SENATE BILL NO. 217 "An Act establishing procedures and guidelines for auditing pharmacy records; and providing for an effective date." 4:19:27 PM Co-Chair Hoffman MOVED to ADOPT committee substitute for Senate Bill 217 Work Draft 27-LS1411\E (Martin 4/13/12). Co-Chair Stedman OBJECTED for purpose of discussion. DANA OWEN, STAFF, SENATOR DENNIS EGAN, explained the changes in Version E: Page 2, line 9; after the words "typographical error", the words "unless the auditor finds proof of intent to commit fraud" are deleted. Page 2, line 31; after the word "unless" at the end of the sentence the words "there is proof of intent to commit fraud" are deleted. Page 3, line 28; before the words "state Medicaid programs" the words "an investigation or audit by a governmental agency" have been deleted. Co-Chair Stedman WITHDREW his OBJECTION. There being no further objection Work Draft 27-LS1411\E was ADOPTED. Senator Egan urged committee support for the legislation. DAN HABEGER, DIVISION OF CORPORATIONS, BUSINESS, LICENSING, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, testified that the department was neutral on the bill. JIM PUCKETT, DIVISION OF RETIREMENT AND BENEFITS, DEPARTMENT OF ADMINISTRATION, expressed that the division still had concerns with some of the language in the bill. 4:23:30 PM Co-Chair Stedman noted the two previously published zero fiscal notes from the Department of Administration and Department of Commerce, Community and Economic Development. 4:23:50 PM Co-Chair Stedman OPENED public testimony. BARRY CHRISTENSEN, ALASKA PHARMACISTS ASSOCIATION, KETCHIKAN (via teleconference), urged support for SB 217. 4:25:52 PM DIRK WHITE, STATE BOARD OF PHARMACY, SITKA (via teleconference), testified in support of SB 217. 4:26:33 PM FRED BROWN, EXECUTIVE DIRECTOR, HEALTHCARE COST MANAGEMENT CORPORATION, FAIRBANKS (via teleconference), expressed concern with the broad language in the legislation pertaining to the reduction of the legal and fiduciary integrity of the ability of trustees to monitor and ensure that the appropriate amounts were being paid. He clarified that government agencies should be referred to in the bill as "government entities" in order to include boroughs, municipalities, and school districts. He suggested that a workgroup be established in an attempt to evaluate and better understand the issues. Co-Chair Stedman CLOSED public testimony. 4:29:37 PM Co-Chair Hoffman MOVED to report CSSB 217(FIN) out of committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. CSSB 217(FIN) was REPORTED out of committee with a "do pass" recommendation and with previously published zero fiscal notes: FN1 (DOA) and FN2 (CED).