Legislature(2013 - 2014)BELTZ 105 (TSBldg)

04/16/2014 07:00 AM LABOR & COMMERCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 281 PRESCRIPTION WITHOUT PHYSICAL EXAMINATION TELECONFERENCED
Moved CSHB 281(L&C) Out of Committee
+ HB 309 DISTILLERY LICENSES TELECONFERENCED
Moved CSHB 309(L&C) Out of Committee
+ HB 357 ACCESS TO LICENSED PREMISES TELECONFERENCED
Moved HB 357 Out of Committee
+ HB 169 RCA REGULATION OF TELEPHONE DIRECTORIES TELECONFERENCED
Moved CSHB 169(L&C) Out of Committee
+= SB 8 PHARMACY AUDITS TELECONFERENCED
<Bill Hearing Canceled by Request of Sponsor>
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 16, 2014                                                                                         
                           7:04 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mike Dunleavy, Chair                                                                                                    
Senator Peter Micciche, Vice Chair                                                                                              
Senator Donald Olson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Bert Stedman                                                                                                            
Senator Johnny Ellis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 281(L&C)                                                                                
"An Act relating to prescription of drugs by a physician without                                                                
a physical examination."                                                                                                        
                                                                                                                                
     - MOVED CSHB 281(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 309(L&C)                                                                                
"An Act relating to distillery licenses."                                                                                       
                                                                                                                                
     - MOVED CSHB 309(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
HOUSE BILL NO. 357                                                                                                              
"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 HB 357 OUT OF COMMITTEE                                                                                            
                                                                                                                                
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 169(L&C)                                                                                
"An Act relating to the authority of the Regulatory Commission                                                                  
of Alaska to regulate the production and distribution of                                                                        
telephone directories."                                                                                                         
                                                                                                                                
     - MOVED CSHB 169(L&C) OUT OF COMMITTEE                                                                                     
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 8                                                                                        
"An Act establishing procedures and guidelines for auditing                                                                     
pharmacy records; and providing for an effective date."                                                                         
                                                                                                                                
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 281                                                                                                                  
SHORT TITLE: PRESCRIPTION WITHOUT PHYSICAL EXAMINATION                                                                          
SPONSOR(s): REPRESENTATIVE(s) GATTIS                                                                                            
                                                                                                                                
01/27/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/27/14       (H)       HSS, L&C                                                                                               
02/13/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
02/13/14       (H)       Heard & Held                                                                                           
02/13/14       (H)       MINUTE(HSS)                                                                                            
02/27/14       (H)       HSS AT 3:00 PM CAPITOL 106                                                                             
02/27/14       (H)       Moved CSHB 281(HSS) Out of Committee                                                                   
02/27/14       (H)       MINUTE(HSS)                                                                                            
02/28/14       (H)       HSS RPT CS(HSS) 4DP                                                                                    
02/28/14       (H)       DP: SEATON, PRUITT, KELLER, HIGGINS                                                                    
03/17/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/17/14       (H)       Heard & Held                                                                                           
03/17/14       (H)       MINUTE(L&C)                                                                                            
03/26/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/26/14       (H)       Heard & Held                                                                                           
03/26/14       (H)       MINUTE(L&C)                                                                                            
03/28/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/28/14       (H)       Moved CSHB 281(L&C) Out of Committee                                                                   
03/28/14       (H)       MINUTE(L&C)                                                                                            
03/31/14       (H)       L&C RPT CS(L&C) 2DP 4NR                                                                                
03/31/14       (H)       DP: CHENAULT, OLSON                                                                                    
03/31/14       (H)       NR: HERRON, JOHNSON, SADDLER, JOSEPHSON                                                                
04/07/14       (H)       TRANSMITTED TO (S)                                                                                     
04/07/14       (H)       VERSION: CSHB 281(L&C)                                                                                 
04/08/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/08/14       (S)       HSS, L&C                                                                                               
04/11/14       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
04/11/14       (S)       -- MEETING CANCELED --                                                                                 
04/14/14       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
04/14/14       (S)       Moved CSHB 281(L&C) Out of Committee                                                                   
04/14/14       (S)       MINUTE(HSS)                                                                                            
04/15/14       (S)       HSS RPT  1DP 3NR                                                                                       
04/15/14       (S)       DP: KELLY                                                                                              
04/15/14       (S)       NR: STEDMAN, MICCICHE, ELLIS                                                                           
04/16/14       (S)       L&C AT 7:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 309                                                                                                                  
SHORT TITLE: DISTILLERY LICENSES                                                                                                
SPONSOR(s): REPRESENTATIVE(s) TUCK                                                                                              
                                                                                                                                
02/17/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/14       (H)       L&C                                                                                                    
04/02/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/02/14       (H)       Moved CSHB 309(L&C) Out of Committee                                                                   
04/02/14       (H)       MINUTE(L&C)                                                                                            
04/03/14       (H)       L&C RPT CS(L&C) NT 3DP 4NR                                                                             
04/03/14       (H)       DP: MILLETT, JOSEPHSON, OLSON                                                                          
04/03/14       (H)       NR: CHENAULT, HERRON, REINBOLD, SADDLER                                                                
04/11/14       (H)       TRANSMITTED TO (S)                                                                                     
04/11/14       (H)       VERSION: CSHB 309(L&C)                                                                                 
04/11/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/14       (S)       L&C                                                                                                    
04/16/14       (S)       L&C AT 7:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 357                                                                                                                  
SHORT TITLE: ACCESS TO LICENSED PREMISES                                                                                        
SPONSOR(s): REPRESENTATIVE(s) SADDLER                                                                                           
                                                                                                                                
02/26/14       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/26/14       (H)       L&C                                                                                                    
04/07/14       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/07/14       (H)       Moved Out of Committee                                                                                 
04/07/14       (H)       MINUTE(L&C)                                                                                            
04/08/14       (H)       L&C RPT 4DP 1NR                                                                                        
04/08/14       (H)       DP: CHENAULT, JOSEPHSON, SADDLER, OLSON                                                                
04/08/14       (H)       NR: REINBOLD                                                                                           
04/11/14       (H)       TRANSMITTED TO (S)                                                                                     
04/11/14       (H)       VERSION: HB 357                                                                                        
04/11/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/11/14       (S)       L&C                                                                                                    
04/16/14       (S)       L&C AT 7:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 169                                                                                                                  
SHORT TITLE: RCA REGULATION OF TELEPHONE DIRECTORIES                                                                            
SPONSOR(s): REPRESENTATIVE(s) OLSON                                                                                             
                                                                                                                                
03/15/13       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/15/13       (H)       L&C                                                                                                    
04/05/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/05/13       (H)       <Bill Hearing Canceled>                                                                                
04/06/13       (H)       L&C AT 3:15 PM BARNES 124                                                                              
04/06/13       (H)       Moved CSHB 169(L&C) Out of Committee                                                                   
04/06/13       (H)       MINUTE(L&C)                                                                                            
04/08/13       (H)       L&C RPT CS(L&C) 6DP                                                                                    
04/08/13       (H)       DP:    HERRON,    CHENAULT,    REINBOLD,                                                               
                         JOSEPHSON, SADDLER, OLSON                                                                              
04/03/14       (H)       TRANSMITTED TO (S)                                                                                     
04/03/14       (H)       VERSION: CSHB 169(L&C)                                                                                 
04/04/14       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/14       (S)       L&C                                                                                                    
04/16/14       (S)       L&C AT 7:00 AM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE LYNN GATTIS                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 281.                                                                                        
                                                                                                                                
REID HARRIS, Staff                                                                                                              
Representative Lynn Gattis                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information related to HB 281 on                                                                 
behalf of the sponsor.                                                                                                          
                                                                                                                                
LAURA BROOKS, Health Care Administrator                                                                                         
Department of Corrections (DOC)                                                                                                 
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to HB 281.                                                                     
                                                                                                                                
SARA CHAMBERS, Director                                                                                                         
Division Corporations, Business and Professional Licensing                                                                      
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to HB 281.                                                                     
                                                                                                                                
REPRESENTATIVE CHRIS TUCK                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 309.                                                                                        
                                                                                                                                
HEATHER SHADE, Co-owner                                                                                                         
Port Chilkoot Distillery                                                                                                        
Haines, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of HB 309.                                                                           
                                                                                                                                
DALE FOX, President and CEO                                                                                                     
Alaska Cabaret, Hotel, Restaurant and Retailer's Association                                                                    
Anchorage, Alaska                                                                                                               
                                                                                                                                
POSITION STATEMENT: Testified in support of HB 309.                                                                           
                                                                                                                                
SHIRLEY COTÉ, Director                                                                                                          
Alcoholic Beverage Control Board (ABC)                                                                                          
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED)                                                                                                                         
POSITION STATEMENT: Answered  questions related to HB  309 and HB                                                             
357.                                                                                                                            
                                                                                                                                
REPRESENTATIVE DAN SADDLER                                                                                                      
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 357.                                                                                        
                                                                                                                                
ANNA LATHAM, Staff                                                                                                              
Representative Kurt Olson                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Introduced HB 169 on behalf of the sponsor.                                                               
                                                                                                                                
TED MONINSKI                                                                                                                    
Alaska Communication Systems                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Thanked the sponsor for introducing HB 169.                                                               
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR  MIKE  DUNLEAVY  called  the   Senate  Labor  and  Commerce                                                             
Standing Committee meeting  to order at 7:04 a.m.  Present at the                                                               
call to order were Senators Micciche, Olson and Chair Dunleavy.                                                                 
                                                                                                                                
        HB 281-PRESCRIPTION WITHOUT PHYSICAL EXAMINATION                                                                    
                                                                                                                                
7:05:21 AM                                                                                                                    
CHAIR DUNLEAVY  announced the  consideration of  HB 281.  "An Act                                                               
relating  to  prescription of  drugs  by  a physician  without  a                                                               
physical examination." He noted that  this was the first hearing.                                                               
[CSHB 281(L&C) was before the committee.]                                                                                       
                                                                                                                                
7:05:39 AM                                                                                                                    
REPRESENTATIVE  LYNN  GATTIS,  Alaska State  Legislature  Juneau,                                                               
Alaska, speaking  as sponsor  stated that  HB 281  is essentially                                                               
Section 2  of Senator Dyson's  SB 80, which this  committee heard                                                               
previously. HB 281  clarifies in statute that  physicians may not                                                               
be  sanctioned  for   dispensing  or  administering  prescription                                                               
medications without a physical examination  of the patient if the                                                               
prescription drug  is not a controlled  substance, or if it  is a                                                               
controlled substance that a licensed  medical provider is present                                                               
with the patient during the  examination. This practice, which is                                                               
called  telemedicine,  will allow  patients  to  obtain over  the                                                               
phone or  online consultations from  physicians that  are located                                                               
in   Alaska  who   can  diagnose   an  ailment   and  provide   a                                                               
prescription,  if  necessary.  Telemedicine has  worked  well  in                                                               
Alaska  for  the  Alaska Native  Tribal  Health  Consortium,  the                                                               
Veterans' Administration,  and the  military. It would  work well                                                               
for anyone in the state.                                                                                                        
                                                                                                                                
7:07:34 AM                                                                                                                    
SENATOR  OLSON  asked if  the  Alaska  State Medical  Association                                                               
(ASMA) had voiced an opinion on the bill.                                                                                       
                                                                                                                                
7:07:49 AM                                                                                                                    
REID  HARRIS, Staff,  Representative Lynn  Gattis, sponsor  of HB                                                               
281, reported that ASMA supports the bill.                                                                                      
                                                                                                                                
SENATOR OLSON  asked if  the sponsor  had solicited  support from                                                               
the chief medical officers in  departments such as the Department                                                               
of  Health  and Social  Services  (DHSS)  and the  Department  of                                                               
Corrections (DOC).                                                                                                              
                                                                                                                                
REPRESENTATIVE  GATTIS  said  yes,  and  that  is  why  the  bill                                                               
provides an exemption for controlled substances.                                                                                
                                                                                                                                
SENATOR OLSON  asked if mid-level  practitioners have  a position                                                               
on the bill.                                                                                                                    
                                                                                                                                
MR. HARRIS said  a number of nurses have  submitted comments, but                                                               
the bill deals strictly with physicians.                                                                                        
                                                                                                                                
7:09:47 AM                                                                                                                    
LAURA   BROOKS,   Health   Care  Administrator,   Department   of                                                               
Corrections  (DOC),  said she  oversees  inmate  health care  and                                                               
appreciates the sponsor's efforts to  ensure that the bill allows                                                               
DOC to  continue to  practice as  it has  been. The  changes that                                                               
were made in the other body allow this.                                                                                         
                                                                                                                                
SENATOR  OLSON asked  if the  bill allows  something that  wasn't                                                               
allowed  before  or  if  it   simply  adds  clarity  to  existing                                                               
guidelines and regulations.                                                                                                     
                                                                                                                                
MS. BROOKS replied  the bill doesn't change  anything about DOC's                                                               
practice,  but  initially  it   didn't  allow  prescriptions  for                                                               
controlled  substances.  That  was   cause  for  concern  because                                                               
thousands of people enter the  corrections system every year that                                                               
require   the   prescription   of  controlled   substances.   The                                                               
amendments made in the House  allow the department to continue to                                                               
prescribe  controlled substances  to  these  high needs,  at-risk                                                               
individuals without sending them to  the local hospital or having                                                               
to have a provider on site 24/7 in every facility in the state.                                                                 
                                                                                                                                
SENATOR OLSON asked if Dr. Lawrence is in favor of the bill.                                                                    
                                                                                                                                
MS. BROOKS answered yes.                                                                                                        
                                                                                                                                
CHAIR DUNLEAVY opened and closed public testimony.                                                                              
                                                                                                                                
7:12:37 AM                                                                                                                    
SENATOR MICCICHE  said his office addressed  questions nurses had                                                               
about  physicians being  located out  of state,  confidentiality,                                                               
post op  care, and  whether the bill  was limited  to physicians.                                                               
Those  nurses  are satisfied  with  the  bill and  he  personally                                                               
supports it.                                                                                                                    
                                                                                                                                
SENATOR  OLSON  asked  Ms.  Chambers how  to  ensure  that  these                                                               
physicians    aren't    adversely    affected    by    inordinate                                                               
investigations.                                                                                                                 
                                                                                                                                
7:13:36 AM                                                                                                                    
SARA  CHAMBERS,  Director,  Division Corporations,  Business  and                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development (DCCED), said  her understanding is that the                                                               
Medical  Board  doesn't  support  the bill  solely  because  they                                                               
believe  that a  physician-to-physician  relationship  is in  the                                                               
best interest  of the  health care priorities  of the  state. Her                                                               
perspective is  that telemedicine  would be regulated  fairly and                                                               
according  to the  same investigative  boundaries as  any medical                                                               
practice.                                                                                                                       
                                                                                                                                
SENATOR OLSON expressed  hope that she was  aware that physician-                                                               
to-physician  interaction  is  not  a  reality  in  rural  Alaska                                                               
because health care is delivered by mid-level practitioners.                                                                    
                                                                                                                                
SENATOR MICCICHE  related his  personal experience  using Teladoc                                                               
services for relatively minor conditions,  and opined that it may                                                               
add  levels of  care  for people  who tend  to  wait until  their                                                               
condition  gets  more serious.  He  asked  Senator Olson  if  his                                                               
constituents generally have the federal waiver.                                                                                 
                                                                                                                                
SENATOR OLSON confirmed that they're covered under federal tort.                                                                
                                                                                                                                
SENATOR MICCICHE restated his support for  the bill as a means of                                                               
reducing the cost of low-impact medical care.                                                                                   
                                                                                                                                
CHAIR  DUNLEAVY  found  no  further  questions  or  comments  and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
7:18:49 AM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  HB  281,  Version  N,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection CSHB  281(L&C)                                                               
was  reported   from  the  Senate   Labor  &   Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
7:19:04 AM                                                                                                                    
At Ease                                                                                                                         
                                                                                                                                
                   HB 309-DISTILLERY LICENSES                                                                               
                                                                                                                                
7:20:07 AM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration  of   HB  309.  "An  Act   relating  to  distillery                                                               
licenses."  He  noted that  this  was  the first  hearing.  [CSHB                                                               
309(L&C) was before the committee.]                                                                                             
                                                                                                                                
7:20:29 AM                                                                                                                    
REPRESENTATIVE  CHRIS  TUCK,  Alaska State  Legislature,  Juneau,                                                               
Alaska, sponsor  of HB 309,  introduced the  legislation speaking                                                               
to the following sponsor statement:                                                                                             
                                                                                                                                
                                                                                                                                
     The purpose  of HB 309  is to modernize  the distillery                                                                    
     laws in Alaska, which are  outdated and fail to address                                                                    
     the  new  trend  in  craft  beverage  production.  This                                                                    
     legislation  brings Alaska's  small  distillers on  par                                                                    
     with  local  wine  and  beer  makers  by  allowing  for                                                                    
     tastings,  sales  of  small   amounts  for  on  premise                                                                    
     consumption, and  limited direct sales for  off premise                                                                    
     consumption. The  ability to  retail in-house  allows a                                                                    
     distillery  to subsidize  a visitor-friendly  gift shop                                                                    
     or hospitality room and  increases the marketability of                                                                    
     tours.  This will  help  promote Alaskan-made  products                                                                    
     and  enable this  new local  industry  to compete  with                                                                    
     imported goods.                                                                                                            
                                                                                                                                
     Alaska's small  distilleries are attempting to  enter a                                                                    
     market and  compete in a field  that, since Prohibition                                                                    
     ended,  has  been   dominated  by  large  manufacturing                                                                    
     companies that  have the economic benefit  of extremely                                                                    
     large-scale production. Allowing  distilleries to cater                                                                    
     to  tourists helps  offset the  substantial competitive                                                                    
     disadvantage  that  our   local  distillers  have  when                                                                    
     competing with out-of-state distillers.                                                                                    
                                                                                                                                
     Small   distilleries    in   Alaska    purchase   local                                                                    
     agricultural  products,  create   jobs,  support  their                                                                    
     local  economies, create  export  products for  Alaska,                                                                    
     and have  the potential to significantly  contribute to                                                                    
     the tourism industry in Alaska.                                                                                            
                                                                                                                                
     Locally  distilled  spirits  are part  of  an  exciting                                                                    
     growth    in   artisanal,    small   scale,    domestic                                                                    
     manufacturing.  The  current restrictions  prevent  the                                                                    
     businesses  producing  these   products  from  reaching                                                                    
     their full  potential in  the state's  tourism industry                                                                    
     and  to position  themselves to  compete on  a national                                                                    
     and global level.                                                                                                          
                                                                                                                                
     The changes  are on par  with what breweries  have done                                                                    
     to  promote  regionally-based  micro-breweries.  Small-                                                                    
     scale spirits  producers need similar changes  to allow                                                                    
     them  to innovate,  create Alaskan-based  manufacturing                                                                    
     jobs,  support  Alaskan  agriculture,  support  tourism                                                                    
     through visitor centers and  tasting rooms, and compete                                                                    
     effectively in  the marketplace  with reasonably-priced                                                                    
     handcrafted spirits.                                                                                                       
                                                                                                                                
REPRESENTATIVE TUCK stated  that HB 309 will allow  the public to                                                               
purchase  up to  one gallon  of the  product for  consumption off                                                               
premises  and  not more  than  three  ounces for  consumption  on                                                               
premises. The public  will also be able to  sample small portions                                                               
of the  product free of  charge while  in the facility.  He noted                                                               
that the House  Labor and Commerce Committee amended  the bill to                                                               
require servers  to take an  alcohol server education  course and                                                               
establishments to post the necessary  warning signs. The bill has                                                               
wide  support  throughout the  state  and  has the  potential  to                                                               
stimulate the economy.                                                                                                          
                                                                                                                                
SENATOR OLSON  asked how the  legislation would  affect Alaskans,                                                               
particularly in rural areas, who  are vulnerable to alcohol abuse                                                               
and whether he'd heard from that population.                                                                                    
                                                                                                                                
REPRESENTATIVE TUCK  stated that the local  option laws regarding                                                               
the  sale, importation,  and possession  of alcohol  still apply.                                                               
The ABC Board issues the  specific license types and local review                                                               
is conducted before any business can operate.                                                                                   
                                                                                                                                
SENATOR OLSON  asked what  affect the  legislation would  have on                                                               
damp and dry communities.                                                                                                       
                                                                                                                                
REPRESENTATIVE  TUCK suggested  that  Shirley Coté  with the  ABC                                                               
Board be added to the discussion.                                                                                               
                                                                                                                                
7:24:26 AM                                                                                                                    
CHAIR DUNLEAVY said  his understanding is that this  is a tourism                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  TUCK  agreed  and   added  that  there  are  five                                                               
distilleries  throughout the  state from  Fairbanks to  the Kenai                                                               
Peninsula to the small community of Haines in Southeast.                                                                        
                                                                                                                                
CHAIR DUNLEAVY  asked how  the bill  addresses people  who sample                                                               
the product daily and to excess.                                                                                                
                                                                                                                                
REPRESENTATIVE  TUCK directed  attention to  the restrictions  in                                                               
paragraphs  (1),  (2),  and  (3)  on page  2,  lines  1-7.  These                                                               
provisions  establish  that  the   distillery  cannot  reflect  a                                                               
drinking establishment.  Responding to  a further  question about                                                               
safeguarding  against  over  consumption,   he  opined  that  the                                                               
distillers probably  wouldn't give  multiple free samples  to the                                                               
same person because it wouldn't benefit their business.                                                                         
                                                                                                                                
SENATOR MICCICHE recapped what the bill allows.                                                                                 
                                                                                                                                
REPRESENTATIVE  TUCK noted  that  distilleries are  able to  sell                                                               
proportionally less than wineries and breweries.                                                                                
                                                                                                                                
7:27:28 AM                                                                                                                    
HEATHER  SHADE,  Co-owner,   Port  Chilkoot  Distillery,  Haines,                                                               
Alaska,  testified in  support of  HB  309. She  stated that  her                                                               
small   distillery   creates   a  specialty   product   that   is                                                               
specifically marketed  to tourists,  but the current  laws hinder                                                               
potential growth.  HB 309 updates  the laws so  that distilleries                                                               
can participate  in the  tourism industry  just as  breweries and                                                               
wineries do. She  reported that the community  of Haines supports                                                               
the legislation which will create jobs and add to the economy.                                                                  
                                                                                                                                
7:28:42 AM                                                                                                                    
DALE FOX, President and CEO,  CHARR, Anchorage, Alaska, testified                                                               
that the  Alaska CHARR  Government Affairs  Committee unanimously                                                               
endorsed HB  309. It gives  distilleries the same rights  to sell                                                               
small quantities of alcohol as  was previously given to breweries                                                               
and wineries  in Alaska. He concluded  that the bill is  fair and                                                               
uncontroversial and it helps a new Alaska industry.                                                                             
                                                                                                                                
7:29:38 AM                                                                                                                    
SHIRLEY COTÉ,  Director, Alcoholic Beverage Control  (ABC) Board,                                                               
Department  of  Commerce,   Community  and  Economic  Development                                                               
(DCCED), introduced herself and offered to answer questions.                                                                    
                                                                                                                                
SENATOR MICCICHE  asked how  the bill would  affect wet  and damp                                                               
communities.                                                                                                                    
                                                                                                                                
MS. COTÉ  replied the importation  of alcohol laws  would pertain                                                               
to this new distillery license as well.                                                                                         
                                                                                                                                
SENATOR  MICCICHE asked  if the  restrictions under  AS 04.16.030                                                               
would apply to distilleries.                                                                                                    
                                                                                                                                
MS.  COTÉ answered  yes and  the bill  also requires  the alcohol                                                               
server  education course.  It teaches  the characteristics  of an                                                               
intoxicated person  and how  to ensure  that underage  people are                                                               
not gaining access to alcohol.                                                                                                  
                                                                                                                                
7:31:47 AM                                                                                                                    
KATHLEEN  STRAUSBAUGH,   Drafting  Attorney,   Legislative  Legal                                                               
Services, Legislative Affairs Agency,  Juneau, Alaska, offered to                                                               
answer questions.                                                                                                               
                                                                                                                                
CHAIR  DUNLEAVY opened  and closed  public testimony.  Finding no                                                               
further questions or comments, he solicited a motion.                                                                           
                                                                                                                                
7:32:18 AM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  HB  309,  Version  R,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection CSHB  309(L&C)                                                               
was  reported   from  the  Senate   Labor  &   Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
7:32:40 AM                                                                                                                    
At Ease                                                                                                                         
                                                                                                                                
               HB 357-ACCESS TO LICENSED PREMISES                                                                           
                                                                                                                                
7:32:47 AM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration  of HB  357."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." He  noted that  this was  the                                                               
first hearing.                                                                                                                  
                                                                                                                                
7:33:49 AM                                                                                                                    
REPRESENTATIVE  DAN  SADDLER,  Alaska State  Legislature  Juneau,                                                               
Alaska, sponsor of  HB 357 stated that this legislation  is not a                                                               
bill  to allow  anybody  under the  age of  21  to drink  alcohol                                                               
legally. He  continued to introduce the  legislation paraphrasing                                                               
the following sponsor statement:                                                                                                
                                                                                                                                
     House Bill  357 is an  effort to support the  young men                                                                    
     and women serving  in the armed services  in Alaska, by                                                                    
     clarifying  language  to make  it  easier  for them  to                                                                    
     enjoy companionship  in the  clubhouses of  service and                                                                    
     patriotic organizations.                                                                                                   
                                                                                                                                
     Young  soldiers,  airmen,  sailors, marines  and  coast                                                                    
     guard  personnel  stationed   in  Alaska  face  special                                                                    
     challenges. Separation  from loved ones, the  rigors of                                                                    
     barracks  life  and the  monotony  of  three mess  hall                                                                    
     meals a  day can take  their toll on  morale. Patriotic                                                                    
     clubs - such as those  operated by the American Legion,                                                                    
     Veterans  of Foreign  Wars, Disabled  American Veterans                                                                    
     and  others -  are  places to  relax  with buddies  and                                                                    
     enjoy  the  special   understanding  and  support  from                                                                    
     others who have "been  there" and understand the rigors                                                                    
     of military life.                                                                                                          
                                                                                                                                
     The  Legislature recognized  this  value,  and in  2006                                                                    
     passed  SB  209 to  allow  these  young men  and  women                                                                    
     access  to such  clubs using  their military  ID cards.                                                                    
     However, some language remains  in statute that creates                                                                    
     confusion as to  when such access is  permitted. HB 357                                                                    
     will eliminate  that confusion by making  it clear that                                                                    
     such access is not limited solely to special events.                                                                       
                                                                                                                                
     It is important to note that HB 357 makes no change in                                                                     
     law that would allow service members under the age of                                                                      
     21 to purchase or consume alcohol in service clubs.                                                                        
                                                                                                                                
      Your support of HB 357 will be a clear demonstration                                                                      
        that Alaska understands and works to address the                                                                        
     special needs of those who defend our freedom.                                                                             
                                                                                                                                
REPRESENTATIVE SADDLER  pointed out  that Section  1 of  the bill                                                               
removes  the provision  that limits  access to  special occasions                                                               
and also allows access to  accompanying spouses. Section 2 allows                                                               
persons  under age  21 to  enter  licensed premises  if they  are                                                               
members or  guests of  a member of  the patriotic  club. Military                                                               
commanders sometimes  use patriotic clubs for  off-base commander                                                               
calls and excluding  soldiers who are under  21 would potentially                                                               
erode unit cohesion and diminish  morale in a small unit. Section                                                               
3 is conforming  language to allow the club  admission granted in                                                               
Section 2.  He concluded  that the bill  does not  grant underage                                                               
drinking, it  clarifies that soldiers  over 21 and  their spouses                                                               
do not  have to wait for  a special occasion to  enter a licensed                                                               
patriotic  club  and that  soldiers  under  age  21 can  visit  a                                                               
patriotic club if they are members or guests.                                                                                   
                                                                                                                                
7:36:21 AM                                                                                                                    
SHIRLEY COTÉ,  Director, Alcoholic Beverage Control  Board (ABC),                                                               
said she was available to answer questions.                                                                                     
                                                                                                                                
CHAIR DUNLEAVY asked if she had any thoughts on HB 357.                                                                         
                                                                                                                                
MS. COTÉ answered no.                                                                                                           
                                                                                                                                
SENATOR  MICCICHE referenced  Section  3 and  asked  if she  sees                                                               
situations  when  this  legislation  could  cause  confusion  for                                                               
servers trying to determine ages.                                                                                               
                                                                                                                                
MS. COTÉ said she believes there is a risk.                                                                                     
                                                                                                                                
SENATOR MICCICHE asked for suggested solutions.                                                                                 
                                                                                                                                
MS. COTÉ  replied the  board has a  compliance check  program but                                                               
amendments  several  years  ago  to AS  04.06.110  made  it  more                                                               
difficult to get into clubs  than the typical beverage dispensary                                                               
or retail store  or restaurant. She reiterated that  she has some                                                               
concern with the legislation.                                                                                                   
                                                                                                                                
SENATOR OLSON asked  if the risk is great enough  that she is not                                                               
in favor of the bill.                                                                                                           
                                                                                                                                
MS. COTÉ  said she's a state  employee so she's trying  to remain                                                               
as neutral as possible on the bill.                                                                                             
                                                                                                                                
SENATOR OLSON  asked, "If  you had  a son that  was less  than 21                                                               
years old,  would you like  to see this  bill go through,  from a                                                               
personal standpoint?"                                                                                                           
                                                                                                                                
MS.  COTÉ  replied she  doesn't  analyze  bills from  a  personal                                                               
standpoint.                                                                                                                     
                                                                                                                                
SENATOR  MICCICHE asked  if the  bill could  be amended  to bring                                                               
more comfort.                                                                                                                   
                                                                                                                                
MS. COTÉ said she has no  doubt about the sponsor's commitment to                                                               
keep  under age  people from  having  access to  alcohol and  she                                                               
understands  the  motivation  to  allow access  to  all  military                                                               
personnel. However,  there is concern because  it's comparatively                                                               
difficult  for the  ABC  compliance officers  to  gain access  to                                                               
these clubs to check whether  or not underage persons have access                                                               
to alcohol.                                                                                                                     
                                                                                                                                
CHAIR DUNLEAVY opened and closed public testimony.                                                                              
                                                                                                                                
7:42:14 AM                                                                                                                    
At Ease                                                                                                                         
                                                                                                                                
7:42:54 AM                                                                                                                    
CHAIR DUNLEAVY  reconvened the  meeting and  asked if  there were                                                               
additional questions or comments.                                                                                               
                                                                                                                                
SENATOR  MICCICHE asked  the  sponsor what  he  would suggest  to                                                               
allow access  to the ABC  Board to  ensure that under  age people                                                               
aren't drinking alcohol.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SADDLER pointed  out that  state law  already has                                                               
provisions  to  allow  access to  licensed  premises  to  persons                                                               
between  the ages  of 16  and 21  if they  are accompanied  by an                                                               
adult guardian  and are not in  the section of the  premises that                                                               
serves  alcohol.  Second,  ABC  enforcement  officers  have  been                                                               
offered  access to  patriotic  clubs  for enforcement  activities                                                               
with the knowledge of the  club managers. Third, this legislation                                                               
extends access  to a very  small subset  of under age  21 people.                                                               
Finally, the ABC director has not opposed the bill.                                                                             
                                                                                                                                
SENATOR MICCICHE asked the sponsor  to discuss the requirement to                                                               
possess a valid active duty  military identification card to gain                                                               
access to these clubs.                                                                                                          
                                                                                                                                
REPRESENTATIVE  SADDLER  restated  that a  provision  in  current                                                               
state law says  that a person under age 21  who possesses a valid                                                               
active duty  military identification card is  eligible for access                                                               
to a  patriotic club as long  as the person doesn't  drink and is                                                               
not in the section where the alcohol is being served.                                                                           
                                                                                                                                
SENATOR MICCICHE commented on the  tendency with veteran bills to                                                               
be  overly  patriotic  at  the  expense  of  close  scrutiny  for                                                               
potential issues.                                                                                                               
                                                                                                                                
REPRESENTATIVE  SADDLER noted  that  earlier testimony  indicated                                                               
that there aren't many violations at VFW clubs.                                                                                 
                                                                                                                                
7:46:29 AM                                                                                                                    
SENATOR MICCICHE asked  Ms. Coté to discuss  compliance levels at                                                               
patriotic clubs.                                                                                                                
                                                                                                                                
MS. COTÉ confirmed  there is not a preponderance  of violations a                                                               
VFW clubs.                                                                                                                      
                                                                                                                                
CHAIR  DUNLEAVY  found  no  further  questions  or  comments  and                                                               
solicited a motion.                                                                                                             
                                                                                                                                
7:46:56 AM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  HB  357,  Version  A,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY  announced  that  without objection  HB  357  was                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
7:47:12 AM                                                                                                                    
At Ease                                                                                                                         
                                                                                                                                
         HB 169-RCA REGULATION OF TELEPHONE DIRECTORIES                                                                     
                                                                                                                                
7:47:55 AM                                                                                                                    
CHAIR  DUNLEAVY   reconvened  the   meeting  and   announced  the                                                               
consideration of  HB 169.  "An Act relating  to the  authority of                                                               
the Regulatory  Commission of Alaska  to regulate  the production                                                               
and distribution of  telephone directories."  He  noted that this                                                               
was the first hearing on the  bill. [CSHB 169(L&C) was before the                                                               
committee.]                                                                                                                     
                                                                                                                                
7:48:07 AM                                                                                                                    
ANNA  LATHAM,  Staff,  Representative Kurt  Olson,  Alaska  State                                                               
Legislature, Juneau,  Alaska, stated that HB  169 would eliminate                                                               
the  regulation and  production of  telephone directories  by the                                                               
Regulatory  Commission of  Alaska  (RCA).  Currently, the  Alaska                                                               
Administrative  Code  (AAC) requires  the  RCA  oversight on  the                                                               
production and  distribution of white  page directories,  but not                                                               
yellow page directories. At one  time white page directories were                                                               
very useful, but  people now create their own  directories in the                                                               
address book on their cell phone  and other mobile devices and no                                                               
longer  rely on  printed directories.  According to  the National                                                               
Center  for Health  Statistics, one  in four  households in  2009                                                               
relied completely on cell service.  Consumers have also expressed                                                               
strong   opinions    about   automatically    receiving   printed                                                               
directories and often return or throw  them away. In an effort to                                                               
modernize  Alaska's   regulatory  requirements,  HB   169  allows                                                               
telecommunication providers to directly meet  the wants and needs                                                               
of  their customers.  She highlighted  that the  RCA has  already                                                               
approved  an interim  program in  Anchorage, Fairbanks  and Kenai                                                               
allowing customers to opt out of receiving a directory.                                                                         
                                                                                                                                
CHAIR DUNLEAVY observed  that people who want  the book delivered                                                               
to their house still have that option.                                                                                          
                                                                                                                                
MS. LATHAM agreed.                                                                                                              
                                                                                                                                
CHAIR DUNLEAVY opened public testimony.                                                                                         
                                                                                                                                
7:50:29 AM                                                                                                                    
TED MONINSKI,  Alaska Communication Systems, thanked  the sponsor                                                               
for bringing HB 169 forward.                                                                                                    
                                                                                                                                
CHAIR DUNLEAVY closed public testimony and solicited a motion.                                                                  
                                                                                                                                
7:50:54 AM                                                                                                                    
SENATOR  MICCICHE  moved  to  report  HB  169,  Version  N,  from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  DUNLEAVY announced  that without  objection CSHB  169(L&C)                                                               
was  reported   from  the  Senate   Labor  &   Commerce  Standing                                                               
Committee.                                                                                                                      
                                                                                                                                
7:51:27 AM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Dunleavy adjourned the Senate Labor & Commerce Standing                                                                   
Committee meeting at 7:51 a.m.                                                                                                  

Document Name Date/Time Subjects
Comparison of SB 80 and HB 281 Publisher.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
SB 80
HB281 Opposing Document ASMB.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Summary of Changes A to U.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Sponsor Statement.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Summary of Changes U to N.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Supporting Document DOLWD Census Data.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Supporting Document Rand Press Release.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Supporting Document Rand Study.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Supporting Document Teladoc.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 ver A.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 ver N.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 ver U.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB281 Fiscal Note.pdf SL&C 4/16/2014 7:00:00 AM
HB 281
HB0309 Fiscal Note DCED.PDF SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Sectional Analysis.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Sponsor Statement.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article Anchorage Daily News 11-5-2010.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article Oakland North 12-11-2013.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article Daily Finance.com 2-18-2012.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article Texas Tribune 9-9-2013.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article WSBT News 9-26-2013.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Summary of Changes ver C to ver R.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Editorial Juneau Empire 4-6-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Article Portland Business Journal 5-25-2012.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Alaska Distillery 3-15-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Bare Distillery 3-15-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Explore Fairbanks 3-30-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter High Mark Distillery 3-18-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Haines Chamber of Commerce 3-5-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents-Letter Alaska Farm Bureau 3-27-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents-Letter Alaska Travel Industry Association 3-25-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Port Chilkoot Distillery 3-17-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents-Letter Brewers Guild of Alaska 3-25-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents - Letter Ursa Major Distilling 3-16-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 ver C.PDF SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 ver R.PDF SL&C 4/16/2014 7:00:00 AM
HB 309
HB309 Supporting Documents-Letter Kenai Peninsula Tourism Marketing Council 3-19-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 309
HB357 ver A - Access to Licensed Premise.pdf SL&C 4/16/2014 7:00:00 AM
HB 357
HB357 sponsor statement.pdf SL&C 4/16/2014 7:00:00 AM
HB 357
HB357 - Letter of Support - John Mattison Eagle River VFW 9785.pdf SL&C 4/16/2014 7:00:00 AM
HB 357
HB357 - fiscalNote.pdf SL&C 4/16/2014 7:00:00 AM
HB 357
CSHB169 v.N.pdf SL&C 4/16/2014 7:00:00 AM
HB 169
HB169 Sponsor Statement.pdf SL&C 4/16/2014 7:00:00 AM
HB 169
CSHB169 DCCED-RCA Fiscal Note 4-03-2014.pdf SL&C 4/16/2014 7:00:00 AM
HB 169
HB169 Supporting Document-Artice Washington Post .pdf SL&C 4/16/2014 7:00:00 AM
HB 169