Legislature(2021 - 2022)BARNES 124
02/23/2022 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB323 | |
| HB306 | |
| SJR15 | |
| HB307 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 306 | TELECONFERENCED | |
| *+ | HB 307 | TELECONFERENCED | |
| *+ | HB 323 | TELECONFERENCED | |
| += | SJR 15 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 23, 2022
3:18 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Ivy Spohnholz, Co-Chair
Representative Calvin Schrage
Representative Liz Snyder
Representative David Nelson
Representative James Kaufman
Representative Ken McCarty
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
HOUSE BILL NO. 323
"An Act extending the termination date of the State Physical
Therapy and Occupational Therapy Board; and providing for an
effective date."
- HEARD & HELD
HOUSE BILL NO. 306
"An Act extending the termination date of the Board of Pharmacy;
and providing for an effective date."
- HEARD & HELD
SENATE JOINT RESOLUTION NO. 15
Recognizing and honoring the relationship between Canada and the
state; and recognizing the importance of the United States-
Mexico-Canada Agreement.
- MOVED HCS SJR 15(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 307
"An Act relating to the financing and issuance of bonds for a
liquefied natural gas production system and natural gas
distribution system; and providing for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 323
SHORT TITLE: EXTEND PT & OCCUPATIONAL THERAPY BOARD
SPONSOR(s): REPRESENTATIVE(s) HOPKINS
02/14/22 (H) READ THE FIRST TIME - REFERRALS
02/14/22 (H) L&C, FIN
02/23/22 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 306
SHORT TITLE: EXTEND BOARD OF PHARMACY
SPONSOR(s): REPRESENTATIVE(s) STORY
02/04/22 (H) READ THE FIRST TIME - REFERRALS
02/04/22 (H) L&C, FIN
02/23/22 (H) L&C AT 3:15 PM BARNES 124
BILL: SJR 15
SHORT TITLE: RECOGNIZING ALASKA/CANADA RELATIONSHIP
SPONSOR(s): SENATOR(s) BEGICH
04/28/21 (S) READ THE FIRST TIME - REFERRALS
04/28/21 (S) L&C
05/05/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
05/05/21 (S) Moved CSSJR 15(L&C) Out of Committee
05/05/21 (S) MINUTE(L&C)
05/07/21 (S) L&C RPT 4DP
05/07/21 (S) DP: COSTELLO, REVAK, GRAY-JACKSON,
STEVENS
05/14/21 (S) TRANSMITTED TO (H)
05/14/21 (S) VERSION: SJR 15
05/15/21 (H) READ THE FIRST TIME - REFERRALS
05/15/21 (H) L&C
02/07/22 (H) L&C AT 4:30 PM BARNES 124
02/07/22 (H) -- MEETING CANCELED --
02/09/22 (H) L&C AT 4:30 PM BARNES 124
02/09/22 (H) Scheduled but Not Heard
02/16/22 (H) L&C AT 3:15 PM BARNES 124
02/16/22 (H) Heard & Held
02/16/22 (H) MINUTE(L&C)
02/23/22 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 307
SHORT TITLE: EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ
SPONSOR(s): REPRESENTATIVE(s) HOPKINS
02/04/22 (H) READ THE FIRST TIME - REFERRALS
02/04/22 (H) L&C, FIN
02/23/22 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
TANNER FRITSINGER, Staff
Representative Grier Hopkins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Hopkins,
sponsor, introduced HB 323 and provided the sectional analysis.
KRIS CURTIS, CPA, CISA, Legislative Auditor
Division of Legislative Audit
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 323, provided
invited testimony.
SARA CHAMBERS, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 323, answered
questions.
GREG SMITH, Staff
Representative Andi Story
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Story, sponsor,
introduced HB 306.
KRIS CURTIS, CPA, CISA, Legislative Auditor
Division of Legislative Audit
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 306, provided
invited testimony regarding the division's sunset audit of the
Board of Pharmacy.
SARA CHAMBERS, Director
Division of Corporations, Business and Professional Licensing
Department of Commerce, Community, and Economic Development
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 306, answered
questions.
JUSTIN RUFFRIDGE, Chair
Board of Pharmacy
Soldotna, Alaska
POSITION STATEMENT: During the hearing on HB 306, provided
invited testimony.
SENATOR TOM BEGICH
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During the hearing on SJR 15, answered
questions as the prime sponsor.
HEATHER EVOY, Indigenous Engagement Lead
Southeast Alaska Conservation Council
Juneau, Alaska
POSITION STATEMENT: During the hearing on SJR 15, expressed
concern that the resolution does not address transboundary
mining and water issues.
JOE HARDENBROOK, Staff
Representative Grier Hopkins
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: During the hearing on HB 307, introduced
the bill on behalf of Representative Hopkins, sponsor.
DAN BRITTON, General Manager
Interior Gas Utility
Fairbanks, Alaska
POSITION STATEMENT: During the hearing on HB 307, provided
invited testimony in support of the bill.
ACTION NARRATIVE
3:18:48 PM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 3:18 p.m.
Representatives Schrage, McCarty, Nelson, Snyder, Spohnholz, and
Fields were present at the call to order. Representative
Kaufman arrived as the meeting was in progress.
HB 323-EXTEND PT & OCCUPATIONAL THERAPY BOARD
3:19:33 PM
CO-CHAIR FIELDS announced that the first order of business would
be HOUSE BILL NO. 323, "An Act extending the termination date of
the State Physical Therapy and Occupational Therapy Board; and
providing for an effective date."
3:19:52 PM
TANNER FRITSINGER, Staff, Representative Grier Hopkins, Alaska
State Legislature, on behalf of Representative Hopkins, sponsor,
introduced HB 323 and provided the sectional analysis. He
explained that HB 323 would extend the State Physical Therapy
and Occupational Therapy Board's termination date eight years to
6/30/2030 as recommended by the Division of Legislative Audit.
Extending this board's termination date, he continued, is
important in protecting Alaskans who need physical therapy.
These [therapy] services are utilized by everyone, and the bill
ensures that practitioners are properly licensed and that
appropriate standards and practices in the industry are
enforced.
3:21:08 PM
MR. FRITSINGER provided the sectional analysis for HB 323. He
said Section 1 would amend statute to change the termination
date of the State Physical Therapy and Occupational Therapy
Board from 6/3/22 to 6/30/30. Section 2 states that the Act
becomes effective immediately upon signature.
Timestamp
CO-CHAIR FIELDS opened invited testimony on HB 323.
3:21:42 PM
KRIS CURTIS, CPA, CISA, Legislative Auditor, Division of
Legislative Audit, provided invited testimony on HB 323. She
confirmed that the Division of Legislative Audit conducted a
sunset audit of the State Physical Therapy and Occupational
Therapy Board. She explained that the purpose of a sunset audit
is to determine whether a board or commission is serving the
public's interest and whether it should be extended. She noted
that a copy of the audit, dated 4/2/21, can be found in each
committee member's meeting packet. She said the division found
that, overall, the board served the public's interest by
conducting meetings in accordance with state laws; amending
certain regulations to improve the professions of physical
therapy and occupational therapy; and effectively licensing and
regulating physical therapists, physical therapy assistants,
occupational therapists, and occupational therapy assistants.
The division, she continued, is recommending an eight-year
extension, the maximum allowed for in statute.
MS. CURTIS pointed out some of the standard information that is
included in every occupational sunset audit. She turned to the
licensing information on page 5 of the audit report and related
that as of January 2021 there were 1,762 active licenses and
permits, an increase of 53 percent since the prior sunset audit
of 2013 that can be attributed to telehealth. She brought
attention to the schedule of revenues and expenditures for the
board on page 7 and specified that as of January 2021 the board
had a surplus of just over $211,000. She moved to the schedule
of license and permit fees depicted on page 6 and noted that
fees were decreased in fiscal year 2020 (FY 2020) in response to
the surplus.
MS. CURTIS stated that the report makes no recommendations. She
said responses to the audit begin on page 19, and both the
commissioner of the Department of Commerce, Community, and
Economic Development (DCCED) and the board chair agree with the
report conclusions.
3:23:49 PM
REPRESENTATIVE NELSON asked how much travel cost was reduced in
2020 and 2021 due to the COVID-19 pandemic and meetings being
conducted online [rather than in person].
MS. CURTIS replied that travel significantly decreased to be
almost exclusively teleconference or video conference.
3:24:36 PM
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing (DCBPL), Department of Commerce,
Community, and Economic Development (DCCED), confirmed that
[meetings by teleconference and video conference] are the main
reasons for the reduction in travel costs. She said none of
DCBPL's boards were meeting in person during the height of the
COVID-19 pandemic.
3:25:08 PM
REPRESENTATIVE NELSON asked whether this board would continue to
meet online or transition back to in-person meetings.
MS. CHAMBERS responded that the division is taking a hybrid
approach, as are many organizations. The division typically has
a standard of business need to meet in person - a board needs to
demonstrate that it has a reason to come together, especially
since technology has improved so much over the last couple of
years. The division implemented online board meetings in 2018
and some discretion is left to the boards. The division does
encourage the boards to meet in person if they have a business
need to do so, but many of them don't want to because they
appreciate the efficiencies of being home with their families.
Sometimes boards have two days of work and that is an exhausting
online meeting, but this board often is efficient and has
shorter meetings.
3:26:16 PM
REPRESENTATIVE MCCARTY observed an estimated annual expenditure
of $230,000 on page 2 of the fiscal note. He said the revenue
doesn't seem to fit that and requested that this be addressed.
MS. CHAMBERS answered that this fiscal note only pertains to
this bill, it isn't an overview of the entire program.
According to the sunset section of Alaska statute, AS 08.03, the
licensing activities revert to the division upon the sunset of a
board, so the division would continue to license physical
therapists and occupational therapists and that would be outside
of this bill. This bill is only to reauthorize the board
itself, so these expenses are related only to the activities of
the board and not the activities of the entire licensing program
which goes unchanged regardless of the outcome of the bill.
REPRESENTATIVE MCCARTY surmised that this board sustains itself
from the fees collected.
MS. CHAMBERS replied that for the most part, with just a few
recent changes including the FY 23 governor's budget, all the
division's licensing programs are self-sustaining through fees.
The division has received a little bit of general fund to knock
down some of those fee increases during COVID-19 especially, but
the bulk of programs are self-sustaining, and the division does
balance those through fee increases and decreases after an
annual overview.
HB 323 was held over.
HB 306-EXTEND BOARD OF PHARMACY
3:28:35 PM
CO-CHAIR FIELDS announced that the next order of business would
be HOUSE BILL NO. 306, "An Act extending the termination date of
the Board of Pharmacy; and providing for an effective date."
3:28:46 PM
GREG SMITH, Staff, Representative Andi Story, Alaska State
Legislature, introduced HB 306 on behalf of Representative
Story, sponsor. He explained that HB 306 would extend the Board
of Pharmacy's termination date from 6/30/22 until 6/30/28, a
six-year extension recommended by the Division of Legislative
Audit. He explained that the Board of Pharmacy was established
for purposes of controlling and regulating the practice of
pharmacy in Alaska, which is necessary to protect the public's
health, safety, and welfare. The board is comprised of seven
members, of which five must be licensed pharmacists and two must
be members of the public with a direct financial interest in the
health care industry. The Board of Pharmacy was first created
in 1913, those provisions were repealed, and a new board was
enacted in 1955. An audit was completed by the Division of
Legislative Audit in 2021 and that report is in the committee's
packets.
3:30:10 PM
CO-CHAIR FIELDS [opened invited testimony].
3:30:22 PM
KRIS CURTIS, CPA, CISA, Legislative Auditor, Division of
Legislative Audit, provided invited testimony regarding the
division's sunset audit of the Board of Pharmacy. She stated
that the July 2021 audit report concluded that, overall, the
board is serving the public's need by effectively conducting its
meetings and actively amending regulations, but that the
division found improvements are needed with the board's
licensing function. She said the audit further concluded that
the Division of Corporations, Business and Professional
Licensing staff actively worked at implementing the new
requirements for the controlled substance prescription database,
but at the time of the audit, occupational boards were not
effectively monitoring or enforcing those requirements. She
said the division recommends the legislature extend this board
six years, two years less than the allowed maximum in statute of
eight years to reflect the need for more timely oversight of the
board's evolving role in combatting the opioid crisis.
MS. CURTIS referred to Exhibit 4, Licensing and Registration
activity, on page 13 of the audit report. As of January 2021,
she related, there were 4,280 active individual and facility
licenses, a 14 percent increase compared to the 2017 audit due
to the addition of three new license types. [Speaking to
Exhibit 6, Schedule of Revenues and Expenditures] on page 15,
she stated that as of January 2021 the board had a surplus of
nearly $800,000, but that at its February 2021 meeting the board
decided not to reduce the fees because it planned to hire a new
licensing examiner position which would increase expenditures in
the future. [The board] was also concerned that establishing a
disciplinary matrix that covered noncompliance with the
controlled substance prescription database requirements would
likely increase future investigative expenditures. She then
drew attention to [Exhibit 5, License, Registration, and Permit
Fees] on page 14.
3:32:56 PM
MS. CURTIS recounted that the 2017 sunset audit concluded that
changes to laws governing the database would significantly
change the board's role in helping combat the misuse and abuse
of controlled substances. She noted that the [2017] audit
recommended only a four-year extension to allow the legislature
to evaluate the board's progress in administering these new
laws. Therefore, she advised, a large portion of the [2021]
audit report is dedicated to evaluating the board's progress in
administering the controlled substance prescription database
(CSPD). She referenced the background information section of
the report and recalled that Senate Bill 196, passed in 2008,
required the board to establish and maintain a CSPD. The law
intent was to improve patient care and foster the goal of
reducing the misuse, abuse, and diversion of controlled
substances. The law requires that each dispenser electronically
submit information to the board regarding each prescription
dispensed of controlled substances. The CSPD electronically
collects this information from in-state pharmacies as well as
other dispensers.
MS. CURTIS explained that after the law's passage it became
apparent that important authority was omitted, thereby limiting
the ability of the database to meet its intent. Subsequent
changes to the law in 2017 and 2018 dramatically impacted how
the Board of Pharmacy administers the database. She called
attention to the audit report conclusions regarding the
database starting on page 16. The first of the three
significant changes, she continued, requires licensees of the
six occupational boards which prescribe or dispense controlled
substances to now register with the CSPD. The second
significant change requires that data regarding prescriptions
and dispensed substances be reported daily to the CSPD. The
third requires practitioners to check the database prior to
dispensing, prescribing, or administering medications, with
certain exclusions. She said the audit concluded that in
general these changes made the database more capable of
combating the opioid crisis.
3:35:15 PM
MS. CURTIS stated that implementing the new CSPD laws requires
the coordination of six occupational boards. The Board of
Pharmacy administers the database and provides information to
the other occupational boards, while all the occupational boards
are responsible for monitoring compliance of their respective
licensees. As of January 2021, she continued, each board was at
a different stage in implementing the laws and none of the
boards were fully monitoring or enforcing the new requirements.
She explained that Exhibit 7 on page 17 summarizes the degree
each of the six boards has monitored the requirements to
register with the database and report to the database. Only the
Board of Pharmacy, she continued, was monitoring both the
registration and reporting requirements; none of the boards were
monitoring whether their individual licensees were complying
with reviewing the database prior to dispensing, prescribing, or
administering medications. Starting second quarter 2020, the
prescription drug monitoring program coordinator began providing
summary information on a quarterly basis to the boards regarding
the percent of their licensees that are reviewing the database,
but detailed information about individual licensee's compliance
is not included.
MS. CURTIS spoke to Exhibit 8 on page 18 of the audit report.
She related that according to [the 2021 Prescription Drug
Monitoring Program (PDMP) Legislative Report] from the Alaska
Drug Monitoring Program, most prescribers are not reviewing the
CSPD. She said the division also found that enforcement was
limited by inadequate disciplinary matrices. In general, she
explained, a disciplinary matrix guides the resolution of a
board's cases. Board disciplinary matrices did not cover the
CSPD requirements during the audit period. She drew attention
to Exhibit 9 on page 20 of the audit report summarizing the
status of disciplinary matrices as of January 2021. She related
that several board matrices covered a failure to register with
the database but not a failure to review the database or report
to the database.
3:37:24 PM
MS. CURTIS discussed the provision of unsolicited notifications
on page 20. She said statutes authorize the Board of Pharmacy
to provide unsolicited notifications to a pharmacist or a
practitioner if a patient has received one or more prescriptions
[for controlled substances] inconsistent with the generally
recognized standards of safe practice. Generally recognized
standards of safe practice must be defined by the respective
boards, she stated, and at the time of the audit those standards
had not been fully defined. Only two applicable boards had set
prescription limitations in regulations. The State Medical
Board set a limitation for just their initial prescriptions of
50 morphine milligram equivalents (MME); the Board of Dental
Examiners set a limitation of 60 MME. She noted that page 20 of
the report explains that the Board of Pharmacy may, but is not
required to, send patient-specific utilization notifications to
pharmacists and practitioners. The division found that these
patient-specific notifications were not issued during the audit
period and instead the prescription drug monitoring coordinator
sent summary data to the applicable occupational boards in the
form of standard board reports and to practitioners in the form
of prescriber report cards.
3:38:48 PM
The House Labor and Commerce Standing Committee was recessed at
3:38 p.m. to a call of the co-chair.
5:09:50 PM
CO-CHAIR FIELDS called the House Labor and Commerce Standing
Committee meeting back to order at 5:09 p.m. Representatives
Nelson, Kaufman, Schrage, Spohnholz, and Fields were present at
the call back to order. Representatives Snyder and McCarty
arrived as the meeting was in progress.
CO-CHAIR FIELDS continued the committee's hearing on HB 306.
5:10:23 PM
MS. CURTIS resumed her invited testimony regarding the Division
of Legislative Audit's sunset audit of the Board of Pharmacy.
She brought attention to the five recommendations in the audit
report found under the Findings and Recommendations section
beginning on page 25. She said the first recommendation is that
the board chair and the DCBPL director should improve procedures
and training to ensure applicants meet requirements prior to
licensure. The division's licensing testing found several
errors, the most concerning finding being that 20 percent of
facility licenses tested did not include all the required
regulatory documentation. This included the finding that three
of the facility licenses tested answered yes to a professional
fitness question, but their application was not further reviewed
by a supervisor. Statutes state that a board may deny a license
if the board finds the applicant has been convicted of a crime
or acted in a way that does not conform to minimum professional
standards. Policy states that if the person answers yes to one
of the series of questions to determine the person's
professional fitness, it should be reviewed by a supervisor and
possibly forwarded to investigations for follow-up. Three cases
were found where that did not occur, but the license was issued.
MS. CURTIS continued her review of the audit's recommendations.
She said the second recommendation is that the board should
adopt regulations for renewing outsourcing facilities and third-
party logistics provider licenses. When these new license types
were brought on, the renewal section of the regulations was not
updated. She related that the third recommendation is that the
applicable occupational boards and DCBPL's director should
continue to coordinate efforts to improve the monitoring and
enforcement of CSPD requirements. Ms. Curtis specified that the
fourth recommendation is that the DCCED commissioner should
allocate sufficient resources to ensure licensees holding a Drug
Enforcement Administration (DEA) registration number are
accurately and consistently recorded in DCBPL's licensing
database. This helps ensure there could be electronic
crossmatch with the controlled substance prescription database.
She said the fifth recommendation is that DCCED's commissioner
should allocate sufficient resources to ensure the CSPD
requirements are enforced.
MS. CURTIS noted that the commissioner's and board chair's
responses begin on page 47. She said that both the commissioner
and the chair discuss some of the corrective action that has
already been taken. She further noted that generally the
commissioner and board chair agree with the recommendations and
the conclusion.
5:12:49 PM
REPRESENTATIVE NELSON asked Ms. Curtis whether the Board of
Pharmacy is meeting online.
MS. CURTIS replied that through the pandemic the boards shifted
to meeting online, and whether the boards continue doing online
meetings is dependent upon their business need.
5:13:23 PM
CO-CHAIR SPOHNHOLZ asked whether any statutory changes are
needed to ensure maximum participation in the prescription drug
monitoring program.
5:14:02 PM
SARA CHAMBERS, Director, Division of Corporations, Business and
Professional Licensing (DCBPL), Department of Commerce,
Community, and Economic Development (DCCED), responded that when
the Prescription Drug Monitoring Program (PDMP) became mandatory
as part of the Medicaid reform bill that the legislature
grappled with in about 2016, there was a clear desire on the
part of the legislature to move in a particular direction. But,
she continued, legislation, regulations, and policy sometimes
don't work as intended and tweaks are needed. She said the
administration has identified some areas where that could be
improved, and the Department of Health and Social Services
(DHSS) has also identified some areas for improvement. It has
been heard from the Board of Veterinary Examiners in both House
and Senate bills that there are some problems in statute that
the Board of Veterinary Examiners and Board of Pharmacy cannot
overcome in regulation, which makes it very difficult to use and
a hot topic among the boards and staff. The other remaining
boards have identified some areas where the focus of the PDMP
needs to be narrowed or further focus needs to be clarified and
then be prepared to resource up if those clarifications are
indicating a greater intent than maybe what was expressed at
that time.
5:15:55 PM
CO-CHAIR SPOHNHOLZ opined that excluding people from
participating in the PDMP because the PDMP isn't working well
isn't what is wanted. Instead, she said, the statute should be
modernized to make it serve those who are trying to utilize it.
She noted that veterinarians are required to log in daily, yet
veterinarians don't prescribe many opioids. She said small
details like that could be refined, through working with Ms.
Chambers, to make the PDMP serve the licensees better while
ensuring that the opioid epidemic health crisis is addressed.
MS. CHAMBERS replied that the board chairs meet every other
week, are interested, want to be engaged in those conversations,
and DCBPL would be happy to facilitate that conversation.
5:17:02 PM
CO-CHAIR FIELDS continued with the invited testimony.
5:17:19 PM
JUSTIN RUFFRIDGE, Chair, Board of Pharmacy, provided invited
testimony. He said the board has taken much effort to respond
to the COVID-19 pandemic, while ensuring that licenses continue
to be renewed and available specifically in an emergency
capacity. Some of the recommendations brought forth in the
audit, he stated, are recommendations that the board has already
addressed in regulations that are awaiting processing. The PDMP
continues to be an issue that he and the PDMP board chairs work
on bi-weekly at the PDMP meeting. He said he agrees with Ms.
Chambers' statements and the questions from Co-Chair Spohnholz
about opportunities to potentially address some of the issues
within the PDMP and move forward on some of those changes that
could be efficient and help serve the ultimate purpose.
Overall, he continued, the board is functioning at high capacity
and would welcome any questions. He agreed with renewing the
board for the maximum time that Auditor Curtis put forward.
5:18:57 PM
CO-CHAIR FIELDS asked whether the members of the board are
mostly owners of independent pharmacies or with national chains.
MR. RUFFRIDGE answered that during his time on the board there
has been a decent number of representatives from different
practice types. He said the previous chair was with the Walmart
national chain, but currently none of the board members are from
national chain pharmacies. He referenced a regulatory or
statutory requirement that individuals serving on the board
represent Alaska's judicial districts and that potentially there
is over-representation from the Southcentral [Third] Judicial
District in the current board representatives.
5:20:36 PM
CO-CHAIR SPOHNHOLZ asked whether it is a recommendation or a
statutory requirement that members of the Board of Pharmacy
reflect Alaska's judicial districts.
MR. RUFFRIDGE replied that as far as he is aware, it is part of
the current statutory definition that the Board of Pharmacy
represent the judicial districts whenever possible. However, he
noted, language is included that gives an out if that isn't
possible or if there are no individuals willing to serve from
the other districts.
5:21:32 PM
CO-CHAIR FIELDS announced that HB 306 was held over.
SJR 15-RECOGNIZING ALASKA/CANADA RELATIONSHIP
5:21:41 PM
CO-CHAIR FIELDS announced that the next order of business would
be SENATE JOINT RESOLUTION NO. 15, Recognizing and honoring the
relationship between Canada and the state; and recognizing the
importance of the United States-Mexico-Canada Agreement.
CO-CHAIR FIELDS asked whether the sponsor has any additional
comments regarding the resolution.
5:21:59 PM
SENATOR TOM BEGICH, Alaska State Legislature, replied no.
5:22:04 PM
CO-CHAIR SPOHNHOLZ moved to adopt the proposed committee
substitute (CS) for SJR 15, labeled 32-LS0855\B, Nauman,
2/21/22, as the working document. There being no objection,
Version B was before the committee.
5:22:23 PM
CO-CHAIR FIELDS opened public testimony on SJR 15.
5:23:09 PM
HEATHER EVOY, Indigenous Engagement Lead, Southeast Alaska
Conservation Council (SEACC), expressed concern that the
resolution does not address transboundary mining and water
issues. She spoke from written testimony, which read as follows
(original punctuation provided):
SEACC is the regional conservation organization for
Southeast Alaska and has worked diligently to protect
the communities, wildlife, habitat, and lifestyle of
Southeast Alaska for over 50 years. We are a
membership supported and driven organization based in
Juneau with supporters throughout the region and
throughout Alaska.
We would like to express some concerns about SJR 15,
and about the relationship between Alaska and Canada.
It is our view that SJR 15 paints an entirely rosy
view of our relationship with Canada, and that this
view does not reflect the experience of Southeast
Alaska residents and communities, particularly as it
relates to the shared transboundary waters of the
Taku, Stikine, and Unuk rivers.
We have watched with growing dismay as Canada and
province of British Columbia have supported a headlong
rush to exploit the mineralized headwaters of our
shared rivers with little regard for the long-term
impact on downstream Alaska communities, fishing
industry, and Tribes. The huge number of mines and
tailings dams projected for these waters should give
pause to any Alaska legislator. The impacts of even a
single failure event could be devastating.
This blanket resolution does not reflect the very real
problems we have with our upstream neighbors, nor does
it reflect their unwillingness to deal with the
concerns of Tribes and communities. We urgently need a
bilateral, an international approach to management of
shared waterways.
Please consider including language in this resolution
that addresses Southeast Alaskan's concerns about our
shared waterways.
MS. EVOY, as an indigenous Alaskan, noted that legislators are
also considering a tribal recognition bill. She suggested that
if the state were to formally recognize Southeast Alaskan
tribes, this bilateral working group should be a trilateral
working group between the State of Alaska, British Columbia, and
Southeast Alaskan tribes.
5:25:53 PM
CO-CHAIR FIELDS closed public testimony after ascertaining no
one else wished to testify.
CO-CHAIR FIELDS invited the sponsor to discuss the concept of
addressing transboundary mining issues in SJR 15 and whether it
should be considered by the committee.
5:26:14 PM
SENATOR BEGICH stated that the resolution doesn't speak to
specific things, it speaks to the longstanding relationship
between Canada and the United States. He directed attention to
page 2, lines 7-10, which state, "WHEREAS the United States is
Canada's premier partner in the Arctic, and cooperation between
Canada and the state is longstanding, including on economic
opportunities, health, education, energy security, environmental
protection, infrastructure, and public safety issues". He then
drew attention to page 2, lines 11-13, which state, "WHEREAS
Canada and the state strive to advance the goal of sustaining
healthy and resilient Arctic and northern peoples and
communities, by strengthening indigenous, economic, cultural,
and family connections across the region". He said these two
paragraphs point to the ability to have dialogue, but no
specific issue is mentioned because this resolution speaks to
the relationship that allows all those various discussions to go
forward in the form of where each of those forums come together.
He concurred with the testifier that there is always a need to
particularly ensure protection of the state's fishing and
indigenous lifestyles. Those discussions are ongoing with
Canada, he stated, they haven't always been successful, and this
resolution is designed to continue to enhance the relationship
so those discussions can continue.
5:28:03 PM
CO-CHAIR FIELDS shared that he is concerned about transboundary
mine operations on Southeast Alaska fisheries. He said he is
comfortable with the resolution's text as is because as soon as
[the transboundary mining] level of detail is added, it would
then seem inconsistent not to add all the other issues.
SENATOR BEGICH noted that the tribal recognition legislation,
which he supports, is a resolution that came from the House to
the Senate, and he is hoping it will get a full hearing before
the Senate and be returned to the House for passage. He said
that is a more appropriate area to deal with the recognition
issue, which is important for dignity and respect for all Alaska
Native people.
CO-CHAIR FIELDS added that he is open to working on the issue of
transboundary mines with Ms. Evoy and other Southeast Alaskans.
CO-CHAIR SPOHNHOLZ remarked that no neighbors are without some
disagreements and the intention is to resolve them. However,
she said, this resolution is to solidify and strengthen Alaska's
relationship with Canada and she appreciates the sponsor's work
on this. Moving SJR 15 from committee doesn't signal a lack of
interest in addressing any of these issues, she stated, but
rather to stay up at a higher level on this resolution.
5:30:14 PM
CO-CHAIR SPOHNHOLZ moved to report SJR 15, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HCS SJR 15 was moved
out of the House Labor and Commerce Standing Committee.
HB 307-EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ
5:30:44 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 307, "An Act relating to the financing and
issuance of bonds for a liquefied natural gas production system
and natural gas distribution system; and providing for an
effective date."
5:31:11 PM
JOE HARDENBROOK, Staff, Representative Grier Hopkins, Alaska
State Legislature, introduced HB 307 on behalf of Representative
Hopkins, sponsor. He explained that HB 307 is part of the
solution to a difficult problem faced by the residents of
Fairbanks, North Pole, and surrounding communities who have
struggled with some of the worst air quality in the nation. He
spoke from the sponsor statement, which read as follows
(original punctuation provided):
In 2009, the U.S. Environmental Protection Agency
(EPA) designated the more populated portions of the
Fairbanks North Star Borough (FNSB) as a nonattainment
area for air quality related to [particulate matter
(PM)] 2.5. Since that time, the communities of
Fairbanks and North Pole, State of Alaska, [Alaska
Industrial Development and Export Authority (AIDEA)],
and Interior Gas Utility (IGU) have been actively
engaged in expanding the availability and use of
natural gas through the implementation of the Interior
Energy Project (IEP), a project designed to bring
lower-cost energy to as many Interior residents and
businesses as possible, as quickly as possible.
A key to reducing PM2.5 air pollution in the long term
is expanding the availability of affordable, clean
burning Alaska natural gas. A critical component of
the IEP is financing for the development of a unified
public gas utility with competitive rates. [Senate
th
Bill] 23 (chapter 26 SLA 13) was passed by the 28
Alaska Legislature in 2013 giving the Alaska
Industrial Development Authority (AIDEA) the ability
to provide financing tools for the development of the
IEP.
Among the financial tools granted to AIDEA for the IEP
was the ability to issue up to $150 million in conduit
revenue bonds to help develop an integrated natural
gas supply chain, including expansion of natural gas
liquefaction facilities in the Matanuska-Susitna
Borough and expansion of natural gas mains and service
lines in the FNSB. Authorization under [Senate Bill]
23 for issuing these bonds was originally scheduled to
expire June 30, 2018. Through the passage of [House
Bill] 119 (chapter 64 SLA 18) in 2018, the Alaska
Legislature extended access to AIDEA bonding an
additional five years to June 30, 2023.
Given market conditions and turmoil related to the
COVID-19 pandemic, IGU has paused the final investment
decision on its Titan liquid natural gas (LNG) plant
expansion project located in the Mat-Su Borough, which
will necessitate access to AIDEA bonds. Bonds of $136
million of the original $150 million authorized may be
issued to provide up to the $275 million financing cap
authorized under [Senate Bill] 23.
HB 307 extends the authorization for AIDEA to issue
IEP-related bonds for an additional five years to June
30, 2028.
MR. HARDENBROOK drew attention to AIDEA's letter of support for
HB 307 in the committee packet, as well as AIDEA's January 2022
quarterly report to the legislature on the progress of the IEP.
5:34:32 PM
MR. HARDENBROOK provided the sectional analysis for HB 307. He
stated that Section 1 amends the uncodified law of the State of
Alaska enacted in 2013 to replace the expiration date of AIDEA's
authority to issue bonds in support of the project from 6/30/23
to 6/30/28. Section 2 contains the immediate effective date
clause.
5:34:47 PM
CO-CHAIR FIELDS opened invited testimony on HB 307.
5:35:01 PM
DAN BRITTON, General Manager, Interior Gas Utility (IGU),
provided invited testimony in support of HB 307 to extend
AIDEA's authorization to finance and issue bonds targeting the
Interior Energy Project (IEP). He stated that AIDEA and IGU
have been working closely on all aspects of the IEP, including
liquefaction, transport, storage, regasification, and
distribution of natural gas in the Interior.
MR. BRITTON stated that to date AIDEA and IGU have advanced the
goals of the IEP in several ways. He specified that [Fairbanks
Natural Gas LLC (FNG)] and IGU were consolidated under one
natural gas utility to expand the availability of lower cost
energy to as many Interior residents and businesses as possible,
as quickly as possible. Approximately 215 miles of natural gas
distribution lines were installed throughout Fairbanks and North
Pole. Natural gas mains in the City of Fairbanks were expanded
to now serve about 1,550 residential and commercial customers,
up from about 1,200 customers a few years ago. Natural gas
mains that have been installed in Fairbanks could serve up to
8,500 properties. Gas distribution lines in the City of North
Pole now serve more than 125 customers and natural gas mains in
North Pole could serve up to 3,000 properties. A 5.25 million
gallon liquefied natural gas (LNG) storage and gasification
facility was completed in Fairbanks in late 2019. A separate
150,000-gallon LNG storage and gasification facility was
completed in North Pole in early 2021. The customer base of IGU
has increased 40 percent since these storage facilities were
completed. It is anticipated that an additional 600 customers
will convert to natural gas in 2022.
MR. BRITTON said AIDEA bonding is critical for the continued
success of the project to help finance increased LNG production
capacity and long-term gas distribution expansion in the
Interior. As the IGU customer base grows, AIDEA bonding will
need to be utilized to add approximately 100,000 gallons per day
of liquefaction capacity to the present output of IGU's Titan
facility located in the Matanuska-Susitna Borough. The existing
plant has a production capacity of 50,000 gallons per day.
Also, IGU plans to use the bonding to further expand natural gas
mains and services into more neighborhoods in the Fairbanks and
North Pole communities. The bonding has not yet been fully
utilized, he continued, given project delays related to market
conditions such as the [COVID-19] pandemic and resulting oil
price drop and economic uncertainties, and IGU anticipates
advancing the projects requiring the funding in the next few
years. Passage of HB 307 provides additional time for the IEP
to progress towards the Interior's goal of realizing affordable
clean burning natural gas to as many people as possible.
5:38:21 PM
CO-CHAIR FIELDS [held over HB 307].
5:38:39 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:38 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 306 ver A 2.22.22.PDF |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 306 Sponsor Statement 02.09.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 306 Sectional Analysis Ver A 02.09.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 306 Supporting Document - Legislative Audit Division Sunset Review BOP 07.15.21.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 306 Letters of Support as of 02.22.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 306 Fiscal Note DCCED-CBPL 2.18.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 306 |
| HB 307 ver. A 2.23.22.PDF |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 307 |
| HB 307 Sponsor Statement 2.21.2022.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 307 |
| HB 307 Supporting Document - Interior Energy Project January 2022 Update to Legislature 2.23.2022.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 307 |
| HB 307 Letter of Support - AIDEA 02.22.22.pdf |
HL&C 2/23/2022 3:15:00 PM |
HB 307 |
| HB 307 Fiscal Note DCCED-AIDEA 2.18.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 307 |
| HB 323 ver. A 2.22.22.PDF |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| HB 323 Sponsor Statement 2.17.2022.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| HB 323 Sectional Analysis 02.17.2022.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| HB 323 Research DLA 02.17.2022.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| HB 323 Fiscal Note DCCED-CBPL 2.18.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| HB 323 Letter of Support 2.22.22.pdf |
HL&C 2/23/2022 3:15:00 PM HL&C 2/28/2022 3:15:00 PM |
HB 323 |
| SJR 15 CS (HL&C) ver. B 2.22.22.pdf |
HL&C 2/23/2022 3:15:00 PM |
SJR 15 |
| SJR 15 Supporting Document - Canada Press Release 2.17.22.pdf |
HL&C 2/23/2022 3:15:00 PM |
SJR 15 |
| SJR 15 Letter of Comment 2.23.22.pdf |
HL&C 2/23/2022 3:15:00 PM |
SJR 15 |