Legislature(2023 - 2024)BARNES 124
04/10/2023 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB60 | |
| HB112 | |
| HB87 | |
| HB86 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 86 | TELECONFERENCED | |
| += | HB 88 | TELECONFERENCED | |
| + | HB 60 | TELECONFERENCED | |
| *+ | HB 100 | TELECONFERENCED | |
| *+ | HB 147 | TELECONFERENCED | |
| += | HB 73 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 112 | TELECONFERENCED | |
| += | HB 87 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 10, 2023
3:16 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Zack Fields
MEMBERS ABSENT
Representative Ashley Carrick
COMMITTEE CALENDAR
HOUSE BILL NO. 60
"An Act relating to the licensing of runaway shelters; relating
to advisors to the board of trustees of the Alaska Mental Health
Trust Authority; relating to the sharing of confidential health
information between the Department of Health and the Department
of Family and Community Services; relating to the duties of the
Department of Health and the Department of Family and Community
Services; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 112
"An Act relating to the Board of Pharmacy; relating to the
practice of pharmacy; relating to pharmacies; relating to
prescription drug manufacturers; relating to prescriptions for
epinephrine; relating to the administration of epinephrine; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 87
"An Act relating to record checks for certain employees of the
Department of Revenue; relating to permanent fund dividends; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 86
"An Act relating to the business of money transmission; relating
to money transmission licenses, licensure requirements, and
registration through the Nationwide Multistate Licensing System
and Registry; relating to the use of virtual currency for money
transmission; relating to authorized delegates of a licensee;
relating to acquisition of control of a license; relating to
record retention and reporting requirements; authorizing the
Department of Commerce, Community, and Economic Development to
cooperate with other states in the regulation of money
transmission; relating to permissible investments; relating to
violations and enforcement of money transmission laws; relating
to money transmission license exemptions; relating to payroll
processing services; repealing currency exchange licenses; and
providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 88
"An Act relating to work quotas for employees at warehouse
distribution centers; and providing for an effective date."
- BILL HEARING CANCELED
HOUSE BILL NO. 100
"An Act relating to teacher and public employee leave."
- BILL HEARING CANCELED
HOUSE BILL NO. 147
"An Act relating to teacher certificates for retired teachers."
- BILL HEARING CANCELED
HOUSE BILL NO. 73
"An Act relating to investigations conducted by the Department
of Commerce, Community, and Economic Development."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: HB 60
SHORT TITLE: RUNAWAYS; DFCS/DOH: DUTIES/LICENSING/INFO
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/03/23 (H) READ THE FIRST TIME - REFERRALS
02/03/23 (H) HSS, FIN
02/28/23 (H) HSS AT 3:00 PM DAVIS 106
02/28/23 (H) Heard & Held
02/28/23 (H) MINUTE(HSS)
03/07/23 (H) HSS AT 3:00 PM DAVIS 106
03/07/23 (H) Heard & Held
03/07/23 (H) MINUTE(HSS)
03/14/23 (H) HSS AT 3:00 PM DAVIS 106
03/14/23 (H) <Bill Hearing Canceled>
03/23/23 (H) HSS AT 3:00 PM DAVIS 106
03/23/23 (H) Moved CSHB 60(HSS) Out of Committee
03/23/23 (H) MINUTE(HSS)
03/27/23 (H) HSS RPT CS(HSS) 1DP 5NR
03/27/23 (H) DP: PRAX
03/27/23 (H) NR: FIELDS, SUMNER, RUFFRIDGE, SADDLER,
MINA
03/27/23 (H) L&C REPLACES FIN REFERRAL
03/27/23 (H) BILL REPRINTED
04/03/23 (H) L&C AT 3:15 PM BARNES 124
04/03/23 (H) -- MEETING CANCELED --
04/05/23 (H) L&C AT 3:15 PM BARNES 124
04/05/23 (H) -- MEETING CANCELED --
04/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 112
SHORT TITLE: PROFESSION OF PHARMACY
SPONSOR(s): RUFFRIDGE
03/13/23 (H) READ THE FIRST TIME - REFERRALS
03/13/23 (H) HSS, L&C
03/23/23 (H) HSS AT 3:00 PM DAVIS 106
03/23/23 (H) Heard & Held
03/23/23 (H) MINUTE(HSS)
03/28/23 (H) HSS AT 3:00 PM DAVIS 106
03/28/23 (H) Moved HB 112 Out of Committee
03/28/23 (H) MINUTE(HSS)
03/29/23 (H) HSS RPT 5DP
03/29/23 (H) DP: MINA, RUFFRIDGE, SUMNER, FIELDS,
PRAX
04/05/23 (H) L&C AT 3:15 PM BARNES 124
04/05/23 (H) -- MEETING CANCELED --
04/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 87
SHORT TITLE: PERM FUND; EMPLOYMENT; ELIGIBILITY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/27/23 (H) READ THE FIRST TIME - REFERRALS
02/27/23 (H) L&C, FIN
03/10/23 (H) L&C AT 3:15 PM BARNES 124
03/10/23 (H) Heard & Held
03/10/23 (H) MINUTE(L&C)
03/17/23 (H) L&C AT 3:15 PM BARNES 124
03/17/23 (H) <Bill Hearing Canceled>
04/03/23 (H) L&C AT 3:15 PM BARNES 124
04/03/23 (H) -- MEETING CANCELED --
04/05/23 (H) L&C AT 3:15 PM BARNES 124
04/05/23 (H) -- MEETING CANCELED --
04/10/23 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 86
SHORT TITLE: MONEY TRANSMISSION; VIRTUAL CURRENCY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/27/23 (H) READ THE FIRST TIME - REFERRALS
02/27/23 (H) L&C, FIN
03/08/23 (H) L&C AT 3:15 PM BARNES 124
03/08/23 (H) Heard & Held
03/08/23 (H) MINUTE(L&C)
03/17/23 (H) L&C AT 3:15 PM BARNES 124
03/17/23 (H) Heard & Held
03/17/23 (H) MINUTE(L&C)
04/03/23 (H) L&C AT 3:15 PM BARNES 124
04/03/23 (H) -- MEETING CANCELED --
04/05/23 (H) L&C AT 3:15 PM BARNES 124
04/05/23 (H) -- MEETING CANCELED --
04/10/23 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
HEATHER CARPENTER, Deputy Commissioner
Office of the Commissioner
Department of Health
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, House Rules by
request of the governor, gave the sectional analysis of HB 60.
CLINTON LASLEY, Deputy Commissioner
Office of the Commissioner
Department of Family and Community Services
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, House Rules by
request of the governor, introduced HB 60.
BRAEDEN GARRETT, Staff
Representative Justin Ruffridge
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Ruffridge,
prime sponsor, gave the sectional analysis of HB 112.
ASHLEY SCHABER, PharmD, MBA, BCPS, Chair
Alaska Board of Pharmacy
Anchorage, Alaska
POSITION STATEMENT: Gave a PowerPoint presentation on HB 112,
titled "House Bill 112: Profession of Pharmacy."
JESSE LOGAN, Staff
Representative Jesse Sumner
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of the sponsor, House Rules by
request of the governor, gave a summary of changes of CSHB 87,
Version S.
LAHKA PEACOCK, Owner
QuyanaCard
Nome, Alaska
POSITION STATEMENT: Testified in support of HB 86.
ADAM FLEISHER
The Money Services Roundtable
Washington, D.C.
POSITION STATEMENT: Testified in support of HB 86.
ROB SCHMIDT, Director
Division of Banking and Securities
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Provided invited testimony on HB 86.
ACTION NARRATIVE
3:16:48 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 3:16 p.m. Representatives Fields,
Ruffridge, Saddler, and Sumner were present at the call to
order. Representatives Prax and Wright arrived as the meeting
was in progress.
HB 60-RUNAWAYS; DFCS/DOH: DUTIES/LICENSING/INFO
3:18:26 PM
CHAIR SUMNER announced that the first order of business would be
HOUSE BILL NO. 60, "An Act relating to the licensing of runaway
shelters; relating to advisors to the board of trustees of the
Alaska Mental Health Trust Authority; relating to the sharing of
confidential health information between the Department of Health
and the Department of Family and Community Services; relating to
the duties of the Department of Health and the Department of
Family and Community Services; and providing for an effective
date."
3:18:50 PM
CLINTON LASLEY, Deputy Commissioner, Office of the Commissioner,
Department of Family and Community Services (DFCS), on behalf of
the sponsor, House Rules by request of the governor, introduced
HB 60. He stated that HB 60 would provide some clean-up of
Executive Order 121, which went into effect July 1, 2023. He
reminded the committee that Executive Order 121 had reorganized
the Department of Health and Social Services into the Department
of Health (DOH) and DFCS. He said the changes the proposed
legislation would make are minor, but important, and the
departments would be able to continue their operations. The
proposed legislation would require that DFCS share information
with DOH, as this would continue previous procedures. He
continued that it would add the commissioner of DFCS as a
statutory advisor to the Board of the Alaska Mental Health
Trust. Lastly, he said, it would clarify the statute concerning
licensing duties as assigned to the departments, specifying that
DOH would be responsible for licensure regulations, while DFCS
would maintain and register licenses for the programs for
runaway youth.
3:21:21 PM
HEATHER CARPENTER, Deputy Commissioner, Office of the
Commissioner, Department of Health, on behalf of the sponsor,
House Rules by request of the governor, paraphrased from the
sectional analysis of HB 60, [copy included in the committee
packet] which read as follows [original punctuation provided]:
Section 1 Amends AS 12.62.400(a) to assign
responsibility for criminal history checks for the
licensing of runaway shelters to the Department of
Health rather than the Department of Family and
Community Services.
Section 2 Amends AS 18.65(f)(1) to amend the
definition of "department" to include the Department
of Family and Community Services.
Section 3 Amends AS 44.25.260 to add the Commissioner
of the Department of Family and Community Services to
the list of advisors to Alaska Mental Health Trust
Authority board.
Section 4 Amends AS 47.05 by adding a new section: (1)
requiring the Department of Health and Department of
Family and Community Services share identifiable
health information between and within departments as
necessary to enable the efficient and effective
administration and operation of both departments;
(2) establishing that information acquired, used,
disclosed, and stored under this section be stored in
a confidential and secure environment;
(3) establishes the definition of "identifiable
health information" with the existing definition in AS
18.15.395.
3:24:28 PM
MS. CARPENTER continued paraphrasing from the sectional
analysis, which read as follows [original punctuation provided]:
Sections 5-9 and 11-14 Amends multiple statues and
adds a new subsection (Section 6) to correctly
identify the roles of the Department of Health and the
Department of Family and Community Services related to
programs for runaway minors. Specifically, the
Department of Health is responsible for regulation and
licensure, while the Department of Family and
Community Services maintains a register of licensed
runaway programs, awards community grants, and
receives notifications related to
Section 10 Amends AS 47.10.396 to clarify that records
required by the both the departments that are held by
licensed shelters for runaways are considered
confidential.
Section 15 Amends AS 47.32.032 to provide clarifying
language in licensing statute to identify that the
Department of Family and Community Services is
responsible for foster home licensing and certain
types of variances related to the license.
Section 16-18 Amends AS 47.32 to provide clarifying
language in licensing statute about the respective
departments having responsibility for actions related
to the entities they license.
Section 19 Amends AS 47.32.900 to clarify that the
Department of Health determines whether a facility can
be considered an "assisted living home."
Section 20 Amends AS 47.32 to add a new definition for
"applicable department" in licensing statute to
recognize the departments responsibility for actions
related to the entities they license.
Section 21 Repeals AS 47.32.010(c)(3) related to the
licensure of shelters for runaways. Specifically, this
repeal clarifies other provisions (sections 5-14) in
this bill that runaway shelters are licensed by the
Department of Health and not the Department of Family
and Community Services.
Section 22 Establishes an immediate effective date.
3:27:07 PM
REPRESENTATIVE FIELDS questioned why HB 60 is being heard by the
House Labor and Commerce Standing Committee
MS. CARPENTER answered that the House Finance Standing Committee
was removed from the schedule because there is not a fiscal
note; therefore, HB 60 was reassigned to this committee.
3:27:47 PM
CHAIR SUMNER announced that HB 60 was held over.
HB 112-PROFESSION OF PHARMACY
3:27:56 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 112, "An Act relating to the Board of Pharmacy;
relating to the practice of pharmacy; relating to pharmacies;
relating to prescription drug manufacturers; relating to
prescriptions for epinephrine; relating to the administration of
epinephrine; and providing for an effective date."
3:28:22 PM
REPRESENTATIVE RUFFRIDGE, as prime sponsor, introduced HB 112.
He stated that the proposed legislation has been worked over for
the past several years by multiple chairs of the Board of
Pharmacy, and the governor had requested this in regard to the
use of "right-touch regulations." He pointed out the
legislation is the result of a large rewrite of pharmacy
regulations, citing that the pharmacy profession has undergone
many changes over the past several decades. For example, he
said, it has gone from pharmacists going through a bachelor's
degree program to a doctoral degree program, and this produces
pharmacists who are capable of clinical work and prescribing
some medications. As a result of this change, he insisted that
the regulations need to be updated. He noted that some of these
changes would need to be statutory. He stated that the proposed
legislation is a culmination of many changes, making it a
lengthy bill consisting of multiple instances of clean-up
language.
3:30:55 PM
REPRESENTATIVE SADDLER questioned the term "right-touch
regulations."
REPRESENTATIVE RUFFRIDGE responded that this is an initiative by
the governor to update and alter the law by only regulating
"what needs to be regulated, but don't overregulate." This
would include clearing up any outdated regulations.
3:31:58 PM
BRAEDEN GARRETT, Staff, Representative Justin Ruffridge, Alaska
State Legislature, on behalf of Representative Ruffridge, prime
sponsor, gave the sectional analysis of HB 112. He stated that
Section 1 would amend AS 08.08.010(a) by designating that one
member of the Board of Pharmacy be a licensed pharmacy
technician. He stated that the main proposed changes include:
Section 2 would add an epinephrine auto-injector training
program, with the remainder of the subsections being clean-up
language; Section 3 would change internship details, along with
more clean-up language; Section 4 would add out-of-state
pharmacies and manufacturers to the list of entities that must
be licensed and inspected; Section 5 would update the compliance
requirement of the Drug Supply Chain and Security Act; Section 6
would add "pharmacy and manufacturer" to the list of out of
state inspections; Section 7 would remove the word
"registration" because the bill would mandate licensure of a
facility; Section 9 would add a salary range option for the
executive administrator; Section 10 would add the term
"apothecary" to a list which cannot be used in media or
advertising unless the store employs a licensed pharmacist with
regular hours; and Section 11 would add "pharmacist" and
"pharmacy technician" to the list of professions where a
background check is required.
3:33:59 PM
MR. GARRETT, continuing the sectional analysis, indicated that
[Section 8], Section 12 through Section 16, and [parts of
Section 18] would create and regulate the epinephrine
autoinjector program. He stated that Section 17 would define
the "board" as "the Board of Pharmacy". The remainder of
Section 18 would repeal the requirement of the two affidavits
attesting to an applicant's "good moral character," and the
registration of pharmacies located outside of the state. He
stated that Section 19 and Section 20 contain transitional
language, with Section 21 and Section 22 pertaining to the
effective date.
3:36:18 PM
ASHLEY SCHABER, PharmD, MBA, BCPS, Chair, Alaska Board of
Pharmacy, gave a PowerPoint presentation on HB 112, titled
"House Bill 112: Profession of Pharmacy" [hard copy included in
the committee packet]. She stated that she has been a
practicing pharmacist in Alaska for over 15 years. She began
the presentation by describing the Alaska Board of Pharmacy's
strategic plan, as seen on slide 2. She stated that the board
has seven members, with five being pharmacists and two being
public members. She added that the board has been focused on
the regulation changes for the past several years. She pointed
out that the fourth goal listed on the slide would grow the
economy by promoting community health and safety. She stated
that many of the proposed changes are related to this particular
goal, including the following: reviewing regulations with
reduced barriers to licensure without compromising patient
health and safety; advocating for licensure as the profession
evolves with improved patient safety; and responding to the
changes in the Drug Supply Chain Security Act.
DR. SCHABER expressed the belief that the proposed legislation
would align with the board's strategic plan and its mission,
which is to promote, preserve, and protect public health,
safety, and welfare through effective control and regulation of
the practice of pharmacy. She pointed out on slide 3 the four
goals that HB 112 would address, which are: streamlining
licensure, compliance with the Drug Supply Chain Security Act,
alignment with other relevant boards, and clarification of the
role of pharmacists in epinephrine access. Moving to slide 4
she stated that streamlining licensure would entail eliminating
unnecessary statutory forms, clarifying the Prescription Drug
Monitoring Program requirements, and adding national background
checks.
3:40:26 PM
REPRESENTATIVE SADDLER requested examples of the forms which
would be eliminated.
DR. SCHABER responded these would be the moral character
affidavit forms for pharmacist applicants. These forms
currently must be completed by two citizens and submitted to the
division to be processed. She explained that it was determined
that these forms are redundant and not required by other
relevant boards.
3:42:04 PM
DR. SCHABER moved to slide 5 which addressed compliance with the
Drug Supply Chain and Security Act. She stated that the Act is
federal legislation to protect the country's drug supply against
harmful medication. She stated that pharmacies play a key role
in this process. She added that this also addresses internet
pharmacies.
3:43:30 PM
DR. SCHABER, in response to a question from Representative
Saddler, stated that harmful drugs mostly include counterfeit
medications, and the proposed legislation would enable
pharmacies in the state to moderate the drug supply chain.
3:44:37 PM
DR. SCHABER, moving to slide 6, addressed the goal of aligning
the board's statutes with other boards in Alaska and other
states. She stated this would also allow one of the seats on
the board to be a pharmacy technician, allow the board to adopt
language for retired pharmacist status, and clarify the board's
executive administrator's salary, allowing for a pharmacist to
serve in this role.
DR. SCHABER moved to slide 7, addressing epinephrine access.
She stated that epinephrine training programs would be moved
from the Department of Health to the Board of Pharmacy. This
also would allow pharmacists to administer or prescribe
epinephrine. She added that this closely resembles regulations
concerning the administration of opioid overdose medication.
She concluded the presentation by requesting that the committee
support HB 112.
3:48:51 PM
CHAIR SUMNER announced that HB 112 was held over.
3:49:03 PM
The committee took a brief at-ease.
HB 87-PERM FUND; EMPLOYMENT; ELIGIBILITY
3:50:29 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 87, "An Act relating to record checks for certain
employees of the Department of Revenue; relating to permanent
fund dividends; and providing for an effective date."
3:50:38 PM
VICE CHAIR RUFFRIDGE moved to adopt the proposed committee
substitute (CS) for HB 87, Version 33-GH1337\S, Nauman, 3/13/23,
as a working document. There being no objection, Version S was
before the committee.
3:51:10 PM
JESSE LOGAN, Staff, Representative Jesse Sumner, Alaska State
Legislature, on behalf of the sponsor, the House Rules Standing
Committee by request of the governor, summarized the changes for
the proposed CS for HB 87, Version S. Using a chart [copy
included in the committee packet], he addressed the differences
between the section numbers used for the proposed legislation in
the drafting practices of Legislative Legal Services and the
Department of Law (DOL). Addressing the substantive changes, he
stated that DOL's Section 1, Section 2, and Section 5 have only
been slightly reworded. He continued that the original bill was
drafted by the governor's office to give extra exemptions for
allowable absences for those applying for the permanent fund
dividend (PFD). He stated that these aspects have mostly stayed
the same with some extra exemptions, including the addition of
merchant mariners in DOL's Section 3, [Section 7 in Version S].
He stated that Section 7 of Version S also addresses allowable
absences for the PFD for those in "uniform services". He stated
that DOL's Section 4 [Section 7 in Version S] addresses
allowable absences for students. He stated that Sections 7, 8,
and 9 [in Version S] have transitional language with effective
dates.
3:54:03 PM
MR. LOGAN, on slide 3, paraphrased the summary of changes
proposed by Chair Sumner's office, which read as follows
[original punctuation provided with some formatting changes]:
Section 2 Page 2 Line 9-28
•Removes the traditional formula for determining the
net income of the Permanent Fund for purposes of
calculating the amount available for appropriation
(which previously had been used only for the
distribution of the Permanent Fund Dividend.)
• This section retains the language stating that the
amount available for appropriation is 5% of the
average market value of the fund for the first five of
the preceding six fiscal years.
• The amount available for appropriation cannot exceed
the balance of the Earnings Reserve Account (ERA) as
described in AS 37.13.145 (Sec 3)
Section 3 Page 2 Line 29 through Page 3 line 3
States that the legislature may appropriate from the
ERA to the dividend fund 50% of the amount available
for appropriation
Section 4 Page 3 Line 4 through Line 22
Clarifies that under AS 37.13.145(c) the mechanism for
inflation proofing the principle of the Permanent Fund
is an appropriation by the legislature.
Section 5 Page 3 Line 23 through Page 4 Line 2
Clarifies that proceeds from State v. Amerada Hess, et
al is not available for appropriation to the dividend
fund, for inflation proofing, or the Mental Health
Trust fund but will be deposited annually into the
capital income fund (AS 37.05.565)
Section 6 Page 4 Lines 3-6
Clarifies that net income from the Mental Health Trust
Fund may not be included in the computation of the
amount of the Permanent Fund available for
appropriation
Section 8 Page 6 Lines 19-28
Provides a definition of "uniformed Services" for
purposes of dividend eligibility under AS43.23.008(a)
Section 9 Page 6 line 29 through page 7 Line 5
Adds a new subsection to AS 43.23.011 to allow a grace
period for dependents of Alaskans who experience a
medical emergency that prevents them from filing for
their dependents' permanent fund dividend by the March
31st filing deadline.
Section 10 Page 7 Lines 6-31
On page 7 line 11. Language change to clarify that the
amount in the dividend fund is "appropriated"
Section 13 Page 10 Lines 17-22
Applicability.
3:56:58 PM
The committee took an at-ease from 3:56 p.m. to 4:01 p.m.
4:01:55 PM
REPRESENTATIVE PRAX questioned whether the funds would be
transferred from the earnings reserve account to the Permanent
Fund by an appropriation, as opposed to an automatic transfer.
MR. LOGAN responded that since the early 1980s it has been in
statute as a transfer; however, he expressed the understanding
that the Alaska Permanent Fund Corporation has always viewed it
as an appropriation. He deferred to the director of the
division.
REPRESENTATIVE PRAX concurred and stated that for the purposes
of the proposed legislation "that makes sense." He expressed
the understanding that there has been discussion about changing
the constitutional language so this could be transferred by
statute and would not need an appropriation.
CHAIR SUMNER stated that this would require a constitutional
change, as currently it is an appropriation.
4:03:38 PM
REPRESENTATIVE SADDLER expressed the understanding from the
sectional analysis under the third bullet in Section 2, the size
of PFDs would be limited.
MR. LOGAN responded that this language is standard and already
in the statute, and this would make sure the earnings reserve
account would not be overdrawn. He reiterated that the language
in question is already in existing law.
4:04:54 PM
REPRESENTATIVE FIELDS expressed support for the proposed
legislation. He explained that he is drafting an amendment
which would establish a rebate for an income tax equal to the
size of the PFD. He explained that this would create a
structure where high-income families pay an income tax equal to
the dividend while lower-income families would not. He added
that nonresidents as well as residents would pay this tax. In
response to Representative Saddler, he stated that he has
requested an amendment to this effect. He continued that the
state does not have enough money currently, and this would be a
way to raise revenue. He offered that his constituents support
paying for state services in this way.
REPRESENTATIVE SADDLER questioned whether this would be an
income tax and part of the proposed legislation.
REPRESENTATIVE FIELDS stated that he is bringing this forward as
part of the discussion on whether the proposed legislation would
simply update the formula, or whether it would raise new revenue
as well.
REPRESENTATIVE SADDLER, for the record, expressed the
understanding that regarding income tax the answer to his
question was "yes."
4:07:49 PM
REPRESENTATIVE WRIGHT requested the definition of "high income"
in terms of the idea behind the possible amendment.
REPRESENTATIVE FIELDS stated that, as it is drafted in the
amendment, it would be $75,000 for an individual and $150,000
for a two-income family.
4:09:19 PM
CHAIR SUMNER advised that the discussion not move toward
proposed amendments.
4:10:20 PM
CHAIR SUMNER announced that CSHB 87, Version S, was held over.
HB 86-MONEY TRANSMISSION; VIRTUAL CURRENCY
4:10:33 PM
CHAIR SUMNER announced that the final order of business would be
HOUSE BILL NO. 86, "An Act relating to the business of money
transmission; relating to money transmission licenses, licensure
requirements, and registration through the Nationwide Multistate
Licensing System and Registry; relating to the use of virtual
currency for money transmission; relating to authorized
delegates of a licensee; relating to acquisition of control of a
license; relating to record retention and reporting
requirements; authorizing the Department of Commerce, Community,
and Economic Development to cooperate with other states in the
regulation of money transmission; relating to permissible
investments; relating to violations and enforcement of money
transmission laws; relating to money transmission license
exemptions; relating to payroll processing services; repealing
currency exchange licenses; and providing for an effective
date."
4:10:58 PM
CHAIR SUMNER summarized that HB 86 would repeal the current law
which requires currency exchange businesses to obtain a license
from the Department of Commerce, Community, and Economic
Development (DCCED) and create a new law which would require
money transmission businesses to obtain a license. He continued
that the proposed legislation would define money transmission
businesses and virtual currency, require money transmission
businesses to register with the nationwide-multistate licensing
system, and set fees for obtaining a money transmission license.
He stated that the proposed legislation would also authorize
money transmission businesses to appoint delegates to conduct
money transmission on their behalf, require money transmission
businesses to maintain a minimum net worth of $100,000, and
require money transmission businesses to maintain an equal
balance to its outstanding payments. The proposed legislation
would define permissible investments, require money transmission
businesses to file annual or quarterly reports, and require
records of transactions to be kept for at least three years. It
would authorize the DCCED to enforce regulations on money
transmission businesses, requiring these businesses to cooperate
with other states. It would also establish civil penalties and
criminal offenses for violations and provide for an effective
date.
4:13:22 PM
CHAIR SUMNER opened public testimony on HB 86.
4:13:49 PM
LAHKA PEACOCK, Owner, QuyanaCard, testified in support of HB 86.
He shared that QuyanaCard is based in Nome, and it provides
services to remote villages that do not have access to
traditional banking services. He referenced the reduction of
fees in the proposed legislation for such services, in
comparison with other money services. He explained that the
current law requires QuyanaCard to pay the expenses for
examiners who must fly to Nome from the Lower 48. He pointed
out that the examiner is the same examiner for larger
businesses, such as Google Pay, and he expressed concern that
smaller businesses have to provide the same documents and pay
the same fees as these larger businesses. He pointed out the
difficulty in starting a small business in rural Alaska with the
same requirements as larger businesses. He reiterated support
for the proposed legislation and urged the committee to support
it as well.
4:16:31 PM
REPRESENTATIVE PRAX expressed the understanding that Mr. Peacock
is operating a money transfer service.
MR. PEACOCK, in response to Representative Prax, stated that
QuyanaCard is not a bank, but a money service providing
reloadable prepaid debit cards. He stated that QuyanaCard has
partnered with local stores so individuals can deposit money on
their card in these stores. He added that QuyanaCard does not
provide loans or other types of these services.
REPRESENTATIVE PRAX expressed the understanding that QuyanaCard
is currently under banking regulations, and he suggested that
the proposed legislation would clarify that this is not a bank.
MR. PEACOCK responded that the business is regulated under the
Division of Banking and Securities. He expressed the
understanding that the requirements for banks and money
transmission services, like prepaid debit cards, are the same.
4:19:16 PM
CHAIR SUMNER, after ascertaining that there was no one else who
wished to testify, closed public testimony on HB 86. He then he
reopened public testimony.
4:19:54 PM
ADAM FLEISHER, The Money Services Roundtable, Washington, D.C.,
testified in support of HB 86, on behalf of the Money Services
Roundtable. He stated that the Money Services Roundtable is a
money transmission service group with members being some of the
larger money transmission companies in the U.S., such as Western
Union, MoneyGram, and American Express. He stated that the
Money Services Roundtable was involved in the development of the
model for the Money Transmission Modernization Act (MTMA), and
this had informed the drafting of the proposed legislation. He
explained that the idea behind MTMA is to make money
transmission companies, both large and small, uniform,
reflecting the modernized services today. He advised that money
transmission companies are not banks and cannot take consumers'
deposits; however, these companies are able to provide financial
services to customers who are often in locations not served by
banks. He pointed out that HB 86 is scaled in terms of size,
and this would address the risks and concerns of companies with
a significant amount of volume.
4:23:13 PM
CHAIR SUMNER, after ascertaining there was no one else who
wished to testify, closed public testimony on HB 86.
4:23:34 PM
REPRESENTATIVE PRAX, concerning the proposed legislation,
requested clarification between banking and money transfers. He
expressed the understanding that there is a significant
regulatory burden for money services under the banking clause.
4:24:13 PM
ROB SCHMIDT, Director, Alaska Division of Banking and
Securities, Department of Commerce, Community, and Economic
Development, answered that Mr. Peacock operates a small local
money transfer business, and it has a disadvantage to larger
money transmitters. He added that this business, along with the
larger money transfer businesses, such as PayPal and Venmo, are
not banks, rather it involves the transmission of money from one
institution to another.
CHAIR SUMNER requested a definition of "bank."
MR. SCHMIDT stated that the division regulates financial
institutions in two categories. The first category is
depository financial institutions, such as banks and credit
unions, where paychecks can be deposited, and loans can be
obtained. He continued that the second category is non-
depository, such as payday and mortgage lenders and money
transmission businesses that do not take deposits, hold money,
or make loans. He stated that two-thirds of money transmission
involves sending money from one person to another via a business
facilitating this. This transfer can be anything from a gift to
a purchase. He stated that the other third of this type of
transmission is through prepaid cards. He gave the example of
Visa cards which can be purchased in a store. These cards have
a prepaid amount that can be used for anything Visa cards can be
used for. He stated that these services are not banks, rather
they are in the business of getting money from one person to
another. He noted that this industry has exploded in the last
five years.
4:27:30 PM
CHAIR SUMNER expressed the understanding that Venmo or PayPal
can hold account balances for individuals. He requested
clarification on the difference between this and balances in a
bank. He expressed the understanding that banks hold money as a
loan to themselves from individuals.
MR. SCHMIDT concurred. He stated that these institutions are
also subject to different regulations. He added that banks and
credit unions would have insurance, while money service
businesses do not. He stated that "we are starting to get into
the deep waters and complexities of the modern financial
system." He continued that some money service businesses are
partnering with banks to hold funds, and this is mostly in
regard to payment applications on smart phones. He noted that
this has revolutionized the business.
4:29:37 PM
REPRESENTATIVE PRAX pointed out the proposed legislation
references cryptocurrency, but not as legal tender. He
requested an explanation.
MR. SCHMIDT responded that currently the law states that money
is issued by the government; however, money transmission can
include both money and monetary value. He stated that monetary
value is described under the current statue as being a broader
representation of a value that does not necessarily have to be
money. He stated that it is through this distinction that the
division has recently adopted that money transmission includes
cryptocurrency, even though it is not issued by the government.
He stated that the proposed legislation would require certain
disclosures for cryptocurrency exchanges, and it would require a
financial liquidity standard, along with other standards
concerning consumer protections.
[HB 86 was held over.]
4:32:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:32 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 60 Expanation of Changes Version A to Verson S (3-23-23).pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| LL0343-3-DFCS-CO-1-31-2023.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| LL0343-3-DOH-CO-1-31-2023.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| CSHB60(HSS).PDF |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| HB 60 Sectional Analysis (Version S) 3-23-23.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| 02.02.23 Imp. EO 121 TL House.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 60 |
| HB0112A.PDF |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| HB 112 Sponsor Statement Version B.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| HB112 HSS Hearing slides 3.23.23.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| HB 112 Sectional Analysis .pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| HB 112 Support as of 3_21 Redacted.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| Slides - HB112 L&C Hearing 4.5.23.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |
| CS H 87 Summary of Changes Chart.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 87 |
| HB 87 CS (HL&C).pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 87 |
| CS HB 87 Sectional Analysis Version S.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 87 |
| Model Output 50% POMV PFD_20230329.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 87 |
| ANTHC HB112 BOP LOS 4-6-23.pdf |
HL&C 4/10/2023 3:15:00 PM |
HB 112 |