ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 13, 2016
3:19 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Shelley Hughes, Vice Chair
Representative Jim Colver
Representative Gabrielle LeDoux
Representative Cathy Tilton
Representative Andy Josephson
Representative Sam Kito
MEMBERS ABSENT
Representative Mike Chenault (alternate)
COMMITTEE CALENDAR
CONFIRMATION HEARING(S):
Marijuana Control Board
Brandon Emmett - Fairbanks
- CONFIRMATION(S) ADVANCED
Alaska Gasline Development Corporation, Board of Directors
Joey Merrick II - Eagle River
- CONFIRMATION(S) ADVANCED
SENATE BILL NO. 157
"An Act defining arcade-style amusement devices."
- MOVED SB 157 OUT OF COMMITTEE
SENATE BILL NO. 158
"An Act relating to real estate broker licensure; relating to
the real estate commission; and providing for an effective
date."
- HEARD AND HELD
CS FOR SENATE BILL NO. 165(JUD) am
"An Act relating to the presence of minors in the licensed
premises of manufacturers, wholesalers, and retailers of
alcoholic beverages; relating to the Alcoholic Beverage Control
Board; relating to background checks for persons applying to
operate marijuana establishments; relating to the offense of
minor consuming; relating to revocation of a driver's license
for a minor consuming offense; relating to the effect of the
revocation of a driver's license for a minor consuming offense
on a motor vehicle liability insurance policy; and amending Rule
17, Alaska Rules of Minor Offense Procedure."
- HEARD AND HELD
SENATE BILL NO. 18
"An Act exempting a health care sharing ministry from regulation
as an insurer."
- MOVED SB 18 OUT OF COMMITTEE
CS FOR SENATE BILL NO. 69(FIN)
"An Act relating to the Board of Chiropractic Examiners and the
practice of chiropractic."
- MOVED CSSB 69(FIN) OUT OF COMMITTEE
CS FOR HOUSE JOINT RESOLUTION NO. 28(FSH)
Opposing the United States Food and Drug Administration's
approval of AquaBounty AquAdvantage genetically engineered
salmon; urging the United States Congress to enact legislation
that requires prominently labeling genetically engineered
products with the words "Genetically Modified" on the product's
packaging; and supporting the efforts of the state's
congressional delegation to delay the confirmation of the new
commissioner of the United States Food and Drug Administration
until the United States Food and Drug Administration agrees to
require labeling for genetically engineered salmon.
- MOVED CSHJR 28(FSH) OUT OF COMMITTEE
CS FOR SENATE BILL NO. 126(L&C)
"An Act establishing an exemption for the offering and sale of
certain securities."
- SCHEDULED BUT NOT HEARD
SENATE BILL NO. 206
"An Act relating to a reinsurance program for residents who are
high risks and insurer assessments to cover the costs of the
reinsurance program; relating to application for state
innovation waivers for health care insurance; relating to
definitions of 'residents who are high risks' and 'covered
lives'; and providing for an effective date."
- PENDING REFERRAL
PREVIOUS COMMITTEE ACTION
BILL: SB 157
SHORT TITLE: AMUSEMENT DEVICES & GAMBLING DEFINITION
SPONSOR(s): SENATOR(s) MCGUIRE
01/25/16 (S) READ THE FIRST TIME - REFERRALS
01/25/16 (S) JUD
02/01/16 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
02/01/16 (S) Heard & Held
02/01/16 (S) MINUTE(JUD)
02/03/16 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
02/03/16 (S) Moved SB 157 Out of Committee
02/03/16 (S) MINUTE(JUD)
02/05/16 (S) JUD RPT 4DP
02/05/16 (S) DP: MCGUIRE, COGHILL, COSTELLO,
WIELECHOWSKI
02/10/16 (S) TRANSMITTED TO (H)
02/10/16 (S) VERSION: SB 157
02/12/16 (H) READ THE FIRST TIME - REFERRALS
02/12/16 (H) L&C
04/13/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 158
SHORT TITLE: REAL ESTATE COMMISSION;BROKER LICENSING
SPONSOR(s): LABOR & COMMERCE
01/25/16 (S) READ THE FIRST TIME - REFERRALS
01/25/16 (S) L&C
02/04/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/04/16 (S) Scheduled but Not Heard
02/18/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/18/16 (S) Heard & Held
02/18/16 (S) MINUTE(L&C)
03/03/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/03/16 (S) Moved SB 158 Out of Committee
03/03/16 (S) MINUTE(L&C)
03/04/16 (S) L&C RPT 3DP
03/04/16 (S) DP: COSTELLO, GIESSEL, MEYER
04/01/16 (S) TRANSMITTED TO (H)
04/01/16 (S) VERSION: SB 158
04/04/16 (H) READ THE FIRST TIME - REFERRALS
04/04/16 (H) L&C
04/13/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 165
SHORT TITLE: ALCOHOL: BOARD;MINORS;MARIJUANA CHECKS
SPONSOR(s): SENATOR(s) MICCICHE
02/01/16 (S) READ THE FIRST TIME - REFERRALS
02/01/16 (S) L&C, JUD
02/11/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/11/16 (S) Scheduled but Not Heard
02/23/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/23/16 (S) Heard & Held
02/23/16 (S) MINUTE(L&C)
03/08/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/08/16 (S) Moved CSSB 165(L&C) Out of Committee
03/08/16 (S) MINUTE(L&C)
03/09/16 (S) L&C RPT CS 5DP SAME TITLE
03/09/16 (S) DP: COSTELLO, GIESSEL, MEYER, STEVENS,
ELLIS
03/23/16 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/23/16 (S) <Bill Hearing Canceled>
03/28/16 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/28/16 (S) Heard & Held
03/28/16 (S) MINUTE(JUD)
03/30/16 (S) JUD AT 1:30 PM BELTZ 105 (TSBldg)
03/30/16 (S) Moved CSSB 165(JUD) Out of Committee
03/30/16 (S) MINUTE(JUD)
04/01/16 (S) JUD RPT CS 2DP 3NR NEW TITLE
04/01/16 (S) DP: MCGUIRE, MICCICHE
04/01/16 (S) NR: COGHILL, WIELECHOWSKI, COSTELLO
04/08/16 (S) TRANSMITTED TO (H)
04/08/16 (S) VERSION: CSSB 165(JUD) AM
04/09/16 (H) READ THE FIRST TIME - REFERRALS
04/09/16 (H) L&C, JUD
04/13/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 18
SHORT TITLE: HEALTH CARE SHARE MINISTRY NOT INSURANCE
SPONSOR(s): SENATOR(s) COGHILL
01/21/15 (S) PREFILE RELEASED 1/16/15
01/21/15 (S) READ THE FIRST TIME - REFERRALS
01/21/15 (S) HSS, L&C
02/18/15 (S) HSS AT 1:30 PM BUTROVICH 205
02/18/15 (S) Heard & Held
02/18/15 (S) MINUTE(HSS)
03/11/15 (S) HSS AT 1:30 PM BUTROVICH 205
03/11/15 (S) Moved SB 18 Out of Committee
03/11/15 (S) MINUTE(HSS)
03/13/15 (S) HSS RPT 4DP 1NR
03/13/15 (S) DP: STEDMAN, GIESSEL, KELLY, STOLTZE
03/13/15 (S) NR: ELLIS
04/02/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/02/15 (S) Heard & Held
04/02/15 (S) MINUTE(L&C)
02/18/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/18/16 (S) Moved SB 18 Out of Committee
02/18/16 (S) MINUTE(L&C)
02/22/16 (S) L&C RPT 4DP
02/22/16 (S) DP: GIESSEL, MEYER, STEVENS, ELLIS
03/09/16 (S) TRANSMITTED TO (H)
03/09/16 (S) VERSION: SB 18
03/10/16 (H) READ THE FIRST TIME - REFERRALS
03/10/16 (H) L&C
04/13/16 (H) L&C AT 3:15 PM BARNES 124
BILL: SB 69
SHORT TITLE: BD OF CHIROPRACTIC EXAMINERS; PRACTICE
SPONSOR(s): SENATOR(s) STOLTZE
03/06/15 (S) READ THE FIRST TIME - REFERRALS
03/06/15 (S) L&C, FIN
04/02/15 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/02/15 (S) Heard & Held
04/02/15 (S) MINUTE(L&C)
02/04/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/04/16 (S) Moved CSSB 69(L&C) Out of Committee
02/04/16 (S) MINUTE(L&C)
02/09/16 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/09/16 (S) Moved CSSB 69(L&C) Out of Committee
02/09/16 (S) MINUTE(L&C)
02/10/16 (S) L&C RPT CS 5DP SAME TITLE
02/10/16 (S) DP: COSTELLO, GIESSEL, MEYER, STEVENS,
ELLIS
03/16/16 (S) FIN AT 9:00 AM SENATE FINANCE 532
03/16/16 (S) Heard & Held
03/16/16 (S) MINUTE(FIN)
04/05/16 (S) FIN AT 5:00 PM SENATE FINANCE 532
04/05/16 (S) Moved CSSB 69(FIN) Out of Committee
04/05/16 (S) MINUTE(FIN)
04/07/16 (S) FIN RPT CS 3DP 3NR SAME TITLE
04/07/16 (S) DP: MACKINNON, DUNLEAVY, HOFFMAN
04/07/16 (S) NR: KELLY, BISHOP, OLSON
04/08/16 (S) TRANSMITTED TO (H)
04/08/16 (S) VERSION: CSSB 69(FIN)
04/09/16 (H) READ THE FIRST TIME - REFERRALS
04/09/16 (H) L&C, FIN
04/13/16 (H) L&C AT 3:15 PM BARNES 124
BILL: HJR 28
SHORT TITLE: OPPOSING GM SALMON
SPONSOR(s): REPRESENTATIVE(s) TARR
01/19/16 (H) READ THE FIRST TIME - REFERRALS
01/19/16 (H) FSH, L&C
02/04/16 (H) FSH AT 10:00 AM CAPITOL 120
02/04/16 (H) Moved CSHJR 28(FSH) Out of Committee
02/04/16 (H) MINUTE(FSH)
02/05/16 (H) FSH RPT CS(FSH) NT 4DP
02/05/16 (H) DP: HERRON, KREISS-TOMKINS, ORTIZ,
STUTES
04/13/16 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Olson, chair of
the House Labor and Commerce Standing Committee, presented
Governor Walker's appointees.
BRANDON EMMETT, Appointee
Marijuana Control Board
Alcohol & Marijuana Control Office
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the Marijuana
Control Board.
JOEY MERRICK II, Appointee
Board of Directors
Alaska Gasline Development Corporation
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Testified as appointee to the Board of
Directors of the Alaska Gasline Development Corporation.
FORREST WOLFE, Staff
Senator Lesil McGuire
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator McGuire, sponsor,
introduced SB 157.
JAY TOBIN, Senior Vice President/General Counsel
Dave & Buster's
Dallas, Texas
POSITION STATEMENT: Answered a question during the hearing on
SB 157.
WESTON EILER, Staff
Senator Mia Costello
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Costello, chair of the
Senate Labor and Commerce Committee, sponsor, introduced SB 158.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Olson, chair of
the House Labor and Commerce Standing Committee, introduced the
proposed House committee substitute for SB 158.
SENATOR PETER MICCICHE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor, introduced CSSB
165(JUD).
CHUCK KOPP, Staff
Senator Peter Micciche
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Micciche, sponsor,
presented the sectional analysis for CSSB 165(JUD).
DALE FOX, President/CEO
Alaska Cabaret, Hotel, Restaurant and Retailers Association
Anchorage, Alaska
POSITION STATEMENT: Testified in support of CSSB 165(JUD).
GINNY ESPENSHADE, Director
Kenai Peninsula Youth Court
Homer, Alaska
POSITION STATEMENT: Testified in support of SB 165.
CYNTHIA FRANKLIN, Director
Anchorage Office
Alcohol & Marijuana Control Office
Department of Commerce, Community & Economic Development
Anchorage, Alaska
POSITION STATEMENT: Speaking for her staff and agency,
testified in support of CSSB 165(JUD).
RYNNIEVA MOSS, Staff
Senator John Coghill
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Coghill, sponsor,
introduced SB 18.
SENATOR BILL STOLTZE
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor, introduced CSSB
69(FIN).
BRANDON BREFCZYNSKI, Staff
Senator Bill Stoltze
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Senator Stoltze, sponsor,
presented the sectional analysis for CSSB 69(FIN).
EDWARD BARRINGTON, DC, Chair
Legislative Committee
Alaska Chiropractic Society
Board Member, Board of Chiropractic Examiners
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 69, and answered
questions.
REPRESENTATIVE GERAN TARR
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Speaking as the sponsor, provided a
PowerPoint presentation entitled, "HJR 28: Opposing GM Salmon."
ACTION NARRATIVE
3:19:38 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:19 p.m. Representatives Olson
Tilton, Hughes, Colver, Kito, and Josephson were present at the
call to order. Representative LeDoux arrived as the meeting was
in progress.
^CONFIRMATION HEARING(S):
^CONFIRMATION HEARING(S):
^Marijuana Control Board
MARIJUANA CONTROL BOARD
^Alaska Gasline Development Corporation Board of Directors
Alaska Gasline Development Corporation Board of Directors
3:20:10 PM
CHAIR OLSON announced that the first order of business would be
confirmation hearings for appointees to the Marijuana Control
Board and to the Board of Directors, Alaska Gasline Development
Corporation.
3:21:32 PM
REPRESENTATIVE HUGHES moved to advance the confirmation of
appointees referred to the House Labor and Commerce Standing
Committee to a joint session of the House and Senate for
consideration.
3:21:37 PM
CHAIR OLSON objected for discussion purposes.
3:21:46 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, stated that
all members will have an opportunity to speak to Governor
Walker's appointees, and he read their names and appointments:
Brandon Emmett, to the Marijuana Control Board
Joey Merrick II, to the Board of Directors, Alaska
Gasline Development Corporation.
3:22:32 PM
BRANDON EMMETT, Appointee, Marijuana Control Board, Alcohol &
Marijuana Control Office, Department of Commerce, Community &
Economic Development, informed the committee he currently holds
the industry/public seat on the Marijuana Control Board (MCB).
He expressed his deep concern about the state's transition to
the legal use of marijuana. Mr. Emmett said marijuana use has
been shown to be safer than alcohol and he felt compelled, as a
member of the cannabis community, along with his experience in
the industry, to participate as a member of the board. He said
he felt fortunate to represent 56 percent of the voters in
Alaska who voted to enact [Alaska Marijuana Legalization, Ballot
Measure 2, passed by voters on 11/4/14]. His experience has
been with those who consume cannabis responsibly and he has
supported the campaign to regulate marijuana like alcohol
through the Coalition for Responsible Cannabis Legislation. Mr.
Emmett said it is important that marijuana is no longer
available from the black market, and is regulated in order to
track its consumption, its effects on communities, and to
generate tax revenue. He said he brings a fact-based, and
public-comment driven approach to MCB, and he looks forward to
being reconfirmed and continuing his work on the board. Board
members hold diverse views, and Alaska has the opportunity to
enact responsible marijuana legislation.
3:26:10 PM
REPRESENTATIVE KITO observed that industry/public members of the
Alcoholic Beverage Control Board have experience in management
and oversight of a business facility and licensure. He asked
Mr. Emmett for his experience specific to marijuana business
operations for testing, sales, and licensure.
MR. EMMETT described his experience with the industry in Oregon
working on a medical marijuana farm in cultivation and sales,
although there was no testing. He pointed out that there is a
black market for marijuana in Alaska, and he is familiar with
the issues of transportation and retail sales of marijuana.
The aspect of testing is new in Alaska, and even though all of
the marijuana must be tested, it cannot be transported by air or
boat, and thus the state must devise a way to allow legal
marijuana commerce to include transportation, or testing labs
must be available everywhere. Currently, there are four labs on
the road system, with more applications pending.
REPRESENTATIVE KITO said he was more concerned about Mr.
Emmett's knowledge of new business operations.
MR. EMMETT said he also has experience as a program manager in
upper level management of a successful helicopter-based, search
and rescue company, and was responsible for day-to-day
operations, accounting, and safety. The helicopter search and
rescue industry provided a high level of experience under
stress. In addition, he is the chief operations officer of a
new cannabis venture.
3:33:48 PM
REPRESENTATIVE KITO expressed his concern about two issues of
public health and safety: (1) advertising and protecting
children from easy access and/or predatory advertising of
marijuana products; (2) how to protect roads and businesses from
impaired operators of motor vehicles.
MR. EMMETT agreed that the packaging and advertising of
marijuana products has been a big issue in some states such as
Colorado, where cartoon characters were used to promote
products. He said he does not support any packaging that would
appeal to children; in fact, a regulated market will protect
youth better than an unregulated market, and regulations state
that marijuana cannot be added to an existing product, such as a
candy bar or children's candy. Packaging for edibles must be
opaque and 4 mils thick in order to be child-resistant. In this
manner, there is a reasonable assurance that most individuals
under the age of twenty-one years will not be attracted to the
products. Regarding public safety, in his experience traffic
events caused by marijuana use are less frequent than those
caused by alcohol use; currently, there are tests under
development to determine marijuana impairment similar to field
sobriety tests.
REPRESENTATIVE KITO has been informed that there are drug
recognition experts; however, there are only two in Juneau. He
cautioned that impairment by operators of motor vehicles has not
been much of an issue because marijuana has been illegal. As
for alcohol, MCB can provide direction to businesses to
establish monitoring methods such as alcohol awareness training
(TAM) cards.
MR. EMMETT said he recognized concerns about impairment caused
by the use of marijuana. A regulated system encourages that
information will be provided to consumers as part of retail
sales, which is not part of black market sales. He urged for a
"marijuana handlers' card" for salespersons and businesses.
CHAIR OLSON asked whether Mr. Emmett has a business relationship
with other members of MCB.
MR. EMMETT said no. He has filed for a license for a
corporation, but has no plans to go into business with anyone on
MCB in the near future.
3:44:19 PM
JOEY MERRICK II, Appointee, Board of Directors, Alaska Gasline
Development Corporation (AGDC), Department of Commerce,
Community & Economic Development, provided his business
experience working in the construction industry on the North
Slope since 1989, in many capacities from general laborer to
project manager. Mr. Merrick said he is president of the Alaska
Petroleum Joint Crafts Council, president and of the Alaska
District Council of Laborers representing approximately 5,500
Alaskans, serves as a trustee of the Alaska Laborers Training
Trust program, Department of Labor & Workforce Development, and
of the "pipeline training trust." Currently, he is the business
manager of Laborers Local 341 and frequently negotiates
contracts with the industry. Mr. Merrick said the AGDC board of
directors works well and his contribution to the board is his
understanding of "how to put a deal together" in the oil and gas
business, from both the point of view of the industry, and that
of Alaskans, in order to ensure fairness for all. He expressed
his interest in continuing to serve on the board.
REPRESENTATIVE COLVER asked Mr. Merritt to expand on his
pipeline experience on the North Slope, and as a supervisor of
the marine terminal at Valdez.
MR. MERRICK said he has worked in almost every stage of "the
project," from new pipeline on numerous big projects. He opined
that the AGCD board is diverse and many have a construction
background as well, and his other expertise is in workforce
development. He serves on the technical committee and will be
needed at the time the project seeks a large workforce.
CHAIR OLSON asked whether Mr. Merrick was involved with the port
authority in Valdez.
MR. MERRICK said no.
3:50:27 PM
REPRESENTATIVE JOSEPHSON asked Mr. Merrick how his service on
the Oil and Gas Competitiveness Review Board, Department of
Revenue, may aid AGDC.
MR. MERRICK responded that while on the Oil and Gas
Competitiveness Review Board, he strove for impartiality. His
service on the board was not long.
REPRESENTATIVE KITO inquired as to whether Mr. Merrick had a
unique perspective to bring to the AGDC board.
MR. MERRICK answered that what is needed is his knowledge of how
to interact with industry because he knows all of the aspects of
building a pipeline, and he restated his experience in workforce
development.
3:54:15 PM
CHAIR OLSON removed his objection to advancing the names of the
appointees.
3:54:34 PM
REPRESENTATIVE HUGHES restated her motion and reminded the
members that signing the reports regarding appointments to
boards and commissions in no way reflects individual members'
approval or disapproval of the appointees, and that the
nominations are merely forwarded to the full legislature for
confirmation or rejection. There being no further objection,
the confirmations were advanced.
3:55:08 PM
The committee took an at ease from 3:55 p.m. to 3:56 p.m.
SB 157-AMUSEMENT DEVICES & GAMBLING DEFINITION
3:56:46 PM
CHAIR OLSON announced that the next order of business would be
SENATE BILL NO. 157, "An Act defining arcade-style amusement
devices."
3:56:53 PM
FORREST WOLFE, staff, Senator Lesil McGuire, stated that SB 157
is a housekeeping measure that seeks to clarify language in the
Alaska Statutes. The first goal of the bill is to create a
definition of amusement devices to include arcade-style games of
skill, while excluding games of chance. The second goal is to
add that winning tickets, tokens, or credit from these games
does not constitute gambling. Mr. Wolfe said SB 157 would
ensure that businesses that feature these types of amusement
devices and games have the legal grounds to operate in Alaska,
which would bring new well-paying jobs and family-friendly
businesses to the state.
3:59:28 PM
CHAIR OLSON opened public testimony on SB 157.
3:59:36 PM
JAY TOBIN, Senior Vice President/General Counsel, Dave &
Buster's, offered to answer questions.
REPRESENTATIVE KITO asked whether the issue addressed by SB 157
is not in current statute.
MR. WOLFE clarified that the language in statute is vague;
although this type of establishment is not illegal, businesses
such as Dave and Buster's want further assurance prior to
investing in Alaska.
MR. TOBIN added that Dave and Buster's is planning to invest $10
million in the construction of a new store. Existing law, an
opinion from the Department of Law, and advice from local
counsel led to his organization's decision to seek full
conformance with the laws of the state.
REPRESENTATIVE JOSEPHSON directed attention to page 2, line 22,
of the bill which read:
Sec. 3. AS 11.66.280 is amended by adding a new
paragraph to read:
(12) "amusement device" includes arcade-style
games, pinball machines, countertop machines, novelty
arcade games, sports-themed games, shuffleboard
tables, claw machines, pool tables, shooting
galleries, bowling, and a similar machine, device, or
apparatus that provides amusement, diversion, or
entertainment; "amusement device" does not include
casino-style games, draw games, slot machines,
roulette wheels, craps, video poker, or any other game
that is a contest of chance.
REPRESENTATIVE JOSEPHSON asked for assurance that the proposed
new paragraph could not be construed as "something that's akin
to gambling."
MR. WOLFE stated that these types of amusement devices are
specifically excluded from the definition of gambling, and the
definition does not include casino-style games of chance.
REPRESENTATIVE JOSEPHSON said he was unfamiliar with the
definitions of the games that are excluded.
MR. WOLFE described a claw machine as a game of skill, and not a
game of chance.
4:06:03 PM
CHAIR OLSON, after ascertaining no one else wished to testify,
closed public testimony.
4:06:15 PM
REPRESENTATIVE HUGHES moved to report SB 157, Version 29-
LS1264\W out of committee with individual recommendations and
the accompanying zero fiscal notes. There being no objection,
SB 157 was reported out of the House Labor and Commerce Standing
Committee.
4:06:41 PM
The committee took an at ease from 4:06 p.m. to 4:09 p.m.
SB 158-REAL ESTATE COMMISSION;BROKER LICENSING
4:10:30 PM
CHAIR OLSON announced that the next order of business would be
SENATE BILL NO. 158, "An Act relating to real estate broker
licensure; relating to the real estate commission; and providing
for an effective date."
4:10:38 PM
WESTON EILER, Staff, Senator Mia Costello, informed the
committee SB 158 raises the requirements to become a licensed
real estate broker, the highest level of real estate licensee.
The bill was brought forward by the industry to improve
professional standards and protect consumers. Real estate
brokers handle complex business transactions, and real estate
transactions, and supervise associate brokers and new licensees.
Mr. Eiler described the increasing complexity of the real estate
industry, and stated that the bill increases the length of time
a broker applicant must have held a real estate license from 24
months to 48 months, increases the continuing education
requirement from 15 hours to 30 hours, and adds additional
training and experience to help brokers perform their duties.
He paraphrased from the following sectional analysis [original
punctuation provided]:
Section 1: Amends AS 08.88.091(c) to require
individuals complete 30 hours of continuing education
prior to being licensed as a real estate broker or
associate real estate broker rather than 15 hours.
Section 2: Amends AS 08.88.171(a) to require
applicants for a real estate broker license have at
least 48 months of active continuous experience as a
real estate licensee within the past 60 months rather
than 24 months of active continuous experience as a
real estate licensee within the past 36 months.
Section 3: Amends AS 08.88.171(a) to require
applicants for an associate real estate broker license
have at least 48 months of active continuous
experience as a real estate licensee within the past
60 months rather than 24 months of active continuous
experience as a real estate licensee within the past
36 months.
Section 4: Addresses applicability for the changes to
be effective January 1, 2017.
Section 5: Permits the real estate commission to adopt
regulations prior to January 1, 2017 that would become
effective January 1, 2017.
Sections 6-7: Effective dates.
4:15:12 PM
REPRESENTATIVE JOSEPHSON asked for the stance of those opposing
the bill.
MR. EILER said the sponsor has received questions related to the
timeline from one broker applicant.
REPRESENTATIVE JOSEPHSON directed attention to page 2, lines
[26-27], which read:
preceding application for the license, furnishes
satisfactory proof that errors and omissions insurance
required under AS 08.88.172 has been obtained, is not
under
REPRESENTATIVE JOSEPHSON asked whether the requirement for
errors and omissions insurance is a reasonable request.
MR. EILER pointed out that that language is in existing statute
and is not amended by the bill.
REPRESENTATIVE JOSEPHSON, at the request of the chair, held his
question.
REPRESENTATIVE LEDOUX advised that she has received letters in
opposition to the bill.
MR. EILER stated that the sponsor has received letters of
support from the Alaska Association of Realtors and the Alaska
Real Estate Commission.
4:18:34 PM
REPRESENTATIVE HUGHES moved to adopt the proposed House
committee substitute (HCS) for SB 158, Version 29-LS1303\H,
Bruce, 4/5/16, as the working document.
4:18:52 PM
CHAIR OLSON objected for discussion purposes.
4:18:59 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, informed the
committee the proposed House committee substitute (HCS) makes
two changes. On page 3, line 16 of the bill, the proposed HCS
adds a new section that repeals AS 08.88.172(e), which is the
subsection that voids the requirement that a real estate broker,
associate real estate broker, and real estate salesperson shall
carry and maintain errors and omissions insurance under certain
conditions. In addition, an effective date is inserted in new
Section 9, which makes the effective date of the repealer
1/1/18, and allows one currently in the process of becoming a
real estate broker to complete his/her application for license.
REPRESENTATIVE COLVER asked for the effect of Section 4 of the
proposed HCS.
4:21:19 PM
MR. JACKSON read from current statutes AS 08.88.172(e) as
follows [in part]:
If the commission is unable to obtain a master errors
and omissions insurance policy to insure licensees
that meets the terms and conditions established under
(b) of this section, the requirement that a real
estate licensee carry and maintain errors and
omissions insurance under AS 08.88.172 is void ....
MR. JACKSON advised that the effect of the proposed HCS is that
errors and omissions insurance will be required.
4:21:57 PM
REPRESENTATIVE COLVER stated his intent to submit an amendment
to remove the requirement for errors and omissions insurance.
He stated it is not customary practice to require errors and
omissions insurance to get a license, and it is not in the
public interest to require a policy.
CHAIR OLSON noted that there has been minimal contact from the
industry in this regard.
REPRESENTATIVE LEDOUX asked what professions are required to
have errors and omissions insurance to obtain licensing. She
stated her understanding that errors and omissions insurance is
not required of lawyers or doctors.
REPRESENTATIVE COLVER said he will offer an amendment.
4:25:20 PM
CHAIR OLSON announced SB 158 was held over.
4:25:46 PM
Although not stated, the committee took an at ease from 4:25
p.m. to 4:26 p.m.
SB 165-ALCOHOL: BOARD;MINORS;MARIJUANA CHECKS
4:26:10 PM
CHAIR OLSON announced that the next order of business would be
CS FOR SENATE BILL NO. 165(JUD) am, "An Act relating to the
presence of minors in the licensed premises of manufacturers,
wholesalers, and retailers of alcoholic beverages; relating to
the Alcoholic Beverage Control Board; relating to background
checks for persons applying to operate marijuana establishments;
relating to the offense of minor consuming; relating to
revocation of a driver's license for a minor consuming offense;
relating to the effect of the revocation of a driver's license
for a minor consuming offense on a motor vehicle liability
insurance policy; and amending Rule 17, Alaska Rules of Minor
Offense Procedure."
4:26:39 PM
The committee took a brief at ease.
4:28:04 PM
SENATOR PETER MICCICHE, Alaska State Legislature, informed the
committee CSSB 165(JUD)am brings a healthy and reasonable
balance of representation to the Alcoholic Beverage Control
Board (ABCB), Alcohol & Marijuana Control Office, Department of
Commerce, Community & Economic Development, and decriminalizes
youth alcohol possession and consumption offenses. The bill is
the product of an ongoing, multiyear, modernization process for
Title 4, Alaska's statutes that govern the regulation and
control of alcoholic beverages. Since 2012, the work has been
facilitated by a diverse group seeking to reform alcohol laws
such as those pertaining to licenses, and the role of ABCB;
other issues will be addressed in the future. The current bill
changes one seat of the ABCB structure, and removes damaging
obstacles placed into the lives of young people under the
current minor consuming alcohol (MCA) laws. Senator Micciche
said minors are now subject to guilt by association resulting in
a posting of offenses on Courtview, the loss of driving
privileges, and the loss of motor vehicle insurance, all of
which severs ties with institutions needed for success such as
jobs, education, and family. He stressed that minor consuming
deserves a swift and certain violation and imposition of a $500
fine, but not jury trials, prosecution, public defender time,
and court costs. Additionally, MCA offenses should not garner
the loss of driving privileges; in fact, driving under the
influence is "a whole different crime, it's not minor
consuming." Stakeholders have identified the value of
rehabilitation over punishment for young people who are still
forming their values and behavioral patterns. Senator Micciche
advised that the bill restores under-21 alcohol status offenses
to true violations, removes criminal penalties, and establishes
a fine of $500, which may be reduced by the court to $50 under
certain conditions. The bill also provides that such violations
may not be published on Courtview - which has caused many youth
to be denied employment and scholarship opportunities - and
clarifies that youth may work or play on golf courses where
alcohol is served, under certain conditions. Finally, CSSB
165(JUD)am requires background checks for persons applying to
operate marijuana establishments. Senator Micciche listed many
supporters of the proposed legislation, including the Alaska
Peace Officers Association.
4:33:27 PM
CHUCK KOPP, Staff, Senator Peter Micciche, paraphrased from the
following sectional analysis [original punctuation provided]:
Section 1 - Repeals and reenacts AS 04.06.020,
relating to the appointment, reappointment and
qualifications of members of the Alcoholic Beverage
Control Board; and establishing definitions.
Section 2 - In AS 04.06.030, Terms of office; chair -
changes "chairman" to "chair".
Section 3 - In AS 04.06.050, Meetings - changes
"chairman" to "chair".
Section 4 - Amends AS 04.16.049(a), relating to access
by minors to licensed premises; adds a reference to
04.11.110 permitting access to club premises by a
person under 21 years of age if no alcoholic beverages
are present or if the person has an active duty
military card; changes "age of 21 years" to "21 years
of age" to conform to current drafting style, and;
identifies circumstances under which minors may be
employed on licensed premises.
Section 5 - Amends AS 04.16.049(b), changing "age of
21 years" to "21 years of age" to conform to current
drafting style.
Section 6 - Amends AS 04.16.049(c), allowing
juveniles, 16 & 17 years of age, to be employed on
golf course licensed premises as long as they have
written consent of guardian or parent, and an
exemption granted by the Department of Labor.
Section 7 - Amends AS 04.16.049(d), to allow minors,
18 - 20 years of age, to be employed within the
licensed premises of a golf course as long as they do
not sell, serve, deliver, or dispense alcoholic
beverages.
Section 8 - Adds a new subsection (g) to AS 04.16.049
to permit access by minors to golf courses for the
purpose of playing golf. Adds new subsections making
unauthorized presence by a minor on licensed premises
a violation, punishable by a fine of $500, which must
be charged and filed with the court as a separate
case. The fine may be reduced by a court to $50 if the
minor supplies proof of completion of an alcohol
safety action program or a community diversion panel.
Section 9 - Repeals and reenacts AS 04.16.050 to make
minor consuming a violation, punishable by a fine of
$500, which must be charged and filed with the court
as a separate case. The fine may be reduced by a court
to $50 if the minor supplies proof of completion of an
alcohol safety action program or a community diversion
panel.
Section 10 - Modifies the required language for
warning signs on licensed or designated premises in AS
04.21.065(b).
Section 11 - Adds a new provision in 04.21.078 barring
the court system from publishing on a publicly
available website the record of a violation of AS
04.16.049 or 04.16.050, or a similar municipal
ordinance, if the violation was charged separately and
was not joined with another minor offense or criminal
charge.
Section 12 - Amends 04.21.080(b) Definitions, add
definition for "community diversion panel."
Section 13 - Amends AS 12.62.400(a) National criminal
history record checks for employment, licensing, and
other noncriminal justice purposes authorizing
Department of Public Safety to obtain a criminal
history record check of a person applying for a
license to operate a marijuana establishment, as is
currently required for alcohol beverage licensees.
Section 14 - Amends 17.38.200(a) requiring applicants
for registration to operate marijuana establishments
to submit to a criminal history record check.
Section 15 Amends AS 21.36.210(a) Limits on
cancellation, to remove a reference to AS 21.96.027
due to repeal and reenactment of AS 04.16.050.
Section 16 - Amends AS 28.15.057(a) Restrictions on
driver's license issued to person under 18, to reflect
the repeal and reenactment of AS 04.16.050.
Section 17 - Amends AS 28.15.191(a) Court and parole
board reports to department removes court requirement
to forward to DMV a record of a minor consuming
alcohol violation conviction within five working days.
Section 18 - Amends AS 28.15.211(g) removes reference
to DMV not issuing or reissuing a driver's license to
a person whose license was revoked for an offense
under 04.16.050.
Section 19 - Amends the uncodified law of the State of
Alaska, adding a new section describing a Direct Court
Rule Amendment to Rule 17(a), Alaska Rules of Minor
Offense Procedure, providing an exception to when a
prosecutor may join a minor offense with a related
criminal offense.
Section 20 - Amends the uncodified law of the State of
Alaska, adding a new subsection (g) to Rule 17, Alaska
Rules of Minor Offense Procedure, providing that a
prosecutor may not join a minor offense for a
violation of AS04.16.049 or AS 04.16.050 with a
related criminal offense.
Section 21 - Repeals various sections that have to do
with denial, cancelation or non-renewal of insurance
for minor consuming violations, court revocation of a
driver's license for minor consuming alcohol, and
Health & Social Services agreements under Delinquent
Minor rules to revoke a driver's license for minor
consuming alcohol offenses.
Section 22 - Applicability provisions.
Section 23 - Transition provisions relating to
membership on the ABC Board
4:44:04 PM
REPRESENTATIVE JOSEPHSON directed attention to page 9, line 24
of the bill which read:
(g) A prosecutor may not join a minor offense for a
violation of AS 04.16.049 or 04.16.050 with a related
criminal offense.
REPRESENTATIVE JOSEPHSON questioned whether the aforementioned
subsection would allow the "system" to cite a minor for a
violation but the citation would not be in the same case file.
MR. KOPP explained that charging documents are referred to as
the criminal intake disposition, on which the prosecutor lists
all of the offenses committed. The bill requires that the
prosecutor list a minor consuming alcohol charge on a separate
document in order that the criminal offenses will be listed on
Courtview, and the minor consuming alcohol charge will not.
REPRESENTATIVE JOSEPHSON asked whether it is currently a
criminal offense if an 18-, 19-, or 20-year-old is caught
consuming alcohol.
MR. KOPP said no, that is a violation under current law.
REPRESENTATIVE LEDOUX inquired as to whether a youth could be
charged with minor [consuming alcohol], if he/she was merely
present.
MR. KOPP said an average scenario may be a police officer
walking into a room with minors present and there is alcohol;
however, not everyone is consuming, so there is the possibility
that many minors could be cited that were not consuming, and the
citations would be posted on Courtview.
REPRESENTATIVE LEDOUX asked how police officers prove who was
drinking.
MR. KOPP advised that police officers conduct interviews, smell
the alcohol, see the effects of impairment, and test for alcohol
to determine who was actually drinking.
REPRESENTATIVE HUGHES recalled that the legislature modeled the
composition of the Marijuana Control Board (MCB) after the
composition of the ABCB. She directed attention to page 2,
lines 14 and 15 which read [in part]:
.... A board member representing the general public
may not be affiliated with the public safety sector or
the public health sector.
REPRESENTATIVE HUGHES noted that the bill changes members of the
ABCB and she questioned prohibiting someone who has a public
health background from applying for the general public seat; in
fact, it is important for someone with that insight to be on the
board.
4:49:05 PM
SENATOR MICCICHE explained that the concern of the industry was
the possibility "that you could perhaps stack three active anti-
industry people on the board." By affiliation, the language
means someone who is currently in a profession linked to the
public health sector. A member, and a rural member might have
that background; however, this is an effort to balance the board
with two industry members, and three potentially anti-industry
members, in order to reach a fair compromise.
REPRESENTATIVE HUGHES acknowledged that industry members seem to
care about public health issues. She pointed out that most
states do not have industry representation on their alcohol
boards. She expressed her understanding that the executive
director is cognizant of public health issues and stressed the
importance of keeping public health issues before the board.
SENATOR MICCICHE stated that CSSB 165(JUD)am represents about 10
percent of the work to be done in this effort, and his goal is
to reach consensus and continue to work toward a common goal
through compromise.
REPRESENTATIVE HUGHES advised that her experience is that public
health concerns in this regard are very great in parts of the
state. She said she was disappointed to see the change.
REPRESENTATIVE JOSEPHSON inquired as to whether the liquor
industry has opposed or supported the bill.
SENATOR MICCICHE said there is support from the industry for the
bill.
REPRESENTATIVE JOSEPHSON recalled from his experience as a
prosecutor in Kotzebue, that a young person could be assessed
with a lengthy suspension of his/her driving license.
MR. KOPP confirmed that offenses can "stack" and extend the
revocation of driving privileges for "a very long time."
REPRESENTATIVE JOSEPHSON asked, "Under the current law, does it
compound, so that the third offense is worse than the second?"
MR. KOPP said yes. In further response, he said the third
offense is a misdemeanor and the revocation gets longer. In
response to Chair Olson, he said more than 70 percent of minor
consumers only offend once.
REPRESENTATIVE LEDOUX questioned whether minor consumers "age
out" of the offense. She added that the bill is in alignment
with other pending legislation.
4:55:52 PM
REPRESENTATIVE HUGHES moved to adopt the proposed House
committee substitute (HCS) for CSSB 165(JUD) am, Version 29-
LS1384\E, Bruce, 4/13/16, as the working document.
4:56:08 PM
CHAIR OLSON objected for discussion purposes.
SENATOR MICCICHE stated his support for the proposed House
committee substitute.
4:57:34 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, presented the
proposed House committee substitute for CSSB 165(JUD)am, Version
E. Version E makes two identical changes found on page 5,
beginning on lines 3 and 22, which insert, after $50, the
following:
.... for a person who has not more than one previous
violation or to $250 for a person who has two or more
previous violations ...
MR. JACKSON said the forgoing changes were suggested by a member
of the committee, and increase the penalty for repeat or
habitual offenders.
4:59:25 PM
The committee took an at ease from 4:59 p.m. to 5:00 p.m.
5:00:30 PM
CHAIR OLSON opened public testimony.
5:00:55 PM
DALE FOX, President/CEO, Alaska Cabaret, Hotel, Restaurant and
Retailers Association (Alaska CHARR), expressed his
organization's support for CSSB 165(JUD)am. He said the bill
provides for a balanced Alcoholic Beverage Control Board, is a
new attempt to fight underage drinking, allows those under 21
years of age to play golf at courses that are a licensed
premise, and provides for marijuana background checks. Mr. Fox
urged the committee to pass the bill.
5:02:15 PM
GINNY ESPENSHADE, Director, Kenai Peninsula Youth Court,
expressed her support for the bill. She said the bill ensures
that current diversion programs remain an option for underage
drinking offenses. In addition, Ms. Espenshade said she
strongly supports the fact that said offenses will not appear on
an online database which can interfere with opportunities for a
young person's future such as employment, higher education, and
military service.
5:04:04 PM
CYNTHIA FRANKLIN, Director, Anchorage Office, Alcohol &
Marijuana Control Office, Department of Commerce, Community &
Economic Development, said her staff and agency are in support
of the bill. In response to an earlier question from
Representative LeDoux, she said retail wholesalers are
prohibited from serving on the Alcoholic Beverage Control Board
due to the three-tier system enacted following Prohibition,
which is an attempt to recognize the power liquor wholesalers
have and curb industry influence over the board.
5:05:44 PM
CHAIR OLSON, after ascertaining that no one else wished to
testify, closed public testimony, and the bill was held over.
5:06:08 PM
The committee took an at ease from 5:06 p.m. to 5:07 p.m.
SB 18-HEALTH CARE SHARE MINISTRY NOT INSURANCE
5:07:22 PM
CHAIR OLSON announced that the next order of business would be
SENATE BILL NO. 18, "An Act exempting a health care sharing
ministry from regulation as an insurer."
5:07:40 PM
RYNNIEVA MOSS, Staff, Senator John Coghill, informed the
committee SB 18 is a bill that places in statute the current
practice of the Division of Insurance, Department of Commerce,
Community & Economic Development, to exempt health care sharing
ministries from regulation as insurance, because health care
sharing ministries are charitable organizations. Firstly, the
bill exempts health care sharing ministries from regulation, and
secondly, the bill further defines health care sharing
ministries, consistent with the definition of those ministries
in the Patient Protection and Affordable Care Act (PPACA), which
exempts said ministries from requirements of PPACA. Provisions
in the bill are consistent with PPACA in that ministries must be
26 U.S.C 501(c)(3) not-for-profit exempt from taxation, faith-
based, and participants must share a common set of ethical or
religious beliefs. In addition, a participant cannot lose
membership after developing a medical condition, the corporation
must have been in existence since 12/31/99, the organization
must have had medical expenses shared continuously and without
interruption since 12/31/99, and the organization must have an
annual audit. Currently, 30 states have safe harbor laws in
place, in response to threats that these organizations would be
regulated as insurance companies. Ms. Moss expressed her
understanding that between 250,000 to 400,000 Americans belong
to these ministries, and in 2015, over $340 million in medical
expenses were paid by members of the ministries.
5:10:13 PM
REPRESENTATIVE HUGHES asked how many Alaskans would be affected
by the proposed legislation.
MS. MOSS estimated between 3,400 and 3,500.
REPRESENTATIVE KITO inquired as to the services provided by the
ministries. For example, are services provided on an emergency,
fund-raising basis, or is there an expectation of regular health
care, such as preventative annual check-ups.
MS. MOSS explained that services depend upon the articles of
incorporation, bylaws, and policies of each ministry. There are
some with deductibles. She pointed out that the ministry does
not pay the bills, but acts as an administrator, notifying
members of medical costs, and members donate funds directly to
the patient.
REPRESENTATIVE KITO asked whether an individual member pays a
regular amount or determines the amount of their donation.
MS. MOSS advised there is no guarantee that any member will
contribute, therefore, the ministry is not insurance. Each
member of the ministry must be asked to contribute to pay a
patient's medical bill.
CHAIR OLSON asked whether payments are 100 percent.
MS. MOSS said the policies vary.
REPRESENTATIVE JOSEPHSON surmised the concept of the health care
ministries is discussed in PPACA, and is federal law.
MS. MOSS said correct. In further response to Representative
Josephson, she confirmed that members of health care ministries
are exempted from the PPACA requirement of obtaining insurance.
REPRESENTATIVE HUGHES questioned how well members are cared for.
5:14:35 PM
MS. MOSS related that in 1998, a state court determined that
health care ministries are not insurance based in part on that
the failure to pay rate was one-half of 1 percent. Because of
the members' faith-based beliefs, medical bills were paid.
REPRESENTATIVE KITO asked whether the ministries are registered
as corporations in Alaska, or if the pool of members is
nationwide.
MS. MOSS stated that health care sharing ministries are
nationwide, so Alaskan members belong to a nationwide pool. She
advised that the Division of Insurance supports the bill, and
restated that the division currently treats the ministries as
not insurance. The bill seeks to ensure that coverage is not
interrupted by a change in policy by the division of insurance.
5:16:51 PM
CHAIR OLSON opened public testimony. After ascertaining no one
wished to testify, public testimony was closed.
5:17:04 PM
REPRESENTATIVE HUGHES moved to report SB 18, Version 29-
LS0107\H, out of committee with individual recommendations and
the accompanying zero fiscal notes. There being no objection,
SB 18 was reported out of the House Labor and Commerce Standing
Committee
5:17:39 PM
The committee took an at ease from 5:17 p.m. to 5:18 p.m.
SB 69-BD OF CHIROPRACTIC EXAMINERS; PRACTICE
5:18:20 PM
CHAIR OLSON announced that the next order of business would be
CS FOR SENATE BILL NO. 69(FIN), "An Act relating to the Board of
Chiropractic Examiners and the practice of chiropractic."
5:18:40 PM
SENATOR BILL STOLTZE informed the committee his interest in the
proposed legislation began with the issue of sports pre-
participation physicals and the need to provide more opportunity
for rural youth to have better access to said physicals. The
bill is a product of the work of the Board of Chiropractic
Examiners, Division of Corporations, Business, and Professional
Licensing, Department of Commerce, Community & Economic
Development, as well as the chiropractic trade organization, the
Alaska Chiropractic Society. Regarding pre-participation
physicals, the bill places Alaska along with 22 other states
which have provided patients the opportunity to use chiropractic
services. School districts and the Alaska School Activities
Association have been cautious in this regard, and although not
officially supporting the bill, have welcomed the clarification
of the acceptability of pre-participation physicals performed by
chiropractic practitioners.
5:21:24 PM
BRANDON BREFCZYNSKI, Staff, Senator Bill Stoltze, paraphrased
from the following sectional analysis:
Section 1: Amends AS 08.20.055 by adding new language
that allows the board to adopt regulations for the
following: - Training and scope of practice of
chiropractic interns and chiropractic preceptors; -
Designation of a nationally recognized certification
program for chiropractic clinical assistants; -
Performance of patient examinations.
Section 2: Amends AS 08.20.100(b) clarifying how
chiropractors can accept referrals, authorizes
chiropractors to perform school physicals, and allows
the employment of certified chiropractic clinical
assistants, chiropractic interns, and chiropractic
preceptors.
Section 3: Amends AS 08.20.100 by adding a new
subsection (d) that exempts chiropractic interns from
this section.
Section 4: Amends AS 08.20.160 regarding the
requirements for temporary permits.
Section 5: Amends AS 08.20 by adding a new section (AS
08.20.168 Chiropractic clinical assistant) providing
qualifications and allowed duties of chiropractic
clinical assistants.
Section 6: Amends 08.20.185 by changing name of "peer
review committee" to "utilization review committee" to
better reflect the purpose of the committee. Also, the
change is intended to assist in determining what
complaints warrant a referral to investigative staff.
Section 7: Amends AS 08.20 by adding a new section (AS
08.20.195 Limitation of practice) requiring
chiropractic clinical assistants, interns, and
preceptors to act within the scope of practice as
authorized by the board of chiropractic examiners.
Section 8: Amends AS 08.20.200 by updating penalties
for unlicensed practice.
Section 9: Amends AS 08.20.210 by updating penalties
for fraudulent licenses and certificates.
Section 10: Amends definition of "chiropractic
examination" located in AS 08.20.900(7).
Section 11: Amends AS 08.20.900 by adding new
definitions for "chiropractic clinical assistant,"
chiropractic intern," and "chiropractic preceptor."
5:26:02 PM
SENATOR STOLTZE stated the bill's attached fiscal note
Identifier SB069CS(FIN)-DCCED-CBPL-04-06-16 is a onetime
expenditure of $2,500.
REPRESENTATIVE HUGHES directed attention to page 4, [beginning
on line 3] which read:
Sec. 7. AS 08.20 is amended by adding a new section to
article 2 to read:
Sec. 08.20.195. Limitation of practice. A person
licensed under this chapter or a person who is
practicing as a chiropractic intern, chiropractic
clinical assistant, or chiropractic preceptor under
this chapter may only act within the scope of practice
authorized by the board.
REPRESENTATIVE HUGHES asked whether the above section gives the
board authority to broaden the scope of practice in any way.
5:27:35 PM
SENATOR STOLTZE stated the foregoing section is a good faith
effort between the medical and chiropractic professions, and his
office, to accomplish the bill's goals without overly expanding
the scope.
MR. BREFCZYNSKI said that Legislative Legal Services,
Legislative Affairs Agency, advised that AS 08.20.100, AS
08.20.230, and AS 08.20.900 are related to the practice of
chiropractic and outline the scope of chiropractic practice.
REPRESENTATIVE HUGHES expressed concern regarding sports pre-
examinations of children with health challenges, although
expanding the scope and availability of providers makes health
care more affordable and accessible. She directed attention to
page 2, lines 7 and 8 which read:
(2) accept referrals for [CHIROPRACTIC] treatment by
chiropractic core methodology or by ancillary
methodology;
REPRESENTATIVE HUGHES asked for the meaning of core methodology
and ancillary methodology. [The chair asked that she hold her
question.]
5:30:42 PM
REPRESENTATIVE KITO directed attention to page 4, [beginning on
line 8] which read:
* Sec. 8. AS 08.20.200 is amended to read:
Sec. 08.20.200. Unlicensed practice [A
MISDEMEANOR]. A person who practices chiropractic in
the state without a license in violation of AS
08.20.100 is guilty of a class A misdemeanor and may
be punished as provided in AS 12.55 [,AND UPON
CONVICTION IS PUNISHABLE BY A FINE OF NOT MORE THAN
$1,000, OR BY IMPRISONMENT FOR NOT MORE THAN A YEAR,
OR BY BOTH].
* Sec. 9. AS 08.20.210 is amended to read:
Sec. 08.20.210. Fraudulent licenses and
certificates. A person who obtains or attempts to
obtain a chiropractic license or provides the board
with evidence that the person is nationally certified
to practice as a chiropractic clinical assistant
[CERTIFICATE] by dishonest or fraudulent means [,] or
who forges, counterfeits, or fraudulently alters a
chiropractic license or chiropractic clinical
assistant certificate issued by a nationally
recognized certification program is guilty of a class
A misdemeanor and is punishable as provided in AS
12.55 [BY A FINE OF NOT MORE THAN $500, OR BY
IMPRISONMENT FOR NOT MORE THAN SIX MONTHS, OR BY
BOTH].
REPRESENTATIVE KITO asked what penalty is added by AS 12.55.
MR. BREFCZYNSK responded that both of the foregoing sections
increase penalties to a class A misdemeanor, which is punishable
by up to one year in jail and a fine of up to $10,000.
REPRESENTATIVE KITO directed attention to page 5, [beginning on
line 8] which read:
* Sec. 11. AS 08.20.900 is amended by adding new
paragraphs to read:
(11) "chiropractic clinical assistant" means a
person who works under the general supervision of a
person licensed under this chapter and who is
(A) enrolled in a nationally recognized
certification program that certifies chiropractic
clinical assistants; or
(B) certified by a national organization
that certifies chiropractic clinical assistants;
(12) "chiropractic intern" means a person who is
engaged in the practice of chiropractic while under
the personal supervision of a person licensed under
this chapter for the purpose of obtaining practical
experience for licensure as a chiropractor;
(13) "chiropractic preceptor" means a person who
is licensed under this chapter and who participates in
the instruction and training of chiropractic interns.
REPRESENTATIVE KITO requested further information regarding the
requirements to be a chiropractic intern.
MR. BREFCZYNSK stated that interns are working to gain
experience.
REPRESENTATIVE KITO clarified that interns do not have to be
currently enrolled in a certification program.
MR. BREFCZYNSK deferred.
5:33:15 PM
REPRESENTATIVE JOSEPHSON returned attention to Sections 8 and 9
[text previously provided]. He asked for the reason behind the
imposition of stricter penalties.
SENATOR STOLTZE observed that the penalties are recommendations
from the industry and the Board of Chiropractic Examiners.
5:34:17 PM
CHAIR OLSON opened public testimony.
5:34:28 PM
EDWARD BARRINGTON, DC, said he is chair of the Alaska
Chiropractic Society Legislative Committee, and serves on the
Board of Chiropractic Examiners. Dr. Barrington said both
entities support SB 69. In response to Representative Hughes'
previous questions, he explained that chiropractic core
methodology is chiropractic treatment, and examples of ancillary
methodology are treatments by ultrasound, muscle stimulation,
exercise, diet, nutrition, oxygen, heat, and cold.
REPRESENTATIVE KITO restated his question on the qualifications
and responsibilities of chiropractic interns.
DR. BARRINGTON answered that an intern has satisfied all the
graduation requirements of chiropractic college, and is seeking
a clinical setting for more training and experience. Interns
work under a preceptor, who is a supervising doctor.
REPRESENTATIVE KITO asked for the qualifications of a
chiropractic preceptor.
DR. BARRINGTON explained that a preceptor is required to undergo
a certain scrutiny in order to host an intern. In further
response to Representative Kito, he said the criteria to be a
preceptor is established by the Board of Chiropractic Examiners,
however, some colleges are unable to send interns to Alaska in
the absence of the proposed legislation.
REPRESENTATIVE JOSEPHSON restated his question related to the
origin of increasing penalties for unlicensed practice.
DR. BARRINGTON advised that the recommendations were suggested
by state investigators in order to conform to other boards.
5:39:50 PM
CHAIR OLSON, after ascertaining no one else wished to testify,
closed public testimony.
5:40:05 PM
REPRESENTATIVE HUGHES moved to report CSSB 69(FIN), Version 29-
LS0704\S, out of committee with individual recommendations and
the accompanying fiscal notes. There being no objection, CSSB
69(FIN) was reported out of the House Labor and Commerce
Standing Committee.
5:40:29 PM
The committee took an at ease from 5:40 p.m. to 5:42 p.m.
HJR 28-OPPOSING GM SALMON
5:42:30 PM
CHAIR OLSON announced that the next order of business would be
CS FOR HOUSE JOINT RESOLUTION NO. 28(FSH), Opposing the United
States Food and Drug Administration's approval of AquaBounty
AquAdvantage genetically engineered salmon; urging the United
States Congress to enact legislation that requires prominently
labeling genetically engineered products with the words
"Genetically Modified" on the product's packaging; and
supporting the efforts of the state's congressional delegation
to delay the confirmation of the new commissioner of the United
States Food and Drug Administration until the United States Food
and Drug Administration agrees to require labeling for
genetically engineered salmon.
5:42:48 PM
REPRESENTATIVE GERAN TARR, sponsor of CSHJR 28(FSH), provided a
PowerPoint presentation entitled, "HJR 28: Opposing GM Salmon."
Representative Tarr informed the committee that in [November,
2015] the U.S. Food and Drug Administration (FDA), U.S.
Department of Health and Human Services, approved genetically
modified (GM) salmon, which is the first time a GM animal has
been approved for human consumption [slide 1]. Genetically
modified salmon is modified using Chinook salmon to make the GM
fish grow bigger faster, and Ocean pout, to make the GM fish
grow year-around [slide 2]. The GM fish grow twice as big and
twice as fast as farmed salmon [slide 3]. Representative Tarr
stressed this issue is important to address at this time because
the seafood industry is Alaska's largest private-sector
employer, and is valued at $6 billion to the state. The needs
of Alaskans are different than those of AquaBounty, the company
promoting GM salmon, as indicated by its statement that faster
growing salmon would make land-based fish farming economically
viable [slide 4]. In contrast, Alaskans think of successful
sustainable fisheries management and of wild Alaska salmon, the
fishing economies of coastal communities, and the Bristol Bay
fishery [slides 5 and 6]. She presented illustrations of
AquaBounty fish farming operations producing food items [slide
7]. Concerns about GM salmon include possible threats to wild
salmon, risks to human health, and risks to the state's economy
[slide 8]. Threats to wild salmon are due to escapement;
although AquaBounty reports that GM salmon are grown in land-
based pens, the eggs are produced at a facility on Prince Edward
Island on Bay Fortune, which connects to the Gulf of St.
Lawrence and the Atlantic Ocean [slides 9 and 10]. After the
eggs are produced, they will be flown to South America to be
raised, and then returned to be sold in the U.S. She related
her experience visiting Prince Edward Island residents who are
alarmed by the island's image presented to tourists, and noted
that the residents there are supportive of the Alaska State
Legislature's stance on this issue [slide 11]. Research has
shown that GM salmon can out-compete, and be more aggressive
than, wild salmon, as reported by McGill University [report not
provided][slides 12 and 13]. Representative Tarr said the
report stated that GM salmon was bred with wild brown trout and
research indicated that the hybridized species could out-compete
the GM salmon and its wild counterpart.
5:49:04 PM
REPRESENTATIVE TARR further explained that risks to human health
are of great concern because FDA approval was through the
veterinary drug process, thus there are those who feel the drug
has not been sufficiently tested. It is known that there will
be exposure to hormones [slide 14]. Risks to the state's
economy include the negative impact on the price of wild salmon
after the introduction of farmed salmon. The Alaska Seafood
Marketing Institute (ASMI), Department of Commerce, Community &
Economic Development, has invested in branding wild Alaska
salmon for its health benefits, and reports that Alaska wild
salmon is one of the most recognized brands in the U.S. [slide
15]. She observed that Alaska is not alone in opposing GM
salmon, and U.S. Senator Lisa Murkowski has been leading action
related to labeling in Congress. In addition, public pressure
has been effective, and 65 retailers have announced they will
not sell GM salmon [slide 16]. International opposition
includes a lawsuit filed in Canada [slide 17]. Finally, a
lawsuit brought by food safety and fishing groups was filed in
the U.S. 3/31/16, challenging FDA's authority to regulate GM
salmon not as a food product, but as a veterinary drug [slide
19]. Representative Tarr pointed out that she has provided
supporting documents in the committee packet, and restated her
opposition to GM salmon.
5:52:57 PM
REPRESENTATIVE JOSEPHSON asked if FDA has the authority to act
in this regard, and whether the agency can be challenged.
REPRESENTATIVE TARR said there are legal remedies, such as a
lawsuit, and statutory remedies related to labeling. Another
option is legislation to ban the sale of GM salmon.
REPRESENTATIVE JOSEPHSON assumed that if a label revealed
genetic modification, a product would not succeed economically.
REPRESENTATIVE TARR advised that in the U.S., "We don't do much
with labeling, most European countries have moved on, a lot of
European countries have banned a lot of the genetically modified
products because of concerns about human health ...."
5:54:43 PM
The committee took an at ease from 5:54 p.m. to 5:55 p.m.
5:55:09 PM
CHAIR OLSON opened public testimony. After ascertaining no one
wished to testify, public testimony was closed.
5:55:18 PM
REPRESENTATIVE TILTON moved to report CSHJR 28(FSH), Version 29-
LS1213\H out of committee with individual recommendations and
the accompanying zero fiscal notes. There being no objection,
CSHJR 28(FSH) was reported out of the House Labor and Commerce
Standing Committee.
5:55:36 PM
ADJOURNMENT
The House Labor and Commerce Standing Committee meeting was
recessed at 5:55 p.m. to be continued at 9:00 a.m., 4/14/16.
[The meeting reconvened at 9:13 a.m., 4/14/16.]