SB 1-REPEAL CERTIFICATE OF NEED PROGRAM                                                                         
                                                                                                                                
1:31:16 PM                                                                                                                    
CHAIR WILSON announced that the  first order of business would be                                                               
SENATE  BILL NO.  1, "An  Act repealing  the certificate  of need                                                               
program   for   health   care   facilities;   making   conforming                                                               
amendments; and providing for an effective date."                                                                               
                                                                                                                                
He noted that  the committee heard an overview of  the bill March                                                               
27,  adopted a  work draft  committee substitute  (CS), and  took                                                               
invited testimony  from subject  matter experts.  On April  1 the                                                               
committee heard  from additional subject matter  experts and took                                                               
public testimony.                                                                                                               
                                                                                                                                
1:31:42 PM                                                                                                                    
CHAIR WILSON solicited a motion to adopt Amendment 1.                                                                           
                                                                                                                                
1:31:51 PM                                                                                                                    
SENATOR COGHILL moved to adopt Amendment 1.                                                                                     
                                                                                                                                
                                               31-LS0001\M.1                                                                    
                                                        Marx                                                                    
                                                      4/2/19                                                                    
                                                                                                                                
                          AMENDMENT 1                                                                                       
                                                                                                                                
                                                                                                                                
     OFFERED IN THE SENATE                BY SENATOR WILSON                                                                     
          TO: CSSB1 ( ), Draft Version "M"                                                                                      
                                                                                                                                
     Page 5, following line 8:                                                                                                  
     Insert new bill sections to read:                                                                                          
         "* Sec. 8. The uncodified law of the State of                                                                        
     Alaska is amended by adding a new section to read:                                                                         
          TRANSITION: REGULATIONS. The Department of Health                                                                     
     and Social Services may  adopt regulations necessary to                                                                    
     implement   the  changes   made   by   this  Act.   The                                                                    
     regulations take effect  under AS 44.62 (Administrative                                                                    
     Procedure Act),  but not before  the effective  date of                                                                    
     this Act.                                                                                                                  
          * Sec. 9. Section 8 of this Act takes effect                                                                      
     immediately under AS 01.10.070(c)."                                                                                        
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 5, line 9:                                                                                                            
          Delete "This"                                                                                                         
       Insert "Except as provided in sec. 9 of this Act,                                                                        
     this"                                                                                                                      
                                                                                                                                
1:31:55 PM                                                                                                                    
CHAIR WILSON objected for purposes of discussion.                                                                               
                                                                                                                                
1:32:05 PM                                                                                                                    
GARY   ZEPP,   Staff,   Senator  David   Wilson,   Alaska   State                                                               
Legislature, Juneau,  said that  Senator Begich's good  point was                                                               
to consider how passage of SB  1 in its current form would affect                                                               
the regulations. Amendment  1 would clarify that.  It would allow                                                               
the  Department of  Health and  Social Services  (DHSS) to  adopt                                                               
regulations necessary  to implement the  changes in SB 1,  so the                                                               
regulations would be in place on July 1, 2024.                                                                                  
                                                                                                                                
CHAIR WILSON offered to distribute  a copy of a Legislative Legal                                                               
Services opinion to committee members.                                                                                          
                                                                                                                                
1:33:26 PM                                                                                                                    
SENATOR BEGICH related his understanding  of Amendment 1. He said                                                               
that  if  the  legislature  repealed   the  Certificate  of  Need                                                               
[statutes],  any regulations  that  were enacted  to address  the                                                               
Certificate of Need issues would still be in effect.                                                                            
                                                                                                                                
MR.  ZEPP  said  Legislative  Legal Services  indicated  that  is                                                               
correct.                                                                                                                        
                                                                                                                                
CHAIR  WILSON  removed  his objection.  There  being  no  further                                                               
objection, Amendment 1 was adopted.                                                                                             
                                                                                                                                
SENATOR BEGICH thanked the Chair  for reporting on rural hospital                                                               
closures in North  Dakota and Idaho. He noted that  Mr. Zepp said                                                               
that  those  states  have  not  experienced  any  rural  hospital                                                               
closures after the Certificate of Need programs were abolished.                                                                 
                                                                                                                                
1:35:17 PM                                                                                                                    
CHAIR WILSON solicited a motion.                                                                                                
                                                                                                                                
1:35:20 PM                                                                                                                    
SENATOR COGHILL moved  to report the committee  substitute for SB                                                               
1,  work  order  31-LS0001\M,  as amended,  from  committee  with                                                               
individual recommendations  and accompanying fiscal  notes. There                                                               
being no  further objection,  CSSB 1(HSS)  was reported  from the                                                               
Senate  Health and  Social Services  Standing Committee  with the                                                               
understanding that  Legislative Legal was authorized  to make any                                                               
necessary technical and/or conforming adjustments.