SENATE LABOR AND COMMERCE COMMITTEE April 6, 1995 1:35 P.M. MEMBERS PRESENT Senator Tim Kelly, Chairman Senator John Torgerson, Vice Chairman Senator Mike Miller Senator Judy Salo MEMBERS ABSENT Senator Jim Duncan COMMITTEE CALENDAR HOUSE BILL NO. 23 "An Act relating to referrals involving dental services." CS FOR HOUSE BILL NO. 116(L&C) "An Act exempting the Alaska Seafood Marketing Institute from the State Procurement Code." PREVIOUS SENATE COMMITTEE ACTION HB 23 - No previous action to record. HB 116 - No previous action to record. WITNESS REGISTER Darin Morgan, Legislative Aide Representative Gary Davis State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Commented on HB 23. Dr. Dan Pitts Soldotna, AK 99660 POSITION STATEMENT: Supported HB 23. Amy Dougherty, Legislative Aide Representative Alan Austerman State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Supported CSHB 116(L&C). Art Shunemann Alaska Seafood Marketing Institute 1111 West 8th Street, Suite 100 Juneau, AK 99801 POSITION STATEMENT: Supported CSHB 116(L&C). ACTION NARRATIVE TAPE 95-16, SIDE A Number 001 HB 23 REFERRALS INVOLVING DENTAL SERVICES  CHAIRMAN KELLY called the Senate Labor and Commerce Committee meeting to order at 1:35 p.m. and announced HB 23 to be up for consideration. DARIN MORGAN, Legislative aide to Senator Gary Davis, said HB 23 prohibits the receipt of compensation by a dentist for referring a person to another dentist or dental practice. The American Dental Association Code of Ethics forbids dentists from profiting from referrals. This legislation codifies the ethical concern relating to referrals. Section 2 prohibits the receipt of compensation by a person or advertisement referring a dental service unless the compensation for referral is disclosed at the time of referral. This will help insure that patients are being referred to a dentist or dental practice as a result of their service. DR. DAN PITTS, the Alaska Dental Society, explained that the reason for this legislation is because of complaints coming through the Dental Society about the 1-800 dentist referral service doing referrals without disclosing that the dentist they are referring paid for the advertisement in the yellow pages. Many times patients would be referred to the wrong kind of dentist. The American Dental Society feels it is unethical for dentists to receive compensation for referring to another dentist, a practice that is called "fee splitting." SENATOR SALO asked if that also held true for a dentist referring a patient to an oral surgeon or an orthodontist. He said that was correct. Number 127 SENATOR MILLER moved to pass HB 23 from committee with individual recommendations. There were no objections and it was so ordered. HB 116 EXEMPT ASMI FROM PROCUREMENT CODE  SENATOR KELLY announced CSHB 116(L&C) to be up for consideration. AMY DOUGHERTY, Legislative Aide to Representative Austerman, said HB 116 seeks relief for ASMI from the State Procurement Code, because it impedes their way of doing business by keeping them from being more responsive in the marketing of state seafood. The House Labor and Commerce Committee decided to have the ASMI Board develop their own procurement policies. ART SHUNEMANN, Executive Director, Alaska Seafood Marketing Institute (ASMI), supported CSHB 116 (L&C). He said they are a seafood commodity commission funded through industry assessments. The state procurement process they currently work under is designed to manage the purchasing of traditional governmental services in Alaska and is not compatible with marketing and business development type of work in the United States which is their target market. SENATOR KELLY asked what percentage of their budget is made up of state funds. MR. SHUNEMANN answered that it is currently $1.09 million of actual general fund money. This is used to match federal dollars from the U.S. Department of Agriculture, Foreign Agriculture Service, for their export program. SENATOR KELLY questioned a letter that was written on Governor Hickel's stationery that wasn't signed or dated and instructed staff to not accept unsigned and undated letters. SENATOR TORGERSON moved to pass CS HB 116(L&C) from committee with individual recommendations. There were no objections and it was so ordered. SENATOR KELLY adjourned the meeting at 1:52 p.m.