05/02/2025 03:15 PM House LABOR & COMMERCE

        HB 178-MEDICAL DEBT: INFORMATION, DISCRIMINATION                                                                    
                                                                                                                                
3:35:30 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced  that the next order  of business would                                                               
be  HOUSE BILL  NO. 178,  "An Act  relating to  medical debt  and                                                               
consumer  credit reporting  agencies; relating  to discriminatory                                                               
practices based  on the medical  debt of a person;  and providing                                                               
for an effective date."                                                                                                         
                                                                                                                                
3:35:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GENEVIEVE  MINA,  Alaska  State  Legislature,  as                                                               
prime sponsor, answered  questions during the hearing  on HB 178.                                                               
She introduced herself for the public record.                                                                                   
                                                                                                                                
3:36:21 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  stated prior testimony  mentioned federal                                                               
preemption  and  asked  whether the  proposed  legislation  would                                                               
preempt federal policy.                                                                                                         
                                                                                                                                
3:37:22 PM                                                                                                                    
                                                                                                                                
CONRAN GUNTHER, Legislative  Counsel, Legislative Legal Services,                                                               
Legislative Affairs Agency, replied  that there were both express                                                               
preemption  concerns  and  conflict   preemption  concerns.    He                                                               
explained  that  the  express   preemption  concerns  related  to                                                               
provisions of the  Fair Credit Reporting Act  (FCRA) that clarify                                                               
what could be  subject to state regulation.  He  noted that there                                                               
were  some areas  of HB  178,  such as  the provisions  regarding                                                               
transmittable  (indisc.) debt,  that were  unclear as  to whether                                                               
they  fell under  subjects prohibited  from  state regulation  by                                                               
FCRA.   He  explained  that  conflict preemption  was  a type  of                                                               
preemption where  it is  not possible to  comply with  both state                                                               
and federal  laws simultaneously.   He noted that there  are some                                                               
provisions of HB 178 that  create conflict preemption concerns or                                                               
could violate federal law.                                                                                                      
                                                                                                                                
MR.  GUNTHER,   in  response  to  an   additional  question  from                                                               
Representative Saddler, noted that  the conflict preemption was a                                                               
larger concern.                                                                                                                 
                                                                                                                                
3:39:53 PM                                                                                                                    
                                                                                                                                
BRAD  LIPTON,  Senior  Fellow,  Consumer  Federation  of  America                                                               
(CFA),  argued  that  there was  neither  an  express  preemption                                                               
concern nor  a conflict preemption  concern.  He stated  that the                                                               
opinion  from Mr.  Gunther cited  an older  case from  2015.   He                                                               
referred to a case out of the  First Circuit, CDA v. Frey, a more                                                             
recent case, which  he asserted proved that the  provisions of HB
 were not preempted.                                                                                                         
                                                                                                                                
MR. LIPTON  additionally argued that  Alaska residents  would not                                                               
be  worse off  should HB  178 be  preempted, stating  that Alaska                                                               
would  "be  back  where  we started,"  should  there  be  federal                                                               
preemption.                                                                                                                     
                                                                                                                                
3:41:57 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SADDLER  stated that he  was not inclined  to pass                                                               
laws,  not  knowing   whether  they  were  legal  or   not.    He                                                               
recommended exercising caution.                                                                                                 
                                                                                                                                
3:42:38 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 3:42 p.m.                                                                                 
                                                                                                                                
3:43:32 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS  moved to  adopt Amendment 1  to HB  178, labeled                                                               
34-LS0569\N.3, Gunther, 5/1/25, which read as follows:                                                                          
                                                                                                                                
     Page 1, line 5, through page 2, line 27:                                                                                   
          Delete all material.                                                                                                  
                                                                                                                                
     Page 2, line 28:                                                                                                           
          Delete "Sec. 2"                                                                                                     
          Insert "Section 1"                                                                                                  
          Delete "a new subsection"                                                                                             
          Insert "new subsections"                                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 3, following line 13:                                                                                                 
          Insert a new subsection to read:                                                                                      
          "(c)  In this section, "medical debt" has the                                                                         
     meaning given in AS 45.85.800(c)."                                                                                         
                                                                                                                                
     Page 3, lines 14 - 15:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
3:44:13 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SADDLER objected.    He stated  that  he was  not                                                               
comfortable  entertaining the  amendment, given  that it  was put                                                               
before the committee on short notice.                                                                                           
                                                                                                                                
3:44:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE COULOMBE asked  if the sponsor could  speak to the                                                               
amendment.                                                                                                                      
                                                                                                                                
3:44:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MINA clarified that  the amendment was not related                                                               
to  preemption; rather,  the amendment  concerned a  provision of                                                               
the bill regarding employment.                                                                                                  
                                                                                                                                
CO-CHAIR FIELDS [moved to] withdraw Amendment  1 to HB 178.  [The                                                               
amendment  was  treated  as  withdrawn.]   He  queried  the  next                                                               
committee of referral.                                                                                                          
                                                                                                                                
3:45:36 PM                                                                                                                    
                                                                                                                                
The committee took a brief at-ease at 3:45 p.m.                                                                                 
                                                                                                                                
3:45:41 PM                                                                                                                    
                                                                                                                                
CO-CHAIR FIELDS announced that HB 178 was held over.