Legislature(2017 - 2018)BELTZ 105 (TSBldg)

02/13/2018 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 108 MEDICAL CARE/LICENSING/MEDICAL BOARD TELECONFERENCED
Moved SSSB 108 Out of Committee
-- Public Testimony --
*+ SB 160 BROADBAND INTERNET: NEUTRALITY/REGULATION TELECONFERENCED
Heard & Held
-- Public Testimony --
+ HB 18 RACE CLASSICS TELECONFERENCED
Moved HB 18 Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                       February 13, 2018                                                                                        
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
Senator Kevin Meyer                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Berta Gardner                                                                                                           
Senator Peter Micciche                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 108                                                                                      
"An  Act relating  to the  State Medical  Board; relating  to the                                                               
licensing  of physicians,  osteopaths, and  podiatrists; relating                                                               
to  the  certification of  medical  assistants;  relating to  the                                                               
practice  of  medicine; relating  to  the  practice of  podiatry;                                                               
relating to the practice of  osteopathy; relating to assault of a                                                               
medical professional; and providing for an effective date."                                                                     
                                                                                                                                
     - MOVED SSSB 108 OUT OF COMMITTEE                                                                                          
                                                                                                                                
SENATE BILL NO. 160                                                                                                             
"An Act  relating to  the regulation  of broadband  Internet; and                                                               
making certain  actions by  broadband Internet  service providers                                                               
unlawful  acts  or  practices  under   the  Alaska  Unfair  Trade                                                               
Practices and Consumer Protection Act."                                                                                         
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
HOUSE BILL NO. 18                                                                                                               
"An Act relating to race classics."                                                                                             
                                                                                                                                
     - MOVED HB 18 OUT OF COMMITTEE                                                                                             
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB 108                                                                                                                  
SHORT TITLE: MEDICAL CARE/LICENSING/MEDICAL BOARD                                                                               
SPONSOR(s): SENATOR(s) GIESSEL                                                                                                  
                                                                                                                                
04/07/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
04/07/17       (S)       L&C, FIN                                                                                               
01/18/18       (S)       SPONSOR SUBSTITUTE INTRODUCED-REFERRALS                                                                
01/18/18       (S)       L&C, FIN                                                                                               
02/13/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB 160                                                                                                                  
SHORT TITLE: BROADBAND INTERNET: NEUTRALITY/REGULATION                                                                          
SPONSOR(s): SENATOR(s) BEGICH                                                                                                   
                                                                                                                                
01/24/18       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/24/18       (S)       L&C, STA                                                                                               
02/13/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: HB  18                                                                                                                  
SHORT TITLE: RACE CLASSICS                                                                                                      
SPONSOR(s): REPRESENTATIVE(s) ORTIZ                                                                                             
                                                                                                                                
01/18/17       (H)       PREFILE RELEASED 1/9/17                                                                                
01/18/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/18/17       (H)       L&C, FIN                                                                                               
01/30/17       (H)       L&C AT 3:30 PM BARNES 124                                                                              
01/30/17       (H)       Heard & Held                                                                                           
01/30/17       (H)       MINUTE(L&C)                                                                                            
02/03/17       (H)       L&C AT 3:15 PM BARNES 124                                                                              
02/03/17       (H)       Moved  HB 18 Out of Committee                                                                          
02/03/17       (H)       MINUTE(L&C)                                                                                            
02/06/17       (H)       L&C RPT 6DP 1NR                                                                                        
02/06/17       (H)       DP: STUTES, WOOL, JOSEPHSON, BIRCH,                                                                    
                         KNOPP, KITO                                                                                            
02/06/17       (H)       NR: SULLIVAN-LEONARD                                                                                   
02/10/17       (H)       FIN REFERRAL WAIVED                                                                                    
02/13/17       (H)       TRANSMITTED TO (S)                                                                                     
02/13/17       (H)       VERSION: HB 18                                                                                         
02/15/17       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/15/17       (S)       CRA, L&C                                                                                               
03/28/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
03/28/17       (S)       Heard & Held                                                                                           
03/28/17       (S)       MINUTE(CRA)                                                                                            
04/04/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
04/04/17       (S)       Heard & Held                                                                                           
04/04/17       (S)       MINUTE(CRA)                                                                                            
04/13/17       (S)       CRA AT 3:30 PM BELTZ 105 (TSBldg)                                                                      
04/13/17       (S)       Moved SCS HB 18(CRA) Out of Committee                                                                  
04/13/17       (S)       MINUTE(CRA)                                                                                            
04/14/17       (S)       CRA RPT SCS  2DP 2NR    SAME TITLE                                                                     
04/14/17       (S)       DP: BISHOP, STEDMAN                                                                                    
04/14/17       (S)       NR: GARDNER, MACKINNON                                                                                 
02/13/18       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR CATHY GIESSEL                                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 108.                                                                                        
                                                                                                                                
DR. DANNY ROBINETTE, MD., Chief Medical Officer                                                                                 
Fairbanks Memorial Hospital and Tanana Valley Clinic                                                                            
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT: Offered supporting testimony for SB 108                                                                   
                                                                                                                                
KIRA BOYD, Chief Operating Officer                                                                                              
ALGONE                                                                                                                          
Wasilla, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 108.                                                                           
                                                                                                                                
BRYAN FARTHING, President                                                                                                       
Alaska Academy of Physician Assistants (PA)                                                                                     
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Expressed concern that physician assistants                                                               
aren't always included when physicians and other medical                                                                        
professionals are listed in SB 108.                                                                                             
                                                                                                                                
FRED PARADY, Deputy Commissioner                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information and answered questions                                                               
related to SB 108.                                                                                                              
                                                                                                                                
JANEY MCCULLOUGH, Director                                                                                                      
Corporations, Business & Professional Licensing                                                                                 
Department of Commerce, Community and Economic Development                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to SB 108.                                                                     
                                                                                                                                
SENATOR TOM BEGICH                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 160.                                                                                        
                                                                                                                                
                                                                                                                                
SYNDEY LIENEMANN, PhD. Staff                                                                                                    
Senator Tom Begich                                                                                                              
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided information related to SB 160 on                                                                 
behalf of the sponsor.                                                                                                          
                                                                                                                                
JEANIE PIERCE, representing self                                                                                                
Kasilof, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 160.                                                                           
                                                                                                                                
DON MCNAMARA, representing self                                                                                                 
Homer, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SB 160.                                                                           
                                                                                                                                
DONNA RAE FAULKNER, representing self                                                                                           
Homer, Alaska                                                                                                                   
POSITION STATEMENT: Testified in support of SB 160.                                                                           
                                                                                                                                
TARA RICH, Legal and Policy Director                                                                                            
American Civil Liberties Union (ACLU) of Alaska                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Testified in support of SB 160.                                                                           
                                                                                                                                
REPRESENTATIVE ORTIZ                                                                                                            
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of HB 18.                                                                                         
                                                                                                                                
KATRINA MITCHELL, Gaming Group Manager                                                                                          
Tax Division                                                                                                                    
Department of Revenue                                                                                                           
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Answered questions related to HB 18.                                                                      
                                                                                                                                
CHELSEA GOUCHER, President                                                                                                      
Board of Directors                                                                                                              
Greater Ketchikan Chamber of Commerce                                                                                           
Ketchikan, Alaska                                                                                                               
POSITION STATEMENT: Testified in support of HB 18.                                                                            
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:08 PM                                                                                                                    
CHAIR MIA COSTELLO called the  Senate Labor and Commerce Standing                                                             
Committee meeting  to order at 1:32  p.m. Present at the  call to                                                               
order  were  Senators  Stevens,   Micciche,  Gardner,  and  Chair                                                               
Costello. Senator Meyer arrived soon thereafter.                                                                                
                                                                                                                                
                                                                                                                                
          SB 108-MEDICAL CARE/LICENSING/MEDICAL BOARD                                                                       
                                                                                                                                
1:33:10 PM                                                                                                                    
CHAIR COSTELLO announced the consideration of SB 108.                                                                           
                                                                                                                                
1:33:36 PM                                                                                                                    
SENATOR CATHY GIESSEL, Alaska State Legislature Juneau, Alaska,                                                                 
sponsor of SB 108, introduced the legislation speaking to the                                                                   
following sponsor statement:                                                                                                    
                                                                                                                                
                                                                                                                                
     Senate  Bill  108 is  a  streamlining  bill which  will                                                                    
     improve  the   licensing  process  for   physicians  in                                                                    
     Alaska.  Outdated and  overly  cumbersome statutes  and                                                                    
     regulations  are interfering  with the  ability of  our                                                                    
     medical  community  to  meet   the  needs  of  Alaskans                                                                    
     because of  delays of licensure that  negatively impact                                                                    
     both doctors and patients. A  fully qualified doctor in                                                                    
     good standing should not be  required to wait months to                                                                    
     obtain a license to serve our state.                                                                                       
                                                                                                                                
     The  Alaska  State  Medical Board  has  requested  this                                                                    
     legislation so  they may expeditiously  and responsibly                                                                    
     issue licenses to physician applicants.                                                                                    
                                                                                                                                
     SB  108  gives the  executive  secretary  of the  State                                                                    
     Medical Board  expanded authority  to review  and issue                                                                    
     licenses     to    applicants     with    uncomplicated                                                                    
     applications. With  a better system in  place DCCED and                                                                    
     the State  Medical Board will  be able to  respond more                                                                    
     efficiently  at a  time when  healthcare  access is  of                                                                    
     great concern in our state.                                                                                                
                                                                                                                                
     SB 108  will authorize the board's  executive secretary                                                                    
     to  grant  licenses  to   qualified  applicants  for  a                                                                    
     permanent  medical license,  a temporary  permit, or  a                                                                    
     locum tenens  permit. It will also  authorize the board                                                                    
     to designate a board  member to grant temporary permits                                                                    
     to qualified applicants. [Sections  10 and 11] The bill                                                                    
     outlines  exceptions  to  that   authority  such  as  a                                                                    
     suspended   or  revoked   license   or  other   special                                                                    
     circumstances  that  would  necessitate  a  full  board                                                                    
     review.                                                                                                                    
                                                                                                                                
     The bill  creates a new  category of  certified medical                                                                    
     assistants  who  will   perform  additional  duties  in                                                                    
     medical  settings.  The  Board will  set  criteria  for                                                                    
     educational  requirements,  certification, renewal  and                                                                    
     revocations for Certified Medical Assistants.                                                                              
                                                                                                                                
     The   bill  provides   for   physician  delegation   of                                                                    
     specific,  routine activities  to unlicensed  personnel                                                                    
     working in physician offices. [Sections 3, 6, and 13]                                                                      
                                                                                                                                
SENATOR  GIESSEL  advised  that  licenses  are  currently  issued                                                               
within two months  but just five percent of  the applications are                                                               
complete  when they're  submitted.  That has  contributed to  the                                                               
current backlog  of about 290  applications. Also, the  number of                                                               
applicants has  increased markedly,  largely due  to telemedicine                                                               
applicants. She reminded members  that any physician who provides                                                               
care through telemedicine must be licensed in the state.                                                                        
                                                                                                                                
1:40:41 PM                                                                                                                    
SENATOR GIESSEL explained  that the request for  the new category                                                               
of  "certified  medical  assistant"  came  from  pain  management                                                               
doctors who need  an assistant in the office who  can look at the                                                               
prescription  drug  monitoring  program   (PDMP)  for  them.  She                                                               
reminded  members that  when the  legislature crafted  the opioid                                                               
bill it required  licensure to look at the  database. In practice                                                               
this  takes  a lot  of  time  in  a physician's  day.  Certifying                                                               
medical assistants  provides a solution.  The board  will outline                                                               
the criteria for certification in  regulation. [Sections 4 and 5]                                                               
Section  12 provides  a penalty  for anyone  practicing as  a CMA                                                               
without a license.                                                                                                              
                                                                                                                                
SENATOR  GIESSEL  said  the  State   Medical  Board  and  DCCED's                                                               
Division  of Corporations,  Business  and Professional  Licensing                                                               
support the bill.                                                                                                               
                                                                                                                                
1:43:27 PM                                                                                                                    
CHAIR  COSTELLO   recognized  that   Senator  Meyer   joined  the                                                               
committee some time ago.                                                                                                        
                                                                                                                                
SENATOR MICCICHE asked if it's  typical that Section 3 leaves the                                                               
definition for "routine  medical duties" to the  board instead of                                                               
putting it in the bill.                                                                                                         
                                                                                                                                
SENATOR GIESSEL said it's logical;  similar authority is given to                                                               
the Board of  Nursing that also delegates  to unlicensed assisted                                                               
personnel. The  board knows exactly which  routine medical duties                                                               
would be appropriate for an unlicensed person to do.                                                                            
                                                                                                                                
SENATOR MICCICHE  asked if  the statutes  allow an  applicant who                                                               
meets the qualifications to receive a temporary permit.                                                                         
                                                                                                                                
SENATOR  GIESSEL   said  yes.  The  bill   allows  the  executive                                                               
administrator  or  a  board  designee   to  issue  the  temporary                                                               
license.                                                                                                                        
                                                                                                                                
1:45:34 PM                                                                                                                    
SENATOR  STEVENS  said  he assumes  the  executive  administrator                                                               
would be carefully  chosen, but it sounds a little  loose to then                                                               
extend authority to another person.                                                                                             
                                                                                                                                
SENATOR GIESSEL said the Board  of Medicine in collaboration with                                                               
the   Division  of   Corporations,   Business  and   Professional                                                               
Licensing hires  the executive administrator.  It is  generally a                                                               
rigorous  process  and  there are  qualifying  criteria  for  the                                                               
individual that's  hired. She  added that it  was the  board that                                                               
wanted  the  additional  board  member   who  could  act  if  the                                                               
executive administrator were absent.                                                                                            
                                                                                                                                
SENATOR STEVENS  said he  was reading  on page  4 where  it says,                                                               
"allow another person designated by  the board." He asked if that                                                               
was in the bill because it doesn't say another board member.                                                                    
                                                                                                                                
1:47:13 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:47:47 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
SENATOR GIESSEL  explained that the board  requested the language                                                               
and may  have been  thinking of delegating  the authority  to the                                                               
licensing examiner  who also scrutinizes applications.  She added                                                               
that  the  Board  of  Medicine is  extremely  careful  about  who                                                               
receives licensure. She said this  pertains to a temporary permit                                                               
and she is confident in the board's judgement.                                                                                  
                                                                                                                                
SENATOR STEVENS  summarized it is  not a  willy-nilly appointment                                                               
of someone off  the street. It's someone  with qualifications and                                                               
background.                                                                                                                     
                                                                                                                                
1:49:19 PM                                                                                                                    
CHAIR COSTELLO opened public testimony for SB 108.                                                                              
                                                                                                                                
1:49:34 PM                                                                                                                    
DR. DANNY  ROBINETTE, Chief  Medical Officer,  Fairbanks Memorial                                                               
Hospital  and Tanana  Valley Clinic,  Fairbanks, Alaska,  advised                                                               
that  the hospital  has experienced  periodic  delays in  getting                                                               
physicians licensed.  On three  occasions in  the past  two years                                                               
this  has resulted  in physician  candidates accepting  positions                                                               
out of state because they  needed a paycheck. A surgeon currently                                                               
on staff had  to wait eight months for his  license. He said each                                                               
candidate  should be  rigorously screened  and those  with issues                                                               
should receive closer  scrutiny and take more  time. However, the                                                               
process  should   be  streamlined  so  that   clean,  unblemished                                                               
candidates  are not  unduly held  up causing  good physicians  to                                                               
accept positions in other states.                                                                                               
                                                                                                                                
SENATOR STEVENS  asked if  there could  be any  justification for                                                               
holding up an application for eight months.                                                                                     
                                                                                                                                
DR  ROBINETTE  said  it  could certainly  be  justified  in  some                                                               
instances, but not the case he mentioned.                                                                                       
                                                                                                                                
SENATOR STEVENS  asked if  his belief was  that this  would speed                                                               
the process while  giving the board time  to investigate concerns                                                               
and red flags.                                                                                                                  
                                                                                                                                
DR.  ROBINETTE  said yes;  the  statute  and regulations  clearly                                                               
define  the things  that constitute  a  clean application.  There                                                               
shouldn't be  a timeline  that rushes  an application  that isn't                                                               
clean.                                                                                                                          
                                                                                                                                
1:53:59 PM                                                                                                                    
SENATOR  MICCICHE read  questions  and  answers about  processing                                                               
times  from  the  legislative  research  document  titled  "State                                                               
Medical  Licensing  Timeframes.   He   said  it  looks  like  the                                                               
requirements  for  a  temporary  permit   are  the  same  as  the                                                               
requirements for a regular license,  which makes him wonder about                                                               
the timesaving.                                                                                                                 
                                                                                                                                
DR.  ROBINETTE deferred  a full  answer to  the board.  He didn't                                                               
know  all  the  details  for  issuing  a  temporary  permit,  but                                                               
Fairbanks   Memorial   Hospital    typically   issues   temporary                                                               
privileges to  someone with a  clean application and  for exigent                                                               
patient care reasons.                                                                                                           
                                                                                                                                
SENATOR MICCICHE asked if someone from the board was available.                                                                 
                                                                                                                                
CHAIR COSTELLO said  she didn't see anyone from  the board online                                                               
but would try to get an answer before the end of the meeting.                                                                   
                                                                                                                                
1:56:16 PM                                                                                                                    
KIRA  BOYD, Chief  Operating  Officer,  ALGONE, Wasilla,  Alaska,                                                               
testified in  support of  SB 108. She  explained that  the clinic                                                               
offers regenerist  medicine, interventional pain  management, and                                                               
dependency  therapy with  a focus  on opioid  use disorders.  The                                                               
clinic   regularly  treats   a  high-needs,   high-touch  patient                                                               
population and  is faced with  high overhead  costs, particularly                                                               
because specialty providers  often require lucrative compensation                                                               
packages to lure them to the state.                                                                                             
                                                                                                                                
She said  ALGONE has  a team  of over  40 medical  assistants who                                                               
team up with the providers to  take care of the high-needs, high-                                                               
touch  patients. However,  existing  statute  relating to  opioid                                                               
oversight  and implementation  of the  PDMP has  made these  care                                                               
teams dramatically  less efficient.  ALGON sought  immediately to                                                               
find  the solution  and eventually  looked at  other states  that                                                               
license  medical  assistants.  They   were  able  to  send  model                                                               
legislation to the  sponsor's staff. ALGON fully  supports SB 108                                                               
and wants the committee to know that the process works.                                                                         
                                                                                                                                
MS  BOYD said  the State  Medical Board  expressed concern  about                                                               
cost and  resources to get medical  assistants licensed. However,                                                               
the choice is to either  create an efficient system for licensing                                                               
or require clinics  to hire more nurses and pass  that cost on to                                                               
the already overburdened  health care consumers. She  said SB 108                                                               
is the solution that Alaska needs now.                                                                                          
                                                                                                                                
SENATOR STEVENS  asked how  many of  the 40  currently unlicensed                                                               
medical assistants would become certified should SB 108 pass.                                                                   
                                                                                                                                
MS. BOYD said not all  ALGON's medical assistants are unlicensed,                                                               
but in a perfect world  all their medical assistants would become                                                               
certified.                                                                                                                      
                                                                                                                                
SENATOR  STEVENS   said  he   thought  that   certifying  medical                                                               
assistants was new.                                                                                                             
                                                                                                                                
MS.  BOYD  clarified   that  some  but  not   all  ALGON  medical                                                               
assistants are  certified. The  ones that  are not  certified are                                                               
not currently  able to  assist providers by  looking at  the PDMP                                                               
database.                                                                                                                       
                                                                                                                                
2:00:31 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
2:01:13 PM                                                                                                                    
CHAIR COSTELLO  reconvened the meeting and  continued with public                                                               
testimony on SB 108.                                                                                                            
                                                                                                                                
2:01:22 PM                                                                                                                    
BRYAN   FARTHING,   President,   Alaska  Academy   of   Physician                                                               
Assistants (PA), Anchorage, Alaska,  said he appreciates the work                                                               
that's been  done on SB  108, but  the PA community  is concerned                                                               
that when  physicians and other medical  professionals are listed                                                               
in the bill physician assistants aren't always included.                                                                        
                                                                                                                                
2:03:10 PM                                                                                                                    
FRED  PARADY,   Deputy  Commissioner,  Department   of  Commerce,                                                               
Community and Economic Development  (DCCED), said the workload of                                                               
the  State Medical  Board has  increased dramatically,  primarily                                                               
due  to   telemedicine  legislation.  In  2015   the  application                                                               
processing   backlog   reached   an  average   of   six   months.                                                               
Telemedicine companies were  coming in to license  100 doctors at                                                               
a time. Complaints came in  from applicants and medical companies                                                               
and the responding to those complaints was time consuming.                                                                      
                                                                                                                                
MR. PARADY  said the division  processed 22 percent  more medical                                                               
licenses and 31 percent more  nursing licenses last year than the                                                               
year before  and they've already  received more this  fiscal year                                                               
to  date  than  the  entire previous  year.  Through  the  budget                                                               
process and previous  legislation, the division has  been able to                                                               
devote  more staff  to these  programs. They  have added  two new                                                               
PCNs that  are paid  by licensing  fees and  they went  through a                                                               
triage  process to  reduce  the backlog.  They  also initiated  a                                                               
strategic planning process to  streamline the application process                                                               
for health care  professions. That was identified  as the highest                                                               
priority. He shared the results of that hard-working team.                                                                      
                                                                                                                                
The   strategic  planning   process   included  a   comprehensive                                                               
examination of  the application process  to identify  barriers or                                                               
obstacles  ("rubs"). Twenty-seven  were  identified. He  directed                                                               
attention  to  a  handout  and   explained  that  the  department                                                               
requires applicants  to send certified  and true copies  of their                                                               
diploma and  all certificates.  The question  the team  asked was                                                               
whether   certified  and   true   copies   were  necessary   when                                                               
verification   was  already   required.   He  said   rub  17   is                                                               
specifically  germane to  the bill;  it is  the requirement  that                                                               
every  application   needs  to  be  approved   by  the  executive                                                               
administrator.  Considering   the  number  of   applications  the                                                               
department  moves  forward,  waiting  for approval  can  be  time                                                               
consuming both at the executive  director and at the board level.                                                               
The board  might meet  just once  every three  months. Rub  22 is                                                               
that the board  needs to review every file, even  those that have                                                               
no  discrepancies.  What SB  108  proposes  is to  delegate  that                                                               
authority.  In   answer  to   Senator  Steven's   question  about                                                               
delegation,  he  clarified  that   is  an  active  delegation  of                                                               
authority  to another  board  member or  the  director or  deputy                                                               
director of the division.                                                                                                       
                                                                                                                                
CHAIR COSTELLO asked Mr. Parady to  send a copy of the handout to                                                               
the committee aide.                                                                                                             
                                                                                                                                
MR. PARADY  agreed. He  continued to  explain that  the strategic                                                               
planning process  continued as  the team  evaluated the  cause of                                                               
each problem, determined whether it  served a public safety need,                                                               
and whether  the process needed  to be updated or  simplified. In                                                               
response  to those  27  rubs the  department  initiated a  three-                                                               
pronged  approach to  implement solutions  that would  streamline                                                               
the licensure process. The first  prong was to make small changes                                                               
through board regulations. Specific to  SB 108, the State Medical                                                               
Board proactively  scrubbed its regulations. He  cited an example                                                               
of a regulation that served no public safety need.                                                                              
                                                                                                                                
The second prong  of the streamlining strategy  adds two features                                                               
to  the   technology  platform.   The  first  makes   the  online                                                               
application  process like  the one  used for  the permanent  fund                                                               
dividend.  The   user  cannot  advance  until   the  question  is                                                               
answered. The  second implements a  tracker so the  applicant can                                                               
see the  progress of  their application and  what a  holdup might                                                               
be.  Rollout of  this  technology enhancement  is anticipated  in                                                               
March.                                                                                                                          
                                                                                                                                
The third prong  of the streamlining strategy is a  change in the                                                               
statutes  that  would  improve  license  processing  times  while                                                               
continuing to ensure  public safety. The minor changes  in SB 108                                                               
will allow the State Medical  Board to grant additional authority                                                               
to the  executive administrator to  issue licenses that  meet the                                                               
strictest guidelines and allow  further delegation to supervisors                                                               
to expedite  and issue temporary  licenses. The bill  also closes                                                               
the loop with the prescription  drug monitoring program (PDMP) by                                                               
certifying  medical assistants  so  they are  eligible to  access                                                               
that database for the doctor.                                                                                                   
                                                                                                                                
MR.   PARADY  concluded   his  comments   emphasizing  that   the                                                               
department is focused and attentive  to these issues. "We've been                                                               
hard at work on those granular  details where we can better serve                                                               
the public  and, ultimately,  better serving  these professionals                                                               
better serves Alaska citizens."                                                                                                 
                                                                                                                                
2:13:00 PM                                                                                                                    
SENATOR MICCICHE asked 1) why there  is a temporary permit and 2)                                                               
if the temporary  permit satisfies the requirements  of the other                                                               
permits why it is still considered temporary.                                                                                   
                                                                                                                                
2:13:20 PM                                                                                                                    
JANEY    MCCULLOUGH,   Director,    Corporations,   Business    &                                                               
Professional  Licensing, Department  of  Commerce, Community  and                                                               
Economic Development  (DCCED), Juneau,  Alaska, said  a temporary                                                               
permit  is a  way of  getting  an applicant  to work  as fast  as                                                               
possible.  Currently the  executive administrator  can approve  a                                                               
temporary license  and the  formal full  license is  issued after                                                               
the board meets and approves every license.                                                                                     
                                                                                                                                
SENATOR MICCICHE  said his point  is that other than  the board                                                                 
action, the  requirements are  no less  rigorous for  a temporary                                                               
license.                                                                                                                        
                                                                                                                                
MS. MCCULLOUGH confirmed that other  than the board approval, the                                                               
criteria  for a  temporary  license is  the same  as  for a  full                                                               
license.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO  asked Mr.  Parady if he  shared the  creative new                                                               
application tracking process with other departments.                                                                            
                                                                                                                                
MR. PARADY  said he'd  be happy  to share but  he wanted  to make                                                               
certain it operates correctly first.  If it's successful, it will                                                               
next be rolled out across the department's 43 license groups.                                                                   
                                                                                                                                
2:15:51 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on SB 108.                                                                               
                                                                                                                                
2:16:09 PM                                                                                                                    
SENATOR MEYER moved  to report SB 108, version  U, from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
CHAIR  COSTELLO announced  that without  objection, SB  108 moves                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
2:16:31 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
        SB 160-BROADBAND INTERNET: NEUTRALITY/REGULATION                                                                    
                                                                                                                                
2:19:53 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SB 160.                                                                                                        
                                                                                                                                
SENATOR  TOM BEGICH,  Alaska  State  Legislature Juneau,  Alaska,                                                               
sponsor of  SB 160,  introduced the  legislation speaking  to the                                                               
following sponsor statement.                                                                                                    
                                                                                                                                
     SB 160 would require  Internet Service Providers (ISPs)                                                                    
     who provide  broadband Internet  to Alaskans  to engage                                                                    
     in the practice of net  neutrality. The bill would make                                                                    
     sure all  data on the  Internet is treated  equally. It                                                                    
     would  protect  small   businesses  from  uncompetitive                                                                    
     practices  and guarantee  unrestricted Internet  access                                                                    
     for all Internet users.                                                                                                    
                                                                                                                                
     Without  net  neutrality,  ISPs may  legally  speed  up                                                                    
     certain  sites,  slow  down  others,  block  sites  all                                                                    
     together,  and require  certain users  to pay  more for                                                                    
     Internet fast lanes. The  elimination of net neutrality                                                                    
     gives  ISPs  the  power   to  determine  what  websites                                                                    
     consumers   could  visit   and  what   content  website                                                                    
     creators  could share.  Allowing  ISPs to  discriminate                                                                    
     based on content undermines a free and open Internet.                                                                      
                                                                                                                                
     On  multiple  occasions,  millions  of  Americans  have                                                                    
     publicly   commented  in   favor   of  protecting   net                                                                    
     neutrality  and  have  spoken out  against  the  recent                                                                    
     Federal  Communications Commission  order to  eliminate                                                                    
     net neutrality rules implemented  in 2015. The internet                                                                    
     is a  modern necessity for individuals  and businesses.                                                                    
     Net neutrality  is widely supported by  consumer rights                                                                    
     groups, privacy groups, and businesses organizations.                                                                      
                                                                                                                                
     This  bill would  ensure that  the  Internet remains  a                                                                    
     platform    for   economic    competition   and    free                                                                    
     communication.                                                                                                             
                                                                                                                                
SENATOR  BEGICH thanked  the committee  for passing  SJR 12.  The                                                               
resolution relates to  net neutrality and SB 160  moves the issue                                                               
to the local  level. He explained that net  neutrality means that                                                               
an internet service provider (ISP) is  not able to decide what an                                                               
individual does on the internet  and cannot block content or slow                                                               
the service.                                                                                                                    
                                                                                                                                
2:22:23 PM                                                                                                                    
SENATOR BEGICH  read the following  excerpts from Fast  Facts for                                                               
Conservatives  on Net  Neutrality by  the Christian  Coalition to                                                               
illustrate  that net  neutrality affects  everyone regardless  of                                                               
their beliefs:                                                                                                                  
                                                                                                                                
     "Net neutrality"  policies helped create the  most free                                                                    
     and fair marketplace in  history, allowing consumers to                                                                    
     choose  the   winners  and  losers  in   a  competitive                                                                    
     marketplace. This resulted in  the best ideas, products                                                                    
     and services rising to top.                                                                                                
                                                                                                                                
     The  new regulations  will  leave  consumers with  less                                                                    
     choice  and  our  economy   with  less  innovation  and                                                                    
     competition.   Without   equality   of   access,   such                                                                    
     innovation  would be  diminished  at  best, or  perhaps                                                                    
     even begin to move to  competing countries in the world                                                                    
     economy.                                                                                                                   
                                                                                                                                
     The  new  FCC  regulations  set  the  cable  and  phone                                                                    
     companies up to  become the equivalent of  the mafia to                                                                    
     the  Internet. Today,  consumers dictate  the evolution                                                                    
     of the  Internet. Under the new  regulations, cable and                                                                    
     phone  companies  will  be making  the  decisions.  And                                                                    
     their decisions will not be  made based on quality, but                                                                    
     rather on  who pays the  most "protection money"  to be                                                                    
     protected  from   the  competition  of  a   truly  free                                                                    
     marketplace.                                                                                                               
                                                                                                                                
To  the  question  of  whether the  bill  preempts  federal  law,                                                               
Senator  Begich  said the  state  has  repeatedly questioned  the                                                               
federal government's authority  to dictate to the  state. Some of                                                               
the issues on which the  state pushed back were navigable rivers,                                                               
coastlines, and hunting and fishing  rights. In each instance the                                                               
legislature sought  to protect the  rights of Alaskans  first and                                                               
then let  the courts decide when  it was ambiguous. On  the issue                                                               
of  net  neutrality, it  is  unclear  whether  it  is or  is  not                                                               
ambiguous.  Over 30  states are  considering  or have  introduced                                                               
similar legislation. This sends a message to Washington, D.C.                                                                   
                                                                                                                                
SENATOR BEGICH said  this issue should be decided  at the federal                                                               
level and an  Alaska ISP agrees. His office also  agrees that the                                                               
Alaska  Legislature   should  send   a  message  to   the  Alaska                                                               
delegation, just as  it did with the resolution [SJR  12] that it                                                               
is willing to  act and protect Alaskans. The  internet has always                                                               
been and  should always be  a platform  for free speech  and free                                                               
enterprise. It should  not be up to ISPs to  pick the winners and                                                               
losers.  Labor and  Commerce  is the  Senate's  committee on  the                                                               
economy and innovation  and this committee should  speak with the                                                               
strongest  voice  on  all  the issues  that  could  threaten  the                                                               
economy or innovation.                                                                                                          
                                                                                                                                
2:26:45 PM                                                                                                                    
SENATOR STEVENS asked who could be opposed to this legislation.                                                                 
                                                                                                                                
SENATOR BEGICH said  he can't imagine reasonable  people would be                                                               
opposed to  it, but the record  shows that very large  ISPs would                                                               
oppose it.                                                                                                                      
                                                                                                                                
CHAIR COSTELLO read the language on  page 1, lines 7-9, and asked                                                               
if this  is already being  publicly disclosed and the  meaning of                                                               
"accurate information."                                                                                                         
                                                                                                                                
2:29:31 PM                                                                                                                    
SYNDEY LIENEMANN,  PhD., Staff, Senator Tom  Begich, Alaska State                                                               
Legislature,  Juneau,   Alaska  Juneau,  Alaska,  said   the  FCC                                                               
requires internet providers  to make public the  things listed in                                                               
subsection  (a). The  state Consumer  Protection  Board does  not                                                               
currently require public disclosure.                                                                                            
                                                                                                                                
CHAIR COSTELLO  asked for a list  of the states that  have passed                                                               
or  are contemplating  legislation  similar to  SB  160, and  who                                                               
drafted the bill.                                                                                                               
                                                                                                                                
SENATOR  BEGICH  agreed to  provide  the  list. He  advised  that                                                               
Legislative  Legal drafted  the  bill based  on Washington  State                                                               
law.                                                                                                                            
                                                                                                                                
CHAIR COSTELLO  referred to  the language on  page 3,  lines 8-9,                                                               
and asked  what the ramification  would be  if a company  did not                                                               
publicly disclose accurate information.                                                                                         
                                                                                                                                
SENATOR  BEGICH said  they'd be  taken to  court by  the Consumer                                                               
Protection Bureau.                                                                                                              
                                                                                                                                
CHAIR COSTELLO  asked him  to talk  about the  difference between                                                               
the  legislature   communicating  through  a   resolution  versus                                                               
statutory changes.                                                                                                              
                                                                                                                                
SENATOR  BEGICH  explained  that  the  resolution  instructs  the                                                               
Congressional delegation to act  within the prescribed window and                                                               
reject the  new federal  regulation. If that  were to  happen the                                                               
bill would  be moot. SB  160 is a backup  plan that sets  a model                                                               
and  a template  for  legislation at  the  federal level.  That's                                                               
where the decision ultimately should be made.                                                                                   
                                                                                                                                
DR. LIENEMANN  advised that the  Congressional Review  Act allows                                                               
Congress to reject new regulations  within 60 days of publication                                                               
in the federal  registry. To date the FCC has  not published that                                                               
regulation.                                                                                                                     
                                                                                                                                
2:34:48 PM                                                                                                                    
SENATOR  MEYER opined  that this  should be  done at  the federal                                                               
level.  He   posited  that  Alaska  could   be  disadvantaged  if                                                               
individual states pass  laws and large ISPs decide to  go only to                                                               
those states that have the largest populations.                                                                                 
                                                                                                                                
SENATOR  BEGICH  said  he  believes that  passing  SB  160  could                                                               
improve  the ability  of providers  like ACS  and GCI  to compete                                                               
because they would be required  to offer Alaskans broader content                                                               
than an  outside competitor that  isn't bound by  net neutrality.                                                               
Second, the bill  sets an example and a template  for the federal                                                               
government  to  follow.  Marijuana, marriage,  and  federal  land                                                               
issues have been driven by action  at the state level. "We have a                                                               
chance to be a leader in this process and I think we should."                                                                   
                                                                                                                                
2:36:36 PM                                                                                                                    
SENATOR  STEVENS asked  him to  talk about  the FCC  decision and                                                               
what that commission thought it was accomplishing.                                                                              
                                                                                                                                
SENATOR  BEGICH  explained that  when  the  internet was  in  its                                                               
infancy it was  regulated like a telephone call under  Title I of                                                               
the  FCC  Act.  This  is fairly  light-touch  on  the  regulatory                                                               
spectrum.  Regulation under  Title  II was  used for  information                                                               
sources and information services that  one might want to store or                                                               
keep and  download. While the  internet was developing,  a series                                                               
of actions  took place that led  the FCC to realize  it needed to                                                               
attempt to  more fully regulate  the internet under Title  I. One                                                               
example was when  Comcast forced Netflix to  compromise to ensure                                                               
smooth  content  delivery.  In 2010  the  FCC  attempted  further                                                               
regulation under  Title I  and in 2014  a federal  district court                                                               
judge in  Washington, D.C.  rejected the  attempt. The  FCC moved                                                               
the regulation  of the internet  to Title  II in 2015.  This time                                                               
the  judge  agreed  with  the  FCC  that  Title  II  was  a  more                                                               
appropriate  place to  regulate  the industry  to ensure  content                                                               
neutrality.                                                                                                                     
                                                                                                                                
In November 2017  there was indication that the FCC  was about to                                                               
make a  change. Millions of pro  and con statements were  sent to                                                               
the FCC, many of which were  falsified on both sides. The FCC was                                                               
urged to  hold the  decision. Governor Walker  wrote to  urge the                                                               
FCC to examine  the issue further. However, the chair  of the FCC                                                               
chose  to move  forward in  late December  2017 and  returned the                                                               
internet  to  the  light-touch regulatory  framework.  Experience                                                               
shows that is not a way to protect net neutrality, he said.                                                                     
                                                                                                                                
SENATOR STEVENS asked how members voted.                                                                                        
                                                                                                                                
SENATOR BEGICH said it passed by one vote.                                                                                      
                                                                                                                                
CHAIR COSTELLO added that the vote was 4:3.                                                                                     
                                                                                                                                
2:40:16 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 160.                                                                               
                                                                                                                                
2:40:32 PM                                                                                                                    
JEANIE PIERCE,  representing self, Kasilof, Alaska,  testified in                                                               
support  of SB  160. Responding  to Senator  Steven's query,  she                                                               
said Sinclair Broadcasting doesn't  like net neutrality. She said                                                               
this issue  is about whether consumers  can trust the FCC  to act                                                               
in  the best  interest to  maintain the  free, open,  and neutral                                                               
internet that  consumers have enjoyed  for decades. To  roll back                                                               
net neutrality protections would  allow ISPs to give preferential                                                               
treatment  to  certain users  to  the  detriment of  others.  She                                                               
emphasized  that everyone  should be  treated equally.  She urged                                                               
members to, "Do what's right  for the Alaska citizens, not what's                                                               
best for your political party's interest."                                                                                      
                                                                                                                                
2:44:51 PM                                                                                                                    
DON  MCNAMARA, representing  self,  Homer,  Alaska, testified  in                                                               
support of  SB 160. He  said he  is in favor  of a free  and open                                                               
internet and agrees with the previous speaker.                                                                                  
                                                                                                                                
2:45:27 PM                                                                                                                    
DONNA RAE  FAULKNER, representing self, Homer,  Alaska, testified                                                               
in  support of  SB 160.  She said  she supports  a free  and open                                                               
internet and  everything the sponsor  said to the  committee. She                                                               
appreciates SB 160 and hopes it passes.                                                                                         
                                                                                                                                
2:45:47 PM                                                                                                                    
TARA RICH,  Legal and Policy  Director, American  Civil Liberties                                                               
Union  (ACLU)  of  Alaska,  Juneau,  Alaska,  said  it  would  be                                                               
shocking and  abhorrent if a  telephone company could  detect who                                                               
you  were talking  to or  the  subjects you  were talking  about.                                                               
Similarly, everyone  would be up  in arms if a  telephone company                                                               
were  to  intentionally drop  or  block  calls based  on  subject                                                               
matter. Because  it is possible  for internet companies  to track                                                               
what  people look  at  and  what they  do  on  the internet,  net                                                               
neutrality  is  important  to  prevent an  ISP  from  slowing  or                                                               
blocking content. This has happened in  the past on more than one                                                               
occasion. In 2007  Comcast saw its business  model threatened and                                                               
throttled  a  peer-to-peer  sharing  network  called  BitTorrent.                                                               
Young people  primarily used it  to download free movies,  but it                                                               
is also used  for open content such as trade  manuals and videos.                                                               
Video sharing has since proliferated  throughout the internet and                                                               
net neutrality  prevents an identical throttling  situation. It's                                                               
a  matter  of  letting  the  market forces  work.  She  said  net                                                               
neutrality is  also a  free speech issue.  Today the  internet is                                                               
used  extensively  for work  and  entertainment,  but freedom  of                                                               
expression  isn't  worth much  when  the  fora where  people  are                                                               
having those conversations are not themselves free.                                                                             
                                                                                                                                
MS. RICH  said there  isn't agreement  about whether  federal law                                                               
would  preempt legislation  such as  SB 160.  Given that  lack of                                                               
consensus, the ACLU  believes the courts should  decide the issue                                                               
rather than trying to preempt it legislatively.                                                                                 
                                                                                                                                
She recommended looking  at Portugal's internet plan  to see what                                                               
a world  without net neutrality  looks like. It's a  stark image,                                                               
she said.                                                                                                                       
                                                                                                                                
2:50:56 PM                                                                                                                    
SENATOR STEVENS asked if a court case was underway.                                                                             
                                                                                                                                
MS. RICH said 22 state  attorneys general have filed suit related                                                               
primarily  to the  FCC  process during  public  comment. It  also                                                               
challenges whether the  FCC would need to create  an entirely new                                                               
regulatory  scheme rather  than just  eliminating the  prior one.                                                               
Mozilla, the Free Press and  others have lawsuits pending waiting                                                               
for  the law  to  take effect  and be  published  on the  federal                                                               
register.                                                                                                                       
                                                                                                                                
SENATOR STEVENS commented it's likely to take years and years.                                                                  
                                                                                                                                
MS. RICH agreed that was a possibility.                                                                                         
                                                                                                                                
SENATOR  MICCICHE  said  he  supports   net  neutrality  and  the                                                               
resolution but this legislation seems  premature. He asked if she                                                               
would agree that Congress probably supports net neutrality.                                                                     
                                                                                                                                
MS. RICH said  she believes that SB 160  would encourage Congress                                                               
to overturn  the FCC's open  internet order of December  2017. It                                                               
would certainly show the Alaska  delegation that Alaska is united                                                               
on the issue.                                                                                                                   
                                                                                                                                
SENATOR  MICCICHE  opined  that  the  bill  would  be  completely                                                               
unenforceable  outside of  state lines  and the  issue is  larger                                                               
than that.                                                                                                                      
                                                                                                                                
MS.  RICH  agreed  that the  Alaska  Legislature  can't  regulate                                                               
companies that  have no business  in Alaska. Alaskans  would also                                                               
be affected if  GCI or ACS uses Comcast's  cables through peering                                                               
agreements to  transmit Netflix  and other  video to  Alaska. She                                                               
said  states  should  present  a united  front;  30  states  have                                                               
introduced or are contemplating similar legislation.                                                                            
                                                                                                                                
SENATOR  MICCICHE shared  a personal  example to  illustrate that                                                               
internet use  is tracked. He asked  if the ACLU considers  and is                                                               
concerned  that  it's  unconstitutional  under  Alaska's  privacy                                                               
clause. "How  much right do  we have to push  back as a  state on                                                               
those larger privacy issues?"                                                                                                   
                                                                                                                                
MS. RICH  said the ACLU of  Alaska is about to  launch the Alaska                                                               
Privacy Project  that looks  directly at  those issues.  She said                                                               
there are privacy implications with  the way net neutrality would                                                               
be  enforced that  are  relevant  to the  privacy  clause of  the                                                               
constitution.  The  ISP  would  need  to  know  what  people  are                                                               
accessing to be able to block or throttle it.                                                                                   
                                                                                                                                
2:58:14 PM                                                                                                                    
CHAIR COSTELLO  closed public  testimony on SB  160 and  held the                                                               
bill in committee.                                                                                                              
                                                                                                                                
                      HB  18-RACE CLASSICS                                                                                  
                                                                                                                                
2:58:50 PM                                                                                                                    
CHAIR  COSTELLO announced  the consideration  of HB  18. [SCS  HB                                                               
18(CRA) was before the committee.]                                                                                              
                                                                                                                                
2:59:04 PM                                                                                                                    
REPRESENTATIVE  DAN  ORTIZ,  Alaska  State  Legislature,  Juneau,                                                               
Alaska, sponsor  of HB 18,  said this  bill is necessary  for the                                                               
Ketchikan Greater Chamber of Commerce  to be eligible to obtain a                                                               
race classic permit.  The category "race classic"  is so narrowly                                                               
defined in statute  it only provides for the  Mount Marathon Race                                                               
held by  the Seward  Chamber of  Commerce. The  Ketchikan Chamber                                                               
would  like to  obtain a  permit  for a  non-motorized boat  race                                                               
beginning in  Port Townsend, Washington and  ending in Ketchikan,                                                               
Alaska.  The  bill  was  amended  in  the  Senate  Community  and                                                               
Regional  Affairs Committee  expanding the  scope to  allow other                                                               
communities to permit race classics.                                                                                            
                                                                                                                                
3:01:13 PM                                                                                                                    
SENATOR MEYER asked  if he supports the CRA  amendment to broaden                                                               
the scope of the bill.                                                                                                          
                                                                                                                                
REPRESENTATIVE ORTIZ said the Ketchikan  Chamber would rather not                                                               
have the  amendment, but the chair  of the CRA committee  did not                                                               
want  to  address  this  issue   multiple  times  when  different                                                               
communities wanted to put on a  race classic. As sponsor, he said                                                               
his  interest is  seeing the  bill  move forward,  even with  the                                                               
amendment.                                                                                                                      
                                                                                                                                
SENATOR  MEYER expressed  concern  that the  amendment makes  the                                                               
definition   overly   broad,    which   could   have   unforeseen                                                               
consequences.                                                                                                                   
                                                                                                                                
CHAIR COSTELLO  said she  shares that  concern. There's  a reason                                                               
that the legislature goes through an approval process.                                                                          
                                                                                                                                
3:03:22 PM                                                                                                                    
SENATOR MICCICHE  stated support  for the  original intent  of HB                                                               
18.                                                                                                                             
                                                                                                                                
SENATOR  MEYER  asked  the  sponsor   if  he  would  support  the                                                               
committee returning to the original version of the bill.                                                                        
                                                                                                                                
REPRESENTATIVE ORTIZ replied, "I'd be perfectly fine with that."                                                                
                                                                                                                                
SENATOR MEYER asked if he said  that the sponsor of the amendment                                                               
supported the bill with or without the amendment.                                                                               
                                                                                                                                
REPRESENTATIVE ORTIZ  replied he  couldn't speak for  the sponsor                                                               
of the amendment.                                                                                                               
                                                                                                                                
3:05:02 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:06:26 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting  and asked Ms. Mitchell why                                                               
classics  and games  of skill  and  chance must  come before  the                                                               
legislature   for   authorization.   She  also   asked   if   the                                                               
administration had any concerns with the Senate CRA amendment.                                                                  
                                                                                                                                
3:07:15 PM                                                                                                                    
KATRINA MITCHELL, Gaming Group  Manager, Tax Division, Department                                                               
of  Revenue, Juneau,  Alaska, explained  that  statute defines  a                                                               
variety  of  classics.  Some  like the  Nenana  Ice  Classic  are                                                               
limited  to certain  organizations  while others  like the  Crane                                                               
Classic are open to any organization.                                                                                           
                                                                                                                                
CHAIR COSTELLO  asked how many  communities or  organization have                                                               
taken advantage of the Crane Classic authorization.                                                                             
                                                                                                                                
MS.  MITCHELL said  the Crane  Classic is  defined as  a game  of                                                               
chance in  which a money prize  is awarded for the  closest guess                                                               
of the  arrival time of  the first  Sandhill Crane to  a specific                                                               
location.  Any  organization  that  holds  a  gaming  permit  can                                                               
conduct  a Crane  Classic.  Other classics  such  as the  Cabbage                                                               
Classic,   the  Deepfreeze   Classic,  and   the  Goose   Classic                                                               
statutorily  limit the  authority  to conduct  the  classic to  a                                                               
certain  organization.  Any  organization  that  holds  a  gaming                                                               
permit could  choose to hold a  classic every year, if  it is not                                                               
specific to an organization.                                                                                                    
                                                                                                                                
CHAIR  COSTELLO  asked  if  the   Greater  Ketchikan  Chamber  of                                                               
Commerce currently  holds a  gaming permit or  if the  bill gives                                                               
permission to hold that classic.                                                                                                
                                                                                                                                
MS.  MITCHELL  said she  presumes  the  chamber already  holds  a                                                               
gaming permit to hold yearly  raffles. Should the bill pass, they                                                               
would  check  "raffle and  race  classic"  on the  annual  permit                                                               
request.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked  if she would advise the  committee to limit                                                               
the  scope  of  the  proposed   race  classic.  She  thought  she                                                               
understood the  rationale for the  amendment but doing it  in the                                                               
bill may complicate matters.                                                                                                    
                                                                                                                                
MS.    MITCHELL   said    just   nonprofit    organizations   and                                                               
municipalities  are authorized  to apply  for and  hold a  gaming                                                               
permit,  which  limits the  field  of  participants. About  1,000                                                               
permits are  issued a year.  Expanding the field means  that more                                                               
than  one  organization  that  holds a  gaming  permit  would  be                                                               
allowed to put on a race classic if it wanted to.                                                                               
                                                                                                                                
SENATOR  MICCICHE  stated support  for  adopting  version A  that                                                               
passed the House.                                                                                                               
                                                                                                                                
CHAIR  COSTELLO  polled  members  and  determined  there  was  no                                                               
objection to returning to HB 18, 30-LS0199\A.                                                                                   
                                                                                                                                
CHAIR COSTELLO opened public testimony on HB 18, version A.                                                                     
                                                                                                                                
3:14:16 PM                                                                                                                    
CHELSEA   GOUCHER,  President,   Board   of  Directors,   Greater                                                               
Ketchikan Chamber of Commerce, Ketchikan,  Alaska, stated that HB                                                               
18 would  be a great help  to Ketchikan Chamber. It  is primarily                                                               
funded  through  membership and  works  with  a budget  of  under                                                               
$200,000. She  cited the important  work underway by  the chamber                                                               
including   maritime   workforce   development,   an   initiative                                                               
regarding health care  pricing transparency, resource development                                                               
in timber and  mining sectors and most recently  an initiative to                                                               
attract tech workers to Ketchikan  and Southeast generally. HB 18                                                               
would help the chamber capitalize  on the non-motorized boat race                                                               
between Port  Townsend, Washington and Ketchikan,  Alaska. It's a                                                               
race that  has already garnered national  attention for adventure                                                               
and sport enthusiasts.                                                                                                          
                                                                                                                                
SENATOR  MEYER  offered  his  understanding  that  the  Ketchikan                                                               
Chamber didn't care which version of HB 18 passes.                                                                              
                                                                                                                                
MS.  GOUCHER  clarified  that the  Ketchikan  Chamber  asked  the                                                               
sponsor to put forward the original version.                                                                                    
                                                                                                                                
3:17:13 PM                                                                                                                    
CHAIR  COSTELLO found  no  one  else who  wished  to comment  and                                                               
closed public testimony on HB 18.                                                                                               
                                                                                                                                
3:17:18 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
3:17:47 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
3:17:52 PM                                                                                                                    
SENATOR MEYER  moved to adopt  HB 18, 30-LS0199\A as  the working                                                               
document.                                                                                                                       
                                                                                                                                
CHAIR COSTELLO found no objection and version A was adopted.                                                                    
                                                                                                                                
3:18:14 PM                                                                                                                    
SENATOR MEYER moved to report  HB 18, 30-LS0199\A, from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
                                                                                                                                
3:18:30 PM                                                                                                                    
CHAIR  COSTELLO found  no  objection and  announced  that HB  18,                                                               
version  A, moves  from the  Senate Labor  and Commerce  Standing                                                               
Committee. She noted the fiscal note would change in the next                                                                   
committee of referral, if needed.                                                                                               
                                                                                                                                
3:18:44 PM                                                                                                                    
There being no further business to come before the committee,                                                                   
Chair Costello adjourned the Senate Labor and Commerce Standing                                                                 
Committee meeting at 3:07 p.m.                                                                                                  

Document Name Date/Time Subjects
SB 108 ver U.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SSSB 108 Sponsor Statment 1-22-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SSSB108 Sectional Analysis 1-18-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SB108SS-DCCED-CBPL-02-08-2018.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SB108 Power Point Presentation 2-12-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SB108 Letter of Support ASMB 2-9-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SB108 Letter of Support - Foundation Health Partners 2-7-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SSSB108 Supporting Document State Med. Licensure Timeframes leg research 10-16-2015.pdf SL&C 2/13/2018 1:30:00 PM
SB 108
SB160.A.PDF SL&C 2/13/2018 1:30:00 PM
SB 160
SB160 Sponsor Statement.pdf SL&C 2/13/2018 1:30:00 PM
SB 160
SB160 Sectional Analysis.pdf SL&C 2/13/2018 1:30:00 PM
SB 160
SB160-DCCED-RCA-02-09-18.pdf SL&C 2/13/2018 1:30:00 PM
SB 160
SB160-LAW-CIV-02-10-2018.pdf SL&C 2/13/2018 1:30:00 PM
SB 160
SB 160 - AT&T Opposition.pdf SL&C 2/13/2018 1:30:00 PM
SB 160
HB 18 ver D.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Sponsor Statement.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Sectional Analysis.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Summary of Changes.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18-DOR-TAX-2-9-2018-HB 18.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Letter of Support - Goucher.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Supporting Document - Ketchikan Chamber Flyer.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Letter of Support - Seward Chamber of Commerce.pdf SL&C 2/13/2018 1:30:00 PM
HB 18
HB18 Ketchikan Chamber Letter of Support.pdf SL&C 2/13/2018 1:30:00 PM
HB 18