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.]