Legislature(2015 - 2016)BELTZ 105 (TSBldg)

04/12/2016 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 203 MEDI-VAC FLIGHT CREW OVERTIME PAY TELECONFERENCED
Moved SB 203 Out of Committee
+= SB 118 DNR LAND DISPOSAL SURVEYS; PEER REVIEW TELECONFERENCED
Heard & Held
+= SB 156 INSURANCE COVERAGE FOR CONTRACEPTIVES TELECONFERENCED
<Bill Hearing Canceled>
+= HB 125 RESTRICTIONS ON SALE OF DEXTROMETHORPHAN TELECONFERENCED
Heard & Held
+= HB 314 AK REG ECON ASSIST. PROGRAM; EXTEND TELECONFERENCED
Moved SCS HB 314(L&C) Out of Committee
+= SB 206 REINSURANCE PROGRAM; HEALTH INS. WAIVERS TELECONFERENCED
Moved SB 206 Out of Committee
+ HB 254 EXTEND BIG GAME COMMERCIAL SERVICES BOARD TELECONFERENCED
Moved HB 254 Out of Committee
+= SB 55 OPTOMETRY & OPTOMETRISTS TELECONFERENCED
Moved CSSB 55(L&C) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 12, 2016                                                                                         
                           1:36 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                              
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Cathy Giessel, Vice Chair                                                                                               
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Johnny Ellis                                                                                                            
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 203                                                                                                             
"An Act  relating to  overtime pay  eligibility for  medical care                                                               
providers employed  by common  air carriers  or by  carriers that                                                               
transport mail by air for  the federal government and to overtime                                                               
pay  eligibility  for flight  crews  and  medical care  providers                                                               
employed by air ambulance service providers."                                                                                   
                                                                                                                                
     - MOVED SB 203 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 118                                                                                                             
"An  Act relating  to surveys  required  to be  submitted to  the                                                               
Department of Natural  Resources; relating to peer  review by the                                                               
State Board  of Registration for Architects,  Engineers, and Land                                                               
Surveyors  of required  surveys  submitted to  the Department  of                                                               
Natural Resources; and providing for an effective date."                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 156                                                                                                             
"An  Act relating  to insurance  coverage for  contraceptives and                                                               
related  services; relating  to medical  assistance coverage  for                                                               
contraceptives  and  related  services;   and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
     - BILL HEARING CANCELED                                                                                                    
                                                                                                                                
HOUSE BILL NO. 125                                                                                                              
"An   Act   relating  to   the   sale   of  products   containing                                                               
dextromethorphan; relating to  the regulation of dextromethorphan                                                               
by municipalities; and providing for an effective date."                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 314                                                                                                              
"An  Act  relating to  the  Alaska  regional economic  assistance                                                               
program; extending  the termination  date of the  Alaska regional                                                               
economic  assistance  program;  and providing  for  an  effective                                                               
date."                                                                                                                          
                                                                                                                                
     - MOVED SCS HB 314(L&C) OUT OF COMMITTEE                                                                                   
                                                                                                                                
SENATE BILL NO. 206                                                                                                             
"An Act relating  to a reinsurance program for  residents who are                                                               
high  risks and  insurer assessments  to cover  the costs  of the                                                               
reinsurance   program;   relating   to  application   for   state                                                               
innovation  waivers  for  health   care  insurance;  relating  to                                                               
definitions  of  'residents  who  are high  risks'  and  'covered                                                               
lives'; and providing for an effective date."                                                                                   
                                                                                                                                
     - MOVED SB 206 OUT OF COMMITTEE                                                                                            
                                                                                                                                
HOUSE BILL NO. 254                                                                                                              
"An  Act  extending   the  termination  date  of   the  Big  Game                                                               
Commercial Services Board; and providing for an effective date."                                                                
                                                                                                                                
     - MOVED HB 254 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 55                                                                                                              
"An Act relating to the practice of optometry."                                                                                 
                                                                                                                                
     - MOVED CSSB 55(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 203                                                                                                                  
SHORT TITLE: MEDI-VAC FLIGHT CREW OVERTIME PAY                                                                                  
SPONSOR(s): JUDICIARY                                                                                                           
                                                                                                                                
03/11/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/11/16       (S)       L&C                                                                                                    
03/24/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/24/16       (S)       Heard & Held                                                                                           
03/24/16       (S)       MINUTE (L&C)                                                                                           
04/08/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/08/16       (S)       -- MEETING CANCELED --                                                                                 
04/09/16       (S)       L&C AT 4:00 PM BELTZ 105 (TSBldg)                                                                      
04/09/16       (S)       -- MEETING CANCELED --                                                                                 
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 118                                                                                                                  
SHORT TITLE: DNR LAND DISPOSAL SURVEYS; PEER REVIEW                                                                             
SPONSOR(s): COSTELLO                                                                                                            
                                                                                                                                
01/19/16       (S)       PREFILE RELEASED 1/8/16                                                                                
01/19/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (S)       L&C, RES                                                                                               
02/25/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
02/25/16       (S)       <Bill Hearing Canceled>                                                                                
04/07/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/07/16       (S)       Heard & Held                                                                                           
04/07/16       (S)       MINUTE (L&C)                                                                                           
04/09/16       (S)       L&C AT 4:00 PM BELTZ 105 (TSBldg)                                                                      
04/09/16       (S)       -- MEETING CANCELED --                                                                                 
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 125                                                                                                                  
SHORT TITLE: RESTRICTIONS ON SALE OF DEXTROMETHORPHAN                                                                           
SPONSOR(s): MILLETT                                                                                                             
                                                                                                                                
02/25/15       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/25/15       (H)       JUD                                                                                                    
04/09/15       (H)       JUD AT 1:00 PM CAPITOL 120                                                                             
04/09/15       (H)       Moved HB 125 Out of Committee                                                                          
04/09/15       (H)       MINUTE (JUD)                                                                                           
04/10/15       (H)       JUD RPT 1DP 6NR                                                                                        
04/10/15       (H)       DP: MILLETT                                                                                            
04/10/15       (H)       NR: CLAMAN, LYNN, FOSTER, GRUENBERG,                                                                   
                         KELLER, LEDOUX                                                                                         
03/16/16       (H)       TRANSMITTED TO (S)                                                                                     
03/16/16       (H)       VERSION: HB 125                                                                                        
03/18/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/18/16       (S)       L&C                                                                                                    
04/08/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/08/16       (S)       -- MEETING CANCELED --                                                                                 
04/09/16       (S)       L&C AT 4:00 PM BELTZ 105 (TSBldg)                                                                      
04/09/16       (S)       -- MEETING CANCELED --                                                                                 
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 314                                                                                                                  
SHORT TITLE: AK REG ECON ASSIST. PROGRAM; EXTEND                                                                                
SPONSOR(s): HUGHES                                                                                                              
                                                                                                                                
02/17/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/16       (H)       L&C                                                                                                    
03/09/16       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/09/16       (H)       Scheduled but Not Heard                                                                                
03/11/16       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/11/16       (H)       -- MEETING CANCELED --                                                                                 
03/21/16       (H)       L&C AT 3:15 PM BARNES 124                                                                              
03/21/16       (H)       Moved HB 314 Out of Committee                                                                          
03/21/16       (H)       MINUTE (L&C)                                                                                           
03/23/16       (H)       L&C RPT 6DP 1NR                                                                                        
03/23/16       (H)       DP: LEDOUX, COLVER, JOSEPHSON, KITO,                                                                   
                         HUGHES, OLSON                                                                                          
03/23/16       (H)       NR: TILTON                                                                                             
03/23/16       (H)       FIN REFERRAL ADDED AFTER L&C                                                                           
03/29/16       (H)       FIN REFERRAL WAIVED                                                                                    
04/01/16       (H)       TRANSMITTED TO (S)                                                                                     
04/01/16       (H)       VERSION: HB 314                                                                                        
04/04/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/04/16       (S)       L&C, FIN                                                                                               
04/07/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
04/07/16       (S)       Heard & Held                                                                                           
04/07/16       (S)       MINUTE (L&C)                                                                                           
04/09/16       (S)       L&C AT 4:00 PM BELTZ 105 (TSBldg)                                                                      
04/09/16       (S)       -- MEETING CANCELED --                                                                                 
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 206                                                                                                                  
SHORT TITLE: REINSURANCE PROGRAM; HEALTH INS. WAIVERS                                                                           
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/25/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/25/16       (S)       L&C, FIN                                                                                               
03/29/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/29/16       (S)       Heard & Held                                                                                           
03/29/16       (S)       MINUTE (L&C)                                                                                           
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB 254                                                                                                                  
SHORT TITLE: EXTEND BIG GAME COMMERCIAL SERVICES BOARD                                                                          
SPONSOR(s): STUTES                                                                                                              
                                                                                                                                
01/19/16       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/19/16       (H)       RES, FIN                                                                                               
03/23/16       (H)       RES AT 1:00 PM BARNES 124                                                                              
03/23/16       (H)       Moved HB 254 Out of Committee                                                                          
03/23/16       (H)       MINUTE (RES)                                                                                           
03/24/16       (H)       RES RPT 6DP 3NR                                                                                        
03/24/16       (H)       DP:   HERRON,   OLSON,   TARR,   SEATON,                                                               
                        TALERICO, NAGEAK                                                                                        
03/24/16       (H)       NR: JOHNSON, JOSEPHSON, CHENAULT                                                                       
04/04/16       (H)       FIN AT 1:30 PM HOUSE FINANCE 519                                                                       
04/04/16       (H)       Moved HB 254 Out of Committee                                                                          
04/04/16       (H)       MINUTE (FIN)                                                                                           
04/05/16       (H)       FIN RPT 6DP 4NR 1AM                                                                                    
04/05/16       (H)       DP: GARA, GUTTENBERG, GATTIS, EDGMON,                                                                  
                        MUNOZ, THOMPSON                                                                                         
04/05/16       (H)       NR: SADDLER, PRUITT, WILSON, NEUMAN                                                                    
04/05/16       (H)       AM: KAWASAKI                                                                                           
04/08/16       (H)       TRANSMITTED TO (S)                                                                                     
04/08/16       (H)       VERSION: HB 254                                                                                        
04/09/16       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/09/16       (S)       L&C, FIN                                                                                               
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 55                                                                                                                   
SHORT TITLE: OPTOMETRY & OPTOMETRISTS                                                                                           
SPONSOR(s): GIESSEL BY REQUEST                                                                                                  
                                                                                                                                
02/18/15       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/18/15       (S)       HSS, L&C                                                                                               
03/18/15       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
03/18/15       (S)       Heard & Held                                                                                           
03/18/15       (S)       MINUTE (HSS)                                                                                           
02/01/16       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/01/16       (S)       Moved SB 55 Out of Committee                                                                           
02/01/16       (S)       MINUTE (HSS)                                                                                           
02/08/16       (S)       HSS RPT 3DP 1NR                                                                                        
02/08/16       (S)       DP: STEDMAN, STOLTZE, GIESSEL                                                                          
02/08/16       (S)       NR: ELLIS                                                                                              
03/10/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/10/16       (S)       Heard & Held                                                                                           
03/10/16       (S)       MINUTE (L&C)                                                                                           
03/29/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/29/16       (S)       Heard & Held                                                                                           
03/29/16       (S)       MINUTE (L&C)                                                                                           
04/12/16       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
WESTON EILER, Staff                                                                                                             
Senate Labor and Commerce Standing Committee and                                                                                
Senator Mia Costello                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Reviewed the changes in the CS for SB 118;                                                               
the CS for HB 314; and the CS for SB 55.                                                                                        
                                                                                                                                
BRENT GOODRUM, Director                                                                                                         
Division of Mining, Land and Water                                                                                              
Department of Natural Resources (DNR)                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided supporting testimony for SB 118.                                                                
                                                                                                                                
GRACE ABBOTT, Staff                                                                                                             
Representative Charisse Millett                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 125 on behalf of the sponsor.                                                              
                                                                                                                                
KACI SCHROEDER, Assistant Attorney General                                                                                      
Legal Services Section                                                                                                          
Criminal Division                                                                                                               
Department of Law (DOL)                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified that the administration does not                                                               
have an official position on HB 125.                                                                                            
                                                                                                                                
SEAN MOORE                                                                                                                      
Consumer Health Care Product Association (CHCPA)                                                                                
Washington, D.C.                                                                                                                
POSITION STATEMENT:  Testified in support of HB 125.                                                                          
                                                                                                                                
BRITTENY CIONI-HAYWOOD, Director                                                                                                
Division of Economic Development                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions related to HB 314.                                                                    
                                                                                                                                
DOUG GRIFFIN                                                                                                                    
Southwest Alaska Municipal Conference                                                                                           
Anchorage, Alaska                                                                                                             
POSITION STATEMENT:  Testified that the reporting requirements                                                                
called for in HB 314 would not be problematic for the SWAMC                                                                     
ARDOR.                                                                                                                          
                                                                                                                                
REPRESENTATIVE SHELLEY HUGHES                                                                                                   
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Sponsor of HB 314.                                                                                       
                                                                                                                                
                                                                                                                                
FRED PARADY, Deputy Commissioner                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Provided supporting testimony for SB 206.                                                                
                                                                                                                                
LORI WING-HEIER, Director                                                                                                       
Division of Insurance                                                                                                           
Department of Commerce, Community and Economic Development                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Provided supporting information for SB 206.                                                              
                                                                                                                                
SHEELA TALLMAN, Legislative Policy Manager                                                                                      
Premera Blue Cross Blue Shield of Alaska                                                                                        
Seattle, Washington                                                                                                             
POSITION STATEMENT:  Testified that Premera supports SB 206.                                                                  
                                                                                                                                
JASON GOOTEE, Director                                                                                                          
MODA Health                                                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified that MODA supports SB 206                                                                      
                                                                                                                                
STEVE HANDY, Staff                                                                                                              
Representative Louise Stutes                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 254 on behalf of the sponsor.                                                              
                                                                                                                                
KRIS CURTIS, Legislative Auditor                                                                                                
Division of Legislative Audit                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Summarized the legislative audit findings                                                                
related to HB 254.                                                                                                              
                                                                                                                                
SARAH CHAMBERS, Operations Manager                                                                                              
Division of Corporations, Business and Professional Licensing                                                                   
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions relating to HB 254.                                                                   
                                                                                                                                
SAM ROHRER, President                                                                                                           
Alaska Professional Hunters Association (APHA)                                                                                  
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 254.                                                                          
                                                                                                                                
DICK ROHRER, representing himself                                                                                               
Kodiak, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 254.                                                                          
                                                                                                                                
ROD ARNO, Executive Director                                                                                                    
Alaska Outdoor Council (AOC)                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 254.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:36:42 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting to  order at 1:36 p.m.  Present  at the call to                                                               
order were Senators Meyer, Stevens, and Chair Costello.                                                                         
                                                                                                                                
            SB 203-MEDI-VAC FLIGHT CREW OVERTIME PAY                                                                        
                                                                                                                                
1:37:31 PM                                                                                                                    
CHAIR  COSTELLO  announced  the  consideration  of  SB  203.  She                                                               
relayed the  intent to  adopt a  committee substitute  (CS), take                                                               
members questions, and look to the will of the committee.                                                                       
                                                                                                                                
1:37:38 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:37:55 PM                                                                                                                    
CHAIR COSTELLO  reconvened the meeting  and clarified  that there                                                               
is no committee substitute.                                                                                                     
                                                                                                                                
SENATOR GIESSEL joined the committee.                                                                                           
                                                                                                                                
1:38:44 PM                                                                                                                    
SENATOR MEYER moved  to report SB 203,  labeled 29-LS1566\A, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
note(s).                                                                                                                        
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  SB  203  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:38:56 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB 118-DNR LAND DISPOSAL SURVEYS; PEER REVIEW                                                                      
                                                                                                                                
1:40:20 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of SB  118.  She  relayed the  intent  to adopt  a                                                               
committee substitute, hear from the  department and hold the bill                                                               
in committee.                                                                                                                   
                                                                                                                                
1:41:07 PM                                                                                                                    
SENATOR  MEYER moved  to  adopt the  work draft  CS  for SB  118,                                                               
labeled 29-LS0318\E, as the working document.                                                                                   
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
1:41:32 PM                                                                                                                    
WESTON  EILER,   Staff,  Senate   Labor  and   Commerce  Standing                                                               
Committee and Senator Mia Costello,  explained that the CS for SB                                                               
118  removes the  involvement of  the Board  of Registration  for                                                               
Architects, Engineers,  and Land Surveyors and  the Department of                                                               
Commerce,  Community  and  Economic  Development  from  the  peer                                                               
review process  for land  survey work.  He relayed  the sponsor's                                                               
intent  to  continue  to  work with  the  Department  of  Natural                                                               
Resources to avoid additional cost to the state.                                                                                
                                                                                                                                
Section  1 provides  that  if the  department  notifies a  person                                                               
within two weeks of its intention  to review a survey, the person                                                               
has the  alternate option  of working  directly with  a qualified                                                               
land  surveyor who  will conduct  the review.  He noted  that the                                                               
Municipality of Anchorage employs this model for peer review.                                                                   
                                                                                                                                
Section 2 relating  to powers of the commissioner is  the same as                                                               
Section  5 of  the original  bill. It  adds a  new paragraph  (9)                                                               
providing for peer review of a survey.                                                                                          
                                                                                                                                
Section  3  has  transition  language that  largely  mirrors  the                                                               
effect of the original bill.                                                                                                    
                                                                                                                                
[Section 4 provides for an immediate effective date.]                                                                           
                                                                                                                                
CHAIR COSTELLO  removed her objection and  the CS for SB  118 was                                                               
adopted.                                                                                                                        
                                                                                                                                
1:45:04 PM                                                                                                                    
BRENT  GOODRUM, Director,  Division  of Mining,  Land and  Water,                                                               
Department  of  Natural   Resources  (DNR),  provided  supporting                                                               
testimony  for SB  118. He  said the  department has  reduced the                                                               
backlog  of authorizations  more  than 63  percent since  FY2012.                                                               
Several of those  authorizations had ties to survey  work and the                                                               
department has identified improvements it  can make in this area.                                                               
DNR  is  interested in  ensuring  a  timely turnaround  of  these                                                               
important  land ownership  documents and  that a  quality product                                                               
goes out the door.                                                                                                              
                                                                                                                                
CHAIR  COSTELLO expressed  appreciation for  what the  department                                                               
has done  to address the backlog.  She said she looks  forward to                                                               
continuing  to work  with the  department pursuing  this type  of                                                               
approach that has seen some success in other jurisdictions.                                                                     
                                                                                                                                
1:47:04 PM                                                                                                                    
CHAIR COSTELLO held SB 118 in committee.                                                                                        
                                                                                                                                
1:47:17 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        HB 125-RESTRICTIONS ON SALE OF DEXTROMETHORPHAN                                                                     
                                                                                                                                
1:47:20 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of HB 314. She relayed  the intent to hear from the                                                               
sponsor  and the  administration,  take  member's questions,  and                                                               
hold the bill for future consideration.                                                                                         
                                                                                                                                
1:47:58 PM                                                                                                                    
GRACE ABBOTT, Staff,  Representative Charisse Millett, introduced                                                               
HB  125  on behalf  of  the  sponsor  speaking to  the  following                                                               
sponsor statement:                                                                                                              
                                                                                                                                
     For over 50 years, families  have relied upon cough and                                                                    
     cold  medicines  containing dextromethorphan  (DXM)  to                                                                    
     treat  their  coughs. Today,  more  than  100 over  the                                                                    
     counter cough and cold products  contain DXM. When used                                                                    
     correctly,  DXM-containing   medicines  are   safe  and                                                                    
     effective, but  when abused can produce  dangerous side                                                                    
     effects.  According to  a  2013  National Institute  of                                                                    
     Drug  Abuse  study, four  percent  of  teenagers -  8th                                                                    
     graders  through  12th  graders  -  have  intentionally                                                                    
     taken  exceedingly  large  amounts  of  cough  medicine                                                                    
     containing DXM  to get high.  At high doses, e.g.  8 to                                                                    
     50  times the  maximum  labeled dose,  DXM can  produce                                                                    
     hallucinations,  confusion,   blurred  vision,  nausea,                                                                    
     excessive fatigue, and loss of motor control.                                                                              
                                                                                                                                
     To help address  this problem and combat  the number of                                                                    
     teens who abuse DXM, House  Bill 125 prohibits the sale                                                                    
     of  DXM  to those  under  18  years  of age  without  a                                                                    
     prescription.  This simple  step, asking  for proof  of                                                                    
     age prior to sale,  would maintain access to effective,                                                                    
     over the counter cough medicines  for Americans who use                                                                    
     them to treat cough  symptoms associated with colds and                                                                    
     the  flu,  while  limiting  access  to  the  small  but                                                                    
     significant  number  of  adolescents  who  might  abuse                                                                    
     them. The  penalty for those  who sell to  minors would                                                                    
     be a  $150 for  the first violation,  and $250  for the                                                                    
     second   and  any   future  violation.   Alaskans  take                                                                    
     substance abuse  issues very  seriously, and  the abuse                                                                    
     of DXM should be no exception.                                                                                             
                                                                                                                                
1:50:42 PM                                                                                                                    
KACI  SCHROEDER,  Assistant   Attorney  General,  Legal  Services                                                               
Section, Criminal Division, Department  of Law (DOL), stated that                                                               
the administration does not have  an official position on HB 125,                                                               
but believes  that Ms. Abbott accurately  articulated the problem                                                               
and that the bill can be implemented as drafted.                                                                                
                                                                                                                                
1:51:32 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 125.                                                                               
                                                                                                                                
1:51:54 PM                                                                                                                    
SENATOR MEYER  asked if products  containing DXM would  be placed                                                               
behind  the counter  and  customers  would need  to  show ID  and                                                               
register in order to make a purchase.                                                                                           
                                                                                                                                
MS. ABBOTT  said no, but  an ID check  would be triggered  at the                                                               
point of sale. The concern  with dextromethorphan relates to age,                                                               
whereas the concern with Sudafed  is the potential manufacture of                                                               
another drug.                                                                                                                   
                                                                                                                                
SENATOR MEYER  asked if there is  a penalty for young  people who                                                               
try to purchase dextromethorphan.                                                                                               
                                                                                                                                
MS. ABBOTT said there is  no intent to penalize anyone purchasing                                                               
the drug; the onus is on the vender.                                                                                            
                                                                                                                                
SENATOR MEYER  asked if the  vender would display  an information                                                               
sign  to  keep  young  people from  attempting  to  purchase  the                                                               
medicine.                                                                                                                       
                                                                                                                                
MS. ABBOTT replied  many retailers voluntarily have  put up signs                                                               
and she  believes that  is an  effective way  to get  the message                                                               
across.                                                                                                                         
                                                                                                                                
1:54:16 PM                                                                                                                    
SEAN  MOORE, Consumer  Health Care  Product Association  (CHCPA),                                                               
said  he is  speaking  in support  of  HB 125  on  behalf of  the                                                               
national trade  association that represents  the over-the-counter                                                               
medicine industry. They have worked  closely with the sponsor. He                                                               
summarized that the bill would simply prohibit the sale of over-                                                                
the-counter products  containing dextromethorphan to  those under                                                               
age  18.  The drug  was  first  approved  by  the Food  and  Drug                                                               
Administration  (FDA) in  the 1950s  and now  is the  most widely                                                               
used cough suppressant on the  market. It is nonnarcotic and does                                                               
not  produce  physical dependence  when  taken  according to  the                                                               
directions.  However, a  significant  number of  teens have  been                                                               
abusing DXM to get high, often  ingesting as much as 25 times the                                                               
recommended  dose. This  can produce  side  effects that  include                                                               
distortions  of  color  and  sound,   confusion,  loss  of  motor                                                               
control,  nausea and  vomiting.  The National  Institute on  Drug                                                               
Abuse  in 2009  reported  that  about 5.25  percent  of teens  in                                                               
grades 8, 10, and 12 admitted abusing DXM in the past year.                                                                     
                                                                                                                                
MR. MOORE  said the  industry takes the  issue of  medicine abuse                                                               
very seriously  and has committed to  the FDA to help  reduce the                                                               
abuse  rate. As  part of  that effort,  they have  partnered with                                                               
organizations  that have  expertise  in  preventing and  reducing                                                               
medicine  abuse  by  youth. Members  of  CHCPA  have  voluntarily                                                               
committed  to  include  bold  warnings  on  their  packaging  and                                                               
directing parents  to a website.  More recently, they  have begun                                                               
supporting  legislation similar  to  HB 125.  He emphasized  that                                                               
this is an  easy bipartisan issue and the evidence  shows that it                                                               
is working. He urged the committee to support HB 125.                                                                           
                                                                                                                                
1:57:51 PM                                                                                                                    
CHAIR  COSTELLO  closed  public  testimony and  held  HB  125  in                                                               
committee for future consideration.                                                                                             
                                                                                                                                
           HB 314-AK REG ECON ASSIST. PROGRAM; EXTEND                                                                       
                                                                                                                                
1:58:11 PM                                                                                                                    
CHAIR  COSTELLO  announced  the  consideration  of  HB  314.  She                                                               
relayed the  intent to  adopt a  committee substitute  (CS), take                                                               
member's questions, and look to the will of the committee.                                                                      
                                                                                                                                
1:58:38 PM                                                                                                                    
SENATOR GIESSEL  moved to adopt  the CS  for HB 314,  labeled 29-                                                               
LS1381\P], as the working document.  [The presumption is that the                                                               
committee  intended to  adopt a  Senate committee  substitute for                                                               
the House bill.]                                                                                                                
                                                                                                                                
CHAIR COSTELLO objected for an explanation of changes.                                                                          
                                                                                                                                
1:59:07 PM                                                                                                                    
WESTON  EILER,   Staff,  Senate   Labor  and   Commerce  Standing                                                               
Committee  and Senator  Costello, said  the committee  substitute                                                               
makes two changes. First, language in  Section 3 on page 3, lines                                                               
6-11,  requires   the  Department  of  Commerce,   Community  and                                                               
Economic  Development (DCCED)  to coordinate  with the  ARDORs to                                                               
produce an annual  report to the legislature  that summarizes the                                                               
previous year's  activities of each  of the  regional development                                                               
organizations. The second change appears  in Section 4 on page 4,                                                               
removing the sunset provision for  the ARDOR program. The program                                                               
is reauthorized  but not funded.  The original bill  repealed the                                                               
sunset provision for the ARDOR program on July 1, 2021.                                                                         
                                                                                                                                
2:01:17 PM                                                                                                                    
CHAIR COSTELLO  removed her objection and  the CS for HB  314 was                                                               
adopted.  [The  presumption is  that  the  committee intended  to                                                               
adopt a Senate committee substitute for the House bill.]                                                                        
                                                                                                                                
2:01:55 PM                                                                                                                    
BRITTENY   CIONI-HAYWOOD,   Director,    Division   of   Economic                                                               
Development,  Department  of  Commerce,  Community  and  Economic                                                               
Development  (DCCED), introduced  herself and  offered to  answer                                                               
questions related to HB 314.                                                                                                    
                                                                                                                                
CHAIR  COSTELLO asked  if the  reporting requirements  in the  CS                                                               
would be unduly burdensome for the ARDORs.                                                                                      
                                                                                                                                
MS. CIONI-HAYWOOD  said no.  She related  she spoke  with several                                                               
ARDORs who  indicated that the  reporting requirements  would not                                                               
be  burdensome;  most  of  the  ARDORs  will  be  producing  this                                                               
information anyway.                                                                                                             
                                                                                                                                
CHAIR COSTELLO  asked if it  is the department's intent  that the                                                               
reports will be submitted electronically.                                                                                       
                                                                                                                                
MS. CIONI-HAYWOOD replied her division  no longer prints reports;                                                               
they are posted  electronically and that is  the intention moving                                                               
forward.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked Mr. Griffin to answer the same question.                                                                   
                                                                                                                                
2:04:14 PM                                                                                                                    
DOUG  GRIFFIN,  Southwest  Alaska Municipal  Conference  (SWAMC),                                                               
stated  that the  reporting  requirements called  for  in HB  314                                                               
would not  be problematic.  "We generally want  you to  know what                                                               
we're doing  out here  so that is  not going to  be a  problem at                                                               
all," he said.                                                                                                                  
                                                                                                                                
CHAIR COSTELLO  asked the sponsor if  she would like to  make any                                                               
final comments.                                                                                                                 
                                                                                                                                
2:04:43 PM                                                                                                                    
REPRESENTATIVE SHELLEY HUGHES,  Alaska State Legislature, sponsor                                                               
of HB  314, said  she appreciates  the committee  substitute. She                                                               
added, "If the ARDORs are okay with  it I'm good with it; this is                                                               
really to  help them move  along." She acknowledged that  some of                                                               
the smaller  ARDORs may  have some concern  but she  hasn't heard                                                               
from any.  She opined that  the data collected will  be important                                                               
over time.                                                                                                                      
                                                                                                                                
2:05:39 PM                                                                                                                    
SENATOR GIESSEL  moved to report the  CS for HB 314,  labeled 29-                                                               
LS1381\P,  from  committee  with individual  recommendations  and                                                               
attached fiscal  note(s). [The presumption is  that the committee                                                               
intended to  report a Senate  committee substitute for  the House                                                               
bill from committee.]                                                                                                           
                                                                                                                                
CHAIR  COSTELLO   announced  that  without  objection,   [SCS  HB                                                               
314(L&C)]  is  reported  from  the   Senate  Labor  and  Commerce                                                               
Standing Committee.                                                                                                             
                                                                                                                                
2:06:06 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        SB 206-REINSURANCE PROGRAM; HEALTH INS. WAIVERS                                                                     
                                                                                                                                
2:06:57 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 206.  She noted this  is the  second hearing                                                               
and public  testimony is closed.  She relayed the intent  to hear                                                               
from the administration, take questions,  and look to the will of                                                               
the committee.                                                                                                                  
                                                                                                                                
2:07:36 PM                                                                                                                    
FRED  PARADY,   Deputy  Commissioner,  Department   of  Commerce,                                                               
Community and  Economic Development  (DCCED), stated that  SB 206                                                               
addresses  the fragile  condition of  Alaska's individual  health                                                               
insurance  market.  This  segment  of the  insurance  market  has                                                               
experienced  back-to-back increases  of about  36 percent.  There                                                               
are just  two remaining insurance  carriers in the state  and one                                                               
has  been  significantly  stressed  this year.  He  said  SB  206                                                               
provides a restructure  of the ACHIA program that  is grounded in                                                               
prior Alaska statute.                                                                                                           
                                                                                                                                
CHAIR COSTELLO welcomed Senator Stevens.                                                                                        
                                                                                                                                
MR. PARADY  directed attention  to the  highlighted table  in the                                                               
packets from  the Division  of Insurance  2015 annual  report. It                                                               
shows 236,000  covered lives; the  federal reinsurance  program -                                                               
Affordable  Care Act  2016 annual  fee  per member  per month  of                                                               
$2.25;  and a  3 percent  tax that  averages $30  per member  per                                                               
month for  an individual and $18  per month for a  group. For the                                                               
purposes of  the analysis, those two  items sunset at the  end of                                                               
2016.                                                                                                                           
                                                                                                                                
Page  2  reflects a  $19.36  per  month  assessment -  the  rough                                                               
equivalent to the expiring federal taxes  and fees for ACHIA - on                                                               
the 236,000 covered lives that  would generate about $55 million.                                                               
The premium  impact on the  individual market would  reduce costs                                                               
to individuals  roughly 15  percent to  18 percent.  The division                                                               
anticipates another  year of 36  percent to 40  percent increases                                                               
so  SB  206  would  substantially  moderate  those  ongoing  cost                                                               
increases  for  the  22,000  Alaskans that  are  insured  in  the                                                               
individual market.  SB 206 offers  a straightforward  and doable,                                                               
but not perfect, solution.                                                                                                      
                                                                                                                                
CHAIR  COSTELLO  mentioned  the   $19.38  per  member  per  month                                                               
estimated  reinsurance  limit and  asked  Ms.  Wing-Heier if  the                                                               
division had  identified the higher  cost codes it  would capture                                                               
through the reinsurance.                                                                                                        
                                                                                                                                
2:11:19 PM                                                                                                                    
LORI WING-HEIER,  Director, Division of Insurance,  Department of                                                               
Commerce, Community  and Economic Development  (DCCED), explained                                                               
that the  division asked the insurance  companies and reinsurance                                                               
companies that were writing in  the individual market at the time                                                               
to submit their  claim data and they quantified it  for the first                                                               
10 highest cost claims,  the top 20, the top 30,  and the top 40.                                                               
Those are the claims  that are identified as set 1,  2, 3, and 4.                                                               
The  final  page  of  the set  of  documents  titled  "Annualized                                                               
Adjustment  Estimate" shows  all  the data  combined. The  claims                                                               
themselves are  identified by hierarchical claim  condition (HCC)                                                               
code throughout  the document. On  each of  the last 4  pages, 10                                                               
more conditions are added; those are top drivers in the market.                                                                 
                                                                                                                                
CHAIR COSTELLO  asked her to  describe the nature of  the problem                                                               
and what SB 206 attempts to achieve.                                                                                            
                                                                                                                                
MS.  WING-HEIER   said  the  bill  was   introduced  because  the                                                               
individual  insurance market  in  Alaska is  very  small and  has                                                               
experienced nearly 40 percent rate  increases the last two years.                                                               
There is  no reason to believe  that there won't be  a third year                                                               
of  rate  increases in  the  individual  market  of close  to  40                                                               
percent. There are  two remaining insurers in Alaska  and one has                                                               
been financially  stressed this  year. The insured  population is                                                               
about 23,000 and  there is no reason to think  it's going to grow                                                               
at this  time. Alaska has  had a high risk  pool for a  number of                                                               
years, and  the idea is to  take the individuals that  would have                                                               
been in  the high risk  pool had it  not been for  the Affordable                                                               
Care Act, and place them back  into the high risk pool. They will                                                               
be funded in the high-risk ACHIA  pool as they were funded before                                                               
the  Affordable Care  Act. This  will  spread the  cost over  the                                                               
entire  marketplace  (covered  lives)  as  was  done  before  the                                                               
implementation of  the Affordable  Care Act. What  that hopefully                                                               
will do  is drive the  cost down of  the individual market  or at                                                               
least stabilize it  so people can afford to  keep their premiums.                                                               
She acknowledged  that for some  there may  be a few  dollars per                                                               
month  increase, but  for those  in the  individual market  there                                                               
will be a  stabilization. Hopefully this will  result in insurers                                                               
staying in the market in Alaska or attract other business.                                                                      
                                                                                                                                
She  shared that  since SB  206  was introduced  it has  received                                                               
press in  the Lower 48.  She listed  the states that  have called                                                               
asking  what is  being done  with this  reinsurance bill  because                                                               
they are experiencing the same struggles.                                                                                       
                                                                                                                                
2:18:08 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:18:48 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and invited Ms. Tallman to                                                               
comment on the bill.                                                                                                            
                                                                                                                                
2:18:59 PM                                                                                                                    
SHEELA TALLMAN,  Legislative Policy  Manager, Premera  Blue Cross                                                               
Blue  Shield of  Alaska,  testified  in support  of  SB 206.  She                                                               
described the individual health insurance  market in Alaska as in                                                               
crisis. The average benchmark plan  premium is the highest in the                                                               
country at  over $700 per month;  the next highest cost  state is                                                               
$468 per month. Premium increases of  40 percent for the past two                                                               
years have  a significant impact  when the premium is  already so                                                               
high.                                                                                                                           
                                                                                                                                
She  said   the  subsidies  will   help  many,  but   over  1,200                                                               
individuals with  Premera coverage do not  qualify. She expressed                                                               
concern  that premiums  will  continue to  skyrocket  due to  the                                                               
small size of  the individual pool and the  small but significant                                                               
number   of  individuals   in  the   pool  that   have  high-cost                                                               
conditions.   These   individuals   destabilize  the   pool   and                                                               
dramatically impact costs.                                                                                                      
                                                                                                                                
MS. TALLMAN  noted that  while some insurers  have opted  to exit                                                               
the individual market, Premera and  MODA Health have been working                                                               
collaboratively  to  come  up   with  a  sustainable  option  for                                                               
Alaskans. Premera  supports a balanced  assessment that  will not                                                               
place undue  burdens on  the group market  and will  also provide                                                               
some relief  to the individual  market. SB  206 aims to  do this.                                                               
She urged the committee to support the legislation.                                                                             
                                                                                                                                
2:21:16 PM                                                                                                                    
JASON GOOTEE,  Director, MODA  Health, Anchorage,  Alaska, stated                                                               
that MODA supports SB 206 as  a way of addressing the variability                                                               
inherent in the  Alaska individual insurance market.  He said the                                                               
expansion of  the individual market  has been difficult  for many                                                               
insurers  because  the health  of  the  population nationally  is                                                               
worse than  expected and  Alaska is  no exception.  Of particular                                                               
concern in  Alaska is  the relatively small  number of  people in                                                               
the individual market over which to spread the risk.                                                                            
                                                                                                                                
He  reported that  MODA  has collaborated  with  the Division  of                                                               
Insurance, Premera Blue Cross Blue  Shield of Alaska and ACHIA on                                                               
a reinsurance program aimed at  helping to stabilize this market.                                                               
MODA  and  Premera have  provided  detailed  claims data  through                                                               
ACHIA  to an  actuarial consulting  firm to  model the  impact of                                                               
such  a  program.  MODA's  actuaries   have  been  reviewing  the                                                               
analysis and  providing feedback to  ensure that the  results are                                                               
sound. He  restated support for  SB 206  as a means  of improving                                                               
the  predictability of  the individual  pool when  setting future                                                               
rates.                                                                                                                          
                                                                                                                                
2:23:11 PM                                                                                                                    
CHAIR COSTELLO  closed public testimony  and solicited  a motion.                                                               
She noted the bill has a finance referral.                                                                                      
                                                                                                                                
2:23:48 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:23:59 PM                                                                                                                    
SENATOR  GIESSEL moved  to report  SB  206, labeled  29-GS2126\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  SB  206  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
2:24:30 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        HB 254-EXTEND BIG GAME COMMERCIAL SERVICES BOARD                                                                    
                                                                                                                                
2:26:34 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of HB 254. She relayed  the intent to hear from the                                                               
sponsor,  hear   a  legislative  audit  update,   hear  from  the                                                               
administration, take questions and  public testimony, and look to                                                               
the will of the committee.                                                                                                      
                                                                                                                                
2:27:01 PM                                                                                                                    
STEVE HANDY,  Staff, Representative  Louise Stutes,  Alaska State                                                               
Legislature, introduced HB 254 on  behalf of the sponsor speaking                                                               
to the following sponsor statement:                                                                                             
                                                                                                                                
     House Bill 254 extends  the Big Game Commercial Service                                                                    
     Board's (BGCSB) sunset date from June 30, 2016, to                                                                         
     June 30, 2019.                                                                                                             
                                                                                                                                
     The BGCSB  provides a legislative command  to assist in                                                                    
     resource conservation and consumer protection. The                                                                         
     Board  develops  professional  and  ethical  standards,                                                                    
     administers exams, makes  final licensing decisions and                                                                    
     takes   civil  action   against  persons   who  violate                                                                    
     regulations.                                                                                                               
                                                                                                                                
     The BGCSB  is staffed by the  Division of Corporations,                                                                    
     Business   and   Professional  Licensing.   The   BGCSB                                                                    
     consists of  two licensed Registered  Guide                                                                                
     two  licensed  Transporters, two  private  landholders,                                                                    
     two public  members, and one  member from the  Board of                                                                    
     Game. Board  members are appointed by  the Governor and                                                                    
     confirmed by the Legislature.                                                                                              
                                                                                                                                
      The Board's regulated professions include Assistant                                                                       
    Guide,     Class                                                                                                            
     Guide                                                                                                                      
      Registered Guide                                                                                                          
     and Transporter.                                                                                                           
                                                                                                                                
MR. HANDY  noted that  the McDowell Group  reported in  2012 that                                                               
guided  hunting  in  Alaska  accounted for  2,210  jobs  and  $35                                                               
million  in  labor  income, generated  $78  million  in  economic                                                               
activity, and brought in nearly  $2 million from hunting licenses                                                               
and big game tags.                                                                                                              
                                                                                                                                
MR. HANDY  mentioned the  legislative audit  and posited  that an                                                               
oversight by  the legislature  that allowed  the board  to sunset                                                               
contributed to some  of that debt. He noted  that the legislature                                                               
reinstated the board in December 2015  and SB 206 will extend the                                                               
current sunset  to 2019.  He concluded  saying that  the Big Game                                                               
Commercial Services Board is essential  to the safety of hunters,                                                               
guides and  transporters and  to the  management of  the resource                                                               
itself. He requested the committee pass HB 254.                                                                                 
                                                                                                                                
CHAIR COSTELLO asked him to  submit his comments to the committee                                                               
in written form.                                                                                                                
                                                                                                                                
SENATOR STEVENS asked what happens if the bill doesn't pass.                                                                    
                                                                                                                                
MR. HANDY  replied the  board will  sunset on  June 30,  2016 and                                                               
will completely shut down in about one year.                                                                                    
                                                                                                                                
2:31:01 PM                                                                                                                    
SENATOR MEYER  asked if he  read that the  board is running  a $1                                                               
million deficit.                                                                                                                
                                                                                                                                
MS. HANDY said  he believes it has  decreased substantially since                                                               
that number  was published.  He deferred  further comment  on the                                                               
deficit to the auditor.                                                                                                         
                                                                                                                                
2:31:37 PM                                                                                                                    
KRIS CURTIS, Legislative Auditor,  Division of Legislative Audit,                                                               
related that  the division conducted  a sunset review  looking at                                                               
whether the  Big Game Commercial  Services Board was  serving the                                                               
public interest and should be  extended. Overall, the audit found                                                               
the board provided assurance that  individuals licensed to guide,                                                               
outfit hunts,  and transport hunters  to and from  hunt locations                                                               
are  qualified  to  do  so.  Also,  the  board's  regulation  and                                                               
licensing    of   qualified    guides,   guide-outfitters,    and                                                               
transporters  benefited the  public  safety  and safeguarded  the                                                               
state's wildlife resources.                                                                                                     
                                                                                                                                
In recognition  that the board  reported a $1 million  deficit as                                                               
of April 30, 2015, the  division recommended a conditional three-                                                               
year  extension.  The  condition  is  the  board  demonstrate  in                                                               
January that  it has  the capacity to  address its  deficit. When                                                               
the audit was  done last summer, there  were proposed regulations                                                               
to increase  licensing fees and  add new activity fees.  Both the                                                               
division  and the  board believed  those  fees would  be able  to                                                               
address the  deficit, but the  regulations were in draft  form at                                                               
the time of the audit.                                                                                                          
                                                                                                                                
MS.  CURTIS  said the  audit  also  recommended four  operational                                                               
improvements. The  first was to  the director of the  Division of                                                               
Corporations,  Business  and  Professional Licensing  (DCBPL)  to                                                               
ensure that staff  adhere to procedures to  provide efficient and                                                               
effective  support to  the board.  This is  a repeat  finding and                                                               
while  there were  some improvements,  problems  continue in  the                                                               
area   of  public   noticing  exams   and  meetings.   Additional                                                               
improvement was recommended in those areas.                                                                                     
                                                                                                                                
The second recommendation  was for the director of  DCBPL to take                                                               
steps  to improve  the timeliness  of  investigations. The  audit                                                               
looked  at  25   investigative  cases  and  17   had  periods  of                                                               
inactivity. According to  the lead investigator, this  was due to                                                               
a lack  of resources to  address the  large case load.  The audit                                                               
also found problems with effective case monitoring.                                                                             
                                                                                                                                
The third  recommendation was for  the board and the  director of                                                               
DCBPL to work together to  increase licensing fees to address the                                                               
board deficit.  This is the  third time an audit  has recommended                                                               
addressing  the deficit.  The 2011  audit found  the board  had a                                                               
deficit  of $374  thousand,  and  the audit  warned  that it  was                                                               
likely to increase  if the board did not increase  fees or reduce                                                               
expenditures.  The deficit  as of  April  last year  was over  $1                                                               
million.  The  growth  was  due to  various  factors.  The  board                                                               
delayed increasing the fees, there  was a reduction in the number                                                               
of license  renewals, and the  division reallocated  its indirect                                                               
costs  that resulted  in another  $200 thousand  increase in  the                                                               
deficit.                                                                                                                        
                                                                                                                                
To  address  the  deficit  after the  2011  audit,  the  division                                                               
proposed an increase  in fees between 61 percent  and 68 percent.                                                               
The division  did not carry  through and  raise the fees  at that                                                               
point,  but  did  increase  them  about  44  percent  in  FY2014.                                                               
However, the revenues  were not enough to  cover expenditures and                                                               
the  deficit continued  to grow.  The division  has indicated  it                                                               
will raise  fees and the belief  is that those will  be effective                                                               
in addressing the deficit.                                                                                                      
                                                                                                                                
The fourth recommendation is for  the division director to ensure                                                               
that the  transporter license  renewal application  form complies                                                               
with  statute. The  statute  requires the  licensees  to sign  an                                                               
affidavit in the application that  all activity reports have been                                                               
filed with the department. The audit found no affidavit.                                                                        
                                                                                                                                
MS.  CURTIS  reported  that overall,  the  department  and  board                                                               
concurred with all the recommendations.                                                                                         
                                                                                                                                
2:37:40 PM                                                                                                                    
SENATOR  STEVENS  asked  if  her   office  monitors  the  board's                                                               
progress in following the recommendations of the audit.                                                                         
                                                                                                                                
MS.  CURTIS  said  there  is no  mechanism  to  formally  monitor                                                               
progress unless  the audit division  is formally requested  to do                                                               
so.                                                                                                                             
                                                                                                                                
2:38:31 PM                                                                                                                    
SARAH  CHAMBERS, Operations  Manager,  Division of  Corporations,                                                               
Business  and  Professional  Licensing, Department  of  Commerce,                                                               
Community and Economic Development (DCCED), introduced herself.                                                                 
                                                                                                                                
SENATOR GIESSEL said she assumes  that the $20 thousand reflected                                                               
in the narrative of the fiscal note is for board travel.                                                                        
                                                                                                                                
MS. CHAMBERS  confirmed the travel  is for board members  and one                                                               
staff  to attend  board meetings.  Typically there  are two  each                                                               
year, one in Anchorage and one in Fairbanks.                                                                                    
                                                                                                                                
SENATOR  GIESSEL   suggested  the  board  find   ways  to  reduce                                                               
traveling costs.                                                                                                                
                                                                                                                                
CHAIR COSTELLO  asked her to comment  on the work to  improve the                                                               
financial standing of  boards and her role in  helping to address                                                               
the recommendations in this audit.                                                                                              
                                                                                                                                
MS.  CHAMBERS advised  that  the division  has  been working  for                                                               
several  years   with  legislative   finance,  the   director  of                                                               
administrative  services,  and  the  boards to  improve  the  fee                                                               
analysis structure  by making  it more  detailed. She  noted that                                                               
board members  now receive an interactive  Excel spreadsheet that                                                               
gives a better picture of the  impact of different fees. She said                                                               
that  while  fees  were  raised in  2013  and  2015,  Legislative                                                               
Finance warned that  trying to eradicate the deficit  in one fell                                                               
swoop would probably put many  of the guides and transporters out                                                               
of business.                                                                                                                    
                                                                                                                                
She explained that the board  and division paid special attention                                                               
to ensure that non-contracting guides  are not penalized. Some of                                                               
the  burden was  placed on  guides  that contract  and they  also                                                               
looked for  new revenue sources.  The hot record  and transporter                                                               
activity  report database  was  restructured in  response to  the                                                               
2011 legislative audit, and a  fee was attached to compensate for                                                               
staff  time helping  state troopers  fulfil their  statutory need                                                               
for that information.                                                                                                           
                                                                                                                                
2:43:33 PM                                                                                                                    
SENATOR STEVENS asked who is objecting to the fee increases.                                                                    
                                                                                                                                
MS. CHAMBERS replied transporters,  in particular, have expressed                                                               
concern about the  impact of the new  transporter activity report                                                               
fee on their  businesses. She has met twice  with the transporter                                                               
subcommittee to  solicit new ideas,  but the bottom line  is that                                                               
it's necessary to go forward with the deficit reduction.                                                                        
                                                                                                                                
SENATOR  STEVENS  commented that  it  sounds  as though  the  fee                                                               
structure is in some form of evolution.                                                                                         
                                                                                                                                
MS.  CHAMBERS clarified  that  last November  the  fees for  this                                                               
renewal period  were adopted  by the director  and signed  by the                                                               
lieutenant governor.  The deficit  was below $900  thousand after                                                               
the second  quarter and the  third quarter report  is anticipated                                                               
to show  additional reduction. She  maintained that  the division                                                               
has met the legislative commitment  to set fees and will continue                                                               
to review them through the annual fee analysis.                                                                                 
                                                                                                                                
2:46:31 PM                                                                                                                    
SENATOR GIESSEL  suggested that  transporters pass  the licensing                                                               
fees on to  their clients. She pointed out that  other boards are                                                               
subsidizing  the shortfall  of the  Big Game  Commercial Services                                                               
Board and it can't go on.  She asked what the transporter license                                                               
fee is currently.                                                                                                               
                                                                                                                                
MS. CHAMBERS replied it is $850 every two years.                                                                                
                                                                                                                                
SENATOR GIESSEL  pointed out that  the fee  isn't as high  as for                                                               
other  licensed professions  such as  direct entry  midwives. She                                                               
called on  guides, outfitters,  and transporters  to step  up and                                                               
take responsibility.                                                                                                            
                                                                                                                                
2:48:52 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on HB 254.                                                                               
                                                                                                                                
2:49:06 PM                                                                                                                    
SAM  ROHRER, President,  Alaska Professional  Hunters Association                                                               
(APHA), testified  in support  of HB  254. He  said the  board is                                                               
critical to  the long-term  viability of  the guide  industry. It                                                               
provides  a  conduit  for meaningful  input  on  regulations  and                                                               
provides for  reasonable testing  standards. He  highlighted that                                                               
the guiding industry supported the  most recent fee increases. He                                                               
encouraged the committee to move the bill today.                                                                                
                                                                                                                                
2:50:20 PM                                                                                                                    
DICK ROHRER,  representing himself, Kodiak, Alaska,  testified in                                                               
support of  HB 254.  He related  that he  became involved  in the                                                               
guiding industry  in 1965 when  he moved  to Alaska and  has been                                                               
through  various sunsetting  and reinstatement  of the  board. He                                                               
also served two terms on the  board, beginning in 2005, after the                                                               
board  was  reinstated. At  that  time  the board,  with  Senator                                                               
Steven's help, was  able to clarify that  privately owned cabins,                                                               
particularly  in  remote  areas,  could be  rented  to  big  game                                                               
hunters  without the  owner being  required  to have  a guide  or                                                               
transporter  license.  That  favored resident  hunters.  He  also                                                               
clarified that the point-to-point air  taxi operators that do not                                                               
advertise specifically  for transporting hunters or  don't charge                                                               
an  extra fee  are not  required to  have a  transporter license.                                                               
Therefore, resident hunters that choose  to use air taxi services                                                               
are  not affected.  As a  past  board member,  he encouraged  the                                                               
committee to move the bill today.                                                                                               
                                                                                                                                
SENATOR  STEVENS  asked  Dick  Rohrer  if  he  supports  the  fee                                                               
increases.                                                                                                                      
                                                                                                                                
DICK ROHRER  confirmed that  he supports  the fees  and expressed                                                               
strong  support for  the current  chief investigator.  He expects                                                               
she  will  bring  investigative  costs  under  control  and  good                                                               
progress will be made in the next three years.                                                                                  
                                                                                                                                
2:55:06 PM                                                                                                                    
CHAIR COSTELLO closed public testimony  on HB 254. She stated her                                                               
intent to  move the bill  to give  Senate Finance time  to review                                                               
it.                                                                                                                             
                                                                                                                                
2:55:16 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:59:01 PM                                                                                                                    
CHAIR  COSTELLO  reconvened  the   meeting  and  reopened  public                                                               
testimony.                                                                                                                      
                                                                                                                                
2:59:24 PM                                                                                                                    
ROD  ARNO,  Executive  Director, Alaska  Outdoor  Council  (AOC),                                                               
testified in support  of HB 254. He said the  Big Game Commercial                                                               
Services  Board is  needed now  more than  ever. As  federal land                                                               
managers change their purpose, the  guiding industry will be in a                                                               
pinch  on federal  lands which  will put  more pressure  on state                                                               
lands.  That  is  where  most   Alaskan  residents  are  hunting,                                                               
particularly  those  from  non-subsistence areas.  He  urged  the                                                               
committee to pass the bill to extend the sunset on the board.                                                                   
                                                                                                                                
SENATOR GIESSEL requested  he pass along her  comments that other                                                               
boards  have been  subsidizing the  Big Game  Commercial Services                                                               
Board  for many  years, and  it's time  for these  professions to                                                               
step up.                                                                                                                        
                                                                                                                                
MR. ARNOS replied the AOC supports the increased fees.                                                                          
                                                                                                                                
3:01:28 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on HB 254.                                                                               
                                                                                                                                
3:01:37 PM                                                                                                                    
SENATOR  GIESSEL moved  to report  HB  254, labeled  29-LS1309\A,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  HB  254  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
3:01:58 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
                 SB 55-OPTOMETRY & OPTOMETRISTS                                                                             
                                                                                                                                
3:07:13 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SB 55.  She  relayed  the  intent to  adopt  a                                                               
committee substitute  (CS), take member's questions,  and look to                                                               
the will of the committee.                                                                                                      
                                                                                                                                
3:07:28 PM                                                                                                                    
SENATOR GIESSEL  moved to  adopt the  CS for  SB 55,  labeled 29-                                                               
LS0524\I, as the working document.                                                                                              
                                                                                                                                
CHAIR COSTELLO objected for an explanation of the changes.                                                                      
                                                                                                                                
3:07:43 PM                                                                                                                    
WESTON  EILER,   Staff,  Senate   Labor  and   Commerce  Standing                                                               
Committee and Senator Mia Costello,  explained the changes in the                                                               
CS for SB 55, version I.                                                                                                        
                                                                                                                                
Section 1  - page 1, lines  8-249, adds text under  paragraph (4)                                                               
relating to  regulations for the  treatment of eye  disease. Page                                                               
1, lines 12-14, adds a  new paragraph (6) relating to regulations                                                               
that the  State Medical  Board agrees to  regarding the  scope of                                                               
practice   to   perform   ophthalmic  surgery   and   noninvasive                                                               
procedures.                                                                                                                     
                                                                                                                                
Section  4 -  page  2, lines  18-24 adds  new  subsections to  AS                                                               
08.72.272. Subsection  (e) prohibits a licensee  from injecting a                                                               
derivative of  clostridium botulinum in  the ocular globe  of the                                                               
eye.  Subsection  (f)  provisionally prohibits  a  licensee  from                                                               
prescribing more than  a 7-day supply of  a controlled substance.                                                               
Patients  needing  a  refill  shall be  referred  to  a  licensed                                                               
physician or ophthalmologist.                                                                                                   
                                                                                                                                
Section 5 -  page 2, lines 25-31  through page 3, line  1, adds a                                                               
new Sec.  08.72.278. Subsection  (a) states  that a  licensee may                                                               
perform services of  optometry only if they are  within the scope                                                               
of  the   licensee's  education,  training,  and   experience  as                                                               
established by  regulations adopted by the  board. Subsection (b)                                                               
prohibits   a  licensee   from   performing  ophthalmic   surgery                                                               
described  in  regulation  if  it  is beyond  the  scope  of  the                                                               
licensee's education, training, and experience.                                                                                 
                                                                                                                                
Mr.  Eiler advised  that  Section  7 of  the  original bill  that                                                               
defined "invasive  surgery" is  deleted. It  is addressed  in the                                                               
new paragraph (6)  in Section 1 relating to  regulations that the                                                               
State Medical Board agrees to  regarding the scope of practice to                                                               
perform ophthalmic surgery and noninvasive procedures.                                                                          
                                                                                                                                
3:11:08 PM                                                                                                                    
CHAIR COSTELLO removed her objection and the CS was adopted.                                                                    
                                                                                                                                
SENATOR STEVENS  asked if  paragraph (6)  in Section  1 addresses                                                               
the objections that ophthalmologists have with the bill.                                                                        
                                                                                                                                
MR. EILER  said that's the  intent; the  CS is a  compromise that                                                               
seeks to  get the State  Medical Board, licensed  physicians, and                                                               
the Board of  Optometry to agree on the terms  that will form the                                                               
regulation in statute.                                                                                                          
                                                                                                                                
SENATOR STEVENS  offered his understanding that  optometrists are                                                               
governed  by  the Board  of  Optometry  and ophthalmologists  are                                                               
governed by the State Medical Board.                                                                                            
                                                                                                                                
MR.  EILER  agreed  adding  that  ophthalmologists  are  licensed                                                               
medical doctors.                                                                                                                
                                                                                                                                
3:12:50 PM                                                                                                                    
SENATOR GIESSEL  moved to report  the CS  for SB 55,  labeled 29-                                                               
LS0524\I,  from  committee  with individual  recommendations  and                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
CHAIR COSTELLO  announced that without objection  CSSB 55(L&C) is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
3:13:12 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 3:13 p.m.                                                                                                  

Document Name Date/Time Subjects
CS SB 118 - Ver. E.pdf SL&C 4/12/2016 1:30:00 PM
SB 118
CS SB 156 - Ver. I.pdf SL&C 4/12/2016 1:30:00 PM
SB 156
HB 314 - Supporting Document - EDA Investments.pdf SL&C 4/12/2016 1:30:00 PM
HB 314
HB 314 (L&C) - Ver. P.pdf SL&C 4/12/2016 1:30:00 PM
HB 314
HB254 - Fiscal Note -DCCED-CBPL-03-17-16.pdf SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - Fiscal Note -HB254-DCCED-CBPL-04-01-16.pdf SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - LBA Audit.pdf SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - Legislation 29-LS1309A.PDF SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - Report-Economic Impacts of Guided Hunting.pdf SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - Report-SLC 1 19 16 Division of Corporations Business and Profess....pdf SL&C 4/12/2016 1:30:00 PM
HB 254
HB254 - Sponsor Statement.pdf SL&C 4/12/2016 1:30:00 PM
HB 254
SB 118 - Background Information - DNR Survey Work.pdf SL&C 4/12/2016 1:30:00 PM
SB 118
SB 156 - Response Q&A.pdf SL&C 4/12/2016 1:30:00 PM
SB 156
SB 206 - Claims Data.pdf SL&C 4/12/2016 1:30:00 PM
SB 206
SB206 Supporting Documents - Consumer Impacts.pdf SL&C 4/12/2016 1:30:00 PM
SB 206
CS SB 55 (L&C) - Ver. I.pdf SL&C 4/12/2016 1:30:00 PM
SB 55