02/23/2024 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB37 | |
| HB192 | |
| SB45 | |
| HB314 | |
| SB45 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 318 | TELECONFERENCED | |
| *+ | HB 314 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | HB 175 | TELECONFERENCED | |
| *+ | HB 203 | TELECONFERENCED | |
| += | SB 37 | TELECONFERENCED | |
| += | HB 192 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 23, 2024
4:16 p.m.
MEMBERS PRESENT
Representative Jesse Sumner, Chair
Representative Justin Ruffridge, Vice Chair
Representative Mike Prax
Representative Dan Saddler
Representative Stanley Wright
Representative Ashley Carrick
MEMBERS ABSENT
Representative Zack Fields
COMMITTEE CALENDAR
SENATE BILL NO. 37
"An Act establishing the crime of airbag fraud."
- MOVED HCS SB 37(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 192
"An Act relating to curbside pickup of alcoholic beverages sold
by a package store; relating to consumer delivery licenses; and
providing for an effective date."
- MOVED CSHB 192(L&C) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 45(L&C) AM
"An Act relating to insurance; relating to direct health care
agreements; relating to the duties of the director of the
division of insurance in the Department of Commerce, Community,
and Economic Development; and providing for an effective date."
- MOVED HCS CSSB 45(2D L&C) OUT OF COMMITTEE
HOUSE BILL NO. 314
"An Act relating to occupational licensing fees; and providing
for an effective date."
- HEARD & HELD
HOUSE BILL NO. 318
"An Act relating to disclosure of information by nonprofit
corporations."
- SCHEDULED BUT NOT HEARD
HOUSE BILL NO. 203
"An Act relating to wage payments."
- SCHEDULED BUT NOT HEARD
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 175
"An Act relating to midwives and the practice of midwifery;
relating to apprentice midwives; renaming the Board of Certified
Direct-Entry Midwives as the Board of Licensed Midwives;
relating to the Board of Licensed Midwives; extending the
termination date of the Board of Licensed Midwives; relating to
insurance; and providing for an effective date."
- SCHEDULED BUT NOT HEARD
PREVIOUS COMMITTEE ACTION
BILL: SB 37
SHORT TITLE: CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
SPONSOR(s): SENATOR(s) CLAMAN
01/18/23 (S) PREFILE RELEASED 1/13/23
01/18/23 (S) READ THE FIRST TIME - REFERRALS
01/18/23 (S) JUD
01/27/23 (S) JUD AT 1:30 PM BUTROVICH 205
01/27/23 (S) Heard & Held
01/27/23 (S) MINUTE(JUD)
03/22/23 (S) JUD AT 1:30 PM BUTROVICH 205
03/22/23 (S) <Bill Hearing Canceled>
03/29/23 (S) JUD AT 1:30 PM BUTROVICH 205
03/29/23 (S) <Bill Hearing Canceled>
04/03/23 (S) JUD AT 1:30 PM BUTROVICH 205
04/03/23 (S) Moved SB 37 Out of Committee
04/03/23 (S) MINUTE(JUD)
04/05/23 (S) JUD RPT 1DP 3NR
04/05/23 (S) DP: CLAMAN
04/05/23 (S) NR: TOBIN, KAUFMAN, KIEHL
05/08/23 (S) TRANSMITTED TO (H)
05/08/23 (S) VERSION: SB 37
05/09/23 (H) READ THE FIRST TIME - REFERRALS
05/09/23 (H) L&C
01/26/24 (H) L&C AT 3:15 PM BARNES 124
01/26/24 (H) -- MEETING CANCELED --
01/31/24 (H) L&C AT 3:15 PM BARNES 124
01/31/24 (H) Scheduled but Not Heard
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) Scheduled but Not Heard
02/07/24 (H) L&C AT 3:15 PM BARNES 124
02/07/24 (H) Heard & Held
02/07/24 (H) MINUTE(L&C)
02/21/24 (H) L&C AT 3:15 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 192
SHORT TITLE: DELIVERY/PICK UP OF ALCOHOL; LICENSING
SPONSOR(s): REPRESENTATIVE(s) SUMNER
05/03/23 (H) READ THE FIRST TIME - REFERRALS
05/03/23 (H) L&C, FIN
01/22/24 (H) L&C AT 3:15 PM BARNES 124
01/22/24 (H) Heard & Held
01/22/24 (H) MINUTE(L&C)
02/02/24 (H) L&C AT 3:15 PM BARNES 124
02/02/24 (H) Heard & Held
02/02/24 (H) MINUTE(L&C)
02/14/24 (H) L&C AT 3:15 PM BARNES 124
02/14/24 (H) Heard & Held
02/14/24 (H) MINUTE(L&C)
02/21/24 (H) L&C AT 3:15 PM BARNES 124
02/21/24 (H) -- MEETING CANCELED --
02/23/24 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 45
SHORT TITLE: DIRECT HEALTH AGREEMENT: NOT INSURANCE
SPONSOR(s): SENATOR(s) WILSON
01/25/23 (S) READ THE FIRST TIME - REFERRALS
01/25/23 (S) HSS, L&C
02/07/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/07/23 (S) Heard & Held
02/07/23 (S) MINUTE(HSS)
02/09/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/09/23 (S) Heard & Held
02/09/23 (S) MINUTE(HSS)
02/21/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/21/23 (S) Scheduled but Not Heard
02/23/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/23/23 (S) Moved CSSB 45(HSS) Out of Committee
02/23/23 (S) MINUTE(HSS)
02/24/23 (S) HSS RPT CS 1DP 4NR SAME TITLE
02/24/23 (S) DP: WILSON
02/24/23 (S) NR: TOBIN, KAUFMAN, GIESSEL, DUNBAR
03/27/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/27/23 (S) Heard & Held
03/27/23 (S) MINUTE(L&C)
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/05/23 (S) Heard & Held
04/05/23 (S) MINUTE(L&C)
04/19/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/19/23 (S) Moved CSSB 45(L&C) Out of Committee
04/19/23 (S) MINUTE(L&C)
04/21/23 (S) L&C RPT CS 1DP 2NR NEW TITLE
04/21/23 (S) DP: BJORKMAN
04/21/23 (S) NR: DUNBAR, GRAY-JACKSON
05/10/23 (S) TRANSMITTED TO (H)
05/10/23 (S) VERSION: CSSB 45(L&C) AM
05/10/23 (H) L&C AT 3:15 PM BARNES 124
05/10/23 (H) -- MEETING CANCELED --
05/11/23 (H) READ THE FIRST TIME - REFERRALS
05/11/23 (H) L&C
05/12/23 (H) L&C AT 3:15 PM BARNES 124
05/12/23 (H) Scheduled but Not Heard
05/13/23 (H) L&C AT 11:00 AM BARNES 124
05/13/23 (H) Moved HCS CSSB 45(L&C) Out of Committee
05/13/23 (H) MINUTE(L&C)
05/15/23 (H) L&C RPT HCS(L&C) 2DP 3NR 2AM
05/15/23 (H) DP: PRAX, SUMNER
05/15/23 (H) NR: FIELDS, SADDLER, WRIGHT
05/15/23 (H) AM: RUFFRIDGE, CARRICK
05/17/23 (H) ADJOURNED - ON 1/16/2024 CALENDAR
01/16/24 (H) RETURNED TO RLS COMMITTEE
01/31/24 (H) RETURNED TO L&C COMMITTEE
01/31/24 (H) BILL REPRINTED
02/16/24 (H) L&C AT 3:15 PM BARNES 124
02/16/24 (H) -- MEETING CANCELED --
02/19/24 (H) L&C AT 4:15 PM BARNES 124
02/19/24 (H) -- MEETING CANCELED --
02/23/24 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 314
SHORT TITLE: OCCUPATIONAL LICENSING FEES
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/09/24 (H) READ THE FIRST TIME - REFERRALS
02/09/24 (H) L&C
02/23/24 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JASMINE MARTIN, Staff
Senator David Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, provided an explanation
of changes in the proposed HCS for CSSB 45(L&C), Version P.
SYLVAN ROBB, Director
Division of Corporations, Business, and Professional Licensing
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Presented a PowerPoint, entitled
"Occupational Licensing Fees," during the hearing on HB 314.
ACTION NARRATIVE
4:16:02 PM
CHAIR JESSE SUMNER called the House Labor and Commerce Standing
Committee meeting to order at 4:16 p.m. Representatives Prax,
Ruffridge, Saddler, and Sumner were present at the call to
order. Representatives Wright and Carrick arrived as the
meeting was in progress.
SB 37-CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
4:16:42 PM
CHAIR SUMNER announced that the first order of business would be
SENATE BILL NO. 37, "An Act establishing the crime of airbag
fraud."
4:17:15 PM
The committee took a brief at-ease at 4:17 p.m.
4:17:36 PM
REPRESENTATIVE RUFFRIDGE moved to adopt the proposed house
committee substitute (HCS) for SB 37, Version 33-LS0277\B, C.
Radford, 2/14/24, as the working document.
CHAIR SUMNER objected.
REPRESENTATIVE RUFFRIDGE provided a summary of changes in the
proposed HCS for SB 37, ("Version B") [hard copy included in the
committee packet], which read as follows [original punctuation
provided]:
Section 1 (Page 2, Lines 12-16)
• Adds subsection (b)(3) exempting a person who
transfers a vehicle title to an insurance company
to satisfy an insurance claim when the insurance
company declares the vehicle to be an actual
total loss or constructive total loss
• Adds subsection (b)(4) exempting an insurance
company that sells or otherwise disposes of a
vehicle as authorized by law or regulation
CHAIR SUMNER removed his objection. There being no further
objection, Version B was before the committee.
4:19:12 PM
CHAIR SUMNER opened public testimony. After ascertaining that
no one wished to testify, he closed public testimony.
4:19:32 PM
REPRESENTATIVE RUFFRIDGE moved to report HCS SB 37, Version 33-
LS0277\B, C. Radford, 2/14/24, out of committee with individual
recommendations and the accompanying fiscal notes. There being
no objection, HCS SB 37(L&C) was reported from the House Labor
and Commerce Standing Committee.
4:19:57 PM
The committee took an at-ease from 4:19 p.m. to 4:21 p.m.
HB 192-DELIVERY/PICK UP OF ALCOHOL; LICENSING
4:21:56 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 192, "An Act relating to curbside pickup of
alcoholic beverages sold by a package store; relating to
consumer delivery licenses; and providing for an effective
date." [Before the committee, adopted as the working document
on 2/2/24, was the proposed committee substitute (CS) for HB
192, Version 33-LS0753\B, C. Radford, 2/1/24 ("Version B").]
4:22:17 PM
CHAIR SUMNER moved to adopt Amendment 1 to Version B, labeled
33-LS0753\B.3, C. Radford, 2/10/24, which read:
Page 1, lines 16 - 20 of the amendment:
Delete all material.
REPRESENTATIVE RUFFRIDGE objected for purposes of discussion.
CHAIR SUMNER explained that amendment 1 would require a person
delivering alcohol to have a Techniques of Alcohol Management
(TAM) card.
REPRESENTATIVE RUFFRIDGE removed his objection. There being no
further objection, Amendment 1 was adopted.
CHAIR SUMNER noted that Amendment 2 would not be offered.
4:23:17 PM
REPRESENTATIVE CARRICK moved to adopt Amendment 3 to Version B,
labeled 33-LS0753\B.5, C. Radford, 2/13/24, which read:
Page 1, line 1, following "store":
Insert ", brewery, winery, or distillery"
Page 2, following line 30:
Insert new bill sections to read:
"* Sec. 4. AS 04.09.320(h) is amended to read:
(h) The holder of a brewery retail license
commits the offense of failure to comply with the
terms of a brewery retail license if the person
stores, sells, or serves brewed beverages in violation
of (a) of this section or violates (d), (e), [OR] (f),
or (j) of this section.
* Sec. 5. AS 04.09.320 is amended by adding a new
subsection to read:
(j) The holder of a brewery retail license may
offer curbside pickup of brewed beverages if
(1) the brewed beverage is sealed or
packaged in a closed bottle or can by the manufacturer
or sealed, tamper-proofed, and labeled in a growler by
the holder;
(2) an agent or employee who is not an
independent contractor and has completed an alcohol
server education course under AS 04.21.025 delivers
the brewed beverage from the licensed premises to the
purchaser at the location designated under (3) of this
subsection and requires the purchaser to provide
identification and acceptable proof of age under
AS 04.21.050(b);
(3) the holder designates a parking place
less than 225 feet from an entry to the brewery
premises for pickup of brewed beverages;
(4) the transaction is not prohibited under
AS 04.16.030;
(5) the holder provides written information
regarding the license and curbside pickup on a form
prescribed by the director; and
(6) the holder consents to an inspection of
the area designated for curbside pickup, excluding
private vehicles, at all reasonable times and in a
reasonable manner by an officer or employee charged
with enforcing the alcoholic beverage control laws and
the regulations of the board or by a peace officer
acting in the official capacity of a peace officer.
* Sec. 6. AS 04.09.330(h) is amended to read:
(h) The holder of a winery retail license
commits the offense of failure to comply with the
terms of a winery retail license if the person stores,
sells, or serves wine in violation of (a) of this
section or violates (d), (e), [OR] (f), or (j) of this
section.
* Sec. 7. AS 04.09.330 is amended by adding a new
subsection to read:
(j) The holder of a winery retail license may
offer curbside pickup of wine, mead, or cider if
(1) the wine, mead, or cider is sealed or
packaged in a closed bottle or can by the manufacturer
or sealed, tamper-proofed, and labeled in a bottle or
can by the holder;
(2) an agent or employee who is not an
independent contractor and has completed an alcohol
server education course under AS 04.21.025 delivers
the wine, mead, or cider from the licensed premises to
the purchaser at the location designated under (3) of
this subsection and requires the purchaser to provide
identification and acceptable proof of age under
AS 04.21.050(b);
(3) the holder designates a parking place
less than 225 feet from an entry to the winery
premises for pickup of the wine, mead, or cider;
(4) the transaction is not prohibited under
AS 04.16.030;
(5) the holder provides written information
regarding the license and curbside pickup on a form
prescribed by the director; and
(6) the holder consents to an inspection of
the area designated for curbside pickup, excluding
private vehicles, at all reasonable times and in a
reasonable manner by an officer or employee charged
with enforcing the alcoholic beverage control laws and
the regulations of the board or by a peace officer
acting in the official capacity of a peace officer.
* Sec. 8. AS 04.09.340(h) is amended to read:
(h) The holder of a distillery retail license
commits the offense of failure to comply with the
terms of a distillery retail license if the person
stores, sells, or serves distilled spirits in
violation of (a) of this section or violates (d), (e),
[OR] (f), or (j) of this section.
* Sec. 9. AS 04.09.340 is amended by adding a new
subsection to read:
(j) The holder of a distillery retail license
may offer curbside pickup of distilled spirits if
(1) the distilled spirits are sealed or
packaged in a closed bottle or can by the manufacturer
or sealed, tamper-proofed, and labeled in a bottle or
can by the holder;
(2) an agent or employee who is not an
independent contractor and has completed an alcohol
server education course under AS 04.21.025 delivers
the distilled spirits from the licensed premises to
the purchaser at the location designated under (3) of
this subsection and requires the purchaser to provide
identification and acceptable proof of age under
AS 04.21.050(b);
(3) the holder designates a parking place
less than 225 feet from an entry to the distillery
retail licensed premises for pickup of distilled
spirits;
(4) the transaction is not prohibited under
AS 04.16.030;
(5) the holder provides written information
regarding the license and curbside pickup on a form
prescribed by the director; and
(6) the holder consents to an inspection of
the area designated for curbside pickup, excluding
private vehicles, at all reasonable times and in a
reasonable manner by an officer or employee charged
with enforcing the alcoholic beverage control laws and
the regulations of the board or by a peace officer
acting in the official capacity of a peace officer."
Renumber the following bill sections accordingly.
Page 5, line 31:
Delete "Section 9"
Insert "Section 15"
Page 6, line 1:
Delete "sec. 10"
Insert "sec. 16"
CHAIR SUMNER objected.
REPRESENTATIVE CARRICK explained that Amendment 3 would expand
the scope of the bill to include curbside delivery for products
from breweries, distilleries, and wineries in the state of
Alaska to provide parity between package stores and these
operations.
4:24:00 PM
A roll call vote was taken. Representatives Prax and Carrick
voted in favor of Amendment 3. Representatives Ruffridge,
Saddler, Wright, and Sumner voted against it. Therefore,
Amendment 3 failed by a vote of 2-4.
4:24:57 PM
CHAIR SUMNER moved to adopt Amendment 4 to Version B, labeled
33-LS0753\B.1, C. Radford, 2/7/24, which read:
Page 2, line 14:
Delete "three"
Insert "six"
Page 2, lines 15 - 25:
Delete all material and insert:
"(A) underwent [WAS GIVEN] a qualifying
medical examination
(i) upon the first employment as [BECOMING]
a firefighter that did not show evidence of the
disease;
(ii) at least once every two years [(B) WAS
GIVEN AN ANNUAL MEDICAL EXAM] during [EACH OF] the
first six [SEVEN] years of employment as a firefighter
that did not show evidence of the disease; and"
Page 2, line 30, following "cancer":
Insert ";
(4) the requirements of (3)(A) of this
subsection apply only if the firefighter's employer
makes the applicable qualifying medical examination
available to the firefighter"
REPRESENTATIVE CARRICK objected for purposes of discussion.
CHAIR SUMNER explained that Amendment 4 would remove the
distance requirement and replace it with the words "contiguous
to."
4:25:18 PM
REPRESENTATIVE SADDLER asked whether "contiguous" is defined in
the bill.
CHAIR SUMNER defined "contiguous" as directly conjoining without
intervening breaks.
4:26:33 PM
REPRESENTATIVE CARRICK asked whether the intent is to ensure
that curbside pickup is, in fact, curbside to the establishment,
as opposed to around the block.
CHAIR SUMNER answered yes.
REPRESENTATIVE CARRICK asked whether there is a similar
requirement for curbside pickup at grocery stores.
CHAIR SUMNER said not to his knowledge.
4:27:30 PM
REPRESENTATIVE PRAX imagined that curbside pickup in front of a
"big box" store could create a traffic jam.
CHAIR SUMNER supposed that there would be designated spots that
are curbside.
REPRESENTATIVE PRAX maintained his belief that curbside pickup
could backup traffic at larger stores.
4:29:52 PM
REPRESENTATIVE SADDLER suggested clarifying the intent by making
it the closest designated parking space to an entrance,
exclusive of the handicap parking space.
4:30:30 PM
The committee took an at-ease from 4:30 p.m. to 4:35 p.m.
4:35:03 PM
CHAIR SUMNER withdrew Amendment 4.
4:35:13 PM
REPRESENTATIVE SADDLER moved Conceptual Amendment 5 to Version B
to delete "less than 225 feet from an" on page 2, line 21, and
insert "that is the designated parking space closest to an". In
addition, insert the words "that is not a designated handicap
parking space" after the word "premises" on page 2, line 22.
There being no objection, Conceptual Amendment 5 was adopted.
4:36:34 PM
The committee took a brief at-ease at 4:36 p.m.
4:36:53 PM
REPRESENTATIVE RUFFRIDGE moved to report CSHB 192, Version 33-
LS0753\B, C. Radford, 2/1/24, as amended, out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, CSHB 192(L&C) was reported from the
House Labor and Commerce Standing Committee.
4:37:12 PM
The committee took an at-ease from 4:37 p.m. to 4:39 p.m.
SB 45-DIRECT HEALTH AGREEMENT: NOT INSURANCE
4:39:30 PM
CHAIR SUMNER announced that the next order of business would be
CS FOR SENATE BILL NO. 45(L&C) am, "An Act relating to
insurance; relating to direct health care agreements; relating
to the duties of the director of the division of insurance in
the Department of Commerce, Community, and Economic Development;
and providing for an effective date."
4:40:05 PM
REPRESENTATIVE RUFFRIDGE moved to adopt the proposed house
committee substitute (HCS) for CSSB 45(L&C) am, Version 33-
LS0211\P, Wallace, 2/20/24, as the working document.
REPRESENTATIVE CARRICK objected.
4:40:30 PM
JASMINE MARTIN, Staff, Senator David Wilson, Alaska State
Legislature, provided an explanation of changes in the proposed
HCS for CSSB 45(L&C), ("Version P") [included in the committee
packet], which read as follows [original punctuation provided]:
Changes from first V.Y to V. P:
1)Section 2 and 3: Page 5, lines 24 through page 6,
line 31: These agreements are contracts. This CS moves
regulation of these contracts to the unfair trades
practices acts and made conforming language changes to
this effect.
2)Throughout: added requirement for providers to
disclose that these agreements are not insurance and
are not regulated as such.
3)Removed requirement that providers maintain a
certain ratio of patients who are uninsured or
Medicaid receipts in their practice.
4)Expanded the providers eligible to enter these
agreements from primary care providers to any licensed
provider.
4:42:46 PM
REPRESENTATIVE CARRICK asked Ms. Martin to elaborate on change
4, which would open eligibility to any licensed provider. She
asked whether it would come with any limitations or
restrictions. More specifically, she asked whether this
expanded eligibility would allow an individual to create a
direct healthcare agreement with an orthopedic surgeon in
anticipation of several procedures.
MS. MARTIN answered yes; however, the direct healthcare
agreement would be complicated.
REPRESENTATIVE CARRICK asked whether the bill sponsor envisioned
the expanded eligibility encompassing any particular provider
beyond primary care providers.
MS. MARTIN said the direct healthcare agreement would be
appropriate for continuing predictable healthcare, such as
physical therapists, midwives, and nutritionists.
REPRESENTATIVE CARRICK maintained her objection. She expressed
concern about expanding the direct healthcare agreement to all
providers.
4:45:42 PM
A roll call vote was taken. Representatives Prax, Ruffridge,
Saddler, Wright, and Sumner voted in favor of adopting Version P
as the working document. Representative Carrick voted against
it. Therefore, Version P was adopted by a vote of 5-1.
4:46:22 PM
The committee took an at-ease from 4:46 p.m. to 4:50 p.m.
4:50:34 PM
CHAIR SUMNER announced that Version P would be held over.
HB 314-OCCUPATIONAL LICENSING FEES
4:50:59 PM
CHAIR SUMNER announced that the next order of business would be
HOUSE BILL NO. 314, "An Act relating to occupational licensing
fees; and providing for an effective date."
4:51:50 PM
SYLVAN ROBB, Director, Division of Corporations, Business, and
Professional Licensing, Department of Commerce, Community &
Economic Development (DCCED), began the PowerPoint on slide 1.
She began on slide 2, "What Does HB 314 Do?" which read as
follows [original punctuation provided]:
•Removes investigation, legal, and hearing costs from
the "regulatory costs" covered by professional license
fees as required under AS 08.01.065.
•Shifts funding for investigations and hearings from
professional licensing fees (1156) to corporations'
fees (1005) so the division remains self-sufficient.
4:53:37 PM
MS. ROBB continued to slide 3, "AS 08.01.065(a) & (c)
Currently," which read as follows [original punctuation
provided]:
(a) Except for business licenses, the department shall
adopt regulations that establish the amount and manner
of payment of application fees, examination fees,
license fees, registration fees, permit fees,
investigation fees, and all other fees as appropriate
for the occupations covered by this chapter.
(c) Except as provided in (f) (k) of this section,
the department shall establish fee levels under (a) of
this section so that the total amount of fees
collected for an occupation approximately equals the
actual regulatory costs for the occupation. The
department shall annually review each fee level to
determine whether the regulatory costs of each
occupation are approximately equal to fee collections
related to that occupation. If the review indicates
that an occupation's fee collections and regulatory
costs are not approximately equal, the department
shall calculate fee adjustments and adopt regulations
under (a) of this section to implement the
adjustments. In January of each year, the department
shall report on all fee levels and revisions for the
previous year under this subsection to the office of
management and budget. If a board regulates an
occupation covered by this chapter, the department
shall consider the board's recommendations concerning
the occupation's fee levels and regulatory costs
before revising fee schedules to comply with this
subsection?.
4:54:24 PM
MS. ROBB moved to slide 4, "Primary Reasons for HB 314," which
read as follows [original punctuation provided]:
•Currently volatile license fee rates would stabilize,
as investigations, legal, and hearing costs are the
most variable element of the fee setting equation.
•Licensing fees would be reduced for many programs,
helping in the effort to attract professionals to
Alaska.
•This would be fairer to Alaska's professional
licensees who comply with the laws regulating their
profession as law-abiding professionals would no
longer bear the cost of investigations of licensees
who have potentially violated licensing laws and/or on
individuals practicing without a license.
•Remove a potential disincentive to report members of
their profession.
4:56:54 PM
MS. ROBB turned to slide 5, "Example of Substantial Fee
Increases in Past Years," which read as follows [original
punctuation provided]:
•Certified Direct-Entry Midwife Certificate Fees :
•In FY2017 initial and renewal application fee
increased from $1,750 to $3,800.
•That was after an increase from $1,450 to $1,750
in 2016.
•Fees have since been reduced to $2,800.
•Midwife Apprentices in 2015:
•Initial and Biennial Renewal Certification Fees
increased from $125 to $825.
•Initial and Biennial Renewal Certification Fees
increased from $825 to $1,275.
•Fees have since been reduced to $550.
4:58:12 PM
MS. ROBB provided investigative statistics from FY 23 on slides
6-9. The top complaints received by the division involved
continuing education violations and unlicensed activity. The
Board of nursing topped the list of programs receiving
complaints with 369 complaints followed by the State Medical
Board and the Board of Pharmacy. These are the programs that
would see the largest impact on their licensing fees, assuming
their rate of investigations continued into the future.
Registered Nurses (RN) also received the largest number of
complaints by profession, followed by physicians and massage
therapists. She rationalized the rankings by pointing out that
RNs represent a huge portion of Alaska's licensees.
5:00:27 PM
REPRESENTATIVE CARRICK asked whether there would be a decrease
in investigative procedure or strictly a transfer of the
licensing fee structure.
MS. ROBB reiterated that the bill would shift the fund source
from license fees to corporation fees, not impact the
performance of investigations.
5:01:21 PM
REPRESENTATIVE SADDLER surmised that reporting was being
depressed by the current fee structure. He asked whether a
pent-up demand might increase the amount of investigative work
required by the department if the bill were to pass.
MS. ROBB acknowledged that the current fee structure may be a
disincentive; however, she said the hope is that licensed
professionals would take seriously their duty to report an unfit
colleague.
REPRESENTATIVE SADDLER anticipated that there would be an
increase in investigations once the fee structure shifts from
licensees.
MS. ROBB acknowledged that possibility.
5:03:05 PM
REPRESENTATIVE PRAX said he could understand that license
holders would be in favor of the bill, and asked whether the
bill would materially impact the cost of obtaining corporate
status.
MS. ROBB said the bill would not impact corporate fees.
REPRESENTATIVE PRAX opined that this cost should come from the
general fund (GF) as opposed to taxing corporations for
professional licenses.
MS. ROBB explained that the bill would allow the divisions to
continue to be self-sufficient by covering these costs that
would otherwise flow to the GF with corporate funds.
5:05:30 PM
REPRESENTATIVE SADDLER referred to page 4 and asked Ms. Robb to
define the scope of the term "evaluation."
MS. ROBB explained that the the word "investigation" is changed
to "evaluation" to avoid any potential confusion with the
investigation fees that are being changed.
5:06:47 PM
CHAIR SUMNER announced that HB 314 would be held over.
SB 45-DIRECT HEALTH AGREEMENT: NOT INSURANCE
5:06:50 PM
CHAIR SUMNER announced that the final order of business would be
CS FOR SENATE BILL NO. 45(L&C) am, "An Act relating to
insurance; relating to direct health care agreements; relating
to the duties of the director of the division of insurance in
the Department of Commerce, Community, and Economic Development;
and providing for an effective date."
5:07:06 PM
REPRESENTATIVE RUFFRIDGE moved to adopt Conceptual Amendment 1
to Version P to delete the phrase "is entirely owned by" and
insert "employs" on page 5, lines 6-7.
REPRESENTATIVE SADDLER objected for purposes of discussion.
REPRESENTATIVE RUFFRIDGE opined that defining a health care
business as one that employs licensed health care providers, as
opposed to entirely owned by health care providers, would be
favorable because it's less proscriptive in the ability to
engage in a direct health care contract.
REPRESENTATIVE SADDLER removed his objection. There being no
further objection, Conceptual Amendment 1 was adopted.
5:09:21 PM
REPRESENTATIVE RUFFRIDGE moved to report HCS CSSB 45(L&C) am,
Version 33-LS0211\P, Wallace, 2/20/24, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HCS CSSB 45(L&C) was
reported from the House Labor and Commerce Standing Committee.
5:10:00 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:10 p.m.