03/31/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB70 | |
| SB80 | |
| HB149 | |
| HB50 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 70 | TELECONFERENCED | |
| + | SB 80 | TELECONFERENCED | |
| *+ | HB 149 | TELECONFERENCED | |
| += | HB 50 | TELECONFERENCED | |
| + | TELECONFERENCED |
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
March 31, 2025
3:18 p.m.
DRAFT
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Carolyn Hall, Co-Chair
Representative Ashley Carrick
Representative Robyn Niayuq Burke
Representative Julie Coulombe
Representative David Nelson
MEMBERS ABSENT
Representative Dan Saddler
COMMITTEE CALENDAR
HOUSE BILL NO. 70
"An Act relating to emergency medical services for operational
canines; relating to the powers, duties, and liability of
emergency medical technicians and mobile intensive care
paramedics; relating to the practice of veterinary medicine; and
providing for an effective date."
- HEARD & HELD
CS FOR SENATE BILL NO. 80(FIN)
"An Act extending the termination date of the Big Game
Commercial Services Board; extending the termination date of the
Board of Massage Therapists; extending the termination date of
the Alaska Commission on Aging; extending the termination date
of the Marijuana Control Board; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 149
"An Act relating to pharmacy benefits managers; relating to
third-party administrators; and providing for an effective
date."
- HEARD & HELD
HOUSE BILL NO. 50
"An Act relating to snow classics."
- MOVED HB 50 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: HB 70
SHORT TITLE: EMERGENCY MED SVCS; OPERATIONAL CANINES
SPONSOR(s): REPRESENTATIVE(s) SCHRAGE
01/27/25 (H) READ THE FIRST TIME - REFERRALS
01/27/25 (H) HSS, L&C
02/18/25 (H) HSS AT 3:15 PM DAVIS 106
02/18/25 (H) Heard & Held
02/18/25 (H) MINUTE(HSS)
03/13/25 (H) HSS AT 3:15 PM DAVIS 106
03/13/25 (H) Heard & Held
03/13/25 (H) MINUTE(HSS)
03/20/25 (H) HSS AT 3:15 PM DAVIS 106
03/20/25 (H) Moved CSHB 70(HSS) Out of Committee
03/20/25 (H) MINUTE(HSS)
03/21/25 (H) HSS RPT CS(HSS) 2DP 2DNP 2NR
03/21/25 (H) DP: FIELDS, MEARS
03/21/25 (H) DNP: PRAX, SCHWANKE
03/21/25 (H) NR: RUFFRIDGE, MINA
03/31/25 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 80
SHORT TITLE: EXTEND BOARDS
SPONSOR(s): LABOR & COMMERCE
01/31/25 (S) READ THE FIRST TIME - REFERRALS
01/31/25 (S) L&C
02/07/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/07/25 (S) Heard & Held
02/07/25 (S) MINUTE(L&C)
02/12/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/12/25 (S) Moved SB 80 Out of Committee
02/12/25 (S) MINUTE(L&C)
02/14/25 (S) L&C RPT 2DP 2NR
02/14/25 (S) DP: BJORKMAN, GRAY-JACKSON
02/14/25 (S) NR: MERRICK, YUNDT
02/14/25 (S) FIN REFERRAL ADDED
03/06/25 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/06/25 (S) Heard & Held
03/06/25 (S) MINUTE(FIN)
03/10/25 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/10/25 (S) Moved CSSB 80(FIN) Out of Committee
03/10/25 (S) MINUTE(FIN)
03/12/25 (S) FIN RPT CS 5DP NEW TITLE
03/12/25 (S) DP: HOFFMAN, KAUFMAN, CRONK, MERRICK,
KIEHL
03/24/25 (S) TRANSMITTED TO (H)
03/24/25 (S) VERSION: CSSB 80(FIN)
03/26/25 (H) READ THE FIRST TIME - REFERRALS
03/26/25 (H) L&C, FIN
03/31/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 149
SHORT TITLE: PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN
SPONSOR(s): LABOR & COMMERCE
03/21/25 (H) READ THE FIRST TIME - REFERRALS
03/21/25 (H) L&C, HSS
03/26/25 (H) L&C AT 3:15 PM BARNES 124
03/26/25 (H) <Bill Hearing Canceled>
03/31/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 50
SHORT TITLE: SNOW CLASSICS
SPONSOR(s): HANNAN
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) CRA, L&C
03/11/25 (H) CRA AT 8:00 AM BARNES 124
03/11/25 (H) Heard & Held
03/11/25 (H) MINUTE(CRA)
03/13/25 (H) CRA AT 8:00 AM BARNES 124
03/13/25 (H) Heard & Held
03/13/25 (H) MINUTE(CRA)
03/18/25 (H) CRA AT 8:00 AM BARNES 124
03/18/25 (H) Moved HB 50 Out of Committee
03/18/25 (H) MINUTE(CRA)
03/21/25 (H) CRA RPT 6DP
03/21/25 (H) DP: PRAX, HOLLAND, RUFFRIDGE, HALL,
HIMSCHOOT, MEARS
03/26/25 (H) L&C AT 3:15 PM BARNES 124
03/26/25 (H) Heard & Held
03/26/25 (H) MINUTE(L&C)
03/31/25 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
JEREMY HOUSTON, Staff
Representative Calvin Schrage
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 70 on behalf of Representative
Schrage, prime sponsor.
BRIAN WEBB, representing self
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on HB 70.
JANICE BAKER, DVM, Director & Lead Veterinarian
Veterinary Tactical Group
Vass, North Carolina
POSITION STATEMENT: Gave invited testimony in support of HB 70.
SENATOR JESSE BJORKMAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor, presented SB 80.
KRIS CURTIS, Legislative Auditor
Legislative Finance Division
Legislative Agencies and Offices
Juneau, Alaska
POSITION STATEMENT: During the hearing on SB 80, gave invited
testimony to report on a series of audits.
ANNETTA ATWELL, Chair
Board of Massage Therapists
Fairbanks, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on SB 80.
BAILEY STUART, Chair
Marijuana Control Board
Wasilla, Alaska
POSITION STATEMENT: Gave invited testimony during the hearing
on SB 80.
KEVIN RICHARD, Director
Alcohol and Marijuana Control Office
Anchorage, Alaska
POSITION STATEMENT: Available for questions during the hearing
on SB 80.
REPRESENTATIVE ZACK FIELDS
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented HB 149, sponsored by the House
Labor & Commerce Standing Committee, on which Representative
Fields served as co-chair.
EVAN ANDERSON, Staff
Representative Zack Fields
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave an overview of the sectional analysis
for HB 149 on behalf of the bill sponsor, the House Labor and
Commerce Standing Committee, on which Representative Fields
serves as co-chair.
HEATHER CARPENTER, Deputy Director
Division of Insurance
Department of Commerce, Community & Economic Development
Juneau, Alaska
POSITION STATEMENT: Answered questions during the hearing on HB
149.
ACTION NARRATIVE
3:18:48 PM
CO-CHAIR CAROLYN HALL called the House Labor and Commerce
Standing Committee meeting to order at 3:18 p.m.
Representatives Fields, Carrick, Burke, Nelson, and Hall were
present at the call to order. Representatives Coulombe arrived
as the meeting was in progress.
HB 70-EMERGENCY MED SVCS; OPERATIONAL CANINES
3:20:22 PM
CO-CHAIR HALL announced that the first order of business would
be HOUSE BILL NO. 70, "An Act relating to emergency medical
services for operational canines; relating to the powers,
duties, and liability of emergency medical technicians and
mobile intensive care paramedics; relating to the practice of
veterinary medicine; and providing for an effective date."
[Before the committee was CSHB 70(HSS).]
3:20:52 PM
JEREMY HOUSTON, Staff, Representative Calvin Schrage, Alaska
State Legislature, on behalf of Representative Shrage, prime
sponsor, presented HB 70 via PowerPoint [hard copy included in
the committee file]. He began on slide 2, which read as follows
[original punctuation provided]:
Alaska currently lacks statutory authority for
emergency medical personnel to care for operational
canines.
EMS personnel already have the medications and
equipment needed to provide this care.
Operational canines have been essential to many
successful government and search and rescue
operations.
Passing this bill would allow EMS personnel to provide
critical care to their canine colleagues.
MR. HOUSTON gave an overview of Sections 1 and 2 of CSHB
70(HSS), as shown on slide 3, which read as follows
[original punctuation provided]:
Section 1 authorizes EMTs and paramedics to provide
medical care and transport to operational canines
without from (sic) risk of prosecution.
Section 2 permits EMTs and paramedics to enter private
property when caring for an operational canine.
MR. HOUSTON noted that Section 1 would be authorized under
Section 7 of CSHB 70(HSS) and Alaska Statute (AS)
18.08.093. He noted that Section 2 applies only in the
event of a serious illness or injury of an operational
canine.
MR. HOUSTON gave an overview of Section 3 and 4 of CSHB
70(HSS), shown on slide 4, which read as follows [original
punctuation provided]:
Section 3 directs the Department of Heath to set
requirements prior to authorizing a licensed EMT or
paramedic to provide emergency medical services to an
operational canine.
Section 4 extends civil liability protection to
providers, or directors of providers, who care for
operational canines.
MR. HOUSTON explained that protocols would be written by
the medical director [of the Department of Health] in
consultation with a licensed veterinarian. He further
noted that Section 4 applies only if the operational canine
is in immediate danger, seriously harmed, or at-risk of
death.
MR. HOUSTON gave an overview of Sections 5 and 6 of CSHB
70(HSS), shown on slide 5, which read as follows [original
punctuation provided]:
Section 5 removes language preventing the release of
medical records to EMTs and paramedics unless
necessary for evaluating their performance.
Section 6 reinserts the removed language and adds a
subsection to protect operational canines' medical
records.
MR. HOUSTON moved to slide 6, an overview of Section 7 of
CSHB 70(HSS), which read as follows [original punctuation
provided]:
Subsection (a) sets specific training and
authorization requirements for EMTs and paramedics to
provide care to an operational canine.
Subsection (b) sets requirements for transporting and
administering drugs to operational canines.
MR. HOUSTON moved to slide 7, an overview of Sections 8, 9,
and 10 of the proposed legislation, which read as follows
[original punctuation provided]:
Section [8] sets requirements for telehealth
encounters with operational canines.
Section [9] defines operational canine and
veterinarian under AS 18.08
Section [10] sets an effective date of January 1,
2026.
MR. HOUSTON moved to slide 8, closing remarks, which read
as follows [original punctuation provided]:
Currently, emergency medical services personnel are
not allowed to apply life-saving point of injury care
to operational canines.
Alaska's EMS professionals already possess the
equipment and medications needed to care for
operational canines.
The passage of this bill would allow EMS personnel to
provide life-saving care and transport for injured
operational canines.
3:26:23 PM
BRIAN WEBB, representing self, stated that he had 46 years of
experience as a paramedic. Additionally, he stated that he had
provided care for operational canines during his long career.
He stated that operational canines face gunshot wounds,
stabbings, and dangerous environmental conditions. He referred
to Rico, a canine who was shot in Wasilla, Alaska, in 2017 and
consequently bled to death. Mr. Webb noted that emergency
medical service (EMS) personnel were available on the scene but
were legally barred from providing medical care. He stated that
CSHB 70(HSS) would prevent situations like Rico's from happening
again by allowing EMS to provide life-saving stabilization care
to operational canines. He addressed the concern that the
proposed legislation would blur the line between EMS and
veterinary medicine, stating that CSHB 70(HSS) strictly limits
EMS care to pre-hospital trauma stabilization, mandates
immediate transport to veterinary facilities and direct
oversight by EMS medical directors and licensed veterinarians.
He stressed that the proposed legislation was not mandatory,
noting that only EMS that support law enforcement or search and
rescue operations would opt in. He asserted that EMS personnel
are already experienced with extreme variation in patients,
noting that there are large differences between neonate and
geriatric care. He stated that the implementation of the
proposed legislation was multi-phased. He stressed that CSHB
70(HSS) was particularly important in Alaska, given the long
transport times in rural areas of the state. He noted that CSHB
70(HSS) aligned with successful laws in 13 other states and had
support from the National Association of Veterinary EMS (NAVEMS)
and several other veterinarians statewide and nationally. He
stated that EMS operational canine care was supported by peer-
reviewed veterinary medical journals. He further stated that
both the Board of Veterinary Examiners and the [Alaska] State
Medical Board were consulted prior to the introduction of the
bill. He concluded by asserting that CSHB 70(HSS) would save
lives with proper oversight, training, and defined protocols and
urged the committee to pass the proposed legislation.
3:32:07 PM
JANICE BAKER, DVM, Director & Lead Veterinarian, Veterinary
Tactical Group, began her invited testimony by reporting that in
late 2007, the United States (U.S.) lost five dogs related to
combat-related injuries in Iraq and Afghanistan. She stated
that she had 22 years of experience in the military, noting that
for approximately half of that time, she provided medical care
for canines. She provided an anecdote about performing a
successful procedure on an operational canine while in the field
that saved the canine's life, which would have otherwise passed
on the two-hour flight to the nearest combat veterinarian. She
identified five basic differences in anatomy and physiology
between humans and canines that medics needed to learn,
including landmarks for intravenous (IV) placement, and airway
conditioning for advanced airway placement. She said the
"understanding that that point-of-injury treatment, or pre-
hospital treatment, is essential to the dog's survival" is well-
accepted by the working dog community. She also cited
guidelines for treatment of dogs by medics published by the
Journal of Veterinary Emergency Critical Care, the Military
Medicine Journal, and the Journal of Specialized Emergency
Medicine which, she argued, demonstrated their endorsement. She
additionally cited a study of gunshot wounds in military working
dogs, which showed that dogs treated by medics before receiving
veterinary care not only ultimately survive their injuries, but
in that particular study, 100 percent of the surviving dogs
eventually returned to full duty. She concluded by offering
strong support for CSHB 70(HSS), as long as it was within the
scope of care legally provided to humans.
3:36:27 PM
REPRESENTATIVE CARRICK asked the reason for not including non-
operational canines, like personal pets injured in a car
accident, for example. She offered appreciation for the
proposed legislation.
3:37:10 PM
MR. HOUSTON responded that he would get back to the committee.
He noted that since CSHB 70(HSS) had been drafted, it has been a
conversation.
3:37:50 PM
REPRESENTATIVE CARRICK commented that the lack of inclusion of
personal pets seemed like a "huge gap."
3:38:22 PM
CO-CHAIR HALL announced that CSHB 70(HSS) was held over.
3:38:43 PM
The committee took an at-ease from 3:38 p.m. to 3:42 p.m.
SB 80-EXTEND BOARDS
3:42:35 PM
CO-CHAIR HALL announced that the next order of business would be
CS FOR SENATE BILL NO. 80(FIN), "An Act extending the
termination date of the Big Game Commercial Services Board;
extending the termination date of the Board of Massage
Therapists; extending the termination date of the Alaska
Commission on Aging; extending the termination date of the
Marijuana Control Board; and providing for an effective date."
3:43:51 PM
SENATOR JESSE BJORKMAN, Alaska State Legislature, as prime
sponsor, presented SB 80 as prime sponsor. He paraphrased the
sponsor statement [included in the committee file], which read
as follows [original punctuation provided]:
Senate Bill 80 proposes to extend the sunset date of
four boards, Board of Massage Therapists, the
Marijuana Control Board, Alaska Commission on Aging,
and the Big Game Commercial Services Board.
The Board of Massage Therapists is comprised of five
members appointed by the Governor. The duties of the
Board include examining massage therapist applicants
and issuing licenses, adoption of regulations, and
establishing standards of professional competence. In
the fall of 2023, Division of Legislative Audit
completed a sunset audit report of the Board. In this
audit it was determined that overall, the Board has
operated in the public's interest by conducting its
meetings in an effective manner as well as actively
amending regulations to address statutory changes,
improving the licensing process, and enhancing public
safety.
The Big Game Commercial Services Board is comprised of
nine members appointed by the Governor. The duties of
the Board are maintaining and writing examinations,
generating reports, and licensing functions.
Legislative Audit conducted a sunset audit report of
the Board in the summer of 2023. The audit concluded
that the Board operated in the public's interest by
conducting its meetings in an effective manner,
supporting statutory changes when deemed necessary,
and actively amending regulations.
The Marijuana Control Board is comprised of five
members appointed by the Governor and is a regulatory
and quasi-judicial board created for the purpose of
controlling the cultivation, manufacture, and sale of
marijuana in the state. The duties of the Board are to
propose and adopt regulations, establish
qualifications for licensure, review applications for
licensure, order the executive director to issue,
renew, suspend, or revoke a license, and hear appeals
from the Board Director and from actions of officers
and employees charged with enforcing Board statutes
and regulations.
The Alaska Commission on Aging is comprised of eleven
members that make legislation and regulation
recommendations to the governor and legislature to
benefit older Alaskans. The duties of the board
include helping older Alaskans lead dignified,
independent, and useful lives, encouraging the
development of municipal commissions and community-
oriented programs and services to benefit elder
Alaskans, and upon request, the commission assists
Alaska Housing Finance Corporation senior housing
office for senior housing loan program.
3:46:05 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, began her invited testimony to
report on a series of audits related to SB 80. She explained
that the division conducted sunset audits of all four boards
mentioned by Senator Bjorkman. She began with the sunset audit
on the Marijuana Control Board, stating that the division
concluded that it was serving the public's interest and
recommended a three-year extension. She explained that the
division's recommendation was made in light of a report issued
by the Governor's Advisory Task Force on Recreational Marijuana
cautioning that there may be significant changes to both the
Marijuana Control Board's duties and the Alcohol & Marijuana
Control Office (AMCO). She additionally noted that a new
information system expected to be implemented by the end of 2023
would significantly change the Marijuana Control Board's license
and enforcement processes. She stated that a three-year
extension would be timelier to review these significant changes
and would additionally align the sunset date of the Marijuana
Control Board with AMCO.
MS. CURTIS spoke to three recommendations: AMCO's director
should establish procedures to ensure that the marijuana handler
permit documentation was "properly maintained," the AMCO
director continues to implement a new license and enforcement
database, and lastly, the legislature should require marijuana
board regulations to be approved by a majority of board members.
MS. CURTIS moved to the second sunset audit on the Board of
Massage Therapists, noting that it was serving the public's
interest and recommending a six-year extension. Additionally,
she recommended that the director of the Division of
Corporations, Business and Professional Licensing (DCBPL) create
a procedure to ensure that licenses are not approved with a
basis on outdated documentation. The division also recommended
that the commissioner of the Department of Commerce, Community,
and Economic Development (DCCED) "work with policymakers to
improve the recruitment and retention of investigators ... and
licensing staff." Lastly, she stated that the division
recommended an increase in licensing fees.
MS. CURTIS moved to the third sunset audit on the Big Game
Services Commercial Board (BGCSB), noting that BGCSB was
operating in the public's interest and recommending a six-year
extension. She stated that the division had two additional
recommendations: the DCBPL director should improve oversight to
ensure the procurement and review of required licensed
documentation, and BGCSB should reconsider the necessity of two
private landholder board seats in effective regulations.
MS. CURTIS finished with the fourth sunset audit on the Alaska
Commission on Aging (ACoA), concluding that ACoA served the
public's interest by "helping older Alaskans lead dignified,
independent, and useful lives through advocacy, outreach, and
education." She further noted that ACoA fulfills a federal
requirement for each state to establish a council to advise the
state on matters of aging, including developing and
administering a state plan. She noted that the division
recommended an eight-year extension of ACoA with one
recommendation that ACoA's chair ensure that the annual analysis
and evaluation report is complete and provided to the
legislature and the governor as required by Alaska Statute (AS).
3:50:09 PM
ANNETTA ATWELL, Chair, Board of Massage Therapists, began her
invited testimony on SB 80. She explained that the Board of
Massage Therapists serves legislative, judicial and executive
functions. She explained that the Board of Massage Therapists
"creat[es] ... regulations, adapting existing statutes and
regulations to keep the State of Alaska updated with the
national trends and standards" in adherence to legislative
responsibilities. She stated that the Board of Massage
Therapists protects stakeholders through the creation or
amendment of new or existing laws and regulations that require
updates. She further explained that the board "interpret[s]
statutes and regulations" when considering questions of
licensing, renewal of license, investigations, and questions of
qualifications for continuing education to uphold its judicial
responsibilities. She explained that the executive functions of
the Board of Massage Therapists include ensuring constituents
are up to date with the "requirements of their licensure, scope,
and practice." She noted that the board applies consequences,
when necessary, that are agreed upon by the majority. She noted
that the board is financially stable, and that she had been
advised during the sunset audit to increase fees to meet the
demands of investigative responsibilities and the board's day-
to-day operations. She stated that the board was waiting on
legislative review and finalization before increasing its fees.
MS. ATWELL spoke to investigations that focused on "bad actors"
and those practicing without a license. She noted that the
Board of Massage Therapists would be grateful to the legislature
if it were to create a bill to take on investigative fees. She
stated that the remaining findings of the audit were concerning
Alaska's Division of Corporations, Business and Professional
Licensing, noting that the Board of Massage Therapists was
awaiting legislation to increase its fees. She thanked the
committee for its time.
3:53:22 PM
The committee took a brief at-ease at 3:53 p.m.
3:53:33 PM
BAILEY STUART, Chair, Marijuana Control Board, began her invited
testimony by stating that the Marijuana Control Board fully
supported the recommendations made by the division as proposed
under SB 80. She stated that the extension was critical to
oversight and stability of the [marijuana] industry. She stated
that the [marijuana] industry was facing significant challenges
from federal shipping policies to public health and safety
concerns in Alaska. Alaska has a prolific illicit market which
is a serious threat to the regulated industry. She asserted
that Alaska has knowingly shielded illicit operators from
prosecution. She stated that the illicit market continues to
operate outside of state oversight, avoid taxation, and directly
undermine legal businesses. She asserted that this lack of
accountability creates an unfair competitive advantage that
jeopardizes the "vitality and stability of compliant, legal
operators."
MS. STUART stated that despite recent regulatory changes by the
Division of Agriculture prohibiting any amount of
tetrahydrocannabinol (THC) in hemp products, the "gray market"
consisting of unregulated hemp products with THC continues to
enter Alaska's marketplace, retail stores, and homes via e-
commerce with no enforcement. She reported that during the
Board of Marijuana's meeting in February, it heard public
testimony detailing the severity of these challenges. She
stated that the industry was grappling with these unforeseen
markets, as well as navigating complex taxation concerns. She
asserted that the extension recommended by SB 80 was critical
for the Board of Marijuana to continue its work in addressing
these issues. She stated that she would be happy to answer any
questions regarding SB 80 and the Board of Marijuana extension.
3:56:08 PM
KEVIN RICHARD, Director, Alcohol and Marijuana Control Office,
stated that he was online to answer questions.
3:56:46 PM
CO-CHAIR HALL announced that SB 80 was held over.
3:56:53 PM
The committee took an at-ease from 3:56 p.m. to 3:57 p.m.
HB 149-PHARMACY BENEFITS MANAGER;3RD PARTY ADMIN
3:57:59 PM
CO-CHAIR HALL announced that the next order of business would be
HOUSE BILL NO. 149, "An Act relating to pharmacy benefits
managers; relating to third-party administrators; and providing
for an effective date."
3:58:32 PM
REPRESENTATIVE ZACK FIELDS, Alaska State Legislature, Presented
HB 149, sponsored by the House Labor & Commerce Standing
Committee, on which Representative Fields served as co-chair.
He said that HB 149 was designed to ensure that the Division of
Insurance could implement policies established by House Bill
226, which was legislation passed in 2024 regarding pharmacy
benefits managers (PBMs). He stated that HB 149 would require
third-party administrators (TPAs) and PBMs to be licensed in
Alaska. He noted that the proposed legislation proposes a
licensing fee and gives the Division of Insurance regulatory
authority. He stated that the proposed legislation is necessary
for transparency in PBMs and ensuring affordability and
availability of pharmaceuticals, noting that there are a growing
number of firms calling themselves TPAs in Alaska.
3:59:36 PM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, gave an overview of the sectional analysis
[included in the committee file] for HB 149 on behalf of the
bill sponsor, the House Labor and Commerce Standing Committee,
on which Representative Fields serves as co-chair. The
sectional analysis read as follows [original punctuation
provided]:
Section 1. Amends AS 21.06.120(a): Examination of
insurers.
This section adds pharmacy benefits managers to the
list of licensed and formerly licensed groups the
affairs of which the director may examine.
Section 2. Amends AS 21.06.120(d): Examination of
insurers.
This section adds third-party administrators and
pharmacy benefits managers to the list of groups in
which the director may examine through multi-state
participation with the National Association of
Insurance Commissioners.
Section 3. Adds a new subsection to AS 21.06.120:
Examination of insurers.
This section adds a new subsection allowing the
director to examine third party administrators or
pharmacy benefits managers at any time that the
director deems necessary.
Section 4. Amends AS 21.06.160(a): Examination
expense.
This section removes an exemption for third-party
administrators and makes them responsible for paying
costs associated with a market conduct examination.
Section 5. Amends AS 21.27.010(a): License required.
This section adds Third-Party Administrators and
Pharmacy Benefits Managers to the list of people
required to be licensed under this chapter to do
business in this state.
Section 6. Amends AS 21.27.010(c): License required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 22.
This section also replaces the statute number with the
verbiage "this chapter" since TPA will now be subject
to licensing requirements throughout the chapter
Section 7. Adds a new subsection to AS 21.27.010
License required.
This section adds a new subsection (l) clarifying
third-party administrators and pharmacy benefits
managers are also subject to specific licensing
requirements under the AS 21.27.630 21.27.660 (TPA)
and AS 21.27.901 21.27.955 (PBM).
Section 8. Amends AS 21.27.060(d): Examination of
applicants and licensees.
This section exempts a compliance officer for a third-
party administrator or pharmacy benefits manager from
taking an exam from the division before a license is
issued.
Section 9. Amends AS 21.27.380(b): License renewal,
expiration, and reinstatement.
This section pertains to license expiration and adds
third-party
administrators and pharmacy benefits managers to the
list of entities who may not operate in the state with
an expired license.
Section 10. Amends AS 21.27.630(a): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on lines 24 and 27.
Section 11. Amends AS 21.27.630(b): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 30.
Section 12. Amends AS 21.27.630(c): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 2.
This section also replaces the statute number with the
verbiage "this chapter" since TPA will now be subject
to licensing requirements throughout the chapter.
Section 13. Amends AS 21.27.630(d): Registration
required.
This section makes conforming changes by replacing the
term "registration" with "license" on line 7. This
section is about fraudulent use of a name.
Section 14. Amends AS 21.27.630(e): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 12. This
section is about entities must be licensed not the
individual.
This section also replaces the verbiage "section" with
"chapter" since TPA will now be subject to licensing
requirements throughout the chapter.
Section 15. Amends AS 21.27.630(g): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 18. This
section pertains to credit unions banks or other
financial institutions.
Section 16. Amends AS 21.27.630(h): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 24. This
section pertains to credit card companies.
Section 17. Amends AS 21.27.630(i): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 29. This
section pertains to ERISA plans which are exempted
from licensure.
Section 18. Amends AS 21.27.630(j): Registration
required.
This section makes conforming changes by replacing the
term "registration" with "license" on lines 8 and 9.
It also removes duplicative language no longer needed
since TPA will be required to be licensed. This
section is relating to suspensions and revocations of
license.
Section 19. Amends AS 21.27.630(k): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 12. This
section is regarding an exemption for insurers who
hold a certificate of authority from the director.
Section 20. Amends AS 21.27.630(l): Registration
required.
This section makes conforming changes by replacing the
term "registered" with "licensed" on lines 15.
Adds the requirement that any entity that meets the
qualifications of an exempt TPA file a certification
with the director annually on or before February 1st
of each year.
Section 21. Amends AS 21.27.630(m): Registration
required.
This section pertains to exempting employees of third-
party administrators from licensing requirements and
makes conforming changes by replacing the term
"registered" with "licensed" on line 22.
This section also adds language requiring designated
compliance officers to be licensed.
Section 22. Amends AS 21.27.640(a): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registration" with "license" on lines 27 and 28.
This section relates to untrustworthy and incompetent
licensees.
Section 23. Amends AS 21.27.640(b): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registration" with "license" on line 2 and the
term "registrant" with "licensee" on lines 3, 23, and
26. This section lists criteria relating to licensee
qualifications
Section 24. Amends AS 21.27.640(d): Third-party
administrator qualifications.
This section makes conforming changes by replacing the
term "registrant" with "licensee" on lines 1 and 2,
the term "registration" with "license" on line 3. This
section pertains to license approval by director.
Section 25. Amends AS 21.27.650(a): Operating
requirements for third-party administrators.
This section makes conforming changes by replacing the
term "registered" with "licensed" on line 9. Removes
an exemption for a TPA registered in their home state
applying for a non-resident Alaska license. By
eliminated the exemption, we are now requiring all TPA
who are operating in Alaska to be licensed regardless
of their resident state status.
Section 26. Amends AS 21.27.650(q): Operating
requirements for third-party.
This section makes conforming changes by replacing the
term "registration" with "license" on line 17. This
section outlines criteria by which a director may
revoke a license.
Section 27. Amends AS 21.27.901: Registration of
pharmacy benefits managers; scope of business
practice.
This section makes the following conforming changes:
• Replaces the term "registration" with "license" in
the statute title.
• Replaces the term "registered" with "licensed" on
page 12, line 30 and page 13, lines 1 and 14.
• Replaces the term "registration" with "license" on
page 13, lines 8, 11, and 12.
Section 28. Adds new sections AS 21.27.903, 904.
This section adds 21.27.903 Pharmacy benefits manager
qualifications which outlines the following
qualifications:
Disclosures; including information concerning
owners, officers, directors and partners, action taken
against them by a financial industry regulatory
authority (including the government), and criminal
prosecution.
• Identified a designated compliance officer.
• A complete application, which includes:
o Application fee
o Organizational documents, including regulatory
documents.
o Contact information for the people responsible for
the conduct
of affairs for the pharmacy benefit manager.
o Certified financial documents for the last two
years, or for the last year and partial year if the
applicant has been in business for less than two
years.
This section adds 21.27.904 Pharmacy benefit manager
required
notifications.
Outlines that PBMs must notify the director of the
following:
• Change of information i.e. place of business, email,
address,
telephone number.
• Change in compliance officer and contact
information.
• Any administrative action taken against the
licensee.
• Conviction of misdemeanor or felony.
Failure to provide the above information may result in
denial, revocation or suspension or license.
Section 29. Amends AS 21.27.905: Renewal of
registration.
This section makes the following conforming changes:
• Replaces the term "registration" with "license" in
the statute title.
• Replaces the term "registration" with "license" on
lines 24 and 26.
Regarding procedures for biennial renewal of license,
and renewal fees established by the director that are
self-supporting for the division.
Section 30. Adds a new subsection to AS 21.27.905:
Renewal of registration.
This section adds a new subsection requiring the
licensing fees of pharmacy benefit managers to cover
the cost of:
• Salaries and benefits paid to the personnel of the
division tasked with enforcement.
• Reasonable technology costs related to the
enforcement process of pharmacy benefits manager
licensing, including cost of software, hardware and
related training for use of said software and
hardware.
• Reasonable education and training costs to the
division for the enforcing personnel.
Section 31. Amends AS 21.27.975(15): Definitions.
This section adds "regardless of ownership of the
pharmacy benefits manager" to the definition of
pharmacy benefits manager.
Section 32. Repeals AS 21.27.630(f):
Sec. 21.27.630(f). Registration required.
This provision is no longer needed because they now
must be licensed rather than registered.
Section 33. Sets an effective date for January 1,
2026.
4:02:16 PM
REPRESENTATIVE COULOMBE asked for the difference between a TPA
and a PBM.
REPRESENTATIVE FIELDS replied that, functionally, there was not
much of a difference between a TPA and a PBM which necessitates
the proposed legislation. He deferred to Heather Carpenter.
4:03:05 PM
HEATHER CARPENTER, Deputy Director, Division of Insurance,
Department of Commerce, Community & Economic Development,
replied that a PBM, by Alaska Statute (AS), is "a person that
contracts with a pharmacy on behalf of an insurer to process
claims or pay pharmacies for prescription drugs or medical
devices and supplies, or provide network management for
pharmacies." She stated that PBMs are likely working with an
insurer, and the insurer was responsible for compliance prior to
the passage of House Bill 226 from the prior year. She stated
that the TPA has been paying claims for a "whole suite of
healthcare services." She used Alaska Care health insurance as
an example, stating that Aetna is the TPA overseeing that plan.
4:04:20 PM
REPRESENTATIVE COULOMBE asked if there was a difference between
"registered" and "licensed."
4:04:40 PM
MS. CARPENTER stated that the Division of Insurance, upon the
passage of House Bill 226, realized that it did not have the
full authority with registration to ensure consumer protection
or facilitate market conduct exams in the name of regulating
PBMs. She referred to other states in the nation that were
moving from registration schemes to licensure schemes for full
transparency. She noted that there has been vertical
integration in PBMs and TPAs. She further noted that the change
from "registered" to "licensed" would create clarity and less
confusion for staff members doing the licensing.
4:05:35 PM
REPRESENTATIVE COULOMBE asked if there was concern in repealing
AS.21.27.630, noting that section was significant.
MS. CARPENTER acknowledged that that section referred to
exemptions and was large. She noted that the Division of
Insurance was seeing a concerning pattern of entities asking the
licensing team for exemption. She stated that the intention was
to "clean-up exemptions that were not offering transparency,"
noting that the exemption outlined under AS.21.27.630 was
particularly confusing. She opined that there were many gaps
that did not offer transparency in who was performing what
service.
MS. CARPENTER reported that in the last year, there were
multiple complaints from providers who were not getting paid
when Change Health[care] experienced a data breach. She
explained that the Division of Insurance could not do anything
because Change Healthcare was a TPA that was just registered and
qualified for exemptions. She stated that the intention of the
repeal was to ensure that "good entities were paying for your
healthcare."
REPRESENTATIVE COULOMBE asked for confirmation that the proposed
legislation would remove a lot of exemptions.
MS. CARPENTER confirmed that is correct.
4:07:43 PM
CO-CHAIR HALL announced that HB 149 was held over.
HB 50-SNOW CLASSICS
4:07:57 PM
CO-CHAIR HALL announced that the final order of business would
be HOUSE BILL NO. 50, "An Act relating to snow classics."
4:08:25 PM
CO-CHAIR HALL opened public testimony on HB 50. After
ascertaining that there was no one who wished to testify, she
closed public testimony.
CO-CHAIR HALL entertained a motion.
4:09:05 PM
CO-CHAIR FIELDS moved to report HB 50 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 50 was reported out of the House
Labor and Commerce Standing Committee.
4:09:31 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
4:09 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 70 - Intervention Performed on MWD in the Preshopsital Combat Setting 2019.pdf |
HHSS 3/20/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Recommendations for Prehospital Veterinary Care 1.3.2016.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Causes of Mortality in MWDs from Traumatic Injuries 8.7.2024.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Research Retrospective Gunshot Wound Study 1.1.2013.pdf |
HHSS 3/13/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Bill Text.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Sponsor Statement.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Sectional Analysis.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Summary of Changes V.N to V.I.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version I - Presentation.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Support Testimony - Received as of 3.25 (redacted).pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 - Opposition Testimony Recieved as of 3.25 (redacted).pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| HB 70 Version A Fiscal Note DOH Public Health.pdf |
HHSS 2/18/2025 3:15:00 PM HL&C 3/31/2025 3:15:00 PM |
HB 70 |
| SB80 Sponsor Statement ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-BGCSB Audit 06.22.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Board of Massage Therapists Audit 8.14.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Fiscal Note-DCCED-AMCO 01.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Fiscal Note-DCCED-CBPL 01.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Sectional Analysis ver A.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Marijuana Control Board Audit 10.30.23.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB80 Supporting Documents-Letter-AK Prof Hunters Assoc. 02.04.25.pdf |
HL&C 3/31/2025 3:15:00 PM SL&C 2/7/2025 1:30:00 PM |
SB 80 |
| SB 80 Letter of Support APHA 2.4.25.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Board of Massage Therapists Audit Ver. A 8.14.23.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Supporting Document - Sunset Review of ACoA Conclusions.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 work draft version N.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Explanation of Changes ver A to ver N 2025.03.04.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| SB 80 Supporting Document -Commission on Aging Audit.pdf |
HL&C 3/31/2025 3:15:00 PM SFIN 3/6/2025 9:00:00 AM |
SB 80 |
| HB0149A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 149 - Sponsor Statement v.A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 149 - Sectional Analysis v.A.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB149-DCCED-DOI-03-21-25.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 149 |
| HB 70 Version I - Presentation 3.31.25.pdf |
HL&C 3/31/2025 3:15:00 PM |
HB 70 |