Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/14/2017 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 64 UNIFORM ENVIRONMENTAL COVENANTS ACT TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ SB 79 OPIOIDS;PRESCRIPTIONS;DATABASE;LICENSES TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ SB 37 PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC TELECONFERENCED
Heard & Held
-- Public Testimony --
Bills Previously Heard/Scheduled:
-- Public Testimony --
+= SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING TELECONFERENCED
Moved SSSB 4 Out of Committee
+= SB 16 FIDUCIARY ACCESS TO DIGITAL ASSETS TELECONFERENCED
Moved SB 16 Out of Committee
+= SB 32 PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS TELECONFERENCED
Moved SB 32 Out of Committee
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         March 14, 2017                                                                                         
                           1:39 p.m.                                                                                            
                                                                                                                                
                                                                                                                              
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Shelley Hughes, Vice Chair                                                                                              
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Berta Gardner                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 4                                                                                        
"An  Act  relating to  the  Board  of Barbers  and  Hairdressers;                                                               
relating   to  a   limited  license   to  practice   non-chemical                                                               
barbering;  relating  to a  license  to  practice hair  braiding;                                                               
relating  to the  Department of  Environmental Conservation;  and                                                               
providing for an effective date."                                                                                               
                                                                                                                                
     - MOVED SSSB 4 OUT OF COMMITTEE                                                                                            
                                                                                                                                
SENATE BILL NO. 16                                                                                                              
"An Act  adopting and relating  to the Revised  Uniform Fiduciary                                                               
Access to Digital Assets Act."                                                                                                  
                                                                                                                                
     - MOVED SB 16 OUT OF COMMITTEE                                                                                             
                                                                                                                                
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."                                                                                               
                                                                                                                                
     - MOVED SB 32 OUT OF COMMITTEE                                                                                             
                                                                                                                                
SENATE BILL NO. 64                                                                                                              
"An  Act  adopting  the   Uniform  Environmental  Covenants  Act;                                                               
relating to environmental real property  covenants and notices of                                                               
activity and use  limitation at contaminated sites  to ensure the                                                               
protection  of  human  health,   safety,  and  welfare,  and  the                                                               
environment; and providing for an effective date."                                                                              
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 79                                                                                                              
"An  Act relating  to the  prescription of  opioids; establishing                                                               
the   Voluntary  Nonopioid   Directive  Act;   relating  to   the                                                               
controlled  substance  prescription  database;  relating  to  the                                                               
practice  of dentistry;  relating  to the  practice of  medicine;                                                               
relating to  the practice of  podiatry; relating to  the practice                                                               
of osteopathy; relating  to the practice of  nursing; relating to                                                               
the  practice   of  optometry;  relating   to  the   practice  of                                                               
veterinary  medicine;  related to  the  duties  of the  Board  of                                                               
Pharmacy; and providing for an effective date."                                                                                 
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 37                                                                                                              
"An  Act relating  to  the  Board of  Pharmacy;  relating to  the                                                               
licensing and  inspection of  certain facilities  located outside                                                               
the state; relating  to drug supply chain  security; and creating                                                               
a  position   of  executive  administrator   for  the   Board  of                                                               
Pharmacy."                                                                                                                      
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 4                                                                                                                    
SHORT TITLE: NON-CHEMICAL BARBERING; HAIR BRAIDING                                                                              
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
01/09/17       (S)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (S)       L&C, FIN                                                                                               
02/17/17       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
02/17/17       (S)       L&C, FIN                                                                                               
03/02/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/02/17       (S)       Heard & Held                                                                                           
03/02/17       (S)       MINUTE(L&C)                                                                                            
03/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
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)                                                                      
03/07/17       (S)       Heard & Held                                                                                           
03/07/17       (S)       MINUTE(L&C)                                                                                            
03/14/17       (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)                                                                      
03/07/17       (S)       Heard & Held                                                                                           
03/07/17       (S)       MINUTE(L&C)                                                                                            
03/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 64                                                                                                                   
SHORT TITLE: UNIFORM ENVIRONMENTAL COVENANTS ACT                                                                                
SPONSOR(s): SENATOR(s) MICCICHE                                                                                                 
                                                                                                                                
02/17/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/17/17       (S)       CRA, L&C                                                                                               
02/28/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
02/28/17       (S)       Heard & Held                                                                                           
02/28/17       (S)       MINUTE(CRA)                                                                                            
03/07/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/07/17       (S)       Moved SB 64 Out of Committee                                                                           
03/07/17       (S)       MINUTE(CRA)                                                                                            
03/08/17       (S)       CRA RPT  2DP 2NR                                                                                       
03/08/17       (S)       DP: BISHOP, HOFFMAN                                                                                    
03/08/17       (S)       NR: MACKINNON, STEDMAN                                                                                 
03/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 79                                                                                                                   
SHORT TITLE: OPIOIDS; PRESCRIPTIONS; DATABASE; LICENSES                                                                         
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
03/06/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
03/06/17       (S)       L&C, HSS, FIN                                                                                          
03/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 37                                                                                                                   
SHORT TITLE: PHARMA BD & EMPLOYEES; DRUG DIST/MANUFAC                                                                           
SPONSOR(s): GIESSEL BY REQUEST                                                                                                  
                                                                                                                                
01/25/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/25/17       (S)       L&C, FIN                                                                                               
03/14/17       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RACHEL HANKE, Staff                                                                                                             
Senator Peter Micciche                                                                                                          
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented an overview of SB 64.                                                                           
                                                                                                                                
KRISTIN RYAN, Director                                                                                                          
Division of Spill Prevention and Response                                                                                       
Department of Environmental Conservation                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Answered questions related to SB 64.                                                                      
                                                                                                                                
DR. JAY BUTLER, Chief Medical Officer                                                                                           
Department of Health and Social Services                                                                                        
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Presented information on SB 79.                                                                           
                                                                                                                                
DANIEL NELSON, Director of Pharmacy                                                                                             
Tanana Chiefs Conference                                                                                                        
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Presented concerns about SB 79.                                                                           
                                                                                                                                
MICHAEL CARSON, Chair                                                                                                           
Mat-Su Opiate Task Force                                                                                                        
Mat-Su, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 79.                                                                            
                                                                                                                                
LEIF HOLM, Chair                                                                                                                
Board of Pharmacy                                                                                                               
North Pole, Alaska                                                                                                              
POSITION STATEMENT: Voiced concerns about  SB 79 and testified in                                                             
support of SB 37.                                                                                                               
                                                                                                                                
BARRY CHRISTENSEN, Co-Chair                                                                                                     
Legislative Committee                                                                                                           
Alaska Pharmacists Association                                                                                                  
Ketchikan, Alaska                                                                                                               
POSITION  STATEMENT: Voiced  concerns about  SB 79;  testified in                                                             
support of SB 37.                                                                                                               
                                                                                                                                
GERALD BROWN, Pharmacist                                                                                                        
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Testified in opposition to parts of SB 79.                                                                
                                                                                                                                
SCOTT WATTS, Pharmacist                                                                                                         
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in opposition to parts of SB 79.                                                                
                                                                                                                                
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 37.                                                                                         
                                                                                                                                
JANE CONWAY, Staff                                                                                                              
Senator Cathy Giessel                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented the sectional  analysis of SB 37 on                                                             
behalf of the sponsor.                                                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:39:19 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:39  p.m. Present at the  call to                                                               
order were Senators Meyer, Stevens,  Gardner, and Chair Costello.                                                               
Senator Hughes arrived shortly thereafter.                                                                                      
                                                                                                                                
           SB 4-NON-CHEMICAL BARBERING; HAIR BRAIDING                                                                       
                                                                                                                                
1:40:11 PM                                                                                                                    
CHAIR COSTELLO announced  that the first order  of business would                                                               
be SB 4. She  noted it is the second hearing on  the bill and the                                                               
intent is  to take any  remaining questions of  committee members                                                               
and then  look to  the will  of the  committee. She  welcomed the                                                               
sponsor and others available to answer questions.                                                                               
                                                                                                                                
1:40:54 PM                                                                                                                    
SENATOR HUGHES moved to report  SSSB 4, labeled 30-LS0078\J, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
CHAIR  COSTELLO  announced  that  without objection,  SSSB  4  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:41:07 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
            SB 16-FIDUCIARY ACCESS TO DIGITAL ASSETS                                                                        
                                                                                                                              
1:42:40 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of  SB 16. She  noted it  is the second  hearing on                                                               
the bill  and there would  be public testimony. She  listed those                                                               
available to answer questions.                                                                                                  
                                                                                                                                
CHAIR  COSTELLO,  after  seeing   no  testifiers,  closed  public                                                               
testimony.                                                                                                                      
                                                                                                                                
1:44:03 PM                                                                                                                    
SENATOR HUGHES thanked the committee for hearing the bill.                                                                      
                                                                                                                                
SENATOR HUGHES moved  to report SB 16,  labeled 30-LS0172\D, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection,  SB  16  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:44:33 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
          SB 32-PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS                                                                       
                                                                                                                                
1:46:16 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SB 32. She said  it is the second hearing of the                                                               
bill. She listed those available to answer questions.                                                                           
                                                                                                                                
1:47:07 PM                                                                                                                    
CHAIR HUGHES expressed appreciation  to the committee for hearing                                                               
the bill.  She pointed out  a letter  of support from  the Alaska                                                               
State Medical Association.                                                                                                      
                                                                                                                                
1:47:23 PM                                                                                                                    
SENATOR HUGHES moved  to report SB 32,  labeled 30-LS0188\J, from                                                               
committee  with individual  recommendations  and attached  fiscal                                                               
notes.                                                                                                                          
                                                                                                                                
CHAIR  COSTELLO  announced  that  without  objection,  SB  32  is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 
                                                                                                                                
1:47:45 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
           SB 64-UNIFORM ENVIRONMENTAL COVENANTS ACT                                                                        
                                                                                                                                
1:49:09 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SB 64. She noted  it is the first hearing of the                                                               
bill.  The intent  is to  hear  from the  sponsor, take  members'                                                               
questions, take public  testimony, and hold the  bill for further                                                               
consideration. She noted those available for questions.                                                                         
                                                                                                                                
1:49:48 PM                                                                                                                    
RACHEL  HANKE,  Staff,  Senator   Peter  Micciche,  Alaska  State                                                               
Legislature,  presented  an  overview  of SB  64.  She  said  the                                                               
primary goal of the bill  is to return [contaminated] fields back                                                               
to commerce,  resolve liability,  and protect future  owners. She                                                               
explained  that   an  environmental  covenant  is   a  recordable                                                               
interest  in real  property  with no  financial  interest. SB  64                                                               
allows manageable  contamination to  remain with certain  use and                                                               
activity  restrictions.  It  formalizes an  existing  practice  -                                                               
Institutional Controls  - and allows  for covenants to  be placed                                                               
on federal land. The database that is required already exists.                                                                  
                                                                                                                                
1:50:52 PM                                                                                                                    
MS. HANKE reviewed the following sectional analysis for SB 64:                                                                  
                                                                                                                                
     Section  1  adds  a  new   article  to  AS  46.04  that                                                                    
     establishes  all  necessary guidelines  and  procedures                                                                    
     for environmental  covenants for holders who  are bound                                                                    
     by  the  covenant, subordination,  required  documents,                                                                    
     common  law protections,  notice procedures,  recording                                                                    
     rules,  termination procedures,  and creates  a process                                                                    
     for placing  use restrictions on federal  property, and                                                                    
     a database.  It also  provides definitions used  in the                                                                    
     Act.                                                                                                                       
                                                                                                                                
      Section 2 [provides] that DCCED and DNR [may] adopt                                                                       
       necessary regulations [necessary to implement this                                                                       
     Act.]                                                                                                                      
                                                                                                                                
     Section 3 provides for an immediate effective date for                                                                     
     Section 2.                                                                                                                 
                                                                                                                                
1:51:59 PM                                                                                                                    
CHAIR  COSTELLO asked  what the  Uniform Environmental  Covenants                                                               
Act addresses.                                                                                                                  
                                                                                                                                
MS. HANKE  explained that it  is uniform  law that has  been used                                                               
all over the  U.S. to return contaminated properties  back to the                                                               
market.                                                                                                                         
                                                                                                                                
CHAIR  COSTELLO  asked  if  other   states  have  passed  similar                                                               
legislation.                                                                                                                    
                                                                                                                                
MS. HANKE  said yes.  She deferred  to Ms.  Ryan to  provide more                                                               
information.                                                                                                                    
                                                                                                                                
CHAIR  COSTELLO welcomed  Ms. Ryan  and asked  her to  respond to                                                               
both questions.                                                                                                                 
                                                                                                                                
1:52:56 PM                                                                                                                    
KRISTIN  RYAN,   Director,  Division  of  Spill   Prevention  and                                                               
Response,   Department  of   Environmental  Conservation   (DEC),                                                               
explained that her job involves  cleanup of contaminated sites in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MS. RYAN related that SB 64  is a transparency law to communicate                                                               
when DEC  puts restrictions  on properties.  The problem  is that                                                               
sometimes restrictions are not communicated  to future buyers. It                                                               
allows DEC to  place a covenant that would run  with the property                                                               
so  that future  owners are  aware of  restricted uses  placed on                                                               
their  land.  It   is  a  legal  mechanism   to  safely  transfer                                                               
contaminated  property,  and  it  removes a  lot  of  the  stigma                                                               
associated with  contaminated property. She provided  examples of                                                               
restrictions.                                                                                                                   
                                                                                                                                
1:54:46 PM                                                                                                                    
SENATOR MEYER asked if it includes federal lands.                                                                               
                                                                                                                                
MS. RYAN said yes, and the  majority of contaminated sites in the                                                               
state  are  federal  properties.  DEC can't  put  a  covenant  on                                                               
federal  property, but  can impose  a use  restriction. She  used                                                               
Colorado as an example.                                                                                                         
                                                                                                                                
1:55:40 PM                                                                                                                    
SENATOR HUGHES asked how many contaminated sites this impacts.                                                                  
                                                                                                                                
MS.   RYAN  said   DEC  is   currently  monitoring   about  2,000                                                               
contaminated  sites;  over  1,000  are allowed  to  remain  above                                                               
cleanup levels under institutional  control. DEC intends to apply                                                               
covenants to about 1,000 sites going forward.                                                                                   
                                                                                                                                
1:56:20 PM                                                                                                                    
SENATOR HUGHES  observed that  the bill  is not  retroactive. She                                                               
asked how the mechanism works going forward.                                                                                    
                                                                                                                                
MS. RYAN  explained the process  of working with  the responsible                                                               
party  that   has  contaminated  property.  The   department  and                                                               
property  owner  would  make  a   joint  decision  to  leave  the                                                               
contamination  in place  for  a variety  of  reasons. Next,  they                                                               
would establish  a covenant on  the title that includes  a future                                                               
mechanism for removing the covenant and an appeal process.                                                                      
                                                                                                                                
SENATOR  HUGHES  asked   how  long  it  would   take  before  all                                                               
contaminated sites would have covenants.                                                                                        
                                                                                                                                
MS.  RYAN  said  DEC  does  not  project  a  timeframe.  A  large                                                               
percentage of  the 1,000  contaminated sites  will be  cleaned up                                                               
and not  need covenants.  A covenant is  a transparency  tool for                                                               
future buyers.                                                                                                                  
                                                                                                                                
1:58:53 PM                                                                                                                    
CHAIR COSTELLO  asked if Alaska  should take an approach  that is                                                               
similar to the Colorado law.                                                                                                    
                                                                                                                                
MS. RYAN explained that SB 64  is a uniform law from the National                                                               
Conference of Commissioners on Uniform  State Laws (NCCUSL) which                                                               
proposed model  legislation ten years  ago. Colorado  has adapted                                                               
the  law  to fit  its  situation  of  having  a large  amount  of                                                               
contaminated federal  land. They  created a mechanism  for noting                                                               
restrictions on federal property.                                                                                               
                                                                                                                                
She said DEC  has worked closely with NCCUSL  and their testimony                                                               
is  included in  members'  packets. NCCUSL  agreed that  Alaska's                                                               
changes  to  their  model  law are  improvements  and  they  have                                                               
accepted Alaska's  better version. Currently, Alaska  is only one                                                               
of  seven  states  that  has  not  adopted  a  procedure  for  an                                                               
environmental covenant.                                                                                                         
                                                                                                                                
2:00:08 PM                                                                                                                    
CHAIR  COSTELLO   asked  if  the   public  access  page   is  the                                                               
transparency aspect of the bill.                                                                                                
                                                                                                                                
MS. RYAN said  she envisions DEC working with  the records office                                                               
to  put the  restrictions  on  the title,  as  well  as having  a                                                               
database  of contaminated  sites.  The database  is currently  in                                                               
place.                                                                                                                          
                                                                                                                                
CHAIR COSTELLO asked if other  states have experienced opposition                                                               
to this type of legislation.                                                                                                    
                                                                                                                                
MS. RYAN  said DEC has  talked to  many stakeholders and  all are                                                               
supportive  of the  concept. She  pointed out  that there  is one                                                               
letter  from  the  Department  of  Defense  (DOD)  requesting  an                                                               
amendment. DEC  disagrees with that  request related  to concerns                                                               
about  the state  setting any  standards on  federal property,  a                                                               
long-standing debate.  No other states have  encountered problems                                                               
doing what SB 64 proposes.                                                                                                      
                                                                                                                                
2:02:46 PM                                                                                                                    
CHAIR COSTELLO asked if the  bill would apply to "Travesty Wells"                                                               
[in  the National  Petroleum Reserve-Alaska  (NPR-A)] on  federal                                                               
lands.                                                                                                                          
                                                                                                                                
MS. RYAN  said yes, and it  would also apply to  the legacy wells                                                               
on [Bureau  of Land Management  (BLM)] land [within  and adjacent                                                               
to  NPR-A], if  BLM  decides, with  DEC's  involvement, to  lease                                                               
contaminated  sites above  cleanup  levels so  future owners  are                                                               
aware of the contamination.                                                                                                     
                                                                                                                                
2:03:14 PM                                                                                                                    
CHAIR COSTELLO asked how DEC can  have a zero fiscal note if they                                                               
plan to investigate properties and handle communication.                                                                        
                                                                                                                                
MS.  RYAN  responded they  are  already  putting restrictions  on                                                               
properties.  The bill  allows  DEC to  put  restrictions on  land                                                               
titles and this  will not increase workloads. The  database is in                                                               
place and they will absorb costs to write regulations.                                                                          
                                                                                                                                
2:04:13 PM                                                                                                                    
CHAIR  HUGHES asked  if Alaska  is  using the  same mechanism  as                                                               
other states. She voiced concern about DOD's opposition.                                                                        
                                                                                                                                
MS. RYAN said  the federal property aspect of SB  64 is identical                                                               
to Colorado's legislation. It was  implemented several years ago,                                                               
and DOD and the Air Force have been in compliance.                                                                              
                                                                                                                                
2:04:56 PM                                                                                                                    
SENATOR  STEVENS  asks if  SB  64  exonerates  a bad  actor  that                                                               
abandons the contaminated property.                                                                                             
                                                                                                                                
MS.  RYAN said  no.  That person  is still  liable  and would  be                                                               
pursued for cleanup.  The covenant is a  mechanism to communicate                                                               
to future owners if the  owner leaves contamination above cleanup                                                               
levels.                                                                                                                         
                                                                                                                                
SENATOR  STEVENS asked  if the  financial  cost to  the owner  is                                                               
taken into consideration.                                                                                                       
                                                                                                                                
MS.  RYAN said  that is  a factor  DEC considers  and one  of the                                                               
reasons  why contamination  remains.  DEC tries  to minimize  the                                                               
risks  and can  allow the  contamination  to remain  in place  by                                                               
imposing restrictions. Their goal is to limit exposure pathways.                                                                
                                                                                                                                
2:06:30 PM                                                                                                                    
SENATOR  MEYER   asked  how  DEC   determines  whether   land  is                                                               
contaminated. He provided an example  of buried batteries that no                                                               
one knew about.                                                                                                                 
                                                                                                                                
2:06:54 PM                                                                                                                    
MS. RYAN said DEC needs to  be notified to become involved in the                                                               
process.   They   often   find   out   about   those   kinds   of                                                               
contaminations.  She  gave  an example  of  lead  acid  batteries                                                               
discovered  in Wrangell  after several  iterations of  ownership.                                                               
They  use the  Department of  Law  to help  find the  responsible                                                               
party.                                                                                                                          
                                                                                                                                
SENATOR MEYER asked if realtors have a position on SB 64.                                                                       
                                                                                                                                
MS. RYAN said  they agree with the concept, but  don't want it to                                                               
be overly  cumbersome. DEC  has agreed to  work with  them during                                                               
the drafting of regulations.                                                                                                    
                                                                                                                                
2:08:09 PM                                                                                                                    
CHAIR HUGHES asked what types of things might be in a covenant.                                                                 
                                                                                                                                
MS. RYAN referred  to a flyer in members'  packets that describes                                                               
a covenant.  She provided examples  of restrictions:  no digging,                                                               
no wells, and no day care, depending on the contamination.                                                                      
                                                                                                                                
SENATOR HUGHES  added - no  residential land use,  no disturbance                                                               
of  soil,  construction  worker notice,  engineer-controlled  for                                                               
soil, no drilling, and no use of groundwater.                                                                                   
                                                                                                                                
MS.  RYAN said  those  are some  examples.  She provided  another                                                               
example of no allowed vapor intrusion.                                                                                          
                                                                                                                                
2:10:13 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on SB  64 and  held the                                                               
bill in committee.                                                                                                              
                                                                                                                                
        SB 79-OPIOIDS; PRESCRIPTIONS; DATABASE; LICENSES                                                                    
                                                                                                                                
2:11:23 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of SB 79.  She noted                                                               
that the bill was introduced on  behalf of Governor Walker. SB 79                                                               
helps address  a major issue  facing Alaska, an  opioid epidemic.                                                               
It is a  national epidemic. She provided an example  from the New                                                             
York Times about  a farmer who lost two children  to opioids. She                                                             
said  this  type  of  addiction  can lead  to  heroin  abuse  and                                                               
staggering problems across the country.  Deaths related to opioid                                                               
abuse have increased three-fold in the past seven years.                                                                        
                                                                                                                                
She  said  SB  79  looks  at a  strategy  in  Alaska  to  prevent                                                               
prescription pain  killer abusers from becoming  heroin users. In                                                               
2008 the legislature established  a controlled substance database                                                               
known as  the Alaska Prescription  Drug Monitoring  Program. Last                                                               
year the legislature  identified ideas to help  combat this issue                                                               
through managing  patient data. She  shared another example  of a                                                               
parent in Juneau  who lost a son in January.  She maintained that                                                               
the state  has a moral  obligation to address this  issue because                                                               
of the tremendous impact it is having on Alaska.                                                                                
                                                                                                                                
She said  this is the  first hearing of SB  79. The intent  is to                                                               
hear  from  the sponsor,  take  members'  questions, take  public                                                               
testimony, and then hold the bill for further consideration.                                                                    
                                                                                                                                
2:13:20 PM                                                                                                                    
DR. JAY BUTLER,  Chief Medical Officer, Department  of Health and                                                               
Social  Services,  commented  that   Chair  Costello  has  nicely                                                               
outlined the  reason for hearing  SB 79. He noted  the increasing                                                               
number of deaths  due to opioid overdose, which  has mirrored the                                                               
increase  in  the  rate of  prescribing  opioid  pain  relievers.                                                               
Alaska  is at  a  point where  many people  are  dependent on  or                                                               
addicted  to  opioids and  are  more  susceptible to  heroin  and                                                               
fentanyl abuse.  About 80 percent  of those using  heroin started                                                               
their addiction by using prescription painkillers.                                                                              
                                                                                                                                
DR.  BUTLER  spoke  of  an  increase  in  rates  of  hepatitis  C                                                               
associated with drug  use and more emergency  room admissions. He                                                               
emphasized  that  "all statistics  are  people  with tears  wiped                                                               
away." He  said that,  today, most everyone  has been  touched by                                                               
the opioid epidemic.                                                                                                            
                                                                                                                                
2:15:13 PM                                                                                                                    
DR. BUTLER  highlighted the need  to address  overdose, treatment                                                               
of  addiction,  addiction  as a  chronic  health  condition,  and                                                               
prevention,  including   limiting  legal  and   illegal  opioids,                                                               
involving   law   enforcement,   curbing   overprescribing,   and                                                               
addressing  why people  self-medicate. The  bill is  part of  the                                                               
larger response and is designed  to encourage more evidence-based                                                               
prescribing  and  limit  the flood  of  opioid  painkillers  into                                                               
communities. It intends  to increase access to  treatment and de-                                                               
stigmatization  by improving  provider  knowledge.  SB 79  aligns                                                               
with guidelines  in SB 74 by  healthcare boards, as well  as with                                                               
the Centers  for Disease Control Pain  Management Guidelines, the                                                               
Surgeon General's Report on Alcohol  Drugs and Health, and recent                                                               
statements  from   the  American  Medical  Association   and  the                                                               
American Dental Association.                                                                                                    
                                                                                                                                
2:16:50 PM                                                                                                                    
DR. BUTLER said SB 79 provides  an option for patients who do not                                                               
wish to be prescribed opioids  to communicate their preference to                                                               
their providers by way of  a voluntary, revocable, opioid advance                                                               
directive. This was a suggestion  from the recovery community. It                                                               
also allows patients  to request from pharmacists,  less than the                                                               
total prescribed amount.                                                                                                        
                                                                                                                                
He  said  SB   79  requires  that  five   percent  of  providers'                                                               
continuing education credits be  committed to pain management and                                                               
addiction.   The  bill   sets  limits   on  the   initial  opioid                                                               
prescription to  a seven-day  supply. Exceptions  can be  made by                                                               
providers in certain instances.                                                                                                 
                                                                                                                                
SB  79  includes  changes to  the  Prescription  Drug  Monitoring                                                               
Program (PDMP), a centralized database  where providers can go to                                                               
look  at a  patient's prescription  history. The  bill authorizes                                                               
the  Pharmacy  Board  to issue  routine,  periodic,  confidential                                                               
reports to  prescribers to provide feedback  on their prescribing                                                               
practices.  He referred  to a  recent report  in the  New England                                                             
Journal of  Medicine that,  using the  Medicare Part  D database,                                                             
looked  at  prescribing  habits  of  emergency  room  physicians.                                                               
People  who received  opioids in  the  emergency department  were                                                               
more likely to  have dependency a year later. There  was a three-                                                               
fold variation in the rate  of prescribing opioids, which clearly                                                               
demonstrated a  lack of  agreement among providers  as to  how to                                                               
manage acute pain.                                                                                                              
                                                                                                                                
He named states  that have been effective in  reducing the number                                                               
of  excessive  prescriptions  due  to  the  non-punitive  reports                                                               
issued to providers.                                                                                                            
                                                                                                                                
2:20:20 PM                                                                                                                    
DR. BUTLER  spoke of two  controversial aspects of the  bill. One                                                               
requires veterinarians who prescribe  opioids to register and use                                                               
the  PDMP. The  second  controversial aspect  is requiring  daily                                                               
updates of the PDMP to make it a more useful tool.                                                                              
                                                                                                                                
2:21:25 PM                                                                                                                    
CHAIR  COSTELLO  noted  that   Public  Safety  Commissioner  Walt                                                               
Monegan is present and showing support for the bill.                                                                            
                                                                                                                                
DR. BUTLER continued  to say that 25 states  have the requirement                                                               
of daily updates of the PDMP.                                                                                                   
                                                                                                                                
He stressed that  the bill does not place blame.  The goal is for                                                               
everyone  to be  responsible  for owning  the  problem and  doing                                                               
their part to address it.                                                                                                       
                                                                                                                                
2:22:52 PM                                                                                                                    
CHAIR COSTELLO requested the sectional analysis.                                                                                
                                                                                                                                
2:23:13 PM                                                                                                                    
DR. BUTLER presented the following sectional analysis for SB 79:                                                                
                                                                                                                                
     Sec.  1  Adds a  new  Chapter  55, Voluntary  Nonopioid                                                                  
     Directive   Act,   to   AS  13,   Decedents'   estates,                                                                    
     guardianships,  transfers,  trusts,   and  health  care                                                                    
     decisions,  that provides  an  option  for patients  to                                                                    
     execute  a  Voluntary  Nonopioid Directive  that  would                                                                    
     allow a  person in recovery  (or for other  reasons) to                                                                    
     make clear  the person's desire not  to be administered                                                                    
     an  opioid. A  person, guardian,  conservator or  other                                                                    
     appointed person  may revoke  a directive at  any time.                                                                    
     The person would  provide this confidential information                                                                    
     to  a  health  care  provider or  hospital  on  a  form                                                                    
     provided  by   the  Department  of  Health   of  Social                                                                    
     Services. The  department would  promulgate regulations                                                                    
     on  procedures,  confidentiality,  and  exemptions  for                                                                    
     emergency or substance  misuse treatment. Providers are                                                                    
     not  liable for  following  a directive.  Prescriptions                                                                    
     are  assumed to  be valid;  pharmacists are  not liable                                                                    
     for dispensing a  controlled substance in contradiction                                                                    
     to  a  directive.  The  directive  does  not  alter  an                                                                    
     advance  health care  directive, limit  opioid overdose                                                                    
     drugs,  or  limit  treatment  for  substance  abuse  or                                                                    
     opioid dependence.                                                                                                         
                                                                                                                                
CHAIR COSTELLO  asked if there  are alternatives to  opioids that                                                               
doctors can use.                                                                                                                
                                                                                                                                
DR. BUTLER  said there are.  He described the evolution  over the                                                               
past  20  years where  opioids  have  become  the first  line  of                                                               
treatment for all  pain. He noted the influence  of market forces                                                               
and  the four-fold  increase in  prescribing and  abuse, with  no                                                               
decrease  in the  level of  pain. Physical  dependency is  also a                                                               
factor.                                                                                                                         
                                                                                                                                
He shared  that there  are updated  clinical guidelines  for back                                                               
pain  by the  American College  of Physicians.  Now, opioids  are                                                               
given as the  third line of pain relief,  starting with something                                                               
like Tylenol and physical therapy.                                                                                              
                                                                                                                                
2:26:11 PM                                                                                                                    
CHAIR COSTELLO  noted that  the bill will  be in  committee again                                                               
for further discussion.                                                                                                         
                                                                                                                                
SENATOR HUGHES  thanked Dr. Butler and  expressed appreciation of                                                               
the  Governor's concern  about the  opioid crisis.  She discussed                                                               
liberal prescribing  practices in  the 90s  and noted  that today                                                               
most  doctors  use  opioids  as  a last  resort.  She  asked  how                                                               
extensive overprescribing is today.                                                                                             
                                                                                                                                
DR. BUTLER opined that all  providers use more opioids today than                                                               
five  years ago.  He said  overprescribing is  spread across  the                                                               
profession nationally, but primary  care providers prescribe more                                                               
than  half of  all opioids.  He  pointed out  that Oxycodone  was                                                               
heavily  marketed   to  primary  care  providers.   Heroin  users                                                               
switched to  Oxycodone before  2010 because  it was  so prevalent                                                               
and cheap. In the 90s there was a trend to be "pain free."                                                                      
                                                                                                                                
He  discussed  the  importance  of  pain and  noted  that  it  is                                                               
subjective. It also can be debilitating and needs to be managed.                                                                
                                                                                                                                
SENATOR HUGHES  asked Dr.  Butler if  he has  access to  the PDMP                                                               
data to see who may be overprescribing.                                                                                         
                                                                                                                                
2:31:23 PM                                                                                                                    
DR. BUTLER said he does not. He explained that PDMP monitoring                                                                  
falls to the Pharmacy Board under SB 74, however, Public Health                                                                 
can access de-identified data for public health purposes.                                                                       
                                                                                                                                
SENATOR HUGHES asked if law enforcement has access to the PDMP                                                                  
with a warrant from the DEA.                                                                                                    
                                                                                                                                
DR. BUTLER said yes.                                                                                                            
                                                                                                                                
2:32:17 PM                                                                                                                    
DR. BUTLER continued the sectional analysis of SB 79:                                                                           
                                                                                                                                
     Sec. 2-25  Amend AS 08,  Business and  Professions, for                                                                  
     the  Boards   of  Dentistry,  Medicine,   Nursing,  and                                                                    
     Optometry to:                                                                                                              
                                                                                                                                
     Require  two (2)  hours of  pain management  and opioid                                                                    
     misuse and addiction instruction;                                                                                          
                                                                                                                                
                                                                                                                                
    Disciplinary actions for prescribing or dispensing an                                                                       
     opioid in excess  of the maximum dosage  allowed by law                                                                    
     or violated a  law related to drugs,  regardless of any                                                                    
     criminal action;                                                                                                           
                                                                                                                                
    Set    the    maximum   dosage   for    initial   opioid                                                                    
     prescriptions  at a  seven-day  supply  unless, in  the                                                                    
     practitioner's professional  judgment, it  is necessary                                                                    
     for chronic pain  management or a patient  is unable to                                                                    
     access   a  practitioner   in   time   to  refill   the                                                                    
     prescription; and                                                                                                          
                                                                                                                                
    Require, for a minor under 18 years of age, the                                                                             
     practitioner discuss  with the  parent or  guardian why                                                                    
     the   prescription   is   necessary,  and   the   risks                                                                    
     associated with opioid use.                                                                                                
                                                                                                                                
He provided an example of a 15-year-old who was prescribed                                                                      
Vicodin.                                                                                                                        
                                                                                                                                
He continued the sectional analysis of SB 79.                                                                                   
                                                                                                                                
     Sec. 26-27 Amend AS 08.80 for the Board of Pharmacy to                                                                   
    Register with the Prescription Drug Monitoring                                                                              
     Database  (PDMP)   with  or  without  a   federal  Drug                                                                    
     Enforcement Administration registration number; and                                                                        
     Allow pharmacists to dispense less than the prescribed                                                                     
     amount of a schedule II or III controlled substance at a                                                                   
     person's request; the pharmacists would inform the                                                                         
     prescribing   practitioner   and   the   Prescription   Drug                                                               
     Monitoring Database.                                                                                                       
                                                                                                                                
2:35:21 PM                                                                                                                    
     Sec. 28  Amends AS  08.98 for  the Board  of Veterinary                                                                  
     Medicine to:                                                                                                               
                                                                                                                                
     Register   with   the  Prescription   Drug   Monitoring                                                                    
     Database  if  the  veterinarian   has  a  federal  Drug                                                                    
     Enforcement Administration number; and                                                                                     
                                                                                                                                
     Identify   resources    and   educational    materials   for                                                               
     veterinarians to identify clients at risk for opioid misuse                                                                
     or diversion of prescribed opioids.                                                                                        
                                                                                                                                
     Sec. 29-36  Amend AS  17.30, Controlled  Substances, to                                                                  
     change   the  frequency   pharmacists  report   to  the                                                                    
     Prescription  Drug Monitoring  Database from  weekly to                                                                    
     daily;  remove the  prohibition on  sharing information                                                                    
     with  the federal  government. The  pharmacy board  may                                                                    
     provide  a  confidential  unsolicited  notification  in                                                                    
     summary form to a  practitioner's licensing board which                                                                    
     includes   the   basis   for  the   notification.   The                                                                    
     notification must  be provided  to the  practitioner as                                                                    
     well.                                                                                                                      
                                                                                                                                
     Sec.  37 Directs  the Department  of Health  and Social                                                                  
     Services   to  draft   regulations  to   implement  the                                                                    
     Voluntary Nonopioid Directive Act.                                                                                         
                                                                                                                                
     Sec. 38 Repeals  sunset dates in sections 52  and 73 of                                                                  
     Ch. 25, SLA 2016 (SB 74).                                                                                                  
                                                                                                                                
     Sec. 39-40 Set an  immediate effective date and provide                                                                  
     an effective date for regulations.                                                                                         
                                                                                                                                
2:37:29 PM                                                                                                                    
CHAIR COSTELLO thanked Dr. Butler  and opened public testimony on                                                               
SB 79.                                                                                                                          
                                                                                                                                
2:37:52 PM                                                                                                                    
DANIEL NELSON,  Director of  Pharmacy, Tanana  Chiefs Conference,                                                               
presented  concerns  about SB  79.  He  agreed with  the  overall                                                               
intention of  the bill and  noted a consensus amongst  the entire                                                               
medical community that opioid addiction is a huge problem.                                                                      
                                                                                                                                
He addressed specific  concerns in the bill. He  pointed out that                                                               
SB  74 from  last year  will not  be implemented  until July  17,                                                               
2017, and it contains several  provisions that will significantly                                                               
positively impact  the inappropriate  prescribing of  opioids. It                                                               
would  make some  things in  SB 79  unnecessary. Also,  there has                                                               
been a lack of participation in  drafting the bill by medical and                                                               
pharmaceutical  communities. Another  concern  is  in Section  31                                                               
where there is  a removal on the prohibition of  sharing the PDMP                                                               
information with  the federal  government, which  would undermine                                                               
public trust  in PDMP.  The requirement of  daily updates  to the                                                               
PDMP  is unnecessary  and onerous.  Finally,  the voluntary  non-                                                               
opioid directive is  unnecessary; no one is  precluded from doing                                                               
that  now,  and  the  partial  filling  of  controlled  substance                                                               
prescriptions can be requested now.                                                                                             
                                                                                                                                
MR. NELSON stated support for  the mandatory continuing education                                                               
course.                                                                                                                         
                                                                                                                                
CHAIR  COSTELLO noted  Department of  Health and  Social Services                                                               
Commissioner Davidson was present.                                                                                              
                                                                                                                                
2:41:13 PM                                                                                                                    
SENATOR GARDNER requested Mr. Nelson repeat the last sentence.                                                                  
                                                                                                                                
MR. NELSON  restated that the  mandatory continuing  education is                                                               
beneficial.                                                                                                                     
                                                                                                                                
SENATOR STEVENS  asked for clarification about  partially filling                                                               
a prescription at the patient's request.                                                                                        
                                                                                                                                
MR. NELSON  explained that a  pharmacist can fill  a prescription                                                               
using a lower quantity drug, at the patient's request.                                                                          
                                                                                                                                
SENATOR  STEVENS  asked  if   pharmacists  would  be  comfortable                                                               
overriding a physician.                                                                                                         
                                                                                                                                
MR. NELSON said only in that situation.                                                                                         
                                                                                                                                
2:43:28 PM                                                                                                                    
MICHAEL CARSON, Chair, Mat-Su Opiate  Task Force, stated that the                                                               
Task Force  supports limiting opioid prescriptions  to seven days                                                               
and imposing  stricter rules tied  to the PDMP. He  thanked Chair                                                               
Costello for her introduction and  confirmed that fatal overdoses                                                               
have tripled  in the state due  to the increase of  heroin abuse;                                                               
fentanyl mixed  with heroin is  a factor.  He said 80  percent of                                                               
heroin users started with opioids.  He concluded that the goal is                                                               
to turn off the prescription spigot.                                                                                            
                                                                                                                                
2:45:50 PM                                                                                                                    
LEIF HOLM, Chair, Board of  Pharmacy, voiced concerns with SB 79.                                                               
He  concurred  with  Mr.  Nelson's testimony.  He  agreed  it  is                                                               
necessary  to  find  ways  to  combat  the  opioid  epidemic.  He                                                               
maintained  that the  bill unfairly  singles out  pharmacists and                                                               
looks to correct  SB 74, which has yet to  take effect. He stated                                                               
that  pharmacists have  consistently spearheaded  actions against                                                               
the opioid  epidemic, especially  in finding funding  sources for                                                               
and using the PDMT. He  questioned issues related to the partial-                                                               
fill  provision. He  concluded that  he opposes  the bill  in its                                                               
current form.                                                                                                                   
                                                                                                                                
SENATOR GARDNER asked if partial  fill and voiding the balance of                                                               
a prescription  is state law, and  what needs to change  to allow                                                               
retention of the remaining prescription.                                                                                        
                                                                                                                                
MR. HOLM  related that  since July 2016  partial fills  have been                                                               
allowed without voiding the balance  of a prescription. He stated                                                               
support for that.                                                                                                               
                                                                                                                                
SENATOR GARDNER  asked how  the bill could  be written  to ensure                                                               
that a partial fill does not void the remaining amount.                                                                         
                                                                                                                                
MR. HOLM suggested eliminating the  phrase, "the remainder of the                                                               
prescription is voided."                                                                                                        
                                                                                                                                
2:49:55 PM                                                                                                                    
BARRY  CHRISTENSEN,   Co-Chair,  Legislative   Committee,  Alaska                                                               
Pharmacists Association, voiced concern  with SB 79. He concurred                                                               
with the previous  testifiers, Mr. Holm and Mr.  Nelson. He spoke                                                               
of the  poor timing, given  the passage of  SB 74. He  shared the                                                               
many contributions pharmacists  have made to this  issue and said                                                               
many pharmacists  feel that  the Governor's  press release  put a                                                               
negative spin on them.                                                                                                          
                                                                                                                                
He voiced concern about patients  being scared, due to tightening                                                               
legislation, to  refill medications for chronic  pain management.                                                               
He shared the  risks related to patients  suddenly quitting their                                                               
pain meds.                                                                                                                      
                                                                                                                                
GERALD BROWN, Pharmacist, testified in  opposition to parts of SB                                                               
79. He said  many items in SB  79 are similar to those  in SB 74.                                                               
He  suggested not  holding the  pharmacist in  charge liable  for                                                               
failing  to check  the database,  as  written in  Section 32.  He                                                               
pointed out the  real control of abuse is when  "the pen hits the                                                               
paper." He commented on revisiting page 2 of the bill.                                                                          
                                                                                                                                
CHAIR  COSTELLO noted  the people  available to  answer questions                                                               
and invited them  back the next time the bill  is heard. She said                                                               
she is keeping public testimony open.                                                                                           
                                                                                                                                
2:55:25 PM                                                                                                                    
SCOTT WATTS, Pharmacist,  testified in opposition to  parts of SB                                                               
79.  He  voiced appreciation  for  what  the  bill is  trying  to                                                               
accomplish.   He  suggested   that  more   input  from   pharmacy                                                               
associations  would help  correct  some of  the  problems in  the                                                               
bill. He said  that daily monitoring of the database  can be done                                                               
electronically at  his pharmacy if  the bill passes,  however, it                                                               
may be  more difficult for  some pharmacies. He  suggested having                                                               
some implementation time for that.                                                                                              
                                                                                                                                
He pointed  out that prescribers  can check the PDMP  database in                                                               
their offices in  advance. He said pharmacists  don't always have                                                               
the  time  to check  the  PDMP  database,  and they  have  better                                                               
avenues to see about prescribing data  and usage. He did not want                                                               
to see daily  checking of the database being  a requirement. They                                                               
are willing  to maintain and enter  the data in PDMP.  He said he                                                               
liked  the  ability  to  decrease  the number  of  pills  in  the                                                               
prescription.                                                                                                                   
                                                                                                                                
2:57:39 PM                                                                                                                    
SENATOR  GARDNER  asked  if  the  database  is  confidential  and                                                               
requires logging in every time.                                                                                                 
                                                                                                                                
MR. WATTS said correct. Pharmacists  are waiting for SB 74, which                                                               
allows for an agent to monitor the database.                                                                                    
                                                                                                                                
SENATOR  HUGHES asked  if there  could be  software to  interface                                                               
with PDMP to flag problems.                                                                                                     
                                                                                                                                
MR. WATTS said there has been talk of that, but it is expensive.                                                                
                                                                                                                                
SENATOR COSTELLO  held SB 79  in committee with  public testimony                                                               
open.                                                                                                                           
                                                                                                                                
2:59:55 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
         SB 37-PHARMA BD & EMPLOYEES; DRUG DIST/MANUFAC                                                                     
                                                                                                                                
3:01:47 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of SB 37.  She noted                                                               
this  is the  first  hearing.  The intent  is  to  hear from  the                                                               
sponsor,  take members'  questions,  take  public testimony,  and                                                               
hold the bill for further consideration.                                                                                        
                                                                                                                                
3:02:40 PM                                                                                                                    
SENATOR CATHY  GIESSEL, Alaska State  Legislature, sponsor  of SB                                                               
37, said she appreciates teaming SB  79 with SB 37. She noted the                                                               
bill is at the request of the Board  of Pharmacy. It is not a new                                                               
issue; a similar bill was heard last session.                                                                                   
                                                                                                                                
She stated that SB 37 ensures  a more secure drug supply chain to                                                               
ensure    that    Alaskans   receive    safe,    non-counterfeit,                                                               
unadulterated medications.  In Alaska,  when a  pharmacy, doctor,                                                               
or  hospital orders  a supply  of prescription  medications, they                                                               
may order  from one  of the wholesale  distributors in  Alaska or                                                               
one in the  Lower 48. Alaska is  one of two states  that does not                                                               
license    out-of-state   wholesale    distributors.   In    2012                                                               
contaminated  medicines were  distributed  that  resulted in  the                                                               
death of  many people in the  Lower 48. To protect  Alaska, SB 37                                                               
would  ensure that  out-of-state  applicants  seek licensure  and                                                               
comply with  the same  regulations Alaska  wholesale distributors                                                               
comply with.                                                                                                                    
                                                                                                                                
She said  that SB 37  also brings  Alaska into compliance  with a                                                               
federal law  - the Drug Quality  Security Act of 2013  - and will                                                               
create a  new license  category under the  Board of  Pharmacy for                                                               
out-of-state    wholesale   distributors.    The   Division    of                                                               
Corporations,  Business,  and  Professional  Licensing  estimates                                                               
that  this will  equal about  400 new  licensees. Currently,  the                                                               
Alaska Board  of Pharmacy  has no  authority to  regulate out-of-                                                               
state wholesale  distributors and  SB 37  would provide  that. It                                                               
would require  certain guidelines  for the distributor:  obtain a                                                               
license  in Alaska,  authorize inspection  by a  designee of  the                                                               
Board, and  give the Board the  authority to appoint an  agent to                                                               
examine the distributor's facility.                                                                                             
                                                                                                                                
She highlighted the  definition section of the  bill, noting that                                                               
one  definition -  "outsourcing facility"  - is  a facility  that                                                               
compounds  sterile drugs.  It is  an  example of  an entity  that                                                               
would fall under SB 37.                                                                                                         
                                                                                                                                
3:05:55 PM                                                                                                                    
SENATOR  GIESSEL advised  that  the Board  of  Pharmacy is  being                                                               
asked  to take  on  more responsibilities.  Last  year under  the                                                               
Medicaid reform  bill the Prescription Drug  Monitoring [Program]                                                               
(PDMP) was  established, which puts more  responsibilities on the                                                               
Board.  SB  37  will  allow  the Board  to  create  an  executive                                                               
administrator position to implement  statutes and regulations and                                                               
manage the Board's new responsibilities.                                                                                        
                                                                                                                                
She noted a fiscal note for  SB 37 and that the services provided                                                               
are  all  receipt  services. Monies  will  be  recovered  through                                                               
wholesale license fees and  the executive administrative position                                                               
will be funded by licensees of the Board of Pharmacy.                                                                           
                                                                                                                                
CHAIR  COSTELLO noted  that Sara  Chambers from  the Division  of                                                               
Corporations,  Business, and  Professional Licensing,  Department                                                               
of Commerce, Community and Economic  Development was available to                                                               
answer questions.                                                                                                               
                                                                                                                                
3:07:45 PM                                                                                                                    
JANE  CONWAY,   Staff,  Senator   Cathy  Giessel,   Alaska  State                                                               
Legislature, presented the sectional analysis  of SB 37 on behalf                                                               
of the sponsor. She read the following:                                                                                         
                                                                                                                                
     Section 1: Amends AS 08.80.030(b)                                                                                        
                                                                                                                              
     (14): Amends  and allows  licensing and  inspection for                                                                  
     out-of-state   drug    distributors   and   outsourcing                                                                    
     facilities                                                                                                                 
     (15):   Establishes   qualifications  and   duties   of                                                                  
     executive  administrator.  Executive  administrator  is                                                                    
     delegated authority in order to conduct board business                                                                     
                                                                                                                                
     Section  2:  Amends  AS  08.80.030   by  adding  a  new                                                                  
     subsection:                                                                                                              
                                                                                                                              
     AS   08.80.030(c):   Specifications   for   facilities,                                                                  
     equipment,  personnel, and  procedures  for control  of                                                                    
     drugs in compliance with the  federal Drug Supply Chain                                                                    
     Security Act.                                                                                                              
                                                                                                                              
     Section  3:  Amends  AS  08.80.157   by  adding  a  new                                                                  
     subsection:                                                                                                                
     (k):  Applies   to  wholesale  drug   distributors  and                                                                  
     outsourcing  facilities  outside  the  state  under  AS                                                                    
     08.80.159, regarding licensing.                                                                                            
                                                                                                                                
     Section 4: Amends AS 08.80 by adding a new section:                                                                      
     Sec.   08.80.159:  Requires   that  a   wholesale  drug                                                                  
     distributor or  outsourcing facility have a  license in                                                                    
     Alaska   before   shipping,  mailing,   or   delivering                                                                    
     prescription  drugs  to  a licensee  in  the  state  or                                                                    
     before advertising in the state,  that an agent must be                                                                    
     appointed in  the state,  and a  designee of  the board                                                                    
     must authorize inspection of the facility.                                                                                 
                                                                                                                                
     An outsourcing facility, in  addition, must comply with                                                                    
     the  federal Drug  Quality and  Security  Act of  2013.                                                                    
     The  board  may  require an  inspection  of  facilities                                                                    
     located  outside of  the state,  approve a  designee to                                                                    
     inspect.   The  board   shall   adopt  regulations   to                                                                    
     implement this section.                                                                                                    
                                                                                                                                
3:09:53 PM                                                                                                                    
     Section 5:  Amends AS  08.80 by  adding new  section to                                                                  
     Article 2:                                                                                                               
                                                                                                                              
     Sec.  08.80.270:   Allows  the   Board  to   create  an                                                                  
     executive administrator  position. Defines the  role of                                                                    
     the executive administrator.                                                                                               
                                                                                                                                
     Section  6:  Amends  AS  08.80.480   by  adding  a  new                                                                  
     paragraph:                                                                                                               
                                                                                                                              
     AS 08.80.480(37): Defines "outsourcing facility"                                                                         
                                                                                                                                
3:10:26 PM                                                                                                                    
SENATOR  STEVENS  asked  if Alaska  wholesalers  receive  federal                                                               
inspections and inspections by other states.                                                                                    
                                                                                                                                
SENATOR  GIESSEL said  she  did not  know.  She suggested  asking                                                               
pharmacists.                                                                                                                    
                                                                                                                                
3:11:00 PM                                                                                                                    
SENATOR  GARDNER asked  about reciprocity  and  why Alaska  can't                                                               
rely on inspection  standards of other states  for wholesale drug                                                               
companies.                                                                                                                      
                                                                                                                                
3:11:33 PM                                                                                                                    
SENATOR GIESSEL said  she did not know. She  suggested asking the                                                               
pharmacists.  She said  one provision  in  the bill  is that  the                                                               
Board could  designate someone in  another state to  examine that                                                               
state's wholesaler.                                                                                                             
                                                                                                                                
SENATOR GARDNER asked how much  medication is brought into Alaska                                                               
by wholesalers and how many wholesalers are in Alaska.                                                                          
                                                                                                                                
SENATOR  GIESSEL  said  she  believes   there  is  one  wholesale                                                               
distributor in Alaska.                                                                                                          
                                                                                                                                
3:13:23 PM                                                                                                                    
CHAIR COSTELLO  opened public testimony  on SB 37.  She requested                                                               
that Mr. Christensen address members' questions.                                                                                
                                                                                                                                
BARRY  CHRISTENSEN,  Co-Chair,  Alaska  Pharmacists  Association,                                                               
testified in  support SB 37.  He deferred  to Mr. Holm  to answer                                                               
members' questions. He said the  bill is necessary to ensure that                                                               
Alaskans  are  receiving good  medications.  He  agreed that  the                                                               
Board of  Pharmacy has  been taxed with  doing more  with minimal                                                               
staffing. He  supported having an executive  administrator on the                                                               
Board.                                                                                                                          
                                                                                                                                
3:15:00 PM                                                                                                                    
LEIF HOLM, Chair,  Board of Pharmacy, testified in  support of SB                                                               
37. He reiterated the purpose of  the bill. He voiced support for                                                               
the executive  assistant position  due to the  increased workload                                                               
of the Board. He repeated  the funding mechanisms outlined in the                                                               
fiscal note.                                                                                                                    
                                                                                                                                
SENATOR  STEVENS  asked,  if   the  federal  government  inspects                                                               
wholesalers  in  Alaska,  why  there  is  a  need  for  an  extra                                                               
inspection. He also wondered whether  other states inspect Alaska                                                               
wholesalers.                                                                                                                    
                                                                                                                                
MR. HOLM clarified that the bill  is written so that Alaska "may"                                                               
do  an inspection.  He did  not  have information  on what  other                                                               
states do. He  added that there are 21 states  that recognize the                                                               
National  Association  of  the   Boards  of  Pharmacy's  Verified                                                               
Accredited  Wholesale  Distributor  Program (VAWD),  which  is  a                                                               
built-in inspection.  The Alaska  Board of Pharmacy  accepts that                                                               
as part of the licensure process.                                                                                               
                                                                                                                                
3:18:37 PM                                                                                                                    
CHAIR COSTELLO  asked if  the Board can  direct an  individual to                                                               
conduct the inspection. She asked  whether the VAWD fulfills that                                                               
requirement.                                                                                                                    
                                                                                                                                
MR. HOLM said he believes that would work.                                                                                      
                                                                                                                                
3:19:14 PM                                                                                                                    
SENATOR  GARDNER asked  if it  is  customary in  some places  for                                                               
pharmaceutical   wholesalers  to   be  licensed   to  hold   VAWD                                                               
accreditation.                                                                                                                  
                                                                                                                                
MR. HOLM  responded that four  states require  that accreditation                                                               
to do business in their state.                                                                                                  
                                                                                                                                
SENATOR  GARDNER asked  if  it  would make  sense  for Alaska  to                                                               
require VAWD certification.                                                                                                     
                                                                                                                                
MR. HOLM  said not at  this point.  Other states also  have other                                                               
extensive pharmacy  inspections that  Alaska accepts. He  did not                                                               
want to limit the drug supply, just insure its quality.                                                                         
                                                                                                                                
3:20:50 PM                                                                                                                    
SENATOR GARDNER asked  if passing SB 37 means that  if an Alaskan                                                               
pharmacist were  to purchase  drugs they would  have to  buy them                                                               
from  an Alaskan  wholesaler or  an outside  distributer with  an                                                               
Alaskan license and certificate of inspection.                                                                                  
                                                                                                                                
MR. HOLM  said he  believes they  would have  to have  an Alaskan                                                               
wholesale license.                                                                                                              
                                                                                                                                
3:22:07 PM                                                                                                                    
SENATOR HUGHES asked  Mr. Holms to explain the  current makeup of                                                               
the Board.  She wondered if  the new executive position  would be                                                               
covered by  outside license fees  and if pharmacist  license fees                                                               
will increase.  She also inquired whether  pharmacists support SB                                                               
37.                                                                                                                             
                                                                                                                                
3:23:08 PM                                                                                                                    
MR.  HOLM   related  that  the  Board's   licensing  examiner  is                                                               
backlogged with  work. The wholesale  license fee  is anticipated                                                               
to be $1,000  to $5,000, which should be more  than sufficient to                                                               
cover  the  cost  of  an  executive  administrator.  He  did  not                                                               
anticipate that pharmacist license fees will increase.                                                                          
                                                                                                                                
CHAIR  COSTELLO closed  public testimony  on SB  37 and  held the                                                               
bill in committee for further consideration.                                                                                    
                                                                                                                                
3:24:41 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Costello  adjourned the Senate  Labor &  Commerce Committee                                                               
at 3:24 p.m.                                                                                                                    

Document Name Date/Time Subjects
SB 64 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Sectional Analysis Ver. J.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Fiscal Note DEC.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Fiscal Note DNR.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Background - Fact Sheet.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Background - Uniform Law Commission.PDF SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Letter - Cook Inlet Housing Auth..pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Supporting Document - DOD Response Memo.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Opposition Letter - DOD.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 79 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Sectional Analysis.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Fiscal Note DHSS.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 64.PDF SL&C 3/14/2017 1:30:00 PM
SB 64
SB 37.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Sectional Analysis.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Fiscal Note DCCED.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Support Letter - AKPhA.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Support Letter - Board of Pharmacy.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Supporting Background -DSCSA FDA.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 79 - Public Testimony.tif SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Supporting Background - Medicaid Reform PDMP Pharmacy FAQs.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 -Supporting Background - AKPDMP Report 29th Legislature.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 -Supporting Background - Medicaid Reform Controlled Substance Advisory Committee.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - Benefits and Harms of Opioids Guide from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - DHSS Bulletin.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - Guidelines for Prescribing Opioids from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - PDMP Guide from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79