Legislature(2023 - 2024)ADAMS 519

05/08/2023 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 112 PROFESSION OF PHARMACY TELECONFERENCED
Heard & Held
+ HB 21 SCHOOL/UNIVERSITY EMPLOYEE HEALTH INSUR TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HJR 2 CONST. AM: APPROP LIMIT TELECONFERENCED
Heard & Held
+= HB 38 APPROPRIATION LIMIT; GOV BUDGET TELECONFERENCED
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."                                                                                                           
                                                                                                                                
3:17:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  JUSTIN  RUFFRIDGE,  SPONSOR,  introduced  HB
112.  He explained  that  the bill  came  about after  being                                                                    
discussed  for  multiple  years   by  the  Alaska  Board  of                                                                    
Pharmacy. The  board was tasked  with regulation  changes by                                                                    
the   administration,  and   it   thoroughly  examined   the                                                                    
regulations of  the profession  of pharmacy.  The regulation                                                                    
changes were  referred to as  "right touch"  regulations and                                                                    
modernized the  profession as it had  changed immensely over                                                                    
the past 25  years. The board started keeping a  list of the                                                                    
items that would  need to be changed in statute  in order to                                                                    
implement  the  right  touch regulations.  The  bill  was  a                                                                    
collection  of the  statute changes  to  help modernize  the                                                                    
profession and  it would also  give the board  the authority                                                                    
to  continue the  regulatory process.  He  relayed that  the                                                                    
chair of  the board  would offer  a presentation  to explain                                                                    
the bill in more detail.                                                                                                        
                                                                                                                                
DR.  ASHLEY SCHABER,  CHAIR, ALASKA  BOARD OF  PHARMACY (via                                                                    
teleconference),  introduced   the  PowerPoint  presentation                                                                    
"House Bill 112:  Profession of Pharmacy" dated  May 8, 2023                                                                    
(copy  on file).  She began  on slide  2 which  detailed the                                                                    
board's  2023 strategic  plan. There  had been  a cumulative                                                                    
effort over the last several  years to ensure that the board                                                                    
had  statute  changes  that  would  allow  it  to  meet  its                                                                    
mission. She highlighted that one  of the board's four goals                                                                    
[listed  on  the  slide]  was  to  grow  the  economy  while                                                                    
promoting community  health and safety. Many  of the changes                                                                    
related   to  the   aforementioned  goal,   particularly  to                                                                    
routinely  review  the  effectiveness  of  regulations  that                                                                    
reduced  the  barrier   to  licensure  without  compromising                                                                    
patient  health  and  safety. She  relayed  that  the  board                                                                    
currently had  seven members, five of  whom were pharmacists                                                                    
and two of whom were public members.                                                                                            
                                                                                                                                
Dr.  Schaber   continued  to  slide   3  and   offered  some                                                                    
background  information on  HB 112.  She explained  that the                                                                    
bill   would  address   necessary  changes   by  doing   the                                                                    
following:                                                                                                                      
                                                                                                                                
      Streamlining licensure process while improving                                                                         
        public safety                                                                                                           
      Compliance with the Drug Supply Chain and Security                                                                     
        Act                                                                                                                     
      Alignment with other professional boards in Alaska                                                                     
        and pharmacy boards in other states                                                                                     
      Clarification of pharmacists' roles in epinephrine                                                                     
        access                                                                                                                  
                                                                                                                                
Dr.  Schaber indicated  that the  bill  was a  collaborative                                                                    
effort  between   the  board  and  the   Alaska  Pharmacists                                                                    
Association.                                                                                                                    
                                                                                                                                
Dr.  Schaber continued  on slide  4. The  first goal  was to                                                                    
streamline  the  licensure  process while  improving  public                                                                    
safety.  The  bill  eliminated unnecessary  forms  currently                                                                    
required in  statute. The forms were  redundant and included                                                                    
information that was already part  of the licensure process.                                                                    
The elimination of the forms  would reduce the burden on the                                                                    
applicant  and on  the board.  It also  clarified that  only                                                                    
pharmacists  who dispensed  controlled  substances would  be                                                                    
required to  register with the Prescription  Drug Monitoring                                                                    
Program  (PDMP).  It  would also  add  a  national  criminal                                                                    
background  check  for  all   applicants,  which  would  add                                                                    
another  layer  of  protection.  The  background  check  was                                                                    
required in 30 other states  and was a statutory requirement                                                                    
for nursing and other professions.                                                                                              
                                                                                                                                
3:23:48 PM                                                                                                                    
                                                                                                                                
Representative Hannan  asked what  details were  included in                                                                    
the national  background check when  it was returned  to the                                                                    
board. She asked if included  specific information or simply                                                                    
showed  whether  an  applicant   had  committed  a  criminal                                                                    
violation.                                                                                                                      
                                                                                                                                
Dr. Schaber  responded that she  did not know  which details                                                                    
were included in the background  check. She thought that the                                                                    
background  check  acted  as a  flag  to  prompt  additional                                                                    
review.                                                                                                                         
                                                                                                                                
Representative Ruffridge responded  that the application for                                                                    
licensure currently  had a "self-selection"  response, which                                                                    
meant that  the application asked whether  an individual had                                                                    
been   convicted  of   a  crime   or  was   currently  under                                                                    
investigation for  a crime. Applicants  were able  to select                                                                    
"no" on the  application even if the true  answer was "yes,"                                                                    
and  there would  be no  follow-up. During  his time  on the                                                                    
board, there were  at least a few cases in  which the answer                                                                    
checked on  the application  was no,  but the  actual answer                                                                    
was  yes. The  reason for  the  request was  to ensure  that                                                                    
applicants were answering  truthfully on their applications.                                                                    
If a person  were to lie, there would be  reason to deny the                                                                    
individual a license.                                                                                                           
                                                                                                                                
Representative Hannan  noted that  the committee  spent time                                                                    
in  the  prior  week  talking about  background  checks  for                                                                    
cannabis convictions  that were no longer  convictions under                                                                    
the law  and how  the process should  be changed.  She could                                                                    
see a problematic situation occurring  in which a pharmacist                                                                    
applicant had  a cannabis conviction  in another  state, but                                                                    
it was not considered a  criminal offense in Alaska. She was                                                                    
hoping that there  would be more detail than a  yes or no as                                                                    
the answer  was often  more complicated.  She did  not think                                                                    
answering yes  should be  an automatic  denial, but  she was                                                                    
unsure if federal law would allow nuances to be considered.                                                                     
                                                                                                                                
Representative Ruffridge responded  that marijuana was still                                                                    
considered  an illicit  substance because  it was  federally                                                                    
illegal.  A violation  with a  controlled drug  of any  type                                                                    
would  be  a   flag  to  prompt  additional   review  of  an                                                                    
application. The board considered it  an issue in its hiring                                                                    
process even though  marijuana was legal at  the state level                                                                    
because   pharmacists  would   have  access   to  controlled                                                                    
substances.                                                                                                                     
                                                                                                                                
Representative  Coulombe asked  Representative Ruffridge  to                                                                    
put his credentials on the record.                                                                                              
                                                                                                                                
Representative Ruffridge responded that  he was the previous                                                                    
chair  of the  Board  of  Pharmacy. He  had  a doctorate  in                                                                    
pharmacy and  had been  a licensed  pharmacist in  the state                                                                    
since 2008.                                                                                                                     
                                                                                                                                
3:29:31 PM                                                                                                                    
                                                                                                                                
Dr. Schaber  continued on slide 5.  The next goal was  to be                                                                    
compliant  with  the  Drug Supply  Chain  and  Security  Act                                                                    
(DSCSA). She read from the slide as follows:                                                                                    
                                                                                                                                
      The federal Drug Supply Chain and Security Act                                                                         
        (DSCSA) further secures the U.S. drug supply through                                                                    
        a system to prevent harmful drugs  from entering the                                                                    
        supply chain, detect harmful drugs if they do enter,                                                                    
        and enable rapid response when such drugs are found.                                                                    
          o Boards of Pharmacy play a key role in this                                                                          
             process through appropriate licensing of drug                                                                      
             distributors and pharmacies                                                                                        
                                                                                                                                
      HB 112 ensures the AK Board of Pharmacy powers and                                                                     
        duties support the DSCSA related to manufacturers,                                                                      
        out-of-state pharmacies, and internet pharmacies to                                                                     
        ensure Alaskans receive safe medications                                                                                
                                                                                                                                
Dr.   Schaber  explained   that  the   change  would   be  a                                                                    
modernization  to   the  process.   Currently,  out-of-state                                                                    
pharmacies were required to register  based on a statute put                                                                    
in  place in  1992. The  drug supply  chain and  pharmacy in                                                                    
general  had  changed  significantly  since  1992  when  the                                                                    
original  statute  was  put  in   place.  She  relayed  that                                                                    
compliance  with DSCSA  would  give  the board  jurisdiction                                                                    
over out-of-state pharmacies. There  was a concern that out-                                                                    
of-state  pharmacies that  were  mailing prescriptions  into                                                                    
the  state  might   not  be  providing  the   same  kind  of                                                                    
counseling  that the  in-state pharmacies  were required  to                                                                    
provide. The  concern had  been raised  many times  over the                                                                    
years in the form of public comment.                                                                                            
                                                                                                                                
Dr. Schaber  continued on slide  6 and the next  goal, which                                                                    
was alignment. To  achieve the goal, the  bill would replace                                                                    
one  of  the  two  public   member  seats  with  a  pharmacy                                                                    
technician seat. As  the field of pharmacy  had changed over                                                                    
the  years, the  role  of pharmacy  technicians had  changed                                                                    
with it. Both public member  seats had been vacant for about                                                                    
a year and  adding the pharmacy technician  seat would allow                                                                    
for an additional perspective. The  board also hoped that it                                                                    
would help  fill the  vacancy. The next  change would  be to                                                                    
allow  the  board to  adopt  language  to create  a  retired                                                                    
pharmacist status.  It would align  the board  with pharmacy                                                                    
boards in  other states and  with other  professional boards                                                                    
in the  state. The last  change associated with the  goal of                                                                    
compliance    was   to    clarify   the    board   executive                                                                    
administrator's  salary  which   would  allow  the  required                                                                    
flexibility for  a pharmacist  to serve in  the role  in the                                                                    
future.  The salary  was currently  not  flexible enough  to                                                                    
allow a pharmacist to apply  for the position. The board did                                                                    
not want to require that  a pharmacist serve in the position                                                                    
because  applicants  with  other credentials  were  able  to                                                                    
serve also, but it wanted to allow for the possibility.                                                                         
                                                                                                                                
3:34:02 PM                                                                                                                    
                                                                                                                                
Dr. Schaber continued on slide  7 which detailed the goal of                                                                    
epinephrine access. The  changes in the bill  would move the                                                                    
epinephrine  training  program  from the  authority  of  the                                                                    
Department of Health  (DOH) to be overseen by  the board. It                                                                    
also   clarified   that   a  pharmacist   could   administer                                                                    
epinephrine  or prescribe  epinephrine auto-injectors  to an                                                                    
individual who had completed the  training program. It would                                                                    
ultimately  increase epinephrine  access  for Alaskans  with                                                                    
anaphylactic emergencies  or those  who might not  know they                                                                    
were at  risk for  anaphylactic emergencies. She  added that                                                                    
access was  especially important in  the rural areas  of the                                                                    
state.  Some  of the  changes  in  the bill  also  increased                                                                    
access by decreasing barriers to  dialysis fluids, which was                                                                    
also important  for Alaskans living  in rural areas  on home                                                                    
dialysis by  allowing patients to  receive the  treatment at                                                                    
home.                                                                                                                           
                                                                                                                                
Dr.  Schaber  concluded  her presentation  on  slide  8  and                                                                    
thanked  the   committee  for  its   time.  She   urged  the                                                                    
committee's support of the bill.                                                                                                
                                                                                                                                
Co-Chair Foster asked for clarity  on the uses of situations                                                                    
in which epinephrine would be used.                                                                                             
                                                                                                                                
Dr.  Schaber responded  that  epinephrine  was an  emergency                                                                    
medication used  for allergic reactions,  such as  eggs, bee                                                                    
stings, or  peanuts. Some individuals  were aware  that they                                                                    
had anaphylaxis,  and some  were not  aware until  they were                                                                    
exposed to the substance that causes a reaction.                                                                                
                                                                                                                                
Representative  Hannan  asked   about  the  board  executive                                                                    
administrator's salary  detailed in Section 10  of the bill.                                                                    
She  asked how  many other  professional boards  allowed for                                                                    
similar flexibility in  salary. She wondered if  there was a                                                                    
salary  classification  for  pharmacists in  the  state  pay                                                                    
schedules.                                                                                                                      
                                                                                                                                
3:37:10 PM                                                                                                                    
                                                                                                                                
SYLVAN  ROBB, DIRECTOR,  DIVISION  OF CORPORATIONS  BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF   COMMERCE                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT,  responded that  there                                                                    
were other pharmacists  that worked for the  state and there                                                                    
were pay  schedules in  place. The  pay ranged  depending on                                                                    
duties: for example, there was  a pharmacist employed in the                                                                    
Alaska   Psychiatric  Institute   (API)  as   well  as   DOH                                                                    
pharmacists  in for  Medicaid  purposes  with salary  ranges                                                                    
from   24   through   range  27.   Relating   to   executive                                                                    
administrator  of other  boards, six  of the  boards had  an                                                                    
executive administrator positions and  one other board had a                                                                    
similar position with  a different title. Only  the Board of                                                                    
Nursing  had  required   qualifications  for  the  executive                                                                    
administrator role as it required  that the individual was a                                                                    
registered nurse (RN).                                                                                                          
                                                                                                                                
Representative  Hannan asked  if the  nursing board  members                                                                    
were paid on the RN pay schedule.                                                                                               
                                                                                                                                
Ms.  Robb  responded  that  the members  were  not  paid  as                                                                    
nurses.   The   executive   administrator   positions   were                                                                    
considered partially exempt and  the salary for the position                                                                    
was not  specified in statute;  however, it was  the highest                                                                    
paid position because  it required that the  individual be a                                                                    
licensed  professional and  have a  master's degree,  it was                                                                    
the highest  paid of  the executive  administrator positions                                                                    
and was a range 25.                                                                                                             
                                                                                                                                
Representative  Hannan   asked  if  the  phrasing   for  the                                                                    
pharmacy board's  executive administrator  was unique  or if                                                                    
other   boards  had   similar  required   competencies.  She                                                                    
wondered if  the administrators were  adequately compensated                                                                    
based on the advanced requirements.                                                                                             
                                                                                                                                
Ms.  Robb  responded that  not  all  heath care  boards  had                                                                    
executive  administrators. The  nursing board  was the  only                                                                    
board  requiring the  administrator to  be a  member of  the                                                                    
nursing profession. The pay  for the executive administrator                                                                    
positions ranged  depending on  the workload and  on whether                                                                    
the   pay   was   dictated   in   statute.   The   executive                                                                    
administrator position for the  pharmacy board was currently                                                                    
not filled by a pharmacist.  If the board hired a pharmacist                                                                    
for  the  position,  it  wanted   the  ability  to  pay  the                                                                    
individual fairly based on the advanced requirements.                                                                           
                                                                                                                                
Representative Hannan  asked what  the range  increase would                                                                    
be  in  order  to  pay  the  executive  administrator  as  a                                                                    
pharmacist.                                                                                                                     
                                                                                                                                
Ms. Robb replied that the  other pharmacists that worked for                                                                    
the state were range 24  through range 27 depending on their                                                                    
duties. The board would have  to work with classification to                                                                    
determine   which  other   state  pharmacist   position  the                                                                    
executive  administrator was  most  similar to  in order  to                                                                    
determine the range.                                                                                                            
                                                                                                                                
3:41:53 PM                                                                                                                    
                                                                                                                                
Representative  Josephson asked  if the  licensees of  board                                                                    
paid for the executive administrator positions.                                                                                 
                                                                                                                                
Ms. Robb  responded in  the affirmative  and noted  that the                                                                    
divisions  were funded  through receipt-supported  services.                                                                    
The cost  of all staff for  a particular board were  paid by                                                                    
the licensees  for that particular profession.  The Division                                                                    
of Corporations Business  and Professional Licensing (DCBPL)                                                                    
conducted time keeping  in order to allow  staff to indicate                                                                    
which  program  they were  working  on  to ensure  that  the                                                                    
charges were allocated appropriately.                                                                                           
                                                                                                                                
Representative  Josephson understood  that  the boards  were                                                                    
providing services  "out of the  kindness of  their hearts."                                                                    
He  was  not  aware  that   some  boards  had  an  executive                                                                    
administrator apart from the Medical  Board. He asked if the                                                                    
state would pick up the extra  costs if a board chose not to                                                                    
hire an administrator.                                                                                                          
                                                                                                                                
Ms. Robb responded that all were  paid by the licensees of a                                                                    
board,  and it  would not  matter whether  the board  had an                                                                    
executive administrator.                                                                                                        
                                                                                                                                
Representative  Josephson asked  why  each  board would  not                                                                    
want their own executive administrator.                                                                                         
                                                                                                                                
Ms.  Robb  responded  that  it depended  on  the  scope  and                                                                    
complexity of the  program. The Board of Nursing  was a team                                                                    
of 10 individuals that oversaw  28,000 licensees and it made                                                                    
sense for  the board  to employ an  executive administrator.                                                                    
There  were some  boards with  more  complex licensing  than                                                                    
others  and   needed  more  employees.  Boards   with  fewer                                                                    
licensees and  less complex licensing processes  had less of                                                                    
a need for an executive administrator.                                                                                          
                                                                                                                                
3:44:36 PM                                                                                                                    
                                                                                                                                
Representative   Coulombe   understood   that   out-of-state                                                                    
pharmacies  had to  be registered  but  did not  have to  be                                                                    
licensed. She asked if her understanding was correct.                                                                           
                                                                                                                                
Representative Ruffridge responded in the affirmative.                                                                          
                                                                                                                                
Representative  Coulombe wanted  to ensure  that adding  the                                                                    
licensing   requirement  would   not  be   too  much   of  a                                                                    
hinderance.  She relayed  that there  were many  individuals                                                                    
who relied  on online  pharmacies. She asked  what licensing                                                                    
would be like for an out-of-state pharmacy.                                                                                     
                                                                                                                                
Representative  Ruffridge responded  that under  the current                                                                    
process,  registering  with  the Board  of  Pharmacy  simply                                                                    
indicated that a pharmacist existed  and may or may not send                                                                    
for medications  with the state.  There was  no jurisdiction                                                                    
by the  board of the  medications that entered the  state to                                                                    
ensure that counseling had been  provided to the individuals                                                                    
receiving medications.  There was  no ability for  the board                                                                    
to  maintain safety  measures. Over  the  years, mail  order                                                                    
pharmacies had  become more popular and  regulations had not                                                                    
kept up  with the  changes. The change  would not  be overly                                                                    
burdensome to  companies that  already mailed  a significant                                                                    
amount of medications into multiple  states and would simply                                                                    
put  Alaska  in alignment  with  many  other states  in  the                                                                    
nation.                                                                                                                         
                                                                                                                                
Representative  Coulombe  asked  if   there  were  new  fees                                                                    
associated with registration or licensing.                                                                                      
                                                                                                                                
Representative  Ruffridge  responded  that there  were  fees                                                                    
associated with  licensing and  registration, but  the board                                                                    
had gone through multiple iterations  of fee reductions over                                                                    
the  last few  years. He  argued that  the fee  for pharmacy                                                                    
technicians  was essentially  nonexistent. Technicians  were                                                                    
simply  required  to  pay  an  initial  $25  fee  to  become                                                                    
registered and  licensed, which  was reduced  from a  fee of                                                                    
$150.                                                                                                                           
                                                                                                                                
Co-Chair  Foster  suggested  that  Representative  Ruffridge                                                                    
make closing comments.                                                                                                          
                                                                                                                                
Representative  Ruffridge  thanked  the  committee  for  its                                                                    
time. The  bill had been  well vetted and had  been overseen                                                                    
by three different chairs of  the pharmacy board. He thought                                                                    
that the support  for the bill was encouraging  and that the                                                                    
bill represented  the desires of the  profession of pharmacy                                                                    
as a  whole. He  welcomed the support  of the  committee and                                                                    
was happy to answer any other questions.                                                                                        
                                                                                                                                
HB 112 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the agenda for the following day's                                                                     
meeting.                                                                                                                        
                                                                                                                                

Document Name Date/Time Subjects
HB 112 NEW FN DCCED 5-5-23.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB 112 Support as of 4.20.23 Redacted.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB0112 Sectional Analysis CS 4.24.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB0112 Sponsor Statement Version CS 4.24.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB0112 Summary of Changes CS 4.24.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB21 Additional Documents - ISER 2018 Research Summary 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB21 Additional Documents - Slideshow Presentation 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB21 Additional Documents - Letters of Support 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB21 Addtional Supporting Documents - Explanation of Changes from v.A to v.B 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB21 Sectional Analysis ver B 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB21 Sponsor Statement 05.03.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB 112 Alaska Board of Pharmacy PP 050823.pdf HFIN 5/8/2023 1:30:00 PM
HB 112
HB 21 - PHC 5.7.23 Public Testimony Rec'd by 5.9.23.pdf HFIN 5/8/2023 1:30:00 PM
HB 21
HB 112 Public Testimony Rec'd by 050923.pdf HFIN 5/8/2023 1:30:00 PM
HB 112