the boards under Title 8 already  have a number of                                                               
disciplinary powers  including revoking a license  and imposing a                                                               
civil fine not to exceed $5,000.                                                                                                
2:15:02 PM                                                                                                                    
SENATOR MENARD asked  how many other states require  this type of                                                               
licensing and if he could share  the range of costs for licensing                                                               
in other states.                                                                                                                
MR.  OBERMEYER  said he  had  some  of  that information  in  the                                                               
office, but  the department could better  answer those questions.                                                               
Alaska  has 600  to 900  individuals  who would  fall under  this                                                               
proposal, so it shouldn't be an expensive process for them.                                                                     
SENATOR MENARD said  her concern was that  medical students incur                                                               
a tremendous debt  for their schooling, and even if  the fee is a                                                               
little  more than  in other  states, it  would be  just one  more                                                               
negative that  would keep someone  from coming back to  Alaska to                                                               
MR. OBERMEYER  again said  that the  department could  respond to                                                               
that, but  his understanding was  that this bill avoided  a great                                                               
number  of costs.  Because the  certifying  agencies are  outside                                                               
Alaska,  this  board  just  checks  to  make  sure  these  people                                                               
actually have  the hours and qualifications  they have submitted,                                                               
and then they are licensed or not at that point.                                                                                
CHAIR EGAN asked  Mr. Hurlburt if he could answer  any of Senator                                                               
Menard's questions.                                                                                                             
2:19:34 PM                                                                                                                    
WARD HURLBURT,  Director, Division  of Public  Health, Department                                                               
of Health and  Social Services (DHSS), said some  of the specific                                                               
cost questions could  be answered by the  Department of Commerce,                                                               
Community and  Economic Development  (DCCED). He  appreciated the                                                               
intent to assure  quality for laboratory testing,  but the Center                                                               
for  Medicare  and  Medicaid Services  (CMMS)  states  that  they                                                               
regulate all laboratory  testing in the country.  A hospital lab,                                                               
for  instance,  goes  through  a  certification  process  through                                                               
either  the   Joint  Commission   or  the  Council   of  American                                                               
Pathologists.  He   explained  that  CLIA   (Clinical  Laboratory                                                               
Improvement   Amendments)   mandate    standards   for   clinical                                                               
laboratories  in physicians'  offices  and  certain fairly  basic                                                               
tests can  have a CLIA waiver.  In his experience, those  are not                                                               
just  paper requirements  but real  quality  requirements. So  he                                                               
believed  that establishing  this  board could  have a  potential                                                               
adverse  impact on  small physicians'  offices, because  it might                                                               
increase costs and make recruitment harder.                                                                                     
SENATOR  PASKVAN asked  what percentage  of currently  practicing                                                               
professionals would have to be brought up to speed in two years.                                                                
MR.  HURLBURT  replied  that  he  didn't  have  that  information                                                               
available.  Large labs  would have  the  baccalaureate level  and                                                               
technician level  (two-year training)  technologists, as  well as                                                               
laboratory assistants.  The state lab  is run  by a PhD.  A small                                                               
physician's office  would employ people with  on-the-job training                                                               
who use waivered CLIA tests for competency.                                                                                     
2:23:34 PM                                                                                                                    
SENATOR GIESSEL asked why  these individuals should fundamentally                                                               
be licensed.                                                                                                                    
MR. OBERMEYER answered that it  was felt that people are supposed                                                               
to have  national standards going  through this process  and that                                                               
there  really isn't  a  great deal  of  control, particularly  in                                                               
offices that  have waiver standards  (which tends to be  the bulk                                                               
of the  testing). He wasn't  suggesting that they  weren't highly                                                               
qualified people, but  that there are no standards  for what they                                                               
are supposed to  be doing. He had asked Heidi  Amen from the DHSS                                                               
and Gloria Tomich, University of  Alaska Anchorage, to respond to                                                               
this issue  and to include the  number of the types  of associate                                                               
and bachelor degrees that are  required. The concept behind it is                                                               
competency and protection of the public.                                                                                        
SENATOR DAVIS added that this bill  was requested by those in the                                                               
profession  and their  testimony  could shed  more  light on  the                                                               
SENATOR  GIESSEL  said  she  would   defer  to  Senator's  Davis'                                                               
recommendation to hear from those individuals.                                                                                  
2:26:12 PM                                                                                                                    
GLORIA TOMICH,  University of Alaska  Anchorage, said  because 70                                                               
percent of medical decisions are  based on laboratory results, an                                                               
educated  and  competent  workforce  in  laboratory  testing  was                                                               
needed.  This is  accomplished  through certification.  Licensure                                                               
under  this   bill  does  require  certification.   The  goal  of                                                               
licensure  is  to  have  more   stringent  requirements  for  the                                                               
performance  of laboratory  testing that  will reduce  laboratory                                                               
errors and increase patient safety.                                                                                             
MS. TOMICH  said the journal  article submitted to  the committee                                                               
gives  examples of  laboratory errors,  particularly in  point of                                                               
care testing.  Noncertified testing personnel have  a higher rate                                                               
of error  than those who  are under the supervision  of certified                                                               
personnel. She said  this will not prevent  health care providers                                                               
from hiring noncertified  staff but it will  require oversight of                                                               
competency  and quality  control  by licensed  personnel who  are                                                               
MS. TOMICH said  she believed that all  medical personnel working                                                               
in  Alaska  should  be  licensed. It  is  important  for  quality                                                               
laboratory testing,  which ultimately  results in  better patient                                                               
safety.  Currently, in  Alaska,  most  health care  professionals                                                               
except  laboratory  scientists  and  radiologic  technicians  are                                                               
2:28:17 PM                                                                                                                    
She   said  that   13  states   have  licensure   for  laboratory                                                               
professionals and 25 states are in the process of requiring it.                                                                 
SENATOR GIESSEL asked why have  a board if national certification                                                               
by  a  recognized credentialing  agency  or  organization is  the                                                               
criteria by which competency is measured. It seems redundant.                                                                   
MS. TOMICH  replied that  laboratory professionals  are certified                                                               
by the  national agency and one  of this bill's strong  points is                                                               
that  every   three  years  people   must  provide   evidence  of                                                               
continuing  education   to  maintain  their   certification.  She                                                               
explained that laboratory  world is very dynamic;  it changes all                                                               
the time  and people need  to keep  current with it.  The current                                                               
certification  requiring continuing  education  is sufficient  to                                                               
support those who are licensed.                                                                                                 
SENATOR GIESSEL questioned  the need for a  regulating board when                                                               
Ms.  Tomich was  already saying  that this  national organization                                                               
certifies competence and continued competence,                                                                                  
MS. TOMICH  replied that  not all laboratory  testing is  done by                                                               
certified  personnel and  a large  number of  errors are  made by                                                               
people who are not certified.                                                                                                   
2:30:52 PM                                                                                                                    
SENATOR GIESSEL  said it's  up to the  employer to  determine the                                                               
credentials  of  the individual  they  are  employing to  perform                                                               
certain duties  and asked  in practical  application, if  she was                                                               
requiring  that all  physician offices  hire  only certified  lab                                                               
MS. TOMICH responded  that the bill doesn't require  that all lab                                                               
techs have  certification, but it  does require  having oversight                                                               
of quality  control and competency,  and a consultant  could come                                                               
in and  do that  oversight. It's a  closer monitoring  of quality                                                               
control and  competency of the  staff that is doing  the testing.                                                               
She  clarified that  physician office  laboratories  do point  of                                                               
care testing including  CLIA waived tests, but a lot  of point of                                                               
care testing is not waived.                                                                                                     
SENATOR GIESSEL  said the Joint  Commission on  Accreditations of                                                               
Healthcare  Organizations (JCAHO),  the  national lab  certifying                                                               
agency, and  the CMMS already  monitor physician  lab operations,                                                               
and this is  all done to verify validity, and  asked if this just                                                               
another  hoop  that adds  cost  to  the  health care  system  and                                                               
creates a board that isn't really necessary.                                                                                    
MS. TOMICH  replied that the  Joint Commission and  CLIA regulate                                                               
and  license laboratories;  however, they  don't closely  monitor                                                               
competency,  education  and   continuing  education.  They  don't                                                               
require continuing  education, and  they believe  that continuing                                                               
education  is very  important  for  laboratory professionals.  If                                                               
someone  doesn't  know the  current  protocols,  then they  won't                                                               
perform laboratory  testing properly. Again, they  have testimony                                                               
from people  who have talked  about a lot  of errors in  point of                                                               
care testing and they are hoping  this licensure will cut down on                                                               
those errors.                                                                                                                   
2:34:38 PM                                                                                                                    
WILLIE  RUMBO,  representing himself,  Anchorage,  said  he is  a                                                               
medical technologist and  that he opposed SB 166.  He agreed that                                                               
it  would  raise  costs  and  create  another  hoop  for  medical                                                               
professionals to  go through  just to be  able to  practice their                                                               
jobs.  CLIA does  create those  regulations already;  it requires                                                               
minimum training and education standards.                                                                                       
The focus  seems to be  on point of  care testing, but  CLIA does                                                               
require a minimum education standard  for that. He explained that                                                               
point of  care testing not  only occurs in doctors'  offices, but                                                               
at  the  hospital  and  in emergency  rooms.  Will  they  require                                                               
certified technicians  to perform testing in  emergency rooms and                                                               
on the floors  in hospitals and say this won't  raise the cost of                                                               
medicine?  That  is  preposterous,  and they  are  assuming  that                                                               
everyone  who   performs  point   of  care  testing   is  somehow                                                               
incompetent. Twenty of  his colleagues also oppose  this. He said                                                               
the  Food and  Drug Administration  regulates them  and there  is                                                               
already enough regulation from the federal government.                                                                          
CHAIR EGAN asked if he thought SB 166 was unnecessary.                                                                          
MR.  RUMBO replied  it is  very unnecessary.  He reiterated  that                                                               
they are  already regulated through  the Center for  Medicare and                                                               
Medicaid Services  and by the  Food and Drug  Administration that                                                               
both require minimum education standards  for performing his job,                                                               
which includes point of care testing.                                                                                           
SENATOR PASKVAN asked what education level he had attained.                                                                     
MR. RUMBO replied a Bachelor's Degree in Medical Technology.                                                                    
2:39:21 PM                                                                                                                    
DON  HABEGER, Director,  Division of  Corporations, Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development  (DCCED), commented  that currently  the fee                                                               
on  page 5,  line  9,  is established  by  the division;  central                                                               
licensing  requires annual  review  of revenue  and expenses.  He                                                               
explained that essentially,  the formula for setting  fees has to                                                               
match approximate revenue  and expenses. If the  board is setting                                                               
those fees, it  should have a similar standard.  Otherwise it may                                                               
not cover expenses and that  would make management of the program                                                               
SENATOR GIESSEL  said language  on page 5,  line 5,  identifies a                                                               
three-year  licensure duration  and asked  if other  licenses are                                                               
provided by the division that endure for three years.                                                                           
MR. HABEGER replied the he  administers 40 programs and only one,                                                               
the geologist,  has a  lifetime license; all  others have  a two-                                                               
year bi-annual cycle.                                                                                                           
2:41:55 PM                                                                                                                    
SENATOR MENARD asked if the department had a position on this.                                                                  
MR. HABEGER replied no.                                                                                                         
MR. OBERMEYER said he could  see how raising standards could cost                                                               
more, but if  some of the results are  not adequately understood,                                                               
then the public is at risk.                                                                                                     
CHAIR EGAN  thanked them and said  he would hold this  bill until                                                               
the  next  meeting.  He  asked  Hilary  Martin  if  she  had  any                                                               
clarifications and found she did not have any comment.                                                                          
[CHAIR EGAN held SB 166 in committee.]                                                                                          
               HB  50-ACCESS TO LICENSED PREMISES                                                                           
2:45:32 PM                                                                                                                    
CHAIR EGAN  announced consideration  of HB  50 [CSHB  50(JUD) was                                                               
before the committee].                                                                                                          
SENATOR PASKVAN moved to bring CSHB 50(JUD), labeled 27-                                                                        
LS0254\B, before the committee.                                                                                                 
CHAIR EGAN objected for discussion purposes.                                                                                    
2:46:22 PM                                                                                                                    
REPRESENTATIVE  DAN SADDLER,  sponsor  of HB  50, explained  that                                                               
this  measure  deals  with patriotic  clubs,  like  the  American                                                               
Legion  or the  VFW Halls,  which  may be  licensed premises  for                                                               
liquor sales as club licenses. The  bill does not allow minors to                                                               
drink; it's  merely an access  bill with two basic  elements. One                                                               
deals with service  members over age 21 and the  other with those                                                               
who are under 21.                                                                                                               
He explained that current law  allows those active duty personnel                                                               
with  a military  ID over  21 years  of age  to visit  a licensed                                                               
Legion  or   VFW  Hall  when   invited,  but  only   on  "special                                                               
occasions,"  which is  not defined.  This  bill illuminates  that                                                               
vague special occasion restriction so  that a soldier who is over                                                               
21  can  legally  visit  a  VFW or  Legion  Hall  at  the  club's                                                               
invitation on  any occasion.  Thanks to  a previous  amendment in                                                               
the House,  it will also allow  that soldier to bring  his or her                                                               
spouse with.                                                                                                                    
REPRESENTATIVE SADDLER  said the  second part  of the  bill deals                                                               
with  service members  who are  under  21 years  old, minors.  He                                                               
explained that  patriotic clubs  are often  the site  of off-base                                                               
meetings  and   commander's  calls   for  military   units  where                                                               
important information -  potential employments, verbal discipline                                                               
and congratulations  - is communicated. Excluding  minor soldiers                                                               
under age  21 could erode  unit cohesion  and unit morale.  HB 50                                                               
would allow  soldiers under the age  of 21 and their  spouse with                                                               
appropriate IDs to  visit a patriotic club's  licensed premise if                                                               
they are  members or guests  of a  member. If their  host leaves,                                                               
they have to leave, too.                                                                                                        
SENATOR PASKVAN  remembered when the  drinking age in  Alaska was                                                               
19 because of the Viet Nam  War. Then the federal government said                                                               
if you  want to receive federal  highway dollars, the age  had to                                                               
be raised  to 21 years  old. Part of  that was establishing  a 55                                                               
mph speed  limit; that is long  gone in America, but  the 21 year                                                               
drinking age remains.  They should recognize that 19  and 20 year                                                               
old soldiers are probably mature  enough to drink, along with the                                                               
other 19 and 20 year olds.                                                                                                      
SENATOR MENARD asked what type of IDs would be accepted.                                                                        
REPRESENTATIVE SADDLER replied a current  military ID. There is a                                                               
whole  range of  different  kinds of  military  IDs that  include                                                               
those issued by the Department of Defense and Homeland Security                                                                 
SENATOR PASKVAN moved  to report CSHB 50 (JUD),  version \B, from                                                               
committee  to  the next  committee  of  referral with  individual                                                               
recommendations  and attached  zero  fiscal note.  There were  no                                                               
objections, and it was so ordered.                                                                                              
2:50:54 PM                                                                                                                    
At ease from 2:50 to 2:52 p.m.                                                                                                  
2:52:58 PM                                                                                                                    
Finding no further business to come before the committee, Chair                                                                 
Egan adjourned the Senate Labor and Commerce Committee meeting                                                                  
at 2:52 p.m.                                                                                                                    

Document Name Date/Time Subjects
SB 166 email supporting, Bacom 040712.PDF SL&C 4/10/2012 1:30:00 PM
SB 166
SB 166 CS blank ver I.pdf SL&C 4/10/2012 1:30:00 PM
SB 166
SB 166 Compare version B to version I.pdf SL&C 4/10/2012 1:30:00 PM
SB 166
HB 252 Amendment D.2.PDF SL&C 4/10/2012 1:30:00 PM
HB 252