Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/07/2017 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 16 FIDUCIARY ACCESS TO DIGITAL ASSETS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 32 PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
-- Public Testimony --
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 7, 2017                                                                                          
                           1:31 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Berta Gardner                                                                                                           
Senator Shelley Hughes, Vice Chair                                                                                              
Senator Mia Costello, Chair                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 16                                                                                                              
"An Act adopting and relating to the Revised Uniform Fiduciary                                                                  
Access to Digital Assets Act."                                                                                                  
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
SENATE BILL NO. 32                                                                                                              
"An Act relating to biological products; relating to the                                                                        
practice of pharmacy; relating to the Board of Pharmacy; and                                                                    
providing for an effective date."                                                                                               
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 16                                                                                                                   
SHORT TITLE: FIDUCIARY ACCESS TO DIGITAL ASSETS                                                                                 
SPONSOR(s): SENATOR(s) HUGHES                                                                                                   
                                                                                                                                
01/13/17       (S)       PREFILE RELEASED 1/13/17                                                                               
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       L&C, JUD                                                                                               
03/07/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 32                                                                                                                   
SHORT TITLE: PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS                                                                              
SPONSOR(s): SENATOR(s) HUGHES                                                                                                   
                                                                                                                                
01/23/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/23/17       (S)       HSS, L&C                                                                                               
02/10/17       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/10/17       (S)       Heard & Held                                                                                           
02/10/17       (S)       MINUTE(HSS)                                                                                            
02/15/17       (S)       HSS AT 1:30 PM BUTROVICH 205                                                                           
02/15/17       (S)       Moved SB 32 Out of Committee                                                                           
02/15/17       (S)       MINUTE(HSS)                                                                                            
02/17/17       (S)       HSS RPT 2DP 1NR 1AM                                                                                    
02/17/17       (S)       NR: WILSON                                                                                             
02/17/17       (S)       DP: VON IMHOF, BEGICH                                                                                  
02/17/17       (S)       AM: GIESSEL                                                                                            
03/07/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
BUDDY WHITT, Staff                                                                                                              
Senator Shelley Hughes                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Delivered the sectional analysis for SB 16.                                                               
                                                                                                                                
DEBORAH BEHR, Member                                                                                                            
Alaska Delegation, Uniform Law Commission                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information on SB 16.                                                                            
                                                                                                                                
AIMEE BUSHNELL, Staff                                                                                                           
Senator Shelley Hughes                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information on SB 32.                                                                            
                                                                                                                                
ASHLYN ANTONELLI, representing herself                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
BECKY HULTBERG, President and CEO                                                                                               
Alaska State Hospital and Nursing Home Association                                                                              
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
MARK GUIMOND, Director                                                                                                          
State Legislative Affairs                                                                                                       
Arthritis Foundation                                                                                                            
Washington, D.C.                                                                                                                
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
SHAINA SMITH, Director                                                                                                          
U.S. Pain Foundation                                                                                                            
North Grosvenordale, Connecticut                                                                                                
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
PHIL SCHNEIDER, Associate Dean and Professor                                                                                    
University of Arizona Health Sciences                                                                                           
College of Pharmacy                                                                                                             
Chair - Advisory Board                                                                                                          
Alliance for Safe Biologic Medicine                                                                                             
Phoenix, Arizona                                                                                                                
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
CAREY MCCLELAND, Healthcare Advocate                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
LEIF HOLM, Member                                                                                                               
State Board of Pharmacy                                                                                                         
North Pole, Alaska                                                                                                              
POSITION STATEMENT: Stated support for SB 32, provided the                                                                    
language in Section 5 is amended.                                                                                               
                                                                                                                                
DR. DAVID CHARLES, Chair                                                                                                        
Alliance for Patient Access                                                                                                     
Nashville, Tennessee                                                                                                            
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
RYLAN HANKS, Pharmacist                                                                                                         
Director of Policy                                                                                                              
Amgen, Inc.                                                                                                                     
Thousand Oaks, California                                                                                                       
POSITION STATEMENT: Testified in support of SB 32.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:31:19 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:31  p.m. Present at the  call to                                                               
order were  Senators Gardner, Stevens,  Meyer, Hughes,  and Chair                                                               
Costello.                                                                                                                       
                                                                                                                                
            SB 16-FIDUCIARY ACCESS TO DIGITAL ASSETS                                                                        
                                                                                                                                
1:32:06 PM                                                                                                                    
CHAIR COSTELLO  announced the  consideration of  SB 16  and noted                                                               
that this was the first hearing.                                                                                                
                                                                                                                                
1:32:15 PM                                                                                                                    
SENATOR SHELLY  HUGHES, Alaska State  Legislature, sponsor  of SB                                                               
16,  stated her  belief that  technological advances  are key  to                                                               
Alaska's  economic  future.  She  noted the  advances  in  online                                                               
digital  tools, storage  devices, social  media sites,  music and                                                               
photos that individuals use and  retain and questioned what would                                                               
happen to  these personal items  when someone passes away.  SB 16                                                               
provides  guidance  for this  internet  age  that is  lacking  in                                                               
current law. It  offers digital users the  opportunity to specify                                                               
whether their digital assets should  be preserved, distributed to                                                               
heirs, or  destroyed. She explained  the need for  an overarching                                                               
law in  order to provide access  to digital assets to  loved ones                                                               
in other states.                                                                                                                
                                                                                                                                
She listed the  entities that support the  bill: National Academy                                                               
of Elder  Law Attorneys, Facebook,  Google, Center  for Democracy                                                               
and Technology, AARP, and others.                                                                                               
                                                                                                                                
1:35:01 PM                                                                                                                    
BUDDY  WHITT,   Staff,  Senator  Shelley  Hughes,   Alaska  State                                                               
Legislature,  delivered   the  sectional  analysis  for   SB  16:                                                               
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Section 1 of  the bill adds a new  chapter, the Revised                                                                  
     Fiduciary Access to Digital Assets Act, to AS 13.                                                                          
                                                                                                                                
     Sec. 13.63.010  sets out user direction  for disclosure                                                                    
     of digital assets. This  proposed section addresses the                                                                    
     relationship   of    online   tools,    other   records                                                                    
     documenting  the user's  intent, and  terms of  service                                                                    
     agreements.  The   section  establishes   a  three-tier                                                                    
     priority system for determining  the user's intent with                                                                    
     respect to  a digital assets. Subsection  (a) gives top                                                                    
     priority  to the  user's wishes  as expressed  using an                                                                    
     online tool.  Subsection (b)  gives next  tier priority                                                                    
     to user's direction in will,  trust, power of attorney,                                                                    
      or other record. Subsection (c) recognizes the terms-                                                                     
     of-service  agreement   if  the  user  left   no  other                                                                    
     direction.                                                                                                                 
                                                                                                                                
     Sec. 13.63.020 sets out the  relationship of the terms-                                                                    
     of-service  agreement to  the  fiduciary. This  section                                                                    
     clarifies  that  to  the extent  a  custodian  gives  a                                                                    
     fiduciary  access to  digital assets,  the terms-  of -                                                                    
     service agreement apply as well to the fiduciary.                                                                          
                                                                                                                                
     Sec.  13.63.030  sets  out  procedures  for  disclosing                                                                    
     digital assets.  Subsection (a) gives the  custodian of                                                                    
     digital  assets  a  choice of  methods  for  disclosing                                                                    
     digital assets  to an authorized  fiduciary. Subsection                                                                    
     (b)  allows  the  custodian   to  charge  a  reasonable                                                                    
     administrative  charge  for  the  cost  of  disclosure.                                                                    
     Subsection (c)  states that a deleted  digital asset of                                                                    
     the user need  not be disclosed, because  deletion is a                                                                    
     good indicator that  the user did not  intend access to                                                                    
     the fiduciary.  Subsection (d) addresses  requests that                                                                    
     are  unduly  burdensome  and authorizes  a  process  to                                                                    
     obtain court direction on the request.                                                                                     
                                                                                                                                
     Sec. 13.63.040  sets out process for  disclosure of the                                                                    
     content  of  electronic  communications of  a  deceased                                                                    
     user.  This section  gives the  personal representative                                                                    
     of  the estate  access to  digital assets  if the  user                                                                    
     consented or  if the  court orders  disclosure. Certain                                                                    
     procedures set out in the section must be met.                                                                             
                                                                                                                                
     Sec. 13.63.050  sets out procedures for  the disclosure                                                                    
     of  other  digital  assets of  a  deceased  user.  This                                                                    
     section  gives the  personal  representative access  to                                                                    
     the  catalogue of  electronic communications  and other                                                                    
     digital assets, if the requirements  of the section are                                                                    
     met.                                                                                                                       
                                                                                                                                
     Sec. 13.63.060  sets out  procedures for  disclosure of                                                                    
     content  of electronic  communications  of a  principal                                                                    
     under a  power of attorney. The  procedures and process                                                                    
     are similar  to those  given a  personal representative                                                                    
     under Sec. 13.63.040.                                                                                                      
                                                                                                                                
     Sec. 13.63.070  sets out  procedures for  disclosure of                                                                    
     other digital assets of the  principal under a power of                                                                    
     attorney.  The procedures  and process  are similar  to                                                                    
     those  given to  a personal  representative under  Sec.                                                                    
     13.63.050.                                                                                                                 
                                                                                                                                
     Sec. 13.63.080  sets out  procedures for  disclosure of                                                                    
     digital assets  when held in  a trust when  the trustee                                                                    
     is  the  original  user.  This  section  provides  that                                                                    
     trustee who  is an  original account holder  can assess                                                                    
     all digital assets held in the trust.                                                                                      
                                                                                                                                
     Sec. 13.63.090  sets out  procedures for  disclosure of                                                                    
     content  of  electronic  communications held  in  trust                                                                    
     when  the  trustee  is  not   the  original  user.  The                                                                    
     procedures  and process  are similar  to those  given a                                                                    
     personal representative under Sec. 13.63.040.                                                                              
                                                                                                                                
     Sec. 13.63.100  sets out  procedures for  disclosure of                                                                    
     other digital assets held in  trust when the trustee is                                                                    
     not the  original user. The procedures  and process are                                                                    
     similar  to those  given to  a personal  representative                                                                    
     under  Sec. 13.63.050.  The  trustee  also must  supply                                                                    
     information about the trust specified in this section.                                                                     
                                                                                                                                
     Sec. 13.63.110  sets out  procedures for  disclosure of                                                                    
     digital assets  to conservator  of a  protected person.                                                                    
     This section  applies when  a conservator  is appointed                                                                    
     by the court  to handle the assets  of protected person                                                                    
     who is  physically or mentally  unable to  manage those                                                                    
     assets.  The proposed  section provides  an opportunity                                                                    
     for  a  hearing  concerning disclosure.  Otherwise  the                                                                    
     procedures  and process  are similar  to those  given a                                                                    
     personal  representative  under   Sec.  13.63.050.  The                                                                    
     proposed section finally sets  out a process to suspend                                                                    
     or terminate an account of  a protected person for good                                                                    
     cause.                                                                                                                     
                                                                                                                                
     Sec.  13.63.120 sets  out  standards  of a  fiduciary's                                                                    
     duty and authority under this chapter.                                                                                     
                                                                                                                                
     Sec.  13.63.130   sets  out   the  standards   for  the                                                                    
     custodian of  digital assets  compliance with  the act.                                                                    
     Subsection  (f)  immunizes  the  custodian  of  digital                                                                    
     assets  and its  officers, employees,  and agents  from                                                                    
     liability for an act or  omission done in good faith in                                                                    
     compliance with this chapter.                                                                                              
                                                                                                                                
     Secs. 13.63.140  and 13.63.150 are  standard provisions                                                                    
     included   in   uniform   acts  to   facilitate   their                                                                    
     implementation among the states that enact them.                                                                           
                                                                                                                                
     Sec. 13.63.050  sets out procedures for  the disclosure                                                                    
     of  other  digital  assets of  a  deceased  user.  This                                                                    
     section  gives the  personal  representative access  to                                                                    
     the  catalogue of  electronic communications  and other                                                                    
     digital assets, if the requirements  of the section are                                                                    
     met.                                                                                                                       
                                                                                                                                
     Sec. 13.63.060  sets out  procedures for  disclosure of                                                                    
     content  of electronic  communications  of a  principal                                                                    
     under a  power of attorney. The  procedures and process                                                                    
     are similar  to those  given a  personal representative                                                                    
     under Sec. 13.63.040.                                                                                                      
                                                                                                                                
     Sec. 13.63.070  sets out  procedures for  disclosure of                                                                    
     other digital assets of the  principal under a power of                                                                    
     attorney.  The procedures  and process  are similar  to                                                                    
     those  given to  a personal  representative under  Sec.                                                                    
     13.63.050.                                                                                                                 
                                                                                                                                
     Sec. 13.63.080  sets out  procedures for  disclosure of                                                                    
     digital assets  when held in  a trust when  the trustee                                                                    
     is  the  original  user.  This  section  provides  that                                                                    
     trustee who  is an  original account holder  can assess                                                                    
     all digital assets held in the trust.                                                                                      
                                                                                                                                
     Sec. 13.63.090  sets out  procedures for  disclosure of                                                                    
     content  of  electronic  communications held  in  trust                                                                    
     when  the  trustee  is  not   the  original  user.  The                                                                    
     procedures  and process  are similar  to those  given a                                                                    
     personal representative under Sec. 13.63.040.                                                                              
                                                                                                                                
     Sec. 13.63.100  sets out  procedures for  disclosure of                                                                    
     other digital assets held in  trust when the trustee is                                                                    
     not the  original user. The procedures  and process are                                                                    
     similar  to those  given to  a personal  representative                                                                    
     under  Sec. 13.63.050.  The  trustee  also must  supply                                                                    
     information about the trust specified in this section.                                                                     
                                                                                                                                
     Sec. 13.63.110  sets out  procedures for  disclosure of                                                                    
     digital assets  to conservator  of a  protected person.                                                                    
     This section  applies when  a conservator  is appointed                                                                    
     by the court  to handle the assets  of protected person                                                                    
     who is  physically or mentally  unable to  manage those                                                                    
     assets.  The proposed  section provides  an opportunity                                                                    
     for  a  hearing  concerning disclosure.  Otherwise  the                                                                    
     procedures  and process  are similar  to those  given a                                                                    
     personal  representative  under   Sec.  13.63.050.  The                                                                    
     proposed section finally sets  out a process to suspend                                                                    
     or terminate an account of  a protected person for good                                                                    
     cause.                                                                                                                     
                                                                                                                                
     Sec.  13.63.120 sets  out  standards  of a  fiduciary's                                                                    
     duty and authority under this chapter.                                                                                     
                                                                                                                                
     Sec.  13.63.130   sets  out   the  standards   for  the                                                                    
     custodian of  digital assets  compliance with  the act.                                                                    
     Subsection  (f)  immunizes  the  custodian  of  digital                                                                    
     assets  and its  officers, employees,  and agents  from                                                                    
     liability for an act or  omission done in good faith in                                                                    
     compliance with this chapter.                                                                                              
                                                                                                                                
     Secs. 13.63.140  and 13.63.150 are  standard provisions                                                                    
     included   in   uniform   acts  to   facilitate   their                                                                    
     implementation among the states that enact them.                                                                           
                                                                                                                                
     Sec.  13.63.160  establishes  the coverage  of  digital                                                                    
     assets  under the  chapter. In  the chapter,  a digital                                                                    
     assets  does  not  apply to  the  underlying  asset  or                                                                    
     liability unless  the asset or  liability is  itself an                                                                    
     electronic record.  The chapter  does not apply  to the                                                                    
     digital asset  of an employer  used by the  employee in                                                                    
     the ordinary course of the employer's business.                                                                            
                                                                                                                                
     Sec. 13.63.170 sets out the  application of the chapter                                                                    
     if the user  resides in Alaska or resided  in Alaska at                                                                    
     the time of the user's death.                                                                                              
                                                                                                                                
     Sec. 13.63.190  sets out definitions  of terms  used in                                                                    
     the chapter.3                                                                                                              
                                                                                                                                
     Section 2  of the  bill sets  out applicability  of the                                                                  
     Act.                                                                                                                       
                                                                                                                                
1:41:27 PM                                                                                                                    
MR.  WHITT  said Deborah  Behr  will  answer technical  questions                                                               
about the bill.                                                                                                                 
                                                                                                                                
SENATOR GARDNER  asked if  a fiduciary would  have access  to all                                                               
financial  information and  whether the  bill provides  that they                                                               
would not have access to other property.                                                                                        
                                                                                                                                
MR.  WHITT clarified  that  a fiduciary  is  appointed to  manage                                                               
property  when  someone  dies  or loses  capacity  to  manage  it                                                               
him/herself. The  bill provides access to  anything the fiduciary                                                               
was authorized to manage.                                                                                                       
                                                                                                                                
SENATOR GARDNER asked how the  fiduciary knows what has value and                                                               
is relevant. She questioned the executor's role in the process.                                                                 
                                                                                                                                
MR. WHITT deferred the question to Ms. Behr.                                                                                    
                                                                                                                                
1:43:51 PM                                                                                                                    
CHAIR COSTELLO  said the  definition for  "fiduciary" is  on page                                                               
13.                                                                                                                             
                                                                                                                                
SENATOR STEVENS said  he, too, is concerned about  the privacy of                                                               
certain records.                                                                                                                
                                                                                                                                
CHAIR COSTELLO  asked about the effective  date and applicability                                                               
clause. On page 13, line 6,  it mentions "a person acting under a                                                               
will  or power  of attorney  executed  before, on,  or after  the                                                               
effective  date of  this  Act." She  asked  if SB  16  will be  a                                                               
retroactive statute.                                                                                                            
                                                                                                                                
MR. WHITT said he would follow up with an answer.                                                                               
                                                                                                                                
1:45:25 PM                                                                                                                    
SENATOR MEYER asked how other states handle this.                                                                               
                                                                                                                                
MR.  WHITT replied  16 states  have  passed similar  legislation.                                                               
Most states  saw a  problem with what  would happen  with digital                                                               
assets.                                                                                                                         
                                                                                                                                
1:46:11 PM                                                                                                                    
DEBORAH  BEHR,  Member  of the  Alaska  Delegation,  Uniform  Law                                                               
Commission, said the  issue of how to handle  digital assets when                                                               
someone passes  away has  been a problem  in many  states because                                                               
it's not addressed  in the typical will. She  provided an account                                                               
of what happens when a spouse  can't get access to digital photos                                                               
because they  do not have  a contract with the  service provider;                                                               
the deceased spouse  has the contract. The typical  will does not                                                               
work, nor does the business partnership.                                                                                        
                                                                                                                                
She clarified  that 23 states have  passed this model law  and 17                                                               
others  are considering  it. The  Alaska  Uniform Law  Delegation                                                               
approached  the  sponsor  saying  this  bill  will  be  good  for                                                               
seniors.                                                                                                                        
                                                                                                                                
With regard  to applicability,  SB 16  becomes effective  90 days                                                               
after  it  is  signed.  It  is not  retroactive.  It  applies  to                                                               
existing wills and contracts.                                                                                                   
                                                                                                                                
She said  the question about  privacy is  important. SB 16  is an                                                               
opt-in statute. If  nothing is in the will, the  terms of service                                                               
agreement  will  apply  and  the spouse  or  family  or  business                                                               
partner  will not  have access  to  the digital  material. It  is                                                               
similar  to the  designated  beneficiary  in retirement  accounts                                                               
that is separate from the will.                                                                                                 
                                                                                                                                
She emphasized that this is a thoroughly vetted process.                                                                        
                                                                                                                                
CHAIR   COSTELLO   said  she   is   still   confused  about   the                                                               
applicability.   She   referenced   page   13   and   asked   for                                                               
clarification.                                                                                                                  
                                                                                                                                
1:53:24 PM                                                                                                                    
SENATOR  STEVENS stressed  the  importance of  updating wills  to                                                               
include digital assets.                                                                                                         
                                                                                                                                
MS.  BEHR said  it  is  not necessary,  if  you  have no  digital                                                               
assets,  but most  probate attorneys  are asking  how the  person                                                               
wants digital assets handled.                                                                                                   
                                                                                                                                
SENATOR GARDNER related her personal  experience as a trustee for                                                               
her  sister. She  asked  who  judges who  has  access to  digital                                                               
assets.                                                                                                                         
                                                                                                                                
MS. BEHR stressed that the bill  provides for an opt-in system. A                                                               
person  can  determine whether  they  want  anyone to  see  their                                                               
emails after  they die. If  a person  does not give  consent, the                                                               
most a fiduciary can do is  get a catalogue of communication. She                                                               
provided examples  of who  would be a  fiduciary; the  husband if                                                               
the  wife died,  or someone  appointed as  a fiduciary.  To be  a                                                               
fiduciary requires a court order and includes specific duties.                                                                  
                                                                                                                                
CHAIR COSTELLO asked  whether a person is  liable for unknowingly                                                               
accessing a Facebook page of a decedent.                                                                                        
                                                                                                                                
MS. BEHR  said she believes  that is controlled by  other federal                                                               
laws, not this statute.                                                                                                         
                                                                                                                                
CHAIR COSTELLO asked  if this law will change the  forms that are                                                               
available at the office supply stores.                                                                                          
                                                                                                                                
MS. BEHR said  this bill does not address forms.  It's an overlay                                                               
statute.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO  asked if there have  been unintended consequences                                                               
in other states that have passed similar legislation.                                                                           
                                                                                                                                
MS. BEHR said she is not aware of any unintended consequences.                                                                  
                                                                                                                                
2:01:35 PM                                                                                                                    
SENATOR HUGHES  said the third tier  in the bill is  the terms of                                                               
service agreement. She asked how  she would get photos on Flicker                                                               
if she isn't designated and her husband passes away.                                                                            
                                                                                                                                
MS. BEHR  said she could  hope that  her husband used  the online                                                               
tool designated  in the bill  or updated his will,  otherwise she                                                               
would be denied access to those photos.                                                                                         
                                                                                                                                
MR. WHITT added  that with advances in technology  comes the duty                                                               
to look  at this sort of  thing and ensure the  family has access                                                               
to records.                                                                                                                     
                                                                                                                                
SENATOR STEVENS  asked if  the online tool  is done  generally or                                                               
whether each provider has its own style.                                                                                        
                                                                                                                                
MS. BEHR said each provider has its own style.                                                                                  
                                                                                                                                
2:05:33 PM                                                                                                                    
MR. WHITT  added that you  can designate  who has access  to your                                                               
Facebook page.                                                                                                                  
                                                                                                                                
SENATOR  STEVENS said  only his  staff has  been on  his Facebook                                                               
page.                                                                                                                           
                                                                                                                                
MR. WHITT suggested he discuss access with his staff.                                                                           
                                                                                                                                
SENATOR HUGHES asked if there  is an educational effort to ensure                                                               
that seniors, in particular, are aware of these online tools.                                                                   
                                                                                                                                
MR.  WHITT  said it  is  becoming  a  larger  issue and  AARP  is                                                               
addressing how to educate members.                                                                                              
                                                                                                                                
2:07:32 PM                                                                                                                    
CHAIR COSTELLO opened public testimony for SB 16.                                                                               
                                                                                                                                
SENATOR HUGHES thanked the committee for hearing the bill.                                                                      
                                                                                                                                
CHAIR COSTELLO held SB 16  in committee for future consideration.                                                               
Public testimony was held open.                                                                                                 
                                                                                                                                
2:08:32 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
          SB 32-PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS                                                                       
                                                                                                                                
2:10:18 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration  of  SB  32.  She  noted that  this  is  the  first                                                               
hearing. The intent is to  hear from the sponsor, take questions,                                                               
and hear public testimony.                                                                                                      
                                                                                                                                
2:11:16 PM                                                                                                                    
SENATOR SHELLY HUGHES, Alaska State Legislature, sponsor of SB                                                                  
32, introduced SB 32 speaking to the following sponsor                                                                          
statement:                                                                                                                      
                                                                                                                                
     Senate Bill  32 allows for  Alaskans to have  access to                                                                    
     safe,  new,  and  effective  treatment  options  called                                                                    
     interchangeable  biological   products.  Under  current                                                                    
     state  law, pharmacists  are  allowed  to substitute  a                                                                    
     generic product  for drugs that are  identical to their                                                                    
     proprietary  product,  but  cannot  do  the  same  with                                                                    
     interchangeable  biological  products.   Under  SB  32,                                                                    
     pharmacists will  be able to  dispense an  FDA approved                                                                    
     interchangeable  product   as  a  substitute   for  the                                                                    
     proprietary biological product.                                                                                            
                                                                                                                                
     Due  to   the  complexity  and  nature   of  biological                                                                    
     products,  an  exact  replication  of  these  drugs  is                                                                    
     impossible,  so  a   new  category  of  interchangeable                                                                    
     products was created by the  FDA. This category of drug                                                                    
     allows for pharmaceutical companies  to create safe and                                                                    
     affordable  substitutes  for   drugs  that  help  treat                                                                    
     conditions   including   cancer,  multiple   sclerosis,                                                                    
     severe rheumatoid  arthritis, heart disease,  and other                                                                    
     immune system, neurological and hematologic disorders.                                                                     
                                                                                                                                
     In  addition to  the  clear benefits  to patients,  the                                                                    
     lower   costs  and   competition   should  also   bring                                                                    
     measurable costs  savings to Alaska's  Medicaid program                                                                    
     and  budget.  The  Center  for  Medicare  and  Medicaid                                                                    
     Services recommends that  state Medicaid programs "view                                                                    
     the  launch  of  biosimilar biological  products  as  a                                                                    
     unique opportunity  to achieve measurable  cost savings                                                                    
     and   greater    beneficiary   access    to   expensive                                                                    
     therapeutic treatments for chronic conditions."                                                                            
                                                                                                                                
     SB  32 allows  pharmacists to  dispense interchangeable                                                                    
     biological products  if they communicate this  with the                                                                    
     prescribing doctor. This bill  only allows a pharmacist                                                                    
     to  substitute  an  interchangeable product  if  it  is                                                                    
     approved  by the  FDA,  and it  allows  for doctors  to                                                                    
     require   the   pharmacist   to   only   dispense   the                                                                    
     proprietary  product   if  they  feel  it   is  a  more                                                                    
     effective option.                                                                                                          
                                                                                                                                
     Patient  consent  will  also  be  required  before  any                                                                    
     substitution is  made for  an interchangeable  over the                                                                    
     proprietary   product.  Senate   Bill  32   allows  for                                                                    
     Alaskans  to have  access to  safe, new,  and effective                                                                    
     treatment  options  called  interchangeable  biological                                                                    
     products.  Under  current  state law,  pharmacists  are                                                                    
     allowed to substitute a generic  product for drugs that                                                                    
     are identical to their  proprietary product, but cannot                                                                    
     do the  same with interchangeable  biological products.                                                                    
     Under SB  32, pharmacists will  be able to  dispense an                                                                    
     FDA  approved interchangeable  product as  a substitute                                                                    
     for the proprietary biological product.                                                                                    
                                                                                                                                
     It is  important for Alaska  to address this  issue now                                                                    
     as  more interchangeable  products become  available to                                                                    
     patients.  Senate  Bill  32  will  allow  for  new  and                                                                    
     effective   options   at    a   lower   cost,   without                                                                    
     jeopardizing  patient   safety,  and  will   allow  for                                                                    
     measurable Medicaid  and budget savings for  the State.                                                                    
     Please  join  in  supporting access  to  an  affordable                                                                    
     medication option for Alaskans.                                                                                            
                                                                                                                                
SENATOR  HUGHES said  there  has been  a lot  of  talk about  the                                                               
balance between  pharmacists and physicians and  their respective                                                               
ability  to  prescribe  interchangeable biological  products.  An                                                               
agreement is that the physician  retains control about whether or                                                               
not an interchangeable biological  product can be prescribed. The                                                               
pharmacist  can  make  the substitution  with  consent  from  the                                                               
doctor.                                                                                                                         
                                                                                                                                
CHAIR COSTELLO asked if biologics can be offered now.                                                                           
                                                                                                                                
SENATOR HUGHES  said not yet, but  a number are in  the pipeline.                                                               
The reason  not to  wait on  this legislation  is to  ensure that                                                               
pharmacists can  provide the biologic  to patients once  there is                                                               
one available.                                                                                                                  
                                                                                                                                
CHAIR COSTELLO  asked about the  types of conditions for  which a                                                               
biologic would be prescribed.                                                                                                   
                                                                                                                                
2:19:01 PM                                                                                                                    
SENATOR   HUGHES  listed   serious  conditions:   cancer,  Lupus,                                                               
multiple  sclerosis, rheumatoid  arthritis, autoimmune  diseases,                                                               
and neurological disorders.                                                                                                     
                                                                                                                                
2:19:13 PM                                                                                                                    
SENATOR STEVENS  asked why a pharmaceutical  company would create                                                               
cheaper [biologics].                                                                                                            
                                                                                                                                
SENATOR  HUGHES  said they  realize  how  helpful and  affordable                                                               
biologics are.  The expectation  is this  could help  states with                                                               
their Medicaid budgets.                                                                                                         
                                                                                                                                
SENATOR STEVENS asked if drug  companies will be willing to lower                                                               
costs.                                                                                                                          
                                                                                                                                
2:21:12 PM                                                                                                                    
AIMEE  BUSHNELL,  Staff,  Senator Shelley  Hughes,  Alaska  State                                                               
Legislature, said  part of the  reason for the legislation  is to                                                               
open up competition and eventually bring about lower prices.                                                                    
                                                                                                                                
SENATOR STEVENS said he would like a better explanation.                                                                        
                                                                                                                                
SENATOR HUGHES deferred the question to Rylan Hanks with Amgen.                                                                 
                                                                                                                                
SENATOR  GARDNER  said  her  understanding  is  these  are  often                                                               
expensive drugs that are used as a last resort.                                                                                 
                                                                                                                                
SENATOR  HUGHES said  that's correct  and added  that biosimilars                                                               
have changed people's lives. "It  is definitely something we want                                                               
the people in Alaska to have access to."                                                                                        
                                                                                                                                
2:24:52 PM                                                                                                                    
MS. BUSHNELL provided a sectional  analysis for SB 32 speaking to                                                               
the following document:                                                                                                         
                                                                                                                                
     Sec. 1 - AS 08.80.030                                                                                                  
     Adds a  new subsection requiring the  Board of Pharmacy                                                                    
     to have  a link  on the board's  website to  the United                                                                    
     States  Food and  Drug Administration's  (FDA) list  of                                                                    
     approved interchangeable biological products.                                                                              
                                                                                                                                
     Sec. 2 - AS 08.80.294                                                                                                  
     Amends  this  section  by  requiring  a  pharmacist  to                                                                    
     include on the label  of a biological product container                                                                    
     the  proprietary  or  proper  name  of  the  biological                                                                    
     product.  This   section  also  includes   language  to                                                                    
     differentiate  between  drugs  that  are  and  are  not                                                                    
     biological products  to ensure that  statutes regarding                                                                    
     equivalent   generic   drugs  are   not   substantively                                                                    
     changed.                                                                                                                   
                                                                                                                                
     Sec. 3 - AS 08.80.294                                                                                                  
     Adds a new subsection to  define the term "proper name"                                                                    
     being    the    name     that    reflects    scientific                                                                    
     characteristics  of  a  biological  product.  This  new                                                                    
     subsection  also defines  "proprietary  name" which  is                                                                    
     the trademarked and registered name of the product.                                                                        
                                                                                                                                
     Sec. 4 - AS 08.80.295                                                                                                  
     Adds language to  differentiate between equivalent drug                                                                    
     products and interchangeable biological products.                                                                          
                                                                                                                                
     Sec. 5 - AS 08.80.295                                                                                                  
     Adds new  subsections to provide  guidelines as  to how                                                                    
     pharmacists or their designee  will need to communicate                                                                    
     with a prescribing doctor  when dispensing a biological                                                                    
     or   interchangeable    biological   product    if   an                                                                    
     interchangeable product is available.                                                                                      
                                                                                                                                
     Under subsection (c), a  pharmacist must communicate to                                                                    
     the  prescribing doctor  the name  and manufacturer  of                                                                    
     the biological  product provided  to the  patient. This                                                                    
     communication  must  happen  within  three  days  after                                                                    
     dispensing  the   product  by   an  entry   through  an                                                                    
     interoperable  electronic  medical records  system,  an                                                                    
     electronic prescribing  technology, a  pharmacy benefit                                                                    
     management system,  or a pharmacy  record. If  an entry                                                                    
     under this  subsection is not possible,  the pharmacist                                                                    
     may communicate  by e-mail, telephone,  fax, or  by any                                                                    
     other prevailing means.                                                                                                    
                                                                                                                                
     Under  subsection  (d)  provides an  exception  to  the                                                                    
     communication  requirement under  (c) if  the dispensed                                                                    
     biological product is a refill  of the prescription and                                                                    
     is   the  same   biological  product.   Subsection  (e)                                                                    
     provides  that communication  provided under  (c)(1) of                                                                    
     this  section is  providing notice  to the  prescribing                                                                    
     doctor. Under subsection (f),  a pharmacist is required                                                                    
     to maintain a  record for two years  after a biological                                                                    
     product is  dispensed. Finally, subsection  (g) defines                                                                    
     "designee" as an agent or  employee of a pharmacist who                                                                    
     has  been authorized  to communicate  information under                                                                    
     subsection (c).                                                                                                            
                                                                                                                                
     Sec. 6 - AS 08.80.480(34)                                                                                              
     Changes language,  and gives option to  change the term                                                                    
     "drug"  and "equivalent  drug" to  "biological product"                                                                    
     and "interchangeable biological product".                                                                                  
                                                                                                                                
     Sec. 7 - AS 08.80.480                                                                                                  
     Adds  new subsection  (37) to  define term  "biological                                                                    
     product".                                                                                                                  
                                                                                                                                
     Adds    new   subsection    (36)    to   define    term                                                                    
     "interchangeable  biological product"  as a  biological                                                                    
     product  as determined  by the  United States  Food and                                                                    
     Drug Administration.                                                                                                       
                                                                                                                                
     Under  subsection  (A)  provides   that  it  meets  the                                                                    
     standard   for   interchangeability   under   US   code                                                                    
     (Regulation  of biological  products, Safety  standards                                                                    
     for determining interchangeability).                                                                                       
                                                                                                                                
     Under    subsection   (B)    provides   that    it   is                                                                    
     therapeutically equivalent  in the most  recent edition                                                                    
     of  the  United  States Food  and  Drug  Administration                                                                    
     evaluations.                                                                                                               
                                                                                                                                
     Sec. 8 - AS 08.80.480                                                                                                  
     Amends  this section  by adding  transition regulations                                                                    
     if  necessary to  implement changes  made by  this Act.                                                                    
     Having changes  take place in accordance  with AS 44.62                                                                    
     (Administrative  Procedure  Act)  but  not  before  the                                                                    
     effective date of this Act.                                                                                                
                                                                                                                                
     Sec. 9 - AS 08.80.480                                                                                                  
     Adds language that  section 8 of this  Act takes effect                                                                    
     July 1, 2017.                                                                                                              
                                                                                                                                
     Sec. 10 - AS 08.80.480                                                                                                 
     Adds language  that this Act  will take  effect January                                                                    
     1, 2018, except for a provided in section 9.                                                                               
                                                                                                                                
2:26:57 PM                                                                                                                    
MS. BUSHNELL  noted SB  32 follows  model consent  language which                                                               
has been agreed to by  numerous patient advocacy, prescriber, and                                                               
pharmacy  groups  throughout  the  country.  Biologics  are  used                                                               
primarily for  treating specialty  and serious  conditions. There                                                               
has  also been  significant outreach  and discussion  with Alaska                                                               
stakeholders. The  bill preserves the ability  for the prescriber                                                               
to have  control over what their  patient is taking, but  it also                                                               
allows options  for the  patient if there  are other  things they                                                               
could be taking.                                                                                                                
                                                                                                                                
She said  there aren't any approved  interchangeables because the                                                               
regulations were only recently released.                                                                                        
                                                                                                                                
SENATOR GARDNER asked who Section 1 is for.                                                                                     
                                                                                                                                
MS. BUSHNELL  said it  is to  be used  by the  public as  well as                                                               
prescribers.                                                                                                                    
                                                                                                                                
2:29:26 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 32.                                                                                
                                                                                                                                
2:29:46 PM                                                                                                                    
ASHLYN ANTONELLI,  representing herself, testified in  support of                                                               
SB 32.  She is a brain  cancer survivor who believes  that Alaska                                                               
should follow  the lead  of the states  that have  passed similar                                                               
legislation. She described how expensive  her drug treatment will                                                               
be  without  this option.  She  expressed  surprise that  Senator                                                               
Giessel did not  support this legislation when it was  heard in a                                                               
previous committee.  This class of  drugs has been around  for 10                                                               
years, yet there are no studies being done in the U.S.                                                                          
                                                                                                                                
CHAIR  COSTELLO  explained  that  this  is  the  first  time  the                                                               
committee  has taken  up  the  bill and  there  is  a process  to                                                               
follow.                                                                                                                         
                                                                                                                                
MS. ANTONELLI asked  the committee to represent  the interests of                                                               
people like  herself. In response  to Senator  Stevens' question,                                                               
she  explained  that drug  companies  usually  have a  return  on                                                               
research and development in two years  and can afford to sell the                                                               
drugs at a lower rate.                                                                                                          
                                                                                                                                
SENATOR  STEVENS noted  that the  committee has  honest questions                                                               
that need to be answered before moving the bill forward.                                                                        
                                                                                                                                
MS. ANTONELLI  voiced appreciation  for the committee's  time and                                                               
efforts.                                                                                                                        
                                                                                                                                
2:35:22 PM                                                                                                                    
BECKY  HULTBERG, President  and  CEO, Alaska  State Hospital  and                                                               
Nursing  Home Association  (ASHNHA), testified  in support  of SB                                                               
32.  She  commented  that ASHNHA  consulted  with  hospital-based                                                               
pharmacists and physicians to ensure  that SB 32 would supply the                                                               
guidance  needed  to  ensure safe  and  effective  treatment  for                                                               
patients while  providing the  potential to  lower pharmaceutical                                                               
costs.  Following this  consultation, they  made the  decision to                                                               
support the bill. Critical to  their support is the communication                                                               
that is  needed in a  variety of settings, including  a three-day                                                               
timeline   for  the   pharmacists  to   notify  the   prescribing                                                               
physicians.   The  bill   offers  flexibility   in  communication                                                               
methods. SB  32 strikes  the right  balance for  notification and                                                               
communication.   Biosimilars   and   interchangeable   biological                                                               
products  offer   potential  for  increasing   accessibility  and                                                               
affordability, as  well as competition.  SB 32  protects patients                                                               
and will benefit Alaska.                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked if biologics  are available in a prepackaged                                                               
Mediset.                                                                                                                        
                                                                                                                                
MS. HULTBERG said she didn't know.                                                                                              
                                                                                                                                
2:38:04 PM                                                                                                                    
MARK  GUIMOND,  Director,  State Legislative  Affairs,  Arthritis                                                               
Foundation,  testified  in support  of  SB  32. He  distinguished                                                               
between  biologics  and  other medications.  Biologics  have  the                                                               
ability to  change lives. Biosimilars  offer the  opportunity for                                                               
biologics to come  to market, and because they are  copies or are                                                               
similar to the  original product and they cost less  and are more                                                               
available.  He  explained  that  a biologic  is  a  very  complex                                                               
product  derived  from  living   cells.  They  are  not  chemical                                                               
compounds and not pills, and  they are infused or injected. There                                                               
is a very small market of  biologics in Alaska. A concern is that                                                               
a doctor must  understand what they are prescribing  for a person                                                               
who has other  prescriptions and therapies. He spoke  in favor of                                                               
the notification provisions in the bill.                                                                                        
                                                                                                                                
CHAIR COSTELLO asked  whether Mr. Guimond feels there  could be a                                                               
higher level of patient protection.                                                                                             
                                                                                                                                
MR.  GUIMOND said  there are  two  levels of  protection; one  is                                                               
inherently  the initial  dispense as  written. If  the prescriber                                                               
wants only the referenced brand  name product, he/she can request                                                               
it. If there  is an opportunity for a biosimilar  to be used, the                                                               
prescriber  can allow  it.  The order  to  "dispense as  written"                                                               
cannot be changed.                                                                                                              
                                                                                                                                
CHAIR COSTELLO asked  if the 13 biologic  prescriptions in Alaska                                                               
are statewide or centered in a particular area.                                                                                 
                                                                                                                                
MR.  GUIMOND said  he  does  not have  that  data,  but most  are                                                               
distributed  from   specialty  pharmacies.  They   are  extremely                                                               
expensive because they are derived from living cells.                                                                           
                                                                                                                                
2:42:49 PM                                                                                                                    
SHAINA  SMITH,  Director,  U.S.  Pain  Foundation,  testified  in                                                               
support of  SB 32. She  read testimony  into the record  from the                                                               
chronic pain  patients, Robert  Toms and  his wife  from Wasilla.                                                               
Ms. Smith  described his  treatment with  a biologic  for chronic                                                               
pain.                                                                                                                           
                                                                                                                                
CHAIR COSTELLO asked Ms. Smith  to provide that written testimony                                                               
to her office and it will travel with the bill.                                                                                 
                                                                                                                                
2:46:24 PM                                                                                                                    
PHIL  SCHNEIDER,  Associate  Dean and  Professor,  University  of                                                               
Arizona  Health   Sciences,  College  of  Pharmacy,   and  Chair,                                                               
Advisory Board,  Alliance for  Safe Biologic  Medicine, testified                                                               
in support of  SB 32. He said, as a  pharmacist, he believes that                                                               
interchangeable biosimilars are not  generic biologics because of                                                               
their molecular complexities.  They are a new  category of drugs.                                                               
Historically, pharmacists  have been  able to  substitute generic                                                               
simple molecules  without communication or prior  approval from a                                                               
physician. Without this  bill a pharmacist would  need to contact                                                               
the prescriber before  any change could be made.  This results in                                                               
delays in patient  care. SB 32 will provide an  efficient way for                                                               
pharmacists  to substitute  interchangeable biosimilars  that are                                                               
less expensive.                                                                                                                 
                                                                                                                                
He discussed the amount of work  that has gone into crafting this                                                               
bill, and the  importance of the "dispense  as written" provision                                                               
that  is included.  He concluded  that the  bill retains  control                                                               
amongst health  care providers  and the  patients they  serve. He                                                               
encouraged the committee to support SB 32.                                                                                      
                                                                                                                                
2:50:46 PM                                                                                                                    
SENATOR STEVENS asked  if these drugs would typically  be used in                                                               
an urban setting.                                                                                                               
                                                                                                                                
MR. SCHNIEDER said  you'd be surprised how widespread  the use of                                                               
these drugs already is. There is  also the potential for at home,                                                               
self-administration.                                                                                                            
                                                                                                                                
2:53:04 PM                                                                                                                    
CAREY MCCLELAND, Healthcare Advocate,  testified in support of SB                                                               
32. He described  his colon cancer and said if  it recurs he will                                                               
consider a  biologic and  would like  to be  able to  have access                                                               
here in Alaska.                                                                                                                 
                                                                                                                                
2:55:12 PM                                                                                                                    
LEIF HOLM, Member, State Board  of Pharmacy, testified in support                                                               
of SB 32 if the language  in Section 5 is amended. In particular,                                                               
the  language  in Section  5  undermines  the intent  of  federal                                                               
legislation,  [the  Biologics  Price Competition  and  Innovation                                                               
Act], which is  to increase access to biologics.  He stressed the                                                               
importance   of  the   difference   between  an   interchangeable                                                               
biological  and  a  biosimilar.  He opined  if  a  medication  is                                                               
interchangeable, it is substitutable. The  Board sees the benefit                                                               
of this  legislation and wants  it to  pass, but the  language in                                                               
Section  5  of having  to  notify  the  physician  of use  of  an                                                               
interchangeable biologic, needs to be amended.                                                                                  
                                                                                                                                
SENATOR  HUGHES asked  if most  pharmacists  have the  electronic                                                               
system   that  provides   notification   of  an   interchangeable                                                               
biologic.                                                                                                                       
                                                                                                                                
MR. HOLM said  it will work if everyone has  access to electronic                                                               
medical records.  If their software  is not  able to do  that, it                                                               
would  be  an   extra  step  of  notifying  a   physician  of  an                                                               
interchangeable.                                                                                                                
                                                                                                                                
SENATOR HUGHES  said this  will be infrequent  at best,  not even                                                               
one per month.                                                                                                                  
                                                                                                                                
MR. HOLM said he sees the  point that it could be infrequent, but                                                               
his  goal is  to  increase  access. He  did  not  agree with  the                                                               
assumption that interchangeables are inferior.                                                                                  
                                                                                                                                
SENATOR  HUGHES said  she appreciates  the concern,  but defended                                                               
the consensus language in the bill.                                                                                             
                                                                                                                                
3:02:03 PM                                                                                                                    
DR. DAVID CHARLES, Chair, Alliance  for Patient Access, testified                                                               
in  support  of  SB 32.  He  said  he  is  a neurologist  and  he                                                               
prescribes biologics every  week. This bill is  timely because it                                                               
will  get  at  the  interchangeable  aspect  of  biosimilars.  He                                                               
clarified the  issue between the  pharmacists and  the physicians                                                               
and stated support as it is  listed in the bill. He explained the                                                               
importance  of  notification to  the  physician  of a  switch  in                                                               
medication. The  bill strikes the  right balance with  three days                                                               
after dispensing for the pharmacist to provide the notification.                                                                
                                                                                                                                
SENATOR  STEVENS  asked  him to  describe  how  the  notification                                                               
occurs.                                                                                                                         
                                                                                                                                
DR.  CHARLES  said it  could  be  a  variety of  ways,  including                                                               
telephone call, fax, email, or via electronic medical record.                                                                   
                                                                                                                                
3:08:20 PM                                                                                                                    
RYLAN  HANKS, Pharmacist  and Director  of  Policy, Amgen,  Inc.,                                                               
testified in  support of SB 32.  He related that he  was formerly                                                               
with  the Food  and Drug  Administration (FDA)  in the  Office of                                                               
Generic Drugs.  He explained the  history and the  science behind                                                               
the  intent of  the bill,  which was  ease and  affordability. In                                                               
2010  Congress   passed  the  Biologics  Price   Competition  and                                                               
Innovation  Act  which  allowed  for the  FDA  to  designate  and                                                               
approve biosimilars. The  intent of the BPCI Act  was to increase                                                               
competition and  affordability for  medicine. He  emphasized that                                                               
generic drugs are  not the same as  interchangeable biologics and                                                               
biosimilars.                                                                                                                    
                                                                                                                                
MR.  HANKS  said  SB  32  is  important  now  in  order  to  have                                                               
guardrails in place for the  use of interchangeable biologics and                                                               
biosimilars. He  discussed the  fact that  the FDA  has disclosed                                                               
that there  are 64  biosimilar programs  under development  to 23                                                               
difference reference  products and 10 are  currently under active                                                               
review. Having proper legislation is key.                                                                                       
                                                                                                                                
He noted  it is  important to make  clear how  biosimilars should                                                               
not be  used, such  as being  inadvertently substituted.  He said                                                               
the bill is  balanced and patient-centric and  would provide cost                                                               
savings to Alaskans.                                                                                                            
                                                                                                                                
3:13:16 PM                                                                                                                    
SENATOR STEVENS asked  him to address the issue  whether he finds                                                               
the three-day notification onerous.                                                                                             
                                                                                                                                
MR HANKS said, as a pharmacist,  he does not find that onerous or                                                               
burdensome.                                                                                                                     
                                                                                                                                
CHAIR  COSTELLO  pointed  out  that there  is  a  provision  that                                                               
addresses notification options, including the telephone.                                                                        
                                                                                                                                
3:15:16 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on SB  32 and  held the                                                               
bill in committee for further consideration.                                                                                    
                                                                                                                                
3:17:24 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 3:17 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 32 - Sectional Analysis.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Background Document - Potential Cost Savings of Biosimilar Drugs.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Background Document - H&SS Comm. Q&A.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Background Letter - State Medical Board.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Committee Hearing Request.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Fiscal Note - DCCED.PDF HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Opposition Letter - Alaska State Medical Association.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Opposition Letter - AMCP.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Opposition Letter - Merriman.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Sponsor Statement.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Documents - Fact Sheet.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - AfAP.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Alliance of Specialty Medicine.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - American Autoimmune Related Diseases.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Arthritis Foundation.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - ASHNA.PDF SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Biotechnology Innovation Organization.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - CAN.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Digestive Disease National Coalition.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Global Healthy Living Foundation.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Group Letter.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - ICAN.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Liver Disease Assoc..pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Lupus and Allied Diseases Assoc..pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - National Kidney Foundation.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - NHMA.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - NORD.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - PhRMA.PDF SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Retire Safe.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - Safe Biologics.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - State Advocacy & Alliance Development.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32 - Support Letter - U.S. Pain Foundation.pdf HHSS 4/13/2017 3:00:00 PM
SL&C 3/7/2017 1:30:00 PM
SB 32
SB 32.pdf SL&C 3/7/2017 1:30:00 PM
SB 32
Senate Bill 32 - Opposition Letter - AK Rheumatology Alliance.pdf SL&C 3/7/2017 1:30:00 PM
SB 16 - Background Document - Fiduciary Comparison.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Background Document - SASI Sheet.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Background Document - UFADAA Fact Sheet.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Background Document - ULC Fact Sheet.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Background Document - ULC Summary.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Fiscal Note - Dept. of Law.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Sectional Analysis.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Senate Labor and Commerce Committee Hearing Request.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Sponsor Statement.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Support Letter - AARP.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Support Letter - Facebook.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Support Letter - Google.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16 - Support Letter - Peak Trust Company.pdf SL&C 3/7/2017 1:30:00 PM
SB 16
SB 16.PDF SL&C 3/7/2017 1:30:00 PM
SB 16