04/07/2025 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic | 
|---|---|
| Start | |
| SB83 | |
| SB21 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 21 | TELECONFERENCED | |
| + | SB 83 | TELECONFERENCED | |
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                         April 7, 2025                                                                                          
                           1:32 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Kelly Merrick, Vice Chair                                                                                               
Senator Elvi Gray-Jackson                                                                                                       
Senator Forrest Dunbar                                                                                                          
Senator Robert Yundt                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
SENATE BILL NO. 83                                                                                                              
"An Act relating to health care insurance; relating to insurance                                                                
reimbursement for health care services provided through                                                                         
telehealth; and providing for an effective date."                                                                               
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
SENATE BILL NO. 21                                                                                                              
"An Act establishing the Alaska Work and Save Program;                                                                          
establishing the Alaska Retirement Savings Board; and providing                                                                 
for an effective date."                                                                                                         
                                                                                                                                
     - MOVED CSSB 21(L&C) OUT OF COMMITTEE                                                                                      
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  83                                                                                                                  
SHORT TITLE: TELEHEALTH REIMBURSEMENT RATES                                                                                     
SPONSOR(s): SENATOR(s) CLAMAN                                                                                                   
                                                                                                                                
01/31/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/31/25       (S)       HSS, FIN                                                                                               
02/11/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
02/11/25       (S)       Heard & Held                                                                                           
02/11/25       (S)       MINUTE(HSS)                                                                                            
02/25/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
02/25/25       (S)       Heard & Held                                                                                           
02/25/25       (S)       MINUTE(HSS)                                                                                            
03/13/25       (S)       HSS AT 3:30 PM BUTROVICH 205                                                                           
03/13/25       (S)       Moved CSSB 83(HSS) Out of Committee                                                                    
03/13/25       (S)       MINUTE(HSS)                                                                                            
03/14/25       (S)       HSS RPT CS 2DP 1DNP 1AM   NEW TITLE                                                                    
03/14/25       (S)       DP: DUNBAR, CLAMAN                                                                                     
03/14/25       (S)       DNP: HUGHES                                                                                            
03/14/25       (S)       AM: GIESSEL                                                                                            
03/26/25       (S)       FIN REFERRAL WAIVED                                                                                    
03/26/25       (S)       L&C REFERRAL ADDED AFTER HSS                                                                           
04/07/25       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
BILL: SB  21                                                                                                                  
SHORT TITLE: AK WORK & SAVE PROGRM; RETIRE. SAVINGS BD                                                                          
SPONSOR(s): SENATOR(s) WIELECHOWSKI                                                                                             
                                                                                                                                
01/10/25       (S)       PREFILE RELEASED 1/10/25                                                                               
01/22/25       (S)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/25       (S)       L&C, FIN                                                                                               
03/31/25       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
03/31/25       (S)       Heard & Held                                                                                           
03/31/25       (S)       MINUTE(L&C)                                                                                            
04/07/25       (S)       L&C AT 1:30 PM BELTZ 105 (TSBldg)                                                                      
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
SENATOR MATT CLAMAN, District H                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Sponsor of SB 83.                                                                                         
                                                                                                                                
SARENA HACKENMILLER, Staff                                                                                                      
Senator Matt Claman                                                                                                             
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Provided the sectional analysis SB 83.                                                                    
                                                                                                                                
JIM REBITZER, Economist                                                                                                         
Boston University                                                                                                               
Boston, Massachusetts                                                                                                           
POSITION STATEMENT: Testified by invitation on SB 83.                                                                         
                                                                                                                                
HOWARD DETWILER, Owner                                                                                                          
Arctic Behavior Health LLC                                                                                                      
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on SB 83.                                                                         
                                                                                                                                
SENATOR BILL WIELECHOWSKI, District K                                                                                           
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT: Presented a recap of SB 21.                                                                               
                                                                                                                                
MARGE STONEKING, State Advocacy Director                                                                                        
American Association of Retired Persons (AARP)                                                                                  
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Testified by invitation on SB 21.                                                                         
                                                                                                                                
DAVE YOUNG, Treasurer                                                                                                           
Colorado Department of Treasury                                                                                                 
Denver, Colorado                                                                                                                
POSITION STATEMENT: Testified by invitation on SB 21.                                                                         
                                                                                                                                
JAYNE ANDREW, representing self                                                                                                 
Douglas, Alaska                                                                                                                 
POSITION STATEMENT: Testified in support of SB 21.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:32:40 PM                                                                                                                    
CHAIR  BJORKMAN called  the Senate  Labor  and Commerce  Standing                                                               
Committee meeting  to order at 1:32  p.m. Present at the  call to                                                               
order  were Senators  Merrick,  Gray-Jackson,  Dunbar, Yundt  and                                                               
Chair Bjorkman.                                                                                                                 
                                                                                                                                
             SB  83-TELEHEALTH REIMBURSEMENT RATES                                                                          
                                                                                                                              
            [CSSB 83(HSS)was before the committee.]                                                                             
                                                                                                                                
1:33:38 PM                                                                                                                    
CHAIR BJORKMAN announced the consideration  of CS FOR SENATE BILL                                                               
NO. 83(HSS) "An  Act relating to health  care insurance; relating                                                               
to  insurance reimbursement  for  health  care services  provided                                                               
through  telehealth; relating  to  telehealth;  providing for  an                                                               
effective date  by repealing  the effective date  of secs.  9 and                                                               
10, ch. 38, SLA 2022; and providing for an effective date."                                                                     
                                                                                                                                
1:34:02 PM                                                                                                                    
SENATOR  MATT  CLAMAN,  District  H,  Alaska  State  Legislature,                                                               
Juneau, Alaska, as the sponsor of SB 83, he the bill:                                                                           
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     Senate  Bill  83 was  brought  forward  by health  care                                                                    
     providers  in my  district who  provide both  in-person                                                                    
     and telehealth  services to Alaskans across  the state.                                                                    
     SB 83 will ensure  pay parity for telehealth, requiring                                                                    
     health care  insurers to reimburse at  the same payment                                                                    
     rate for telehealth services as in-person care.                                                                            
                                                                                                                                
1:34:31 PM                                                                                                                    
SENATOR CLAMAN continued with his presentation:                                                                                 
                                                                                                                                
     Telehealth   reduces  barriers   to  care   and  allows                                                                    
     patients  to receive  timely and  convenient care  from                                                                    
     the comfort of their own  homes. In Alaska, barriers to                                                                    
     care  affect individuals  in  rural  areas, those  with                                                                    
     disabilities,  and  those with  limited  transportation                                                                    
     options.   Telehealth  is   especially  important   for                                                                    
     chronic  disease  management, mental  health  services,                                                                    
     and preventative care.                                                                                                     
                                                                                                                                
     The  COVID-19 pandemic  highlighted  the critical  need                                                                    
     for  telehealth  access,   prompting  the  Centers  for                                                                    
     Medicare  &  Medicaid  Services  (CMS)  to  temporarily                                                                    
     implement   telehealth  parity.   While  this   federal                                                                    
     mandate has expired,  some telehealth provisions remain                                                                    
     in  place.  What  was  once a  temporary  need  is  now                                                                    
     standard practice,  and many  states have  made efforts                                                                    
     to solidify  permanent access  to these  services. Over                                                                    
     33 states have enacted similar  legislation to SB 83 to                                                                    
     ensure fair reimbursement for telehealth services.                                                                         
                                                                                                                                
     Alaska's  Medicaid program  already has  telehealth pay                                                                    
     parity.  This  legislation  builds upon  that  existing                                                                    
     framework  to  require  the   same  parity  by  private                                                                    
     insurers.  In our  previous  committee,  we amended  to                                                                    
     remove  the   sunset  language  in   Alaska's  Medicaid                                                                    
     telehealth statutes,  ensuring that  it will  remain in                                                                    
     law.                                                                                                                       
                                                                                                                                
     Passage  of  this  legislation will  expand  access  to                                                                    
     care,  improve  and  maintain   quality  of  care,  and                                                                    
     incentivize continued telehealth utilization.                                                                              
                                                                                                                                
1:36:13 PM                                                                                                                    
SARENA HACKENMILLER, Staff, Senator Matt Claman, Alaska State                                                                   
Legislature, Juneau, Alaska, provided the sectional analysis for                                                                
SB 83:                                                                                                                          
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                  Sectional Analysis Version O                                                                                
                                                                                                                                
     Section 1                                                                                                              
     AS  21.42.422(b).  Coverage  for telehealth.  Adds  new                                                                    
     paragraph (3) and references  the definition of "health                                                                    
     care provider" as given in AS 21.07.250.                                                                                   
                                                                                                                                
1:36:38 PM                                                                                                                    
MS. HACKENMILLER continued with the sectional analysis of SB 83,                                                                
version O:                                                                                                                      
                                                                                                                                
     Section 2                                                                                                              
     AS  21.42.422. Coverage  for telehealth.  Establishes a                                                                    
     new  subsection  requiring   health  care  insurers  to                                                                    
     reimburse   health   care  providers   for   telehealth                                                                    
     services, including behavioral  health services, at the                                                                    
     same rate as for in-person services.                                                                                       
                                                                                                                                
     Section 3                                                                                                              
     AS 29.10.200. Limitation of home  rule powers. Adds new                                                                    
     paragraph  (68) "AS  29.20.420  (health care  insurance                                                                    
     plans)" to the  list of provisions which  apply to home                                                                    
     rule municipalities                                                                                                        
                                                                                                                                
     Section 4                                                                                                              
     AS 29.20.420. Health  care insurance plans. Establishes                                                                    
     a  new section  requiring a  home rule  or general  law                                                                    
     municipality  offering a  group  health care  insurance                                                                    
     plan  to  meet  the  requirements  of  AS  21.42.422(c)                                                                    
     (Section 2).  Provides the  definition of  "health care                                                                    
     insurance plan" as given in AS 21.52.500.                                                                                  
                                                                                                                                
     Section 5                                                                                                              
     AS 39.30.090(a).  Authorization for  self-insurance and                                                                    
     excess  loss  insurance.  Adds a  new  subsection  (13)                                                                    
     requiring  a  policy  or policies  of  group  insurance                                                                    
     covering  state employees  and other  specific employee                                                                    
     groups under  the Department of Administration  to meet                                                                    
     to the requirements of AS 21.42.422(c) (Section 2).                                                                        
                                                                                                                                
     Section 6                                                                                                              
     AS  39.30.091.  Authorization  for  self-insurance  and                                                                    
     excess loss  insurance. Amends this statute  to require                                                                    
     those  employers  with   a  self-insured  group  health                                                                    
     insurance plan covering active  state employees to meet                                                                    
     the requirements of AS 21.42.422(c) (Section 2).                                                                           
                                                                                                                                
     Section 7                                                                                                              
     Repeals Sections 9, 10, and 13 of ch. 38, SLA 2022.                                                                        
                                                                                                                                
     Section 8                                                                                                              
     Repeals Section 14 of ch. 38, SLA 2022.                                                                                    
                                                                                                                                
     Section 9                                                                                                              
     Establishes an effective date of January 1, 2026.                                                                          
                                                                                                                                
1:38:22 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on SB 83.                                                                            
                                                                                                                                
1:38:40 PM                                                                                                                    
JIM    REBITZER,    Economist,   Boston    University,    Boston,                                                               
Massachusetts, testified by invitation on SB 83:                                                                                
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     I am here  to testify about a new  piece of legislation                                                                    
     regarding  reimbursement for  telehealth services.  The                                                                    
     bill  requires  a  health   insurer  to  reimburse  for                                                                    
     telehealth services on  the same basis and  at least at                                                                    
     the  same   rate  as  comparable   healthcare  services                                                                    
     provided in person.                                                                                                        
                                                                                                                                
     Let me  start with  my conclusion: This  legislation is                                                                    
     reasonable and deserving of  your support. However, the                                                                    
     reasoning  behind  it may  be  of  greater use  to  the                                                                    
     committee than my conclusion.                                                                                              
                                                                                                                                
     As  an  economist   studying  management,  I  generally                                                                    
     believe that  a state legislature should  not determine                                                                    
     how much private insurers  pay for services. Typically,                                                                    
     legislatures    lack    essential    information    and                                                                    
     incentives,  and   they  respond  too  slowly   to  set                                                                    
     appropriate reimbursement rates. It  is better to leave                                                                    
     this  to negotiations  between insurers  and providers.                                                                    
     However, telehealth might be  the exception that proves                                                                    
     the rule.  Mandating equal payment can  help address an                                                                    
     economic  issue  that  private parties  cannot  resolve                                                                    
     independently.                                                                                                             
                                                                                                                                
     Like every new  treatment modality, telehealth requires                                                                    
     providers  to develop  new capabilities  for delivering                                                                    
     care  at   a  distance.   Payers  may  be   willing  to                                                                    
     compensate   providers   to  encourage   these   costly                                                                    
     investments,  but will  they pay  enough on  their own?                                                                    
     Perhaps  not. In  our fragmented  payment system,  each                                                                    
     provider  treats patients  from many  different payers:                                                                    
     Medicare,  Medicaid,  the   State  of  Alaska,  private                                                                    
     insurers,  and  private  employers. This  diversity  of                                                                    
     payers creates an opportunity for free riding.                                                                             
                                                                                                                                
1:41:27 PM                                                                                                                    
MR. REBITZER continued with his testimony on SB 83:                                                                             
                                                                                                                                
     Suppose  a provider  deals  with  10 different  payers,                                                                    
     each  paying  $50  for   a  telehealth  visit.  Suppose                                                                    
     providers are happy to  invest adequately in telehealth                                                                    
     capacity at this price. What  would happen if one payer                                                                    
     decided to  pay $40  for a telehealth  visit? Providers                                                                    
     might still  be willing  to deliver telehealth  care to                                                                    
     this payer because they have  already borne the cost of                                                                    
     developing  the telehealth  capacity.  The insurer  who                                                                    
     pays  $40 would,  in effect,  be "free  riding" on  the                                                                    
     other  payers' generosity.  That would  be annoying  to                                                                    
     the  other  payers.  If the  rest  followed  suit,  the                                                                    
     result would be an  inadequate investment in telehealth                                                                    
     capacity  or, in  the extreme  case,  no investment  at                                                                    
     all.                                                                                                                       
                                                                                                                                
     You can  see where this  is heading. The  proposed bill                                                                    
     can be beneficial  as it makes it more  difficult for a                                                                    
     single  insurer to  take  advantage  of investments  in                                                                    
     telehealth funded by other payers.                                                                                         
                                                                                                                                
     Some who object to payment  parity might argue that the                                                                    
     marginal  cost of  telehealth  is  less than  in-person                                                                    
     health,  so   "parity"  in   payments  means   you  are                                                                    
     overpaying for  telehealth. This reasoning  makes sense                                                                    
     until  you think  about it  for a  minute. Much  of the                                                                    
     cost  of delivering  telehealth is  determined by  what                                                                    
     else  providers  could  do  with  their  time.  Payment                                                                    
     parity  has  the  advantage  of   not  making  it  more                                                                    
     expensive   for   providers  who   deliver   telehealth                                                                    
     services.                                                                                                                  
                                                                                                                                
     Although I  am not  an Alaskan, I  am impressed  by the                                                                    
     vast  distances' healthcare  providers  must travel  to                                                                    
     reach all Alaskans. The cost  of underinvestment in and                                                                    
     under provision of telehealth  is especially severe for                                                                    
     Alaska, so the proposed legislation's value is likely                                                                      
     to be high.                                                                                                                
                                                                                                                                
1:44:25 PM                                                                                                                    
HOWARD DETWILER,  Owner, Arctic  Behavior Health  LLC, Anchorage,                                                               
Alaska, testified by  invitation on SB 83 and gave  an example of                                                               
when  a  snowstorm,  in Anchorage,  prevented  two  clients  from                                                               
visiting   the  office,   requiring   remote  consultations   for                                                               
medication  management.   The  technological  costs   and  system                                                               
failures for telehealth can equal  or exceed in-person visits and                                                               
may increase  the risk of emergency  consultations. He emphasized                                                               
an experience  of developing military telehealth  systems in Iraq                                                               
and  Afghanistan, emphasizing  that telehealth  is essential  for                                                               
healthcare delivery in Alaska.                                                                                                  
                                                                                                                                
1:46:43 PM                                                                                                                    
CHAIR BJORKMAN asked  Mr. Detwiler to give examples of  how SB 83                                                               
would directly affect his business.                                                                                             
                                                                                                                                
1:46:58 PM                                                                                                                    
MR. DETWILER replied that a  snowstorm prevented two clients from                                                               
visiting the office for  restricted medications, making in-person                                                               
evaluation  and  prescription  continuation impossible.  He  said                                                               
telehealth  is   essential  to   maintain  continuity   of  care,                                                               
especially given Alaska's distances and challenging climate.                                                                    
                                                                                                                                
[CHAIR BJORKMAN held SB 83 in committee.]                                                                                       
                                                                                                                                
1:49:18 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
        SB  21-AK WORK & SAVE PROGRM; RETIRE. SAVINGS BD                                                                    
                                                                                                                                
1:51:38 PM                                                                                                                    
CHAIR  BJORKMAN   reconvened  the   meeting  and   announced  the                                                               
consideration  of SENATE  BILL NO.  21 "An  Act establishing  the                                                               
Alaska Work and Save Program;  establishing the Alaska Retirement                                                               
Savings  Board;  and  providing for  an  effective  date."  CHAIR                                                               
BJORKMAN stated  that a committee  substitute (CS) for SB  21 was                                                               
adopted during the first hearing of the bill.                                                                                   
                                                                                                                                
1:52:18 PM                                                                                                                    
SENATOR BILL WIELECHOWSKI, District  K, Alaska State Legislature,                                                               
Juneau, Alaska,  presented a recap of  SB 21 and stated  that the                                                               
Alaska Work  and Save  bill establishes  an auto-IRA  program for                                                               
all  Alaskan   employees,  addressing  the  lack   of  retirement                                                               
savings, with over  half of American households that  do not have                                                               
a retirement,  especially among small  businesses, 64  percent of                                                               
which currently  offer no  retirement plan.  He said  the program                                                               
provides an affordable, simplified  savings option, helping small                                                               
businesses  compete  for  quality  talent,  supporting  Alaskans'                                                               
financial security,  and improving long-term quality  of life. He                                                               
said 70 percent of small  businesses would support a savings plan                                                               
if there  were reasonable options.  Similar programs exist  in 17                                                               
other states.                                                                                                                   
                                                                                                                                
1:53:58 PM                                                                                                                    
CHAIR BJORKMAN announced invited testimony on SB 21.                                                                            
                                                                                                                                
1:54:10 PM                                                                                                                    
MARGE  STONEKING, State  Advocacy Director,  American Association                                                               
of  Retired  Persons  (AARP),  Anchorage,  Alaska,  testified  by                                                               
invitation on SB 21:                                                                                                            
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     AARP is  the largest nonprofit,  nonpartisan membership                                                                    
     organization in  Alaska and  in the  country. Financial                                                                    
     security is a key component  of our advocacy agenda for                                                                    
     Alaskans   50+  and   that  begins   with  saving   for                                                                    
     retirement throughout one's working years.                                                                                 
     AARP's mission is to empower  people to choose how they                                                                    
     live as they age.                                                                                                          
                                                                                                                                
     Retirement readiness  is a big  part of  having choices                                                                    
     for how  one lives  in retirement, and  Social Security                                                                    
     is not enough to live  on. Retirement readiness is good                                                                    
     for Alaskans and for Alaska.                                                                                               
                                                                                                                                
     The  less retirement  income you  have the  more likely                                                                    
     you  are  to  have  to rely  on  public  programs  like                                                                    
     Medicaid,  Senior  Benefits,  and SNAP  to  meet  basic                                                                    
     needs.                                                                                                                     
                                                                                                                                
     Retirement readiness for the  private sector requires a                                                                    
     workplace savings option for all employees.                                                                                
                                                                                                                                
     The  retirement crisis  in this  country is  not a  new                                                                    
     challenge  but  one  that  has  persisted  for  several                                                                    
     decades. Today,  over half  of the  nation's households                                                                    
     are  at risk  of not  having enough  money to  maintain                                                                    
     their  standard  of  living  in  retirement  and  being                                                                    
     unable to  afford necessities such as  food, utilities,                                                                    
     and healthcare.                                                                                                            
                                                                                                                                
     Although  some   individuals  are  merely   not  saving                                                                    
     enough,  a  vast  number  are not  saving  at  all.  20                                                                    
     percent of adults  age 30 and older  have no retirement                                                                    
     savings at  all and 14  percent have less  than $10,000                                                                    
     saved for retirement.                                                                                                      
                                                                                                                                
1:56:07 PM                                                                                                                    
MS. STONEKING continued with her testimony of SB 21:                                                                            
                                                                                                                                
     A critical reason for this  shortage of savings is that                                                                    
     a  lack  of  access  to  workplace  savings  plans  has                                                                    
     remained  low   for  decades.  Roughly  just   half  of                                                                    
     private-sector  workers have  access to  a way  to save                                                                    
     from  their   regular  paycheck  at   work.  Employers,                                                                    
     particularly  small   business  owners,   often  cannot                                                                    
     provide  a retirement  plan to  their employees  due to                                                                    
     their confusing, costly, and time-consuming nature.                                                                        
                                                                                                                                
     Without access  to a retirement  savings plan  at work,                                                                    
     nearly  all workers  fail to  save.  AARP Research  has                                                                    
     found that Americans are about  15 times more likely to                                                                    
     save for retirement  when they have can do  so at work.                                                                    
     Work  and Save  is designed  to address  the retirement                                                                    
     savings gap using tools, such  as payroll deduction and                                                                    
     automatic enrollment, that are proven to work.                                                                             
                                                                                                                                
     Work and  Save programs  are changing the  landscape on                                                                    
     retirement readiness by giving  businesses an easy, no-                                                                    
     cost retirement  program and giving workers  a portable                                                                    
     retirement  savings program  allowing workers  to build                                                                    
     the savings they need to be retirement ready.                                                                              
     And according  to the National Institute  on Retirement                                                                    
     Security's  research  on  Americans'  Views  of  State-                                                                    
     Facilitated Retirement  Programs, the vast  majority of                                                                    
     Americans   agree  that   state-facilitated,  privately                                                                    
     managed retirement savings programs are a good idea.                                                                       
                                                                                                                                
     That  support  holds  across  party  lines  and  across                                                                    
     generations.  This  policy has  consistent  bi-partisan                                                                    
     support in polling among  the public and small-business                                                                    
     owners across the country and across time.                                                                                 
                                                                                                                                
     And,  we know  from  instate polling  that that  across                                                                    
     political  ideology,   Alaska  small   businesses  also                                                                    
     support a publicprivate retirement savings option.                                                                         
                                                                                                                                
     Seven  in ten  Alaska small  business owners  support a                                                                    
     privately   managed,  ready-to-go   retirement  savings                                                                    
     option   that  would   help   small  businesses   offer                                                                    
     employees a way to  save for retirement (Republican: 71                                                                    
     percent;   Democrat:   70  percent;   Independent:   76                                                                    
     percent).  Additionally,  most  small  business  owners                                                                    
     agree that  state legislators should support  a bill to                                                                    
     make it  easier for small  business owners to  access a                                                                    
     retirement  savings  option  for  their  employees  and                                                                    
     themselves, such as SB21 does.                                                                                             
                                                                                                                                
     AARP stands  ready to work with  the Alaska Legislature                                                                    
     to pass  Alaska Work  and Save  so that  generations of                                                                    
     Alaskans can save and become retirement ready.                                                                             
                                                                                                                                
2:00:13 PM                                                                                                                    
DAVE YOUNG,  Treasurer, Colorado Department of  Treasury, Denver,                                                               
Colorado, testified  by invitation  on SB 21  and stated  that he                                                               
wanted  to focus  on page  7, line  14 of  the bill  which allows                                                               
through legislation the  ability to enter into  an agreement with                                                               
other  states  to  provide services  related  to  retirement  age                                                               
programs. He said Colorado's  Secure Savings Program, established                                                               
by  legislation in  2020 and  launched  in 2023,  is a  state-run                                                               
auto-IRA program  designed to expand retirement  savings. He said                                                               
Colorado's IRA  program created the "Partnership  for a Dignified                                                               
Retirement"  to  help other  states  launch  programs quickly  by                                                               
leveraging  Colorado's   procurement  work  for   fund  managers,                                                               
program managers,  and consultants.  Partner states  benefit from                                                               
reduced costs,  shared resources, and  lower fees for  savers due                                                               
to negotiated price  breaks based on assets  under management. He                                                               
said the  program has  grown to 75,000  funded accounts  and over                                                               
$100 million  in assets, and  early partner states  are beginning                                                               
to  be successful.  The program  is designed  to complement,  not                                                               
compete  with,  private  sector  plans,  allowing  businesses  to                                                               
choose either option. The goal  is to increase regular retirement                                                               
savings participation, providing  a scalable, collaborative model                                                               
for states struggling to establish their own programs.                                                                          
                                                                                                                                
2:05:37 PM                                                                                                                    
CHAIR BJORKMAN  asked whether participants in  Colorado generally                                                               
keep their  funds in  their IRA  accounts to  let them  grow long                                                               
term or do more people  withdraw their money early for short-term                                                               
needs and how has that trend played out.                                                                                        
                                                                                                                                
2:06:07 PM                                                                                                                    
MR.  YOUNG  replied  that since  launching  in  2023,  Colorado's                                                               
program  shows  growing   average  account  balances,  indicating                                                               
participants are  keeping funds invested rather  than withdrawing                                                               
early.   As   a   Roth  IRA,   penalties   discourage   premature                                                               
withdrawals,  and many  savers are  using automatic  contribution                                                               
increases while  retaining flexibility to  adjust or opt  out. He                                                               
said overall, the  trend suggests people are  leaving their money                                                               
in and letting it grow.                                                                                                       
                                                                                                                                
2:08:28 PM                                                                                                                    
CHAIR BJORKMAN asked what is the opt out rate in Colorado.                                                                      
                                                                                                                                
2:08:33 PM                                                                                                                    
MR. YOUNG replied he will need  to consult with his staff on what                                                               
the opt-out rate is.                                                                                                            
                                                                                                                                
CHAIR  BJORKMAN  asked  how  have   employers  responded  to  the                                                               
program, and what  level of time or effort  is typically required                                                               
from employers when processing payroll.                                                                                         
                                                                                                                                
MR. YOUNG  replied that every  potential saver must go  through a                                                               
process called Know  Your Customer (KYC), of the  people that are                                                               
cleared by  the KYC process,  20 percent of  them opt out  of the                                                               
program. He said  employers report that the program  is quick and                                                               
simple to use. He said  the program was intentionally designed as                                                               
the  "easy   button"  to  reduce  administrative   burden.  Small                                                               
businesses  especially  value  being  able  to  offer  retirement                                                               
savings as part  of compensation, and many  employees are excited                                                               
to save  for the first time.  While some busy businesses  find it                                                               
challenging  to add  new tasks,  the program  has generally  been                                                               
well-received and easy to maintain.                                                                                             
                                                                                                                                
2:11:56 PM                                                                                                                    
SENATOR YUNDT  asked if the  contributions would be on  a pre-tax                                                               
basis.                                                                                                                          
                                                                                                                                
2:12:13 PM                                                                                                                    
MR.  YOUNG  replied that  the  contributions  would be  post  tax                                                               
because this program is Roth IRA.                                                                                               
                                                                                                                                
2:12:24 PM                                                                                                                    
SENATOR  YUNDT asked  if the  plan provides  different investment                                                               
options such  as low, medium,  or high risk, so  participants can                                                               
choose the strategy that best fits their stage of life.                                                                         
                                                                                                                                
2:12:41 PM                                                                                                                    
MR.  YOUNG replied  that  his  office did  some  research on  the                                                               
different  types of  options to  offer  and found  that too  many                                                               
investment choices  can discourage  saving, as people  often find                                                               
the options confusing. He said  to simplify, the program provides                                                               
a default target  date fund for long-term  growth, while offering                                                               
limited additional options based on  saver feedback to ensure the                                                               
lineup meets actual demand without overwhelming participants.                                                                   
                                                                                                                                
2:14:16 PM                                                                                                                    
SENATOR YUNDT asked if there was an employer match option.                                                                      
                                                                                                                                
2:14:30 PM                                                                                                                    
MR.  YOUNG responded  that the  program is  structured as  a Roth                                                               
IRA,  so  employer  matches aren't  allowed.  While  Congress  is                                                               
considering  fixes  of the  SECURE  2.0  legislation through  the                                                               
"saver's match",  many small businesses prefer  the current setup                                                               
since  they  aren't  fiduciaries   or  responsible  for  matching                                                               
contributions. He said  employers who want to  offer matching can                                                               
instead choose private plans  like 401(k)s. Meanwhile, Colorado's                                                               
plan  offers  a  simple   investment  lineup,  including  capital                                                               
preservation,  fixed income,  domestic and  international equity,                                                               
and target-date funds.                                                                                                          
                                                                                                                                
2:17:08 PM                                                                                                                    
SENATOR  YUNDT asked  since the  fund  was created,  how has  its                                                               
performance compared  to major benchmarks  like the Dow  Jones or                                                               
the S&P 500.                                                                                                                    
                                                                                                                                
2:17:32 PM                                                                                                                    
MR.  YOUNG replied  that the  program is  designed for  long-term                                                               
sustainable performance, with fund  managers guided by benchmarks                                                               
developed with investment consultants,  while also being measured                                                               
against major  indexes. He  stated that  the focus  of Colorado's                                                               
retirement  programs  is   long-term  investing,  not  short-term                                                               
trading. By  diversifying portfolios  and managing risk,  he aims                                                               
to provide  sustainable, reliable returns that  people can depend                                                               
on in retirement.                                                                                                             
                                                                                                                                
2:19:28 PM                                                                                                                    
CHAIR BJORKMAN opened public testimony on SB 21.                                                                                
                                                                                                                                
2:19:44 PM                                                                                                                    
JAYNE ANDREW,  representing self,  Douglas, Alaska,  testified in                                                               
support  of SB  21 and  stated that  she didn't  start retirement                                                               
planning until  her late 30s,  having previously worked  in small                                                               
businesses  and  nonprofits  that  offered  little  beyond  basic                                                               
savings  options.  She  emphasized the  importance  of  providing                                                               
retirement opportunities, recalling how  even modest savings were                                                               
valued  by  employees. Drawing  on  family  history of  financial                                                               
hardship and reliance  on Social Security, she  stressed the need                                                               
to ensure today's  workers have secure retirement  options as the                                                               
aging population grows.                                                                                                       
                                                                                                                                
2:21:57 PM                                                                                                                    
CHAIR BJORKMAN closed public testimony on SB 21.                                                                                
                                                                                                                                
2:22:10 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
2:22:13 PM                                                                                                                    
SENATOR MERRICK moved to report  CSSB 21, work order 34-LS0254\N,                                                               
from  committee  with  individual  recommendations  and  attached                                                               
fiscal note(s).                                                                                                                 
                                                                                                                                
2:22:28 PM                                                                                                                    
CHAIR BJORKMAN found  no objection and CSSB  21(L&C) was reported                                                               
from the Senate Labor and Commerce Standing Committee.                                                                          
                                                                                                                                
2:22:59 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Chair Bjorkman  adjourned the Senate Labor  and Commerce Standing                                                               
Committee meeting at 2:22 p.m.                                                                                                  
| Document Name | Date/Time | Subjects | 
|---|---|---|
| SB83 ver O.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Sponsor Statement ver O.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Sectional Analysis ver O.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Fiscal Note-DCCED-DOI 03.14.25.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Fiscal Note-DOA-DRB 02.04.25.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Supporting Document-AMA-State telehealth policy trends 11.30.23.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Supporting Document-AMA-Supporting equitable payment for telehealth 06.21.23.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 | 
| SB83 Public Testimony-Combined Letters of Support 04.04.25.pdf | SL&C       4/7/2025 1:30:00 PM | SB  83 |