04/04/2017 09:00 AM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB51 | |
| SB93 | |
| SB98 | |
| SB37 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 51 | TELECONFERENCED | |
| += | SB 93 | TELECONFERENCED | |
| += | SB 98 | TELECONFERENCED | |
| += | SB 37 | TELECONFERENCED | |
| += | SB 79 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 4, 2017
8:59 a.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Shelley Hughes, Vice Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Berta Gardner
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
CONFIRMATION HEARINGS
Alcoholic Beverage Control Board
Rex Leath - Wasilla
- HEARD AND HELD
SENATE BILL NO. 51
"An Act extending the termination date of the Board of
Veterinary Examiners; and providing for an effective date."
- MOVED CSSB 51(L&C) OUT OF COMMITTEE
SENATE BILL NO. 93
"An Act relating to security freezes on the credit reports or
records of incapacitated persons and certain minors."
- MOVED SB 93 OUT OF COMMITTEE
SENATE BILL NO. 98
"An Act relating to insurer actions based on credit history and
insurance scores at insurance policy renewal; and providing for
insurer consideration of consumer requests for exceptions of
credit history or insurance scores."
- MOVED SB 98 OUT OF COMMITTEE
SENATE BILL NO. 37
"An Act relating to the Board of Pharmacy; relating to the
licensing and inspection of certain facilities located outside
the state; relating to drug supply chain security; and creating
a position of executive administrator for the Board of
Pharmacy."
- HEARD & HELD
SENATE BILL NO. 79
"An Act relating to the prescription of opioids; establishing
the Voluntary Nonopioid Directive Act; relating to the
controlled substance prescription database; relating to the
practice of dentistry; relating to the practice of medicine;
relating to the practice of podiatry; relating to the practice
of osteopathy; relating to the practice of nursing; relating to
the practice of optometry; relating to the practice of
veterinary medicine; related to the duties of the Board of
Pharmacy; and providing for an effective date."
-BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 51
SHORT TITLE: EXTEND BOARD OF VETERINARY EXAMINERS
SPONSOR(s): SENATOR(s) VON IMHOF
02/08/17 (S) READ THE FIRST TIME - REFERRALS
02/08/17 (S) L&C, FIN
03/02/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/02/17 (S) Heard & Held
03/02/17 (S) MINUTE(L&C)
03/28/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
03/28/17 (S) Bill Postponed to 1:30 p.m. 3/28/17
03/28/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/28/17 (S) Scheduled but Not Heard
04/04/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
BILL: SB 93
SHORT TITLE: CREDIT REPORT SECURITY FREEZE
SPONSOR(s): SENATOR(s) COGHILL
03/13/17 (S) READ THE FIRST TIME - REFERRALS
03/13/17 (S) L&C
03/28/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
03/28/17 (S) Bill Postponed to 1:30 p.m. 3/28/17
03/28/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/28/17 (S) Heard & Held
03/28/17 (S) MINUTE(L&C)
04/04/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
BILL: SB 98
SHORT TITLE: INSURER'S USE OF CREDIT HISTORY/SCORES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
03/23/17 (S) READ THE FIRST TIME - REFERRALS
03/23/17 (S) L&C, FIN
03/28/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
03/28/17 (S) Heard & Held
03/28/17 (S) MINUTE(L&C)
04/04/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
BILL: SB 37
SHORT TITLE: PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC
SPONSOR(s): GIESSEL BY REQUEST
01/25/17 (S) READ THE FIRST TIME - REFERRALS
01/25/17 (S) L&C, FIN
03/14/17 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/14/17 (S) Heard & Held
03/14/17 (S) MINUTE(L&C)
04/04/17 (S) L&C AT 9:00 AM BELTZ 105 (TSBldg)
WITNESS REGISTER
REX LEATH, Appointee
Alcoholic Beverage Control Board
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the Alcoholic
Beverage Control Board.
WESTON EILER, Staff
Senate Labor and Commerce Committee
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes in the CS for SB 51
and the CS for SB 37.
RYNNIEVA MOSS, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided information related to SB 93.
LORI WING-HEIER, Director
Division of Insurance
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 98.
SARA CHAMBERS, Division Operations Manager
Division of Corporations, Businesses and Professional Licensing
Department of Commerce, Community and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions related to SB 37.
LEIF HOLM, Chair
Board of Pharmacy
Fairbanks, Alaska
POSITION STATEMENT: Provided supporting information for SB 37.
ACTION NARRATIVE
8:59:01 AM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 8:59 a.m. Present at the call to
order were Senators Stevens, Gardner, and Chair Costello.
Senators Hughes and Meyer arrived soon thereafter.
^Confirmation Hearings
CONFIRMATION HEARINGS
Alcoholic Beverage Control Board
8:59:39 AM
CHAIR COSTELLO announced the first order of business would be a
confirmation hearing for a governor appointee to the public
safety seat of the Alcoholic Beverage Control Board.
She asked Rex Leath of Anchorage to tell the committee about his
interest in serving on the Alcoholic Beverage Control Board and
to address any challenges the board might address in the future.
8:59:59 AM
REX LEATH, Appointee, Alcoholic Beverage Control Board,
Anchorage, Alaska, said he has been employed by the Department
of Public Safety for over 18 years. He currently manages the
northern half of the state for the Alaska Wildlife Troopers.
During his career in public safety he has worked throughout the
state with both the state and wildlife troopers. For the past
two years he has been stationed in western Alaska and in urban
areas. Part of his career he spent in the Alaska Bureau of
Alcohol and Drug Enforcement working on Title 4 investigations
in local communities and local packaging stores and businesses.
He said he grew up in Kodiak and commercial fished throughout
the state which gave him a public perspective of legal and
illegal movement of alcohol in the state.
He said that in his job he has seen the devastation that occurs
when alcohol is abused or illegally transported either at an
establishment or in the community. He said he has a passion to
see the state overcome the challenge of alcohol abuse. He opined
that he has a unique background to address what he views as a
long-term fix to a long-term problem. Increasing education for
both the offender and the younger generation that will be faced
with the challenge of drug and alcohol abuse is a key
motivation.
MR. LEATH said the challenges the board faces are the fiscal
situation and meeting the desires of each local option
community, supporting them with proactive enforcement of Title 4
along with a unique educational component that fits the
community's standards and desires. He highlighted that law
enforcement sometimes is chasing a problem-of-the-day and not
dealing with the ramifications of a decade ant the effect on the
next generation.
9:03:00 AM
SENATOR HUGHES joined the committee.
CHAIR COSTELLO expressed support for his comments on focusing on
future generations. "It sounds like you will bring a wealth of
experience to the board."
9:04:59 AM
SENATOR GARDNER thanked Mr. Leath for being willing to serve and
seconded the chair's comments on his qualifications. She read an
excerpt from his cover letter and asked him to talk about some
successful community models.
MR. LEATH said Kotzebue is a prime example of a successful
model. Years ago, that community voted to transition from a wet
community to one that managed the flow of alcohol into the
community through the local airports and package carriers. That
gave law enforcement and package stores the ability to
accurately monitor the influx of alcohol. This greatly decreased
costs for law enforcement and helped packaging stores to work
together more effectively. Other successful models can be found
in western Alaska where a dry community has voted to become damp
or wet. That change can be successful if it is coupled with the
proper education that removes the negative stigma and focuses on
the individuals that have the alcohol challenge. The idea is to
provide help rather than strict criminal consequences. He
emphasized that one model is not appropriate for all
communities.
SENATOR GARDNER summarized that criminalizing the behavior is
not effective and has other adverse consequences.
MR. LEATH said he has seen that at times. He has seen that
making someone a criminal because of an addiction creates a new
dynamic in the community where the people are sometimes
ostracized. That doesn't fix the problem; rather, it can create
a long legal situation that is a burden on family and friends
and can further ostracize the person from help.
9:09:57 AM
SENATOR STEVENS asked if he agrees that some progress has been
made in educating young people about alcohol but now there is an
even more serious problem with drug addiction.
MR. LEATH said that's what he has seen. He discussed the problem
of criminals becoming martyrs in the eyes of youth and opined
that if we're going to educate ourselves out of a problem we
need to use people who have worked their way out of their
addiction.
9:12:30 AM
CHAIR COSTELLO found no further questions and thanked Mr. Leath
for being willing to serve. She advised that his name would be
moved forward along with all the other nominees the committee
has heard.
9:13:18 AM
At ease
SB 51-EXTEND BOARD OF VETERINARY EXAMINERS
9:14:10 AM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of the second hearing of SB 51. She closed public
testimony and noted that there is a proposed committee
substitute (CS).
9:14:59 AM
SENATOR HUGHES moved to adopt the work draft CS for SB 51,
labeled 30-LS0465\O, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
9:15:19 AM
WESTON EILER, Staff, Senate Labor and Commerce Committee,
explained that the CS for SB 51 reflects the comments the
committee heard during public testimony regarding the challenges
facing Alaska's veterinarian community and the availability of
services. The CS adds new sections 2-4. Section 2 designates
that one member of the board shall reside in a community with a
population of less than 7,500 people. Section 3 requires the
Board of Veterinary Examiners to submit an electronic report to
the legislature on the standards and availability of veterinary
services in the state, including rural areas, before 1/31/2020.
The language is taken from the board's authorizing statute that
requires the board to make such a report at the request of the
department. Section 4 transitions the new seat to the next time
a seat comes up for appointment.
9:18:32 AM
SENATOR STEVENS reviewed the list of licenses in the packet and
noted there is a weak relationship between number of licenses in
a community and its population.
MR. EILER agreed.
SENATOR GARDNER commented that she is interested to see JBER
listed as a community. She asked if there is reason to think
that one of the limited number of veterinarians who are living
in a community of 7,500 or less will be willing to serve on the
board, and what happens if one can't be found.
MR. EILER said the sponsor and chair of the committee gained
confidence as they heard the overwhelming public testimony about
veterinary issues, especially in rural areas.
9:20:42 AM
SENATOR GARDNER said there ought to be a plan B if a qualified
applicant can't be found.
CHAIR COSTELLO said if that becomes the reality, we could always
return to the current composition of the board. However, judging
from the public testimony she imagines that there will be
qualified candidates willing to serve and fill that designated
seat.
9:21:54 AM
SENATOR MEYER joined the committee.
SENATOR HUGHES commented that she is sure the board heard the
message in public testimony loud and clear and will be doing
what it can to address that. "Having someone from one of these
smaller communities will be important to help them realize the
need."
CHAIR COSTELLO said that during a previous administration she
served as the deputy director of Boards and Commissions and the
requirements for this board tend to be less prescriptive than
for others. She said, "I don't share the concern about finding
somebody, but if that does happen we'll cross that bridge when
we come to it."
9:23:55 AM
CHAIR COSTELLO removed her objection and version O was adopted.
She listed the individuals available to answer questions.
9:24:21 AM
SENATOR HUGHES moved to report the CS for SB 51, labeled 30-
LS0465\O, from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO announced that without objection, CSSB 51(L&C)
moved from the Senate Labor and Commerce Standing Committee.
9:24:41 AM
At ease
SB 93-CREDIT REPORT SECURITY FREEZE
9:27:29 AM
CHAIR COSTELLO announced the consideration of SB 93. She stated
that this is the second hearing, and the intent is to take
questions and look to the will of the committee.
9:28:17 AM
SENATOR MEYER said his initial concern was that the age was 16
rather than 18. He asked if there had been a change.
9:28:27 AM
RYNNIEVA MOSS, Staff, Senator John Coghill, sponsor of SB 93,
said the bill says 16 years of age.
SENATOR MEYER said he had a conversation with the sponsor and is
"okay" with age 16 that's in the bill.
MS. MOSS said the sponsor did some research and found that 27
states have [minor] security freezes at age 16.
SENATOR MEYER reiterated his acceptance of age 16.
9:29:23 AM
SENATOR HUGHES moved to report SB 93 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO announced that without objection, SB 93 moved
from the Senate Labor and Commerce Standing Committee.
9:29:36 AM
At ease
SB 98-INSURER'S USE OF CREDIT HISTORY/SCORES
9:31:28 AM
CHAIR COSTELLO announced the consideration of SB 98. She stated
that this is the second hearing, and the intent is to take
questions and look to the will of the committee. She noted that
Ms. Wing-Heier was available to answer questions.
9:31:58 AM
SENATOR STEVENS asked why the governor vetoed a similar bill in
the past and how this bill differs, so it would not be vetoed
again.
9:32:13 AM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), explained
that the governor was concerned about provisions in what was
Senate Bill 127. Specifically, a consumer that appealed for
extraordinary life circumstances would be appealing to the
insurance company that declared that they did not meet
extraordinary life circumstances. The insurance company would
also make the final decision about the qualification. The
governor did not feel that was appropriate. SB 98 designates the
director of the Division of Insurance as the final adjudicator
of the process. The bill also has the consumer protection that
the consumer must receive written notice from the insurer if
there is an adverse action, and it must include instructions
about the appeal process.
SENATOR STEVENS asked if there has been pushback from insurance
companies.
MS. WING-HEIER said insurers are not concerned about having to
give the notice, the appeal process, or having the director be
the final adjudicator.
CHAIR COSTELLO found no further questions and solicited a
motion.
9:33:57 AM
SENATOR HUGHES moved to report SB 98 from committee with
individual recommendations and attached fiscal note(s).
CHAIR COSTELLO announced that without objection, SB 98 moved
from the Senate Labor and Commerce Standing Committee.
9:34:12 AM
At ease
SB 37-PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC
9:36:07 AM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 37. She advised that this is the second
hearing, public testimony is open, and there is a proposed
committee substitute (CS).
9:36:23 AM
SENATOR MEYER moved to adopt the work draft CS for SB 51,
labeled 30-LS0191\J, as the working document.
CHAIR COSTELLO objected for an explanation of the changes.
9:36:43 AM
WESTON EILER, Staff, Senate Labor and Commerce Committee, Alaska
State Legislature, said the changes in the CS for SB 37, version
J, primarily removes references to establishing a range 23
executive position that would serve as a legislative
liaison/administrator position for the board. He listed the
three places where the reference is deleted.
9:38:32 AM
SENATOR GARDNER questioned how the record-keeping and follow-up
for inspection of facilities outside the state would happen
without that position.
MR. EILER said this likely would not be a position that would do
those site visits. The policy call to remove this position
reflects DCCED's budgetary constraints and could be reviewed at
a later date.
SENATOR GARDNER asked who is expected to do this administrative
work and where the funding is if the work is done by contract.
MR. EILER said licensing fees and inspections of facilities
outside the state will bring in additional revenues. The
department can speak to the structure, but the inspections don't
necessarily fall to the staff of the Board of Pharmacy.
SENATOR GARDNER asked if the board has the flexibility to set
the licensing fees at the appropriate level to cover contractual
work.
MR. EILER said his understanding is that the bill provides for
that.
9:41:39 AM
SARA CHAMBERS, Division Operations Manager, Division of
Corporations, Businesses and Professional Licensing, Department
of Commerce, Community and Economic Development (DCCED), stated
that the need for executive staff to handle the federal policy
changes has pushed the need for higher level staff over the
tipping point. SB 37 reflects an additional need the board has
expressed to comply with federal changes. Right now, this
program has one staff member who is the licensing examiner and
has fractions of management that is shared among 42 other
licensing programs. Thus, there is no policy position that is
assigned to this program, which puts Alaska at a disadvantage
among states that do have an executive administrator. The
position would be paid through receipt-supported services, so it
is not supported by UGF in any way. There is a growing interest
in managing opioids and the PDMP and this position would oversee
all those responsibilities as well. It would fill quite a
variety of needs beyond a liaison to the legislature and it's a
position that is desperately needed, she said.
SENATOR GARDNER summarized that the board has the authority to
raise the licensing fees to cover the cost of complying with the
federal requirements of licensing facilities and dealing with
the requirements of PDMP and the opioid crisis.
MS. CHAMBERS clarified that the division works with the board to
set fees. She said the fiscal note includes the cost of an
executive administrator, but it does not contemplate the
additional receipt authority needed for a contract position.
CHAIR COSTELLO noted that the original bill says the duties will
be established. She asked Ms. Chambers how she already knows
what the position would entail.
MS. CHAMBERS said that knowledge is based on the administrative
functions that existing boards such as medicine, public
accountancy, nursing, and marine pilots perform, and this
position proposes to do. "We know the existing needs and we know
what the bill will entail to implement." The division would
employ the executive administrator and work with the board to
make certain that all its priorities and the statutory
administrative priorities are met.
9:47:03 AM
SENATOR MEYER asked if pharmacy receipt increases are passed
along to the consumer. "Is this kind of a hidden tax on our
prescriptions?"
MS. CHAMBERS explained that all 43 licensing programs are paid
for by receipts. "Whether you're getting your hair cut, whether
you're vising the doctor, whether you're getting a house built,
that's a business decision that those professionals make on how
they recoup their licensing costs. But it is not unusual in how
statute mandates these programs be paid for."
SENATOR MEYER asked if this legislation is modeled on other
states.
MS. CHAMBERS said yes, it's an outgrowth of a need the federal
government expressed after 2012 and compounded by the pharmacy
crisis. All but six states have adopted similar legislation.
SENATOR MEYER asked if out of state distributors will be
assessed a licensing fee should the bill pass.
MS. CHAMBERS said only instate wholesale distributors are
licensed so there is currently a disparity between instate and
out-of-state. Should the bill pass, the division will develop a
licensing process and an associated fee to help offset the cost
of running the program.
CHAIR COSTELLO listed the individuals available to answer
questions.
SENATOR STEVENS questioned the need for the bill if these out-
of-state facilities are already licensed and inspected by
another state or the federal government. Concerning reciprocity,
he asked if the intention is to automatically license any
facility that already has an inspection by another state or the
federal government.
9:50:02 AM
MS. CHAMBERS deferred the question to Leif Holm or Richard Holt.
9:50:13 AM
LEIF HOLM, Chair, Board of Pharmacy, Fairbanks, Alaska, said
this bill is needed to protect consumers from counterfeit or
increased costs due to diverted medications. He said Alaska is
one of four states that does not license outside wholesalers and
that presents a problem. A wholesaler that is licensed in
another state and doing business in Alaska would follow that
other state's laws, but not necessarily the rules and
regulations that Alaska has established. This could provide an
opportunity for diverters and counterfeiters to exploit Alaska.
"We don't have requirements for transaction data history; we
don't have requirements for inspections; we don't have any
accountability or oversight and it's basically decreasing the
confidence in our drug supply."
SENATOR STEVENS asked for confirmation that a drug distributor
or outsourcing facility that is licensed in another state would
not automatically receive a license to operate in Alaska.
MR. HOLM said that's correct; a wholesaler would not
automatically be granted a license to operate in Alaska based on
licensure in another state. Rather, the board would write
regulations for wholesalers to follow based on FDA guidelines.
The intent is to require inspections, but the board would accept
outside third-party inspections upon review.
SENATOR STEVENS asked how many facilities will be licensed in
Alaska.
MR. HOLM said a recent National Association of Boards of
Pharmacy (NABP) presentation stated that about 1,163 wholesale
distributers are licensed in other states. and could potentially
be licensed in Alaska. If each of those paid $500 to apply for
licensure in Alaska, that would generate just under $600,000.
9:54:43 AM
SENATOR GARDNER asked, should the original bill pass: 1) if he
anticipates that Alaska would establish some sort of
reciprocity; and 2) the number of licensed distributers that
would want to participate in Alaska's licensing process.
MR. HOLM said most facilities accept that they must have a
license from any state in which they operate. The executive
administer position would help make the process more fluid, but
he didn't have an estimate for the number of distributors that
would apply for licensure. He reiterated that 46 other states
have passed similar legislation with no reported issues.
SENATOR GARDNER asked how it would be possible to move forward
if the committee substitute were to pass with the requirement
but no funding for the position to handle the licensing.
MR. HOLM said it would be difficult for the one existing
licensing examiner to handle 1,100 additional licenses.
CHAIR COSTELLO asked what impact the increased fees would have
on licensed pharmacists.
MR. HOLM replied there probably would not be any licensing fee
increase for pharmacists. Should wholesalers be licenses, that
would be more than enough to cover any extra costs.
9:58:35 AM
CHAIR COSTELLO stated that, based on the testimony today, she
would hold SB 37 and continue to work with the sponsor.
9:58:53 AM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 9:58 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| CS SB 37 (L&C) - Ver. J.pdf |
SL&C 4/4/2017 9:00:00 AM |
SB 37 |
| SB 51 - Support Letter - State Veterinarian Dr Gerlach.pdf |
SL&C 4/4/2017 9:00:00 AM |
SB 51 |
| CS SB 51 (L&C) - Ver. O.pdf |
SL&C 4/4/2017 9:00:00 AM |
SB 51 |