02/13/2018 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB108 | |
| SB160 | |
| HB18 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 108 | TELECONFERENCED | |
| *+ | SB 160 | TELECONFERENCED | |
| + | HB 18 | TELECONFERENCED | |
| + | 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.