Legislature(2019 - 2020)BARNES 124
03/01/2019 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
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| Start | |
| Overview(s): Department of Commerce, Community, and Economic Development by Deputy Commissioner Jon Faulkner | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 1, 2019
3:16 p.m.
MEMBERS PRESENT
Representative Gabrielle LeDoux, Co-Chair
Representative Sara Hannan
Representative Dave Talerico
MEMBERS ABSENT
Representative Adam Wool, Co-Chair
Representative Zack Fields
Representative Louise Stutes
Representative Josh Revak
COMMITTEE CALENDAR
OVERVIEW(S): DEPT. OF COMMERCE~ COMMUNITY~ ECONOMIC DEVELOPMENT
BY DEPUTY COMMISSIONER JON FAULKNER
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
JON FAULKNER, Deputy Commissioner
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Presented an overview of the Department of
Commerce, Community, and Economic Development.
SARA CHAMBERS, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Offered clarifying information during Mr.
Faulkner's testimony.
MATTHEW FAGNANI, Director
Division of Economic Development
Department of Commerce, Community, and Economic Development
Anchorage, Alaska
POSITION STATEMENT: Answered questions pertaining to the
Division of Economic Development.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions pertaining to the
Division of Insurance.
ACTION NARRATIVE
3:16:35 PM
CO-CHAIR GABRIELLE LEDOUX called the House Labor and Commerce
Standing Committee meeting to order at 3:16 p.m.
Representatives Talerico, Hannan, and LeDoux were present at the
call to order.
^OVERVIEW(S): DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC
DEVELOPMENT BY DEPUTY COMMISSIONER JON FAULKNER
OVERVIEW(S): DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC
DEVELOPMENT BY DEPUTY COMMISSIONER JON FAULKNER
3:17:30 PM
CO-CHAIR LEDOUX announced that the only order of business would
be an overview of the Department of Commerce, Community, and
Economic Development (DCCED) presented by Deputy Commissioner
Jon Faulkner.
3:17:53 PM
JON FAULKNER, Deputy Commissioner, Department of Commerce,
Community, and Economic Development (DCCED), introduced himself.
He addressed slide 2 of his PowerPoint presentation [hard copy
included in the committee packet] and explained DCCED structure
consisting of six core divisions and six corporate partners.
The divisions listed were Administrative Services, Banking &
Securities, Community & Regional Affairs, Insurance, Economic
Development, and Corporations, Business, & Professional
Licensing. The corporate partners listed were Alaska Energy
Authority, Alaska Industrial Development & Export Authority,
Alaska Gasline Development Corporation, Alaska Seafood Marketing
Institute, Alcohol and Marijuana Control Office, and Regulatory
Commission of Alaska.
3:19:36 PM
MR. FAULKNER addressed slide 3, titled "Division Mission
Statements." The slide displayed a mission statement for each
of DCCED's divisions. Mr. Faulkner said these mission
statements were recently created by DCCED's division directors.
He emphasized DCCED Commissioner-Designee Julie Anderson's
commitment to synergy between divisions.
3:20:28 PM
MR. FAULKNER addressed slide 4, titled "Economic Growth." He
said he would focus on introducing "team members" consisting of
long-term incumbents and new talent. He introduced Matthew
Fagnani, Director of the Division of Economic Development (DED),
and spoke to Mr. Fagnani's overseeing of sections dedicated to
economic development and investments. He referenced an economic
development plan called "North to Opportunity" and stated the
department's intention to "retain and build upon that document."
Mr. Faulkner summarized the "investment arm" of Mr. Fagnani's
division as consisting mostly of loan origination and processing
for various funds.
3:21:24 PM
MR. FAULKNER addressed slide 5, titled "Strong Communities." He
introduced Sandra Moller, Director of the Division of Community
and Regional Affairs (DCRA). He mentioned her vast experience
serving rural Alaska. He listed some of DCRA's important
functions, including municipal land trust obligations, community
aid, local government assistance, native language programs, and
Serve Alaska.
3:21:57 PM
MR. FAULKNER addressed slide 6, also titled "Strong
Communities." He remarked that DCRA is very large and has a
diverse mission. He mentioned that DCRA is the only division
within DCCED that is constitutionally mandated. He said much of
DCRA's funding comes through the Alaska Energy Authority (AEA)
and its Power Cost Equalization (PCE) program.
3:22:30 PM
MR. FAULKNER addressed slide 7, titled "'Right Touch Regulation'
& Consumer Protection." He introduced Sara Chambers, Director
of the Division of Corporations, Business and Professional
Licensing (CBPL). He claimed CBPL is "perhaps the fastest-
growing division that we have." He said enforcement is part of
Ms. Chambers' purview.
3:22:53 PM
REPRESENTATIVE HANNAN referenced the revenue sharing and
community assistance programs listed on slide 6. She said those
programs would be "substantially altered" under Governor Michael
J. Dunleavy's proposed fiscal year 2020 budget. She asked what
preparations the department has made in anticipation of those
alterations. She commented that she had heard from her
constituents that the proposed budget "dramatically impacts
their ability to receive those funds."
3:23:35 PM
MR. FAULKNER said his primary focus for this part of the
presentation was to introduce the people overseeing the
divisions. He said he would not go into detail when discussing
budget questions. He suggested Representative Hannan was
referring to the "merging of certain funds." He said the
impacts under the proposed budget should be benign.
3:24:50 PM
CO-CHAIR LEDOUX asked how the elimination of the revenue sharing
and community assistance programs could be benign.
3:25:09 PM
MR. FAULKNER said the programs she mentioned are not going away.
CO-CHAIR LEDOUX asked if the programs are being reduced.
MR. FAULKNER answered that it is his understanding the programs
are not being reduced at this time.
3:25:47 PM
REPRESENTATIVE HANNAN posited that the department will remain
obligated to maintain the revenue sharing programs unless
legislation is passed to change that.
3:26:17 PM
MR. FAULKNER affirmed Representative Hannan's conclusion. He
referenced the Power Cost Equalization program and said the
plan, pending legislative approval, is to collapse the program
into the general fund and make it subject to appropriation. He
said this does not mean the programs are diminished in any way"
or that they are going away.
3:26:53 PM
MR. FAULKNER addressed slide 8, titled "Balanced Regulation and
Consumer Protection." He introduced Lori Wing-Heier, Director
of the Division of Insurance. He said Ms. Wing-Heier is tasked
with keeping insurance markets competitive and transparent for
consumers. He called Ms. Wing-Heier an expert in her field and
"a true resource to Alaskans as we navigate some important
questions regarding healthcare markets." He pointed the
committee to the Division of Insurance's responsibilities listed
on the slide: licensing, financial oversight, filing approval,
consumer services, enforcement, and premium tax.
3:27:41 PM
MR. FAULKNER addressed slide 9, titled "Consumer Protection."
He introduced Erika McConnell, Director of the Alcohol and
Marijuana Control Office. He said the office is working
diligently to keep pace with consumer expectations. He said Ms.
McConnell is also tasked with licensing and enforcement.
3:27:59 PM
CO-CHAIR LEDOUX said it was her understanding that Governor
Dunleavy wants to eliminate the Alcoholic Beverage Control Board
and the Marijuana Control Boards. She asked Mr. Faulkner to
confirm this.
3:28:15 PM
MR. FAULKNER said there is a proposal to merge the two in order
to more efficiently execute their business. He said that is all
the knowledge he had "on that particular question."
MR. FAULKNER addressed slide 10, titled "Regulation and Consumer
Protection." He introduced Patrice Walsh, Director of the
Division of Banking and Securities. He said her core mission
includes licensing, Alaska Native Claims Settlement Act (ANCSA)
proxy filings, enforcement, and consumer education.
3:29:17 PM
MR. FAULKNER addressed slide 11, titled "Overall Department
Goals." He said the department's primary objective is to
reinforce Governor Dunleavy's message that "Alaska is open for
business" and communicate that sentiment "to Alaskans and the
world beyond our borders." He said the department is focusing
efforts to "do everything possible" to improve Alaska's economy.
He said the department is focusing on core services and
constituent needs.
MR. FAULKNER mentioned cross-department efforts to eliminate
redundancies regarding permitting and activities in order to
help constituents work through easements and land use
allocations, for example. He said the department is identifying
permitting backlogs and trying to fix those problems. He also
mentioned cutting red tape, reducing inappropriate reliance on
government, and enabling the private sector "to invest more in
Alaska" and "to solve problems the private sector might be more
adept at solving." He said the department hopes "all these
things" will result in jobs and opportunities for Alaska.
3:31:06 PM
MR. FAULKNER addressed slide 12, titled "Division of
Corporations, Business, & Professional Licensing." He relayed
that professional licensures are administered largely by boards
with departmental or divisional support for roughly 21 programs.
He said the remaining 22 programs are administered solely by the
division. He said CBPL also manages registration for
corporations, business licenses, and tobacco endorsements. He
listed the major functions of the division: Business licensing,
corporations, professional licensing, enforcement, and
administrative support for professional boards and commissions.
He mentioned the duty of registering trademarks and noted there
is an emerging interest in better protection of business names.
3:32:51 PM
REPRESENTATIVE HANNAN asked about the 21 professions regulated
by licensure boards, noting that they were not listed on slide
13 alongside the 22 professions regulated directly by the
division.
MR. FAULKNER said he could provide that information at a later
time or defer to Sara Chambers of CBPL.
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community, and
Economic Development, referred Representative Hannan to the list
of professions on slide 14.
3:33:46 PM
MR. FAULKNER addressed slide 13, also titled "Division of
Corporations, Business, & Professional Licensing. He
highlighted the workload overseen by Ms. Chambers including the
22 professions regulated by the division. He acknowledged the
73,952 business licenses, 1,351 tobacco endorsements, 75,053
corporations, 89,414 professional licenses, 1,256 investigative
matters, and 221 license matters overseen by CPBL in 2018.
MR. FAULKNER addressed slide 14, which listed all 21 boards or
commissions regulating professions overseen by the division.
MR. FAULKNER addressed slide 15, which displayed a line graph
measuring the total number of professional licenses overseen by
the state from 2007 to 2018. The graph demonstrated growth from
50,768 licenses in 2007 to 89,414 in 2018.
3:35:25 PM
CO-CHAIR LEDOUX asked whether the rise in licenses can be
attributed to an increase in the number of regulated professions
or an increase in the number of people within existing
professions, or a combination of the two.
MR. FAULKNER said it's a combination of the two plus additional
licensees from out of state doing business in Alaska. He said
there is a growing awareness that the licensing of those out-of-
state individuals "affects Alaskans."
3:36:15 PM
REPRESENTATIVE HANNAN asked if the amount measured in the graph
reflects a combination of professions regulated by the division
and those regulated by a board or commission.
MR. FAULKNER affirmed that is correct.
3:36:48 PM
MR. FAULKNER addressed slide 16, which displayed a bar graph
measuring the total number of professional licensing programs
from 1987 to the present. The graph reflected a growth in the
number of programs from 25 in 1987 to 43 at present. He noted
that the division recently completed a comprehensive reform
initiative to streamline initial professional licensures online
through myAlaska. He said the new system allows professionals
to submit and track applications, receive status updates, access
documents, and pay fees online. He said the department is
undertaking a study to improve digital processing for "every
single element" under the division. He relayed that the
division brings in about $15 million annually with about $3.6
covering operations.
MR. FAULKNER addressed slide 17, titled "Division of Banking and
Securities." He said the division's core mission is to support
stable financial systems which support economic growth. He said
the division performs a lot of examinations" both in state and
out of state for compliance. He said the division investigates
to ensure the safety and soundness of the banking industry. He
stated that the division is committed to sharing information
with the industry in order to streamline those processes. He
highlighted the division's core services including the
registration of financial entities, examination of licensees for
compliance, provision of educational outreach, and acceptance of
ANCSA proxy filings.
3:39:38 PM
MR. FAULKNER addressed slide 18, subtitled "What are Regulated
Financial Services?" He highlighted a list of regulated
financial services, both in state and out of state, with which
the division concerns itself. He mentioned state banks,
Business Industrial Development Corporations (BIDCOs), mortgage
lenders, security brokers, security agents, mutual funds, and
ANCSA proxy filings.
MR. FAULKNER addressed slide 19, subtitled "2018 by the
Numbers." The slide listed figures such as the number of
individuals, organizations, offices, and filings overseen by the
Division of Banking and Securities. Mr. Faulkner acknowledged
the substantial volume of work done by the division in 2018.
MR. FAULKNER addressed slide 20, titled "Major Accomplishments
in 2018." The slide displayed a list of accomplishments for the
Division of Banking & Security. Mr. Faulkner noted that these
accomplishments occurred prior to his joining the department in
December 2018. He said the division settled a multi-state
enforcement case with LPL Financial LLC regarding the sales of
unregistered, non-exempt securities. He said the State of
Alaska brought in $499,000 in civil penalties as a result of
that settlement. Mr. Faulkner claimed the settlement sent a
strong message that states play a vital role in protecting
investors by holding firms accountable. He described the
settlement as a cross-state cooperation that "strengthens the
system as a whole."
3:42:29 PM
MR. FAULKNER addressed slide 21, titled Community and Regional
Affairs He asserted the department's intention to keep
important CRA programs intact. He restated the department's
intention to pursue operational efficiencies.
MR. FAULKNER summarized the daily work conducted by CRA. He
highlighted the Planning and Land Management Section and praised
their work with community profile maps and interactive mapping.
He extolled the comprehensive Alaska Community Database Online
and called it "a community resource that we're proud of." He
mentioned other examples of local government assistance overseen
by CRA, including the Office of the State Assessor and the Local
Boundary Commission.
3:44:31 PM
MR. FAULKNER addressed slide 23, subtitled "Other Functions."
He summarized additional responsibilities of CRA, including work
with the Alaska Native Language Preservation & Advisory Council
and Serve Alaska. He said one of the department's missions is
to "really highlight" Serve Alaska, which he described as
flexible in meeting the needs of underserved areas.
MR. FAULKNER addressed slide 24, subtitled "Other duties and
those prescribed by law." He listed several grant programs
administered by CRA including Community Assistance Program
grants, National Forest Receipts, Payment in Lieu of Taxes,
Shared Fisheries Business Tax, and Fishery Resource Landing Tax.
He mentioned that "quite a bit of training" is conducted through
CRA for energy-related projects.
3:46:05 PM
MR. FAULKNER mentioned the department's constitutional mandate
to advise and assist local government.
MR. FAULKNER addressed slide 25, titled Division of Economic
Development He called DED "small and nimble but very
ambitious." He explained that its goal is to create more jobs
for Alaskans. He broke down the division's core services into
two categories: investments and economic development.
Regarding investments, he mentioned efforts to evaluate the
state's revolving loan funds for efficiency. He noted that some
of these funds require annual legislative appropriation.
MR. FAULKNER remarked upon Governor Dunleavy's new task force,
whose mission is to create jobs and diversify the economy. He
mentioned daily discussions within the department on how to
remove barriers to industry and impediments to success. He said
the department recently sent out a questionnaire on that topic
to over 10,000 Alaskans. He said the department would share the
results of that questionnaire upon final compilation.
MR. FAULKNER mentioned the creation of an "online business
park." He described it as an emerging technology with "a lot of
promise." He explained that an online business park is a
platform that "takes every seed concept we're aware of" and
publishes it publicly to target investors.
3:49:07 PM
MR. FAULKNER addressed slides 26 and 27, each subtitled
"Activities and Accomplishments in FY18." He pointed the
committee's attention to a list of DED's successes from the
previous year. He stressed that his focus was not to look back
but rather to focus on initiatives moving forward, including the
governor's task force and the pursuit of new efficiencies.
MR. FAULKNER commented on the division's statewide Comprehensive
Economic Development Strategy (CEDS), which he said he wants to
build upon moving forward. He mentioned an intention to
condense the CEDS document from 70 pages to half that size.
3:50:57 PM
REPRESENATIVE HANNAN referenced a bullet point on slide 27 that
read "DED supports Alaska's startups and entrepreneurs by
supporting sprints and pitch competitions and providing
technical assistance." She asked Mr. Faulkner to explain
"sprints and pitch competitions."
MR. FAULKNER defined "pitches" as solicitations for interest in
business ideas. He said the department is engaged with the
University of Alaska regarding the University's startup and
angel investment funds. He mentioned the 49th State Angel Fund
(49SAF) located in Anchorage.
MR. FAULKNER said the department offers coordination for sprints
and pitch competitions for startup and capital ideas through the
online business park model. He described sprints and pitch
competitions as entrepreneurs forming little communities where
they're trying to match the needs with technology and capital to
see an idea move forward."
3:52:39 PM
REPRESNTATIVE HANNAN asked for elaboration regarding what DED
does to "support" sprints and pitch competitions. She asked if
DED hosts a startup conference.
MR. FAULKNER said DED has no specific plans to host any
specific forums." He explained DED is "largely supporting the
efforts of the private sector." He emphasized DED's intention
to stimulate "organic" growth rather than "aggressively hosting"
events itself. He said DED does not have the resources to do
that.
3:53:35 PM
CO-CHAIR LEDOUX asked how DED intends to stimulate them."
MR. FAULKNER said DED is having ongoing conversations to
determine how to best stimulate the private sector. He restated
the goal of eliminating barriers to private sector success. He
cited the DCCED staff members' vast experience within the
private sector and expressed hope that their success and
experience will come to bear.
MR. FAULKNER said the best answer to Co-Chair LeDoux's question
would be to stimulate investment in existing enterprises that
want to expand and to help startups overcome barriers. He
mentioned coordinating the wealth of public sector information
to private sector capital. He also mentioned communication
efforts though not via out-of-state travel - to spread the
word globally "that Alaska is more than just a desirable place
to do business, it's the best place to do business."
3:56:05 PM
REPRESENTATIVE HANNAN asked for additional specifics, citing the
placement of "sprints and pitch competitions" on the slide
subtitled "Activities and Accomplishments in 2018." She asked
if DCCED had, for example, sent someone to a university forum or
produced fliers or if it employs a venture capital expert who
coordinates events and participants. She referenced the Juneau
Economic Development Council (JEDC) which had recently hosted an
entrepreneurial startup forum. She asked if DED did or is doing
something similar, or if it funds local economic councils.
MR. FAULKNER answered that DCCED Assistant Commissioner Shawn
Williams attended the JEDC event. He said the department
intends to send a representative to as many similar local events
as possible in order to communicate the message that Alaska is
open for business. He emphasized DCCED focus is primarily on
stimulating the private sector, "not necessarily expanding
government's role in that process." He said DCCED is availing
itself of every possible channel, including brochures,
conferences, and collaboration with The University of Alaska
Center for Economic Development (CED).
3:58:39 PM
CO-CHAIR LEDOUX asked what DED did in 2018 to supporting sprints
and pitch competitions.
3:59:17 PM
MATTHEW FAGNANI, Division Director, Division of Economic
Development, Department of Commerce, Community, and Economic
Development, said DCCED participated in several types of pitch
and startup opportunities in 2018. He cited as an example the 1
Million Cups program. He said the department utilized [the
Alaska Small Business Development Center] (SBDC) at the
University of Alaska Anchorage to help reach out to startups and
help them work through complex issues. He mentioned the
department's work in presenting a crowdfunding opportunity that
was utilized by [Baranof Island Brewing Company].
4:00:37 PM
CO-CHAIR LEDOUX asked Mr. Fagnani to clarify the state's role in
the crowdfunding initiative.
th
MR FAGNANI referenced Senate Bill 126 [passed in the 29 Alaska
State Legislature] which enabled a type of crowdfunding [equity
crowdfunding, or "crowdinvesting"] that enables friends, family,
and neighbors but not out-of-state investors - to invest in
local businesses. He said DCCED facilitated the rollout of
that."
CO-CHAIR LEDOUX asked Mr. Fagnani to clarify what he meant by
facilitated the rollout. She asked if DCCED requested for
Senate Bill 126 to be introduced.
MR FAGNANI clarified that he meant the department promoted the
initiative by putting it on its website and fielding inquiries
about it. He said the department did not put any resources into
promoting it, but rather facilitated information.
4:02:41 PM
MR. FAULKNER addressed slide 28, subtitled "Challenges," and
spoke to difficulties regarding [the Commercial Fisheries
Revolving Loan Fund], specifically industry volatility, the
uniqueness of collateral, and the lack of startup capital for
new fishers. He also cited as a challenge the lack of large
loan funding sources for "larger, midsize fishermen" looking to
upsize their boats. He noted the Commercial Fisheries Revolving
Loan Fund also supports mariculture and fisheries enhancements.
He spoke to efforts to streamline the mariculture permitting
process.
4:05:07 PM
REPRESENTATIVE HANNAN referenced slide 28, which listed
"Depletion of Strategic Minerals funding" as a challenge
pertaining to DED. She asked him to elaborate.
MR. FAULKNER deferred to Mr. Fagnani.
4:06:04 PM
MR. FAGNANI said the Strategic Minerals fund was a legislative
appropriation that was not reallocated, so the funding no longer
exists. He said DED still produces a report on mining. It
presented one to the legislature earlier in the session.
4:07:16 PM
MR. FAULKNER addressed slide 29, titled Division of Insurance."
Mr. Faulkner drew the committee's attention to a list of revenue
streams overseen by the division.
MR. FAULKNER addressed slide 31, subtitled "Federal Funding."
He said federal funding includes the State Flexibility Grant.
4:09:41 PM
MR. FAULKNER addressed slide 32, subtitled "Alaska Reinsurance
Program." He called the program a major accomplishment of the
Division of Insurance. Essentially, he said, it is designed to
remove the highest cost claims from Alaska individual health
insurance ... and bring more competitive rates to those higher
risk markets." He explained the Alaska Reinsurance Program is a
conditions-based program that covers 33 of the most expensive
conditions which drive up healthcare costs.
4:10:55 PM
CO-CHAIR LEDOUX quoted text from slide 32 that read, "This
program is invisible to the insured." She asked what that
meant.
4:11:11 PM
LORI WING-HEIER, Director, the Division of Insurance, Department
of Commerce, Community, and Economic Development, explained that
Premera is the only insurance provider currently available
through the individual market in Alaska. She said if patients
filing a claim have certain expensive, chronic conditions, they
would still deal with Premera and access its network of
providers. But, she added, behind the scenes that claim is
being picked up by the state reinsurance program.
CO-CHAIR LEDOUX asked how many people are covered by this
program in a given year.
MS. WING-HEIER estimated between 550 and 600 people.
CO-CHAIR LEDOUX asked what the cost is to the State of Alaska.
MS. WING-HEIER said the figure is included in the next slide.
MR. FAULKNER addressed slide 33, subtitled "Table 1: State vs.
Federal Funding for Alaska Reinsurance Program." The table on
slide 33 featured figures and projections for the calendar years
between 2018 and 2026.
4:12:54 PM
CO-CHAIR LEDOUX asked for confirmation that, in 2018, the cost
for approximately 550-600 people was approximately $60 million.
MS. WING-HEIER answered that is correct.
4:13:30 PM
MR. FAULKNER addressed slide 34, subtitled "Health Insurance in
Alaska." The slide featured a list of advantages and a list of
challenges. Mr. Faulkner mentioned growth in infrastructure and
increased access to services as an advantage. He also mentioned
the reduction of consumer costs as a result of the Alaska
Reinsurance Program. He highlighted challenges including the
continued rise of healthcare costs.
MR. FAULKNER addressed slide 35, subtitled "Major
Accomplishments and Challenges in FY2018." The slide featured
four bullet points: State Flexibility Grant Award, External
Healthcare Review, Small Business Survey, and 5-year
accreditation through the National Association of Insurance
Commissioners.
4:14:30 PM
REPRESENTATIVE HANNAN remarked that, earlier in the session, she
had participated in a presentation by Ms. Wing-Heier. She said
she wanted to recognize Ms. Wing-Heier and praised her
helpfulness.
4:15:09 PM
CO-CHAIR LEDOUX noted that additional DCCED representatives were
in attendance or available via teleconference for committee
questions.
4:15:36 PM
CO-CHAIR LEDOUX asked if the 550-600 people involved in the
Alaska Reinsurance Program qualified for the Affordable Care Act
(ACA).
MS. WING-HEIER clarified that the Alaska Reinsurance Program is
the Affordable Care Act."
CO-CHAIR LEDOUX asked, Don't [the 550-600 people] get federal
subsidies?"
MS. WING HEIER answered that lower-income and some moderate-
income policy holders receive federal subsidies to help pay
premiums, not the claims.
CO-CHAIR LEDOUX asked if the State of Alaska reinsures because
Premera would leave the state if it didn't.
MS. WING-HEIER said there was discussion about this topic in
2016. She explained that Moda Health had withdrawn from the
market; Premera expressed that they might do the same. Ms.
Wing-Heier said health insurance premiums had risen
significantly and were becoming "totally unaffordable ... for
Alaskan consumers." She claimed this was the impetus for the
reinsurance program. She detailed how the state funded the
first year with $55 million. She added that "we worked hard to
get the waiver by the second year" and that the program "is now
self-supporting with federal funds.
4:17:39 PM
CO-CHAIR LEDOUX listed additional DCCED representatives in
attendance and available via teleconference.
4:18:17 PM
CO-CHAIR LEDOUX thanked Mr. Faulkner and his associates for the
presentation.
4:18:50 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:19 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 2019.Committees.House Labor and Commerce Overview Presentation.pdf |
HL&C 3/1/2019 3:15:00 PM |
Commerce |