ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
April 2, 2012
3:22 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Craig Johnson, Vice Chair
Representative Dan Saddler
Representative Steve Thompson
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Mike Chenault
Representative Bob Miller
COMMITTEE CALENDAR
HOUSE BILL NO. 251
"An Act relating to the Board of Veterinary Examiners and the
practice of veterinary medicine."
- MOVED CSHB 251(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 259
"An Act establishing procedures and guidelines for auditing
pharmacy records; and providing for an effective date."
- HEARD & HELD
HOUSE BILL NO. 266
"An Act relating to the practice of naturopathy; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: HB 251
SHORT TITLE: PRACTICE OF VETERINARY MEDICINE
SPONSOR(s): REPRESENTATIVE(s) DICK, JOULE
01/17/12 (H) PREFILE RELEASED 1/6/12
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) L&C, FIN
01/20/12 (H) SPONSOR SUBSTITUTE INTRODUCED
01/20/12 (H) READ THE FIRST TIME - REFERRALS
01/20/12 (H) L&C, FIN
02/15/12 (H) L&C AT 3:15 PM BARNES 124
02/15/12 (H) Scheduled But Not Heard
02/20/12 (H) L&C AT 3:15 PM BARNES 124
02/20/12 (H) Heard & Held
02/20/12 (H) MINUTE(L&C)
03/23/12 (H) L&C AT 3:15 PM BARNES 124
03/23/12 (H) Heard & Held
03/23/12 (H) MINUTE(L&C)
04/02/12 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 259
SHORT TITLE: PHARMACY AUDITS
SPONSOR(s): REPRESENTATIVE(s) MUNOZ, P.WILSON
01/17/12 (H) PREFILE RELEASED 1/13/12
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) L&C, FIN
02/27/12 (H) L&C AT 3:15 PM BARNES 124
02/27/12 (H) Heard & Held
02/27/12 (H) MINUTE(L&C)
03/16/12 (H) L&C AT 3:15 PM BARNES 124
03/16/12 (H) Heard & Held
03/16/12 (H) MINUTE(L&C)
03/26/12 (H) L&C AT 3:15 PM BARNES 124
03/26/12 (H) Heard & Held
03/26/12 (H) MINUTE(L&C)
04/02/12 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 266
SHORT TITLE: PRACTICE OF NATUROPATHY
SPONSOR(s): REPRESENTATIVE(s) MUNOZ, TUCK, THOMPSON
01/17/12 (H) PREFILE RELEASED 1/13/12
01/17/12 (H) READ THE FIRST TIME - REFERRALS
01/17/12 (H) L&C
02/08/12 (H) L&C AT 3:15 PM BARNES 124
02/08/12 (H) Heard & Held
02/08/12 (H) MINUTE(L&C)
02/17/12 (H) L&C AT 3:15 PM BARNES 124
02/17/12 (H) Heard & Held
02/17/12 (H) MINUTE(L&C)
02/29/12 (H) L&C AT 3:15 PM BARNES 124
02/29/12 (H) Heard & Held
02/29/12 (H) MINUTE(L&C)
03/05/12 (H) L&C AT 3:15 PM BARNES 124
03/05/12 (H) <Bill Hearing Canceled>
03/30/12 (H) L&C AT 3:15 PM BARNES 124
03/30/12 (H) <Bill Hearing Canceled>
04/02/12 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
ANNETTE KREITZER, Staff
Representative Alan Dick
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes contained in the
proposed committee substitute for HB 251, Version O.
KONRAD JACKSON, Staff
Representative Kurt Olson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: On behalf of Representative Kurt Olson,
Chair, House Labor & Commerce Committee, explained the
previously adopted amendments and changes contained in the
proposed committee substitute for HB 259, Version D.
ACTION NARRATIVE
3:22:09 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:22 p.m. Representatives
Thompson, Holmes, Johnson, Saddler, and Olson were present at
the call to order.
HB 251-PRACTICE OF VETERINARY MEDICINE
3:22:23 PM
CHAIR OLSON announced that the first order of business would be
SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 251, "An Act relating to
the Board of Veterinary Examiners and the practice of veterinary
medicine."
3:22:50 PM
REPRESENTATIVE JOHNSON made a motion to withdraw the committee's
action in adopting the proposed committee substitute (CS) for HB
251, labeled 27-LS1062\R, Martin, 3/20/12. There being no
objection, Version R was withdrawn [Version R was previously
adopted at the 3/23/12 House Labor and Commerce Standing
Committee meeting.]
3:23:13 PM
REPRESENTATIVE JOHNSON moved to adopt the proposed committee
substitute, (CS) for HB 251, labeled 27-LS1062\O, Martin,
3/26/12. There being no objection, Version O was adopted as the
working document.
3:23:30 PM
ANNETTE KREITZER, Staff, Representative Alan Dick, Alaska State
Legislature, introduced explained the changes from [the sponsor
substitute] Version D and the proposed committee substitute (CS)
for HB 251. She stated that the language in Section 1 of
Version O was changed to remove the Board of Veterinary
Examiners' oversight of veterinarians practicing uncompensated
or pro bono care. She referred to page 2, lines 1-8, and
related concerns were expressed about how to track pro bono
veterinarians. Subsection (b) would require the department to
collect the name, address, contact information and a copy of the
veterinarian's license to practice veterinary medicine. She
reported the department form will be available electronically.
3:24:43 PM
MS. KREITZER stated that Section 2 was deleted from Version D,
which provided provisions for surrender and reinstatement of a
license. The phrase "or experimental" was removed from proposed
Section 3, page 3, line 26 of Version D, noting the term
professional incompetence is found in proposed Section 2 of
Version O. Additionally, "gross negligence or repeated
negligent conduct" was removed from that same section based on
testimony by the Alaska State Veterinary Medical Association,
who expressed concern that this created an unnecessary higher
standard for showing professional incompetence. Version O
corrects a minor drafter error in proposed Section 3, line 21,
which incorrectly directed the notice of complaint be sent to
the licensee when the notice should be sent to the complainant.
Additionally, Version O would establish a task force to examine
the need for and status of veterinary services in rural Alaska,
including rabies vaccinations. The task force would be
comprised of representation from the House and Senate, the
Alaska Federation of Natives (AFN), state personnel that
interact with veterinarians and private veterinarians who
provide service in rural Alaska and urban areas. She reported
the task force recommendations are due to the governor and the
legislature by December 31, 2012.
3:26:23 PM
CHAIR OLSON thanked his staff and the sponsor's staff for their
work on this bill. He pointed out numerous people had weighed
in on the bill.
3:27:02 PM
REPRESENTATIVE JOHNSON moved to report the proposed committee
substitute (CS) for HB 251, labeled 27-LS1062\O, Martin,
3/26/12, out of committee with individual recommendations and
the accompanying fiscal notes. There being no further
objection, the CSHB 251(L&C) was reported from the House Labor
and Commerce Standing Committee.
3:27:23 PM
The committee took an at-ease from 3:27 p.m. to 3:29 p.m.
HB 259-PHARMACY AUDITS
3:29:13 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 259, "An Act establishing procedures and
guidelines for auditing pharmacy records; and providing for an
effective date."
CHAIR OLSON reminded members that at previous hearings
amendments were moved, discussed, and tabled. He then announced
his intention to dispense with the amendments, begin discussion
of the draft committee substitute, and set it aside for members
to review.
3:29:41 PM
REPRESENTATIVE JOHNSON moved to take from the table Amendment 4,
labeled 27-LS0675\I.5, Martin, 3/14/12, which read, as follows:
Page 3, lines 15 - 16:
Delete all material and insert:
"(b) This section does not apply to
(1) a criminal investigation; or
(2) an investigation or audit by a
governmental agency, including state Medicaid
programs."
There being no objection, Amendment 4 was before the committee.
[The committee treated the amendment as though an objection had
been made for the purpose of discussion.]
3:29:59 PM
KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State
Legislature, on behalf of Representative Olson, Chair, House
Labor and Commerce Standing Committee, stated that Amendment 4
was previously discussed at the March 26, 2012 House Labor and
Commerce Standing Committee meeting. He explained that
Amendment 4 would exempt audits from governmental agencies and
has been incorporated into the proposed committee substitute
(CS) [Version D], which the committee will take up later in the
meeting.
3:31:02 PM
REPRESENTATIVE JOHNSON moved to withdraw the motion to adopt
Amendment 4. There being no objection, Amendment 4 was
withdrawn.
3:31:24 PM
REPRESENTATIVE JOHNSON moved to take from the table Amendment 3,
labeled 27-LS0675\I.4, Martin, 3/14/12, which read:
Page 2, line 30, following "provider,":
Insert "documented telephone calls from the
prescriber or prescriber's agent,"
There being no objection, Amendment 3 was before the committee.
[The committee treated the amendment as though an objection had
been made for purpose of discussion.]
3:31:42 PM
MR. JACKSON explained Amendment 3 was previously discussed. He
referred to page 2, line 29 of the bill, which read,"...a
pharmacy may use any record...." He explained that since a
pharmacy keeps a record of any calls to prescribers and
prescribers' agents that the language in Amendment 3 is not
needed. He clarified that this language will not be included in
the proposed CS since it was deemed unnecessary.
3:32:17 PM
REPRESENTATIVE JOHNSON moved to withdraw the motion to adopt
Amendment 3. There being no objection, Amendment 3 was
withdrawn.
3:32:29 PM
REPRESENTATIVE JOHNSON moved to take from the table Amendment 2,
labeled 27-LS0675\I.3, Martin, 3/14/12, which read:
Page 2, following line 23:
Insert a new paragraph to read:
"(11) an auditor may not assess a charge-
back, recoupment, or other penalty against a pharmacy
based on a prescription that is mailed or delivered by
request of a patient as part of a routine business
practice;"
Renumber the following paragraphs accordingly.
There being no objection, Amendment 2 was before the committee.
[The committee treated the amendment as though an objection had
been made for purpose of discussion.]
3:32:41 PM
MR. JACKSON explained that Amendment 2 addressed a concern about
clarification on wording. He said that Amendment 2 has been
incorporated into the proposed CS that members will see shortly.
The language was modified on line 3 of the amendment by deleting
"based on" and inserting "solely because" and deleting the word
"that" after the word "prescription" to further clarify that
chargebacks or assessments would not be based solely on the
mailing or delivery of a prescription. He reiterated that this
language would clarify that if a prescription is mailed out the
pharmacists will not be penalized.
3:33:41 PM
REPRESENTATIVE SADDLER asked him to reference the bill version.
MR. JACKSON noted that the working document is the original
version of HB 259. He pointed out that a proposed CS, Version D
is prepared, but is not yet before the committee.
3:34:19 PM
REPRESENTATIVE JOHNSON moved to withdraw Amendment 2. There
being no objection, Amendment 2 was withdrawn.
3:34:29 PM
REPRESENTATIVE JOHNSON moved to take from the table Amendment 1,
labeled 27-LS0675\I.2, Martin, 3/14/12, which read:
Page 2, following line 5:
Insert a new paragraph to read:
"(3) an auditor may not audit more than 75
prescriptions during a single audit;"
Renumber the following paragraphs accordingly.
There being no objection, Amendment 1 was before the committee.
[The committee treated the amendment as though an objection had
been made for purpose of discussion.]
3:34:53 PM
MR. JACKSON explained that Amendment 1 would limit the number of
prescriptions requested during an audit to 75. He related that
audits take considerable time for the pharmacists to prepare
for; however, the administration expressed concern that when
substantial errors occur during an audit once the threshold is
reached the limit to 75 prescriptions creates difficulties for
the auditors. The language in the proposed CS - soon to be
before the committee [Version D] - is that the language will be
revised to include a 10 percent trigger. He explained if an
auditor discovers a 10 percent or greater error rate during an
audit the 75 prescription cap goes away.
3:35:48 PM
REPRESENTATIVE JOHNSON withdrew Amendment 1. There being no
objection, Amendment 1 was withdrawn.
3:35:59 PM
REPRESENTATIVE JOHNSON moved to adopt the proposed committee
substitute (CS) for HB 259, labeled 27-LS0675\D, Martin,
3/30/12.
CHAIR OLSON objected for purpose of discussion. [Version D was
before the committee.]
3:36:28 PM
MR. JACKSON explained the changes contained in the proposed CS
for HB 259, Version D. He referred to page 2, lines 9-12 to
paragraph (4). The original bill imposed a cap of two years
after the date the claim was submitted. The new language in
paragraph 4 would allow for a cap of two years or the term of a
contract to apply.
MR. JACKSON referred to page 2, lines 13-15 to paragraph (5) of
version D, which was changed to allow for consultation with a
pharmacist licensed in this state or in another state. He
pointed out if the consultation was limited to pharmacists in
Alaska that not enough consultants would be available.
MR. JACKSON stated that Version D removed paragraphs (6), (7),
(8), (11), (16), and (18) from the original version of HB 259
since the Department of Administration (DOA) and Mr. Barnhill
had serious concerns with the language in those paragraphs.
MR. JACKSON referred to page 2, lines 6-8, to paragraph (3),
which inserts the language in previously withdrawn Amendment 1.
He reiterated that this amendment was just withdrawn. This
language would remove the cap of 75 prescriptions during a
single audit in the event of a 10 percent or greater error rate.
3:38:03 PM
MR. JACKSON referred to page 2, lines 24-26, to paragraph (9),
which inserts the language in previously withdrawn Amendment 2,
which would disallow assessments solely on the basis of mailing
or delivering a prescription.
MR. JACKSON referred to page 3, lines 13-16, to subsection (b),
which inserts the language in previously withdrawn Amendment 4,
which would exempt governmental agencies.
MR. JACKSON explained the last change is to add an effective
date of July 1, 2013, to give people an opportunity to allow for
a transition period for HB 259.
3:38:31 PM
CHAIR OLSON removed his objection.
[HB 259 was held over.]
HB 266-PRACTICE OF NATUROPATHY
3:39:10 PM
CHAIR OLSON announced that the final order of business would be
HOUSE BILL NO. 266, "An Act relating to the practice of
naturopathy; and providing for an effective date."
CHAIR OLSON explained that the committee was awaiting a new
committee substitute.
[HB 266 was held over.]
3:39:34 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
3:39 p.m.