Legislature(2023 - 2024)BARNES 124

04/10/2023 03:15 PM House LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 86 MONEY TRANSMISSION; VIRTUAL CURRENCY TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 88 WAREHOUSE WORK QUOTA INFORMATION TELECONFERENCED
<Bill Hearing Canceled>
+ HB 60 RUNAWAYS; DFCS/DOH: DUTIES/LICENSING/INFO TELECONFERENCED
Heard & Held
*+ HB 100 PAID FAMILY LEAVE TELECONFERENCED
<Bill Hearing Canceled>
*+ HB 147 RETIRED TEACHER CERTIFICATE TELECONFERENCED
<Bill Hearing Canceled>
+= HB 73 DCCED LICENSING INVESTIGATIONS TELECONFERENCED
<Bill Hearing Canceled>
+ Bills Previously Heard/Scheduled TELECONFERENCED
*+ HB 112 PROFESSION OF PHARMACY TELECONFERENCED
Heard & Held
+= HB 87 PERM FUND; EMPLOYMENT; ELIGIBILITY TELECONFERENCED
Heard & Held
                    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, the House Rules                                                                
Standing Committee 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, the House Rules                                                                
Standing Committee 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, the  House Rules                                                             
Standing Committee 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,  the House  Rules Standing  Committee 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,                                                               
the House  Rules Standing Committee  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.                                                                                             
                                                                                                                                
3:50:29 PM                                                                                                                    
                                                                                                                                
            HB 87-PERM FUND; EMPLOYMENT; ELIGIBILITY                                                                        
                                                                                                                                
3:50:30 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,                                                               
("Version S"), 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 gave a quick synopsis  of HB 86.  He summarized that                                                               
the  proposed  legislation 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, and 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.                                                                                                
                                                                                                                                
4:31:56 PM                                                                                                                    
                                                                                                                                
[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