Legislature(2025 - 2026)BELTZ 105 (TSBldg)
04/16/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| SB170 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 89 | TELECONFERENCED | |
| *+ | SB 170 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 16, 2025
1:34 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Kelly Merrick, Vice Chair via teleconference
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
Senator Robert Yundt
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
SENATE BILL NO. 89
"An Act relating to physician assistants; relating to
collaborative agreements between physicians and physician
assistants; relating to the practice of medicine; relating to
health care providers; and relating to provisions regarding
physician assistants in contracts between certain health care
providers and health care insurers."
- HEARD & HELD
SENATE BILL NO. 170
"An Act relating to gaming; relating to bingo; relating to pull-
tabs and electronic pull- tab systems; and providing for an
effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 89
SHORT TITLE: PHYSICIAN ASSISTANT SCOPE OF PRACTICE
SPONSOR(s): SENATOR(s) TOBIN
02/07/25 (S) READ THE FIRST TIME - REFERRALS
02/07/25 (S) HSS, L&C
02/18/25 (S) HSS AT 3:30 PM BUTROVICH 205
02/18/25 (S) Heard & Held
02/18/25 (S) MINUTE(HSS)
02/27/25 (S) HSS AT 3:30 PM BUTROVICH 205
02/27/25 (S) Heard & Held
02/27/25 (S) MINUTE(HSS)
03/04/25 (S) HSS AT 3:30 PM BUTROVICH 205
03/04/25 (S) Moved SB 89 Out of Committee
03/04/25 (S) MINUTE(HSS)
03/05/25 (S) HSS RPT 5DP
03/05/25 (S) DP: DUNBAR, CLAMAN, GIESSEL, TOBIN,
HUGHES
03/14/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/14/25 (S) Heard & Held
03/14/25 (S) MINUTE(L&C)
04/16/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 170
SHORT TITLE: GAMING; ELECTRONIC PULL-TABS
SPONSOR(s): SENATOR(s) BJORKMAN
04/11/25 (S) READ THE FIRST TIME - REFERRALS
04/11/25 (S) L&C, FIN
04/16/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR LOKI TOBIN, District I
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 89.
MACKENZIE POPE, Staff
Senator Loki Tobin
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Answered questions for SB 89.
JENNY FAYETTE, Board Member
Alaska Academy of Physician Assistants (AKAPA)
Anchorage, Alaska
POSITION STATEMENT: Testified by invitation on SB 89.
CANDACE HICKEL, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 89.
KARI BERNARD, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 89.
DR. MOLLY SOUTHWORTH M.D., representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 89.
JARED WALLACE, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in support of SB 89.
KATHY TODD, Physician
Alaska Academy of Family Physicians
Valdez, Alaska
POSITION STATEMENT: Testified in opposition to SB 89.
MICHAEL MICHAUD, representing self
Matsu Valley, Alaska
POSITION STATEMENT: Testified in support of SB 89.
MARGARET CARLSON, President
Alaska Academy of Family Physicians
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 89.
KATHERINE VAN ATTA, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in support of SB 89.
JENNIFER PERKINS, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified with concerns on SB 89.
NICHOLAS COSENTINO, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to SB 89.
SYLVAN ROBB, Director
Division of Corporations, Business
and Professional Licensing (CBPL)
Department of Commerce, Community
and Economic Development (DCCED)
Anchorage, Alaska
POSITION STATEMENT: Answered questions on SB 89.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided the sectional analysis for SB 170.
ACTION NARRATIVE
1:34:32 PM
CHAIR BJORKMAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:34 p.m. Present at the call to
order were Senators Merrick Gray-Jackson, Dunbar, Yundt and
Chair Bjorkman.
SB 89-PHYSICIAN ASSISTANT SCOPE OF PRACTICE
1:35:32 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 89
"An Act relating to physician assistants; relating to
collaborative agreements between physicians and physician
assistants; relating to the practice of medicine; relating to
health care providers; and relating to provisions regarding
physician assistants in contracts between certain health care
providers and health care insurers."
1:36:07 PM
SENATOR LOKI TOBIN, District I, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 89. She presented a brief recap of
SB 89 and stated that the legislation aims to modernize statutes
governing physician assistants (PAs) by reducing administrative
burdens and providing a pathway to independent licensure. While
PAs are not doctors, they receive extensive education and
clinical training comparable to nurse practitioners. SB 89
ensures PAs can practice fully within their scope, maintain
competitiveness, and provide high-quality care. PA's require
completion of accredited education, licensure exams, and at
least 4,000 postgraduate clinical hours before independent
practice. SB 89 also incorporates safeguards for specialty
transitions, with oversight from the state medical board, and
holds PAs to the same medical standards as MDs and DOs, ensuring
patient safety and accountability.
1:40:29 PM
CHAIR BJORKMAN asked how many hours a PA must work under a
doctor's supervision before practicing independently. He also
about the number of hours required by other states.
1:41:09 PM
SENATOR TOBIN replied that at least seven states have created
pathways for PAs to obtain independent licensure. She stated
that the required number of supervised clinical hours varies
widely across those states. Wyoming has no minimum hours, Iowa
requires 4,000, South Dakota 6,000, Montana 8,000, and New
Hampshire and Utah range from 8,000 to 10,000. She said rural
states like Alaska, North Dakota, and Wyoming prioritize access
to care and tend to have lower or no minimums. Given PAs similar
scope of practice to nurse practitioners, stakeholders in Alaska
agreed on a compromise of 4,000 supervised hours, acknowledging
it is somewhat arbitrary.
1:42:37 PM
CHAIR BJORKMAN asked whether the medical community has
professional guidance on the optimal number of supervised hours
needed to achieve the best patient outcomes.
1:42:55 PM
MACKENZIE POPE, Staff, Senator Loki Tobin, Alaska State
Legislature, Juneau, Alaska, answered questions for SB 89 and
stated that as mentioned earlier other advanced practice
providers (APP), like nurse practitioners, require zero
supervised hours. She said research suggests zero hours is
sufficient, and there is no consensus among stakeholders on an
ideal number, resulting in a wide rangefrom zero to 10,000
hoursacross states.
1:43:40 PM
CHAIR BJORKMAN stated that North Dakota's statute includes
provisions requiring physician assistants to practice near their
supervising physicians. He asked for the reasoning behind North
Dakota's statute and what safeguards SB 89 includes to address
the absence of a proximity requirement.
1:44:18 PM
SENATOR TOBIN replied that current law does not require
physician assistants to practice near their collaborating
physicians. She said about 14 percent of those physicians live
outside Alaska. SB 89 does not change this arrangement. While
collaborating physicians must review PAs work and hold quarterly
check-ins, compliance varies. Federally recognized health
clinics already provide stronger oversight; however SB 89 does
not change current practices regarding where PAs and
collaborating physicians live or work.
1:45:36 PM
CHAIR BJORKMAN requested more information on how Federally
Qualified Health Centers (FQHCs) provide oversight. He asked
whether the relationship between a supervising physician and a
physician assistant (PA) includes requirements for case reviews
or peer evaluations. He also asked how SB 89 addresses the
oversight structure for this relationship.
1:46:09 PM
MS. POPE replied that the policies and procedures of the Alaska
State Medical Board define collaborative agreements in detail
through regulation rather than statute, which SB 89 preserves.
She said these agreements must be written, filed with the board,
and outline how the collaborating physician and PA will
communicate. Each plan is customized and must include regular,
typically quarterly, check-ins and reviews, with minimum
standards set by law.
MS. POPE added that policies and procedures dictate a physician
must have a method of quality assurance and at a minimum 2 days
each quarter of direct personal contact for reviewing a PAs
performance.
1:48:31 PM
JENNY FAYETTE, Board Member, Alaska Academy of Physician
Assistants (AKAPA), Anchorage, Alaska, testified by invitation
on SB 89 and replied that regulations already authorize the
State Medical Board to oversee collaborative agreements,
requiring them in writing. The board is updating these rules to
streamline the process, and SB 89 specifies that such
regulations will also apply to PAs with fewer than 4,000
clinical hours.
1:49:21 PM
CHAIR BJORKMAN asked if it would be beneficial to specify in
regulation or statute the number of charts or cases a PA must
review with their supervising physician as part of their
collaborative agreement.
1:49:40 PM
MS. FAYETTE stated her belief that overly restrictive
collaborative plan requirements make it harder to employ PAs. SB
89 aims to safely expand employment opportunities, and there is
no research indicating that specifying a set number of case
reviews improves quality of care.
1:50:22 PM
CHAIR BJORKMAN asked whether it would be appropriate for a PA to
review the top 10 most complex or uncertain cases with their
supervising physician as a baseline for collaboration.
1:50:48 PM
SENATOR TOBIN replied that PAs often seek input from various
medical professionals, not just their collaborating physicians.
With PAs consulting multiple experts on complex cases, a chart
review by one physician may not provide the same quality of
oversight, reflecting the collaborative nature of
multidisciplinary medical practice.
1:51:29 PM
CHAIR BJORKMAN asked who is permitted to use the title "doctor"
or similar terms, and whether nurse practitioners with a PhD
should use that title in clinical settings, given potential
confusion for patients.
1:52:13 PM
SENATOR TOBIN replied that SB 89, Section 17, page 9, lines 21-
26, clearly [AS 08.64.380(6)(B)] defines in statute how medical
professionals may display their titles so patients can identify
their credentials, requiring PAs to visibly identify themselves
as physician assistants, similar to nurse practitioners. Second,
individuals who earn a doctorate, such as in psychology or other
fields, have the right to use the title "Doctor" to reflect
their academic achievement.
1:53:39 PM
CHAIR BJORKMAN opened public testimony on SB 89.
1:54:37 PM
CANDACE HICKEL, representing self, Anchorage, Alaska, testified
in support of SB 89 and advocated for addressing healthcare gaps
in areas facing provider shortages. PAs and nurse practitioners
perform similar clinical roles, but only nurse practitioners
have independent licensure. She said current laws requiring
collaborative agreements create barriers, as a PA cannot
practice if their supervising MD moves, leaving communities
without care. These agreements are seen as outdated
administrative burdens, unnecessary for ensuring quality. SB 89
proposes independent licensure for PAs to improve access and
allow them to practice fully within their training and
capabilities.
1:56:47 PM
KARI BERNARD, representing self, Anchorage, Alaska, testified in
support of SB 89 and stated that as a PhD-trained PA, she does
not use the title "Doctor" to avoid patient confusion and to
comply with Alaska law. She said National research shows PA-
delivered care is safe, effective, and sometimes superior, with
lower complications, mortality, hospitalizations, and re-
admissions, while also being cost-effective. PAs can help reduce
healthcare costs through shorter hospital stays and fewer
visits. SB 89 supports removing administrative burdens on PAs,
enabling them to better serve rural, vulnerable, and well-
resourced communities while filling provider gaps affordably.
1:58:59 PM
DR. MOLLY SOUTHWORTH, M.D., representing self, Anchorage,
Alaska, testified in opposition to SB 89 and acknowledged the
value of supporting PAs but argued they are not trained for
independent practice, and safety in such settings has not been
demonstrated, as existing studies reflect supervised care. She
proposed focusing on providing high-quality medical care through
strategic planning rather than licensing professionals beyond
their training. She said data from 2023 shows that only 43
percent of Alaskan PAs practice primary care, down from 47
percent in 2021, and independent licensure alone will not
increase this. Improving primary care and making it more
attractive requires addressing administrative burdens,
inequitable compensation, poor support, and burnout. Physician
leaders are developing a coordinated plan and invite
collaboration from others.
2:01:40 PM
JARED WALLACE, representing self, Kenai, Alaska, testified in
support of SB 89 and stated that Odyssey Family Practice in
Kenai serves over 6,000 patients, but care is constrained by the
requirement of a collaborative plan. He said he has experienced
collaborative physicians dying or losing licensure, making it
increasingly difficult to secure collaborators. He said
currently he pays $96,000 annually to maintain a collaborated
plan. Over 15 years, he has built strong professional
relationships with various specialists, which guide patient care
regardless of formal collaborative agreements. He argued that
professional relationships, not collaborative plans, are key to
delivering quality care. Collaborative agreements, in their
experience, act as barriers, risking patient access if
disrupted, rather than improving outcomes.
2:04:16 PM
KATHY TODD, Physician, Alaska Academy of Family Physicians,
Valdez, Alaska, testified in opposition to SB 89 and explained
that while PAs and nurse practitioners are capable, their
training is less extensive than that of physicians or even
advanced medical students. She said physicians undergo 1115
years of education, compared to six or seven for PAs, and the
proposed 4,000 additional supervised hours would not equal the
rigor of medical training. She argued that PAs are not prepared
for independent practice. She recommended amendments requiring
more supervised training and a team-based structure with
physicians. She added that independent practice for PAs or nurse
practitioners would reduce the quality of care, especially in
Alaska's complex and remote healthcare environment.
2:06:48 PM
MICHAEL MICHAUD, representing self, Mat-Su Valley, Alaska,
testified in support of SB 89 and stated that as a PA he has
practiced in both urban and rural Alaska, including the Alaska
Native Medical Center and Southcentral Foundation. He said in
rural and remote clinics, PAs often work independently without a
physician present. He stated that SB 89 would modernize
regulations to reflect the independent practice that already
occurs throughout Alaska.
2:08:37 PM
MARGARET CARLSON, President, Alaska Academy of Family
Physicians, Anchorage, Alaska, testified in opposition to SB 89
and stated that she is a physician who has collaborated with PAs
for the past 10 years. She said she recognizes the value and
limitations of PAs. She urged lawmakers to consider amendments
that individual physicians have submitted, such as requiring
more training hours like Utah's 10,000-hour model, to strengthen
skills and confidence. She stressed the importance of
maintaining team-based, collaborative care, warning that
independence could erode that structure. She noted there is no
data supporting PA independence and argued that physician
oversight helps reduce costs and improve care quality. She
cautioned that SB 89 could increase costs and worsen access, as
independently practicing PAs may not choose primary care.
2:11:08 PM
KATHERINE VAN ATTA, representing self, Wasilla, Alaska,
testified in support of SB 89 and described extensive experience
working as a PA in remote Alaska communities such as Adak and
Naknek. She pointed out that SB 89 concerns independent
licensure, not independent practice, and noted that most
healthcare professionals already hold independent licenses. She
explained that independent licensure allows continued
collaboration with physicians while ensuring continuity of care
despite physician shortages. Without it, frequent physician
turnover could force her to stop working and reduce patient
access. She concluded that SB 89 would expand hiring flexibility
and improve access to healthcare, especially in rural areas.
2:13:28 PM
JENNIFER PERKINS, representing self, Anchorage, Alaska,
testified with concerns on SB 89 as written and praised the
skill and dedication of PAs she has worked with in both rural
and urban settings. She noted that medicine is increasingly
complex and that physicians receive over 12,000 supervised
clinical hours, giving them broader exposure and deeper
training. While acknowledging that experienced PAs can be highly
capable, she believes 4,000 hours of supervised training is
insufficient for independent practice. She supports potential
amendments but emphasized the need for more extensive
preparation to meet Alaska's unique healthcare challenges.
2:15:17 PM
NICHOLAS COSENTINO, representing self, Anchorage, Alaska,
testified in opposition to SB 89 and acknowledged the passion on
both sides of the SB 89 debate, noting that patient care is
complex and often uncertain. He emphasized that physicians rely
on years of intensive education and residency to make critical
decisions, and 4,000 hours of PA training cannot match that
depth. While recognizing PAs as valuable team members who often
deliver excellent care, he noted that errors and missed details
still occur. He stressed the importance of collaboration between
physicians and PAs to maintain high-quality patient care. He
urged lawmakers to vote against SB 89, arguing that teamwork,
not independence, ensures the best outcomes for Alaskans.
2:18:20 PM
CHAIR BJORKMAN closed public testimony on SB 89.
2:18:51 PM
CHAIR BJORKMAN asked what role the Division of Corporations,
Business and Professional Licensing (CBPL) play in overseeing
this process of licensing PAs and transitioning them from
practice under a physician to independent practice.
2:19:19 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing (CBPL), Department of Commerce, Community
and Economic Development (DCCED), Anchorage, Alaska, answered
questions on SB 89. She responded that the division's role is to
ensure that all the necessary documentation and requirements
have been met for licensure and that the role would continue
under SB 89.
2:20:14 PM
CHAIR BJORKMAN asked if the division has any concerns about any
potential liability that might come from the concepts in SB 89.
2:20:41 PM
MS. ROBB replied that she does not anticipate any great burden
on the legislature. The division submitted a zero fiscal note
for SB 89, noting it will not significantly impact their
workload. She said as collaborative plan requirements phase out
over time, the administrative burden will decrease. This change
is expected to reduce the amount of paperwork the division must
process and track.
2:21:32 PM
SENATOR YUNDT asked if similar legislation has been passed in
other states.
2:21:57 PM
SENATOR TOBIN replied yes. She said several states, including
North Dakota, Wyoming, Iowa, South Dakota, Montana, New
Hampshire, and Utah, have created pathways for independent PA
licensure. These states share similarities with Alaska, such as
rural populations and challenges in attracting qualified medical
providers.
2:22:35 PM
SENATOR YUNDT asked how the number of required clinical hours in
other states' legislation compares to each other and to Alaska.
2:22:52 PM
SENATOR TOBIN replied that states requirements vary, from none
in North Dakota to 10,000 in Utah. SB 89 does not change current
PA education standards, which already include 2,000 clinical
hours during a 27-month program. It adds 4,000 additional hours
before a PA can seek independent licensure, totaling 6,000
clinical hours overall.
2:24:04 PM
CHAIR BJORKMAN held SB 89 in committee.
2:24:11 PM
At ease.
SB 170-GAMING; ELECTRONIC PULL-TABS
2:25:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 170 "An Act relating to gaming;
relating to bingo; relating to pull-tabs and electronic pull-
tab systems; and providing for an effective date."
2:25:59 PM
CHAIR BJORKMAN speaking as sponsor presented a summary of SB 170
and stated that the legislation aims to modernize and reform
Alaska's charitable gaming statutes after years of work and
stakeholder input. SB 170 builds on previous efforts by the
governor's administration and addresses challenges facing
nonprofits. He said paper pull tabs are now four to five times
higher in price and have severely reduced the profit margin
charities rely on, as most games return 8590 percent of revenue
to players. SB 170 seeks to restore the ability of charitable
organizations' to generate funds from gaming. He said the goal
is to ensure charitable gaming continues to benefit nonprofits,
such as youth sports, senior centers, and other community
organizations.
2:28:41 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, provided the sectional analysis for
SB 170:
[Original punctuation provided.]
SB 170 Gaming; Electronic Pull-Tabs
Ver. \I
This is a summary only. Note that this summary should
not be considered an authoritative interpretation of
the bill and the bill itself is the best statement of
its contents.
Section 1: Amends AS 05.15.030(a) Required notices
applicant, permittee, or licensee; Removing the notice
requirement to the nearest municipality by an
applicant, permittee, or licensee.
Section 2: Amends AS 05.15.030(c) Required notices
applicant, permittee, or licensee; Removing the notice
requirement to "the local government."
Section 3: Amends AS 05.15.070 Investigations;
Granting the department authority to investigate
licensed and unlicensed gaming operations as well as
administer civil penalties.
Section 4: Amends AS 05.15.083 Reports to departments
by operators; Removing certain reporting requirements
from operator reports to the department.
Section 5: Amends AS 05.15.087(a) Operator's reports
to permittee and payment of net proceeds; Removing the
requirement that the monthly report include a daily
summary of activity and the requirement that expenses
be included in the report. Adds prize payouts to the
list of information to be reported. Adds electronic
funds transfer as an acceptable form of payment by an
operator.
Section 6: Amends AS 05.15.105(b) Persons prohibited
from involvement; Adding a reference to new paragraph
(c) of this section.
Section 7: Amends AS 05.15.105 Persons prohibited from
involvement; Adding a new paragraph (c) prohibiting
the issuance of a license to a manufacturer or
distributor if a parent company, sister company or
subsidiary of the manufacturer has been convicted of a
violation of a law that would disqualify the parent
company, sister company or subsidiary under this
section.
2:30:56 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 8: Amends AS 05.15.115(b) Contracts between
permittees and operators; Adding authorization for an
operator to pool permittees and divide the income and
payouts among permittees on a percentage basis at the
end of each month.
Section 9: Amends AS 05.15.115(d) Contracts between
permittees and operators; Transferring the contract
submittal requirement from the permittee to the
operator. Changes the required method of submission of
contracts to the department for approval from
certified mail to electronic submission. \
Section 10: Amends AS 05.15.122 Operator's license;
Adding two new subsections.
(e) Permitting an operator to conduct electronic
pull-tab activities on behalf of a municipality or a
qualified organization if the operator has been issued
an electronic pull-tab endorsement, and establishing
requirements that must be met for the operator to
receive an electronic pull-tab endorsement.
(f) Allowing for the designation of a temporary
party to conduct activities for 120 days should an
operator die.
Section 11: Amends AS 05.15.122(e) Operator's license;
Removing from the language created in Section 10 of
this bill the requirement of an operator to conduct
pull-tabs for the preceding three years on January 1,
2031. The effective date is found in Section 51 of
this bill.
Section 12: Amends AS 05.15.128(a) Revocation of an
operator's license; Removing the minimum 15 percent of
annual gross income requirement as a trigger for
license revocation. Adds new paragraph 2 relating to
multiple-beneficiary permit payments and reporting as
an additional trigger for license revocation.
Section 13: Amends AS 05.15.165(a) Operators; Adding
electronic funds transfer as an acceptable form of
payment to a permittee.
2:33:17 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 14: Amends AS 0515.165(c) Operators; Allowing
a sign to be posted directing individuals to a website
where required information is available in place of an
actual informational sign.
Section 15: Amends AS 05.15.170(a); Suspension or
revocation of permit, license, or vendor registration;
Adding that a permit, license or vendor registration
may be suspended or revoked upon conviction of the
owner or manager of a parent company, sister company
or subsidiary of the licensee or vendor.
Section 16: Amends AS 05.15.170 Suspension or
revocation of permit, license, or vendor registration;
Adding new subsections.
(c) Requires notification by the department to an
operator of the suspension or revocation of a permit,
license or vendor registration be via electronic mail
and shall be posted on a publicly accessible website
created for citizens to interact with multiple state
services. (e.g., myAlaska)
(d) Requires notification by the department to a
manufacturer of the suspension or revocation of a
distributor and that notice shall be via electronic
mail and shall be posted on a publicly accessible
website created for citizens to interact with multiple
state services. (e.g. myAlaska)
Section 17: Amends AS 05.15.180(b) Limitations on
authorized activity; Adding electronic pull-tabs to
the authorized gaming activities in the state.
Section 18: Amends AS 05.15.180(d) Limitations on
authorized activity; Increasing the maximum monthly
and annual value of door prizes which may be offered
by municipality, a qualified organization or under
authority of a multiple-beneficiary permit.
2:35:08 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 19: Amends AS 05.15.180(e) Limitations on
authorized activity; Requiring the department adopt
regulations setting bingo game prize limits. Increases
the maximum monthly and annual value of door prizes
which may be offered by a bingo hall or parlor.
Establishes that an operator may offer progressive
bingo games and establishes how progressive bingo
gross receipts and prizes be carried over to another
game and how prizes are awarded.
Section 20: Amends AS 05.15.180(f) Limitations on
authorized activity; Specifies no person under 18
years of age may play bingo.
Section 21: Amends AS 05.15.180(g) Limitations on
authorized activity; Removing the $500,000 prize cap
from municipalities and qualified organizations who
contract with an operator. Excludes electronic
pulltabs from the provisions in this subsection.
Section 22: Amends AS 05.15.180 Limitations on
authorized activity; Adding two new subsections:
(i) Sets the annual prize limit for a
municipality or qualified organization at
$4,000,000 for electronic pull-tabs. Sets the
annual prize limit for a multiple-beneficiary
permit to $4,000,000 times the number of holders
of the permit for electronic pull-tabs.
(j) Grants the department the option to increase,
by regulation, the prize amount in (g) and (i) of
this section by up to 10 percent, once every five
years.
Section 23: Amends AS 05.15.181(d) Pull-tab
manufacturers; Clarifying that a pull-tab manufacturer
may distribute pull-tabs only to a licensed
distributor.
2:36:57 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 24: Amends AS 05.15.181 Pull-tab
manufacturers; Adding twelve new subsections
(f) Prohibiting a pull-tab manufacturer from
modifying or paying for modifications to a building to
accommodate gaming activities.
(g) Prohibits a manufacturer, an owner or
employee of a manufacturer, a close family member of a
manufacturer, or a parent, sister, or subsidiary
company from giving gifts or other things of value to
a vendor, operator, permittee or qualified
organization with a total value of more than $250 per
calendar year.
(h) Requires a pull-tab manufacturer have a
separate endorsement on their license prior to
distributing an electronic pull-tab system in the
state. Requires electronic games be tested and
certified by an independent gaming testing laboratory
prior to distribution.
(i) Prohibits a manufacturer from distributing
pull-tabs if a manufacturer, an owner or employee of
the manufacturer or a close family member of an owner
or employee of the manufacturer or a parent company,
sister company or subsidiary of the manufacturer holds
an interest in the distributor.
(j) Establishes criteria under which a
manufacturer may refuse to sell gaming equipment or
paper pull-tabs to a licensed distributor.
(k) Establishes subsection (j) is not applicable
to application software and computer programs and
equipment used in production, playing and reporting of
approved pull-tab games.
(l) Requires a manufacturer provide the same
prices and quantity requirements for paper pull-tabs
to each distributor.
(m) Clarifies terms under which a manufacturer
may restrict the sale of exclusive pull-tab games.
(n) Requires a manufacturer submit to the
department a copy of each contract with a distributor
within seven days of signing.
(o) Restricts point-of-sale data from paper
tickets and bingo.
(p) Prohibits issuance of a manufacturer's
license to a person otherwise prohibited under AS
05.15.105.
(q) Prohibits connection of the price or
availability of a paper to an electronic pull-tab game
and vice-versa.
2:39:42 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 25: Amends AS 05.15.183(a) Pull-tab
distributors; Requiring a distributor have a license
to distribute electronic pull-tab systems. Prohibits
the issuance of a distributor's license by the
department if the person is licensed as an operator or
participates in another aspect of the manufacture or
sale of pull-tabs.
Section 26: Amends AS 05.15.183(c) Pull-tab
distributors; Adding that electronic pull-tab systems
may only be distributed from a location within the
state.
Section 27: Amends ASA 05.15.183(e) Pull-tab
distributors; Establishes that a distributor may
deliver electronic pull-tab series directly to a
vendor.
2:40:31 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 28: Amends AS 05.15.183 Pull-tab distributors;
Adding eight new subsections.
(f) Establishes a distributor must have an
electronic pull-tab endorsement prior to distributing
an electronic pull-tab system.
(g) Prohibits issuance of a distributor's license
to a person otherwise prohibited under AS 05.15.105.
(h) Establishes restricted actions of a
distributor.
(1) Prohibits gifts, compensation or other
things of value greater than $25 to a
municipality or qualified organization, or an
employee or agent of a municipality or
qualified organization.
(2) Prohibits modification of a building for
the purposes of accommodating a gaming system,
including electrical work or utility
connection.
(3) Prohibits giving compensation or a thing of
value to an owner or lessor of a gaming
premises.
(4) Prohibits participation in gaming
activities at a premises using equipment from
that distributor.
(5) Prohibits alteration of modification of
gaming equipment, except to add a last sale
sticker.
(6) Prohibits obtaining or using point-of-sale
information.
(7) Prohibits connection of the price or
availability of a paper to an electronic pull-
tab game and vice-versa.
(8) Prohibits a distributor from being an
owner, shareholder or subsidiary of a
manufacturer.
(9) Restricts distribution of a pull-tab game
to a permittee or licensee owned or managed by
a person within two degrees of consanguinity to
an owner or employee of a distributor.
(i) Requires electronic pull-tabs meet the
requirements of AS 05.15.186.
(j) Allows up to $250 a year in marketing and
promotional materials may be provided to a qualifying
permit holder.
(k) Requires a distributor submit copies of
contracts with a permittee, multiple-beneficiary
permittee, vendor or operator to the department.
(l) Requires the department provide a serialized
stamp to a distributor and requires tablets be
stamped.
2:43:21 PM
SENATOR DUNBAR asked if there was a draft of the sectional
summary online.
CHAIR BJORKMAN replied no.
SENATOR DUNBAR noted that laws should be understandable to the
public and questioned the use of the obscure term
"consanguinity" instead of "blood relative." He suggested
consulting the drafter to consider using clearer, more common
language in future legislation.
2:44:38 PM
MR. JACKSON continued with the section analysis for SB 170:
Section 29: Amends AS 05.15.185 Distribution of pull-
tabs; Updating serial number and integrity
requirements to apply to electronic pull-tabs as well
as paper. Allows for distribution of electronic pull-
tab games to a vendor under 05.15.183(e).
Section 30: Amends AS 05.15.185 Distribution of pull-
tabs; Adding three new subsections:
(b) Establishes additional requirements for
electronic pull-tabs.
(c) Limits electronic pull-tab games to a maximum
of 15,000 tickets.
(d) Requires the cost of each ticket for a paper
pull-tab game be disclosed on the invoice.
Section 31: Amends AS 05.15 by adding a new section:
AS 05.15.186 Electronic pull-tabs. The new language
provides for the physical characteristics of
electronic pull-tab devices, their operation, and
security. The acceptance of credit cards, dispensing
anything of value, and any visuals that mimic the
spinning reels of a slot machine are all prohibited.
Pull-tab machines must display the serial number or
series of numbers for an electronic pull-tab, the
display, and any prize awarded and may automatically
close when all winning tickets have been played. The
new language sets limits for payouts, fees at 35
percent of gross receipts, and prohibits linking the
ability to purchase paper pull-tabs or prices to
electronic pull-tabs
Section 32: Amends AS 05.15.187(d) Operation of pull-
tab games; Clarifying that the provisions in this
subsection apply only to paper pull-tabs.
2:46:33 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 33: Amends AS 05.15.187(e) Operation of pull-
tab games; Specifies no person under 18 years of age
may access pull-tabs.
Section 34: Amends AS 05.15.187(f) Operation of pull-
tab games; Adding language specifying that the current
record-keeping requirements for permittees in this
subsection apply to paper pull-tabs and adding
language with requirements for record keeping for
electronic pull-tabs.
Section 35: Amends AS 05.15.187(i) Operation of pull-
tab games; Clarifying that the provisions in this
subsection apply only to paper pull-tabs and
increasing from $50 to $100 the prize amount at or
above which a prize winner is required to sign a
receipt.
Section 36: Amends AS 05.15.187 Operation of pull-tab
games; Adding six new subsections. Requires
designation of a person at an operation who is
responsible for overseeing pull-tabs. Allows the
department to limit the number of electronic pull-tab
machines at a location to one tablet for every six
people who may occupy the premises. Prohibits owners,
employees, and those who have access to electronic
pull-tab status reports from playing paper or
electronic pull-tabs at a location. Prohibits those
who operate or benefit from pull-tab sales from
receiving gifts from manufacturers or from individuals
or companies connected to manufacturers in excess of
$250 in a calendar year.
Section 37: Amends 05.15.188(g) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Adding the option for an alternate member in charge of
pull-tab operations and specifying that the provisions
in this subsection apply only to paper pull-tabs.
2:48:57 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 38: Amends 05.15.188(h) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Clarifying that the provisions in this subsection
apply only to paper pull-tabs.
Section 39: Amends 05.15.188(i) Pull-tab sales by
vendors on behalf of permittees; vendor registration;
Adding the option for an alternate member in charge of
pull-tab operations to accept vendor payments,
specifying that the provisions in this subsection
apply only to paper pull-tabs, and allowing for
electronic payments from vendors to permittees.
Section 40: Amends 05.15.188 Pull-tab sales by vendors
on behalf of permittees; vendor registration; Adding
nine new subsections. Provides a permittee - vendor
contractual limit of 30 percent of gross receipts less
the prize payouts. Limits vendor locations to selling
only paper pull-tabs and electronic pull-tabs on
portable devices. Specifies vendors monthly reporting
requirements, and weekly payment schedule. Allows for
a vendor to pool permittees, specifies that cash
shortages are the vendor's responsibility, and
prohibits registration of vendors that are prohibited
under AS 05.15.105. Also prohibits vendors from
receiving gifts of more than $250 in a year from
manufacturers or from individuals or companies
connected to manufacturers.
Section 41: Amends AS 05.15.640(a) Restrictions on use
of broadcasting; online gaming; Removing the
prohibition on using broadcasting to promote a
charitable gaming activity.
Section 42: Amends AS 05.15.640(c) Restrictions on use
of broadcasting; online gaming; Adding language
defining "internet" and "internet communication" for
the purpose of conducting charitable gaming activities
as allowed under this subsection.
Section 43: Amends 05.15.690(1) Definitions; Adding
taxes collected under AS 05.15.184 to adjustments that
may be made to gross income.
2:51:15 PM
MR. JACKSON continued with the sectional analysis for SB 170:
Section 44: Amends 05.15.690(33) Definitions; Removing
restrictions on what is an allowed expense against
gross receipts.
Section 45: Amends 05.15.690(39) Definitions; Adding
electronic representation of a card to the definition
of pull-tab game, allowing for electronic pull-tabs.
Section 46: Amends 05.15.690(40) Definitions; Adding
school-based extracurricular or co-curricular booster
clubs to the list of qualified organizations that may
benefit from pull-tab operations.
Section 47: Amends 05.15.690(46) Definitions; Adding
electronic pull-tab serial numbers to the definition
of serial numbers.
Section 48: Amends 05.15.690 Definitions; Adding
definitions for "distributor," "electronic pull-tab
systems," "immediate family member" and
"manufacturer."
Section 49: Repeals statutes requiring regulations be
consistent with the North American Gaming Regulators
Association, limiting permittees to contracting with
only one operator, requiring permittees to use
proceeds within one year, repealing the list of
allowed expenses against revenue from pull-tab
operations, repeals penalty language for operators
claiming unauthorized expenses, repeals language
allowing the department to authorize non-commercial
stations to broadcast limited conduction of gaming
activity, and repeals the definition of "internet" and
"internet connection" in this section.
Section 50: Provides that AS 05.15.183(m) only applies
to contracts entered into on or after January 1, 2026.
Section 51: Provides an effective date of January 1,
2031 for Section 11 of the bill, repealing the
requirement that new electronic pull-tab vendors have
three years of experience providing paper pull-tabs to
venues in Alaska.
Section 52: Provides an effective date of January 1,
2026 for all other sections of the bill.
2:54:02 PM
CHAIR BJORKMAN noted an oversight in Section 40 of the sectional
analysis for SB 170, which sets limits on vendor revenue: 30
percent for paper pull tabs and 25 percent for electronic pull
tabs. The lower limit for electronic pull tabs reflects higher
revenue potential and reduced employee burden, consistent with
experiences in other states.
2:55:37 PM
CHAIR BJORKMAN held SB 170 in committee.
2:55:54 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:55 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB170 ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Sponsor Statement ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Sectional Summary ver I.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB170 Fiscal Note DOR-TAX 04.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 170 |
| SB89 Public Testimony-combined 03.10 and 03.12.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email Rachel Samuelson 03.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email-Delissa Culpeppper 04.15.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Email-Emily Olsen 03.13.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK Academy of Family Physicians 03.14.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK Academy of Pediatrics 03.13.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |
| SB89 Public Testimony-Letter-AK State Medical Board-REVISED 03.21.25.pdf |
SL&C 4/16/2025 1:30:00 PM |
SB 89 |