ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
April 19, 2023
1:35 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Elvi Gray-Jackson
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Click Bishop, Vice Chair
Senator Kelly Merrick
COMMITTEE CALENDAR
SENATE BILL NO. 45
"An Act relating to insurance; relating to direct health care
agreements; and relating to unfair trade practices."
- MOVED CSSB 45(L&C) OUT OF COMMITTEE
SENATE BILL NO. 85
"An Act relating to record checks for certain employees of the
Department of Revenue; relating to permanent fund dividends; and
providing for an effective date."
- MOVED CSSB 85(L&C) OUT OF COMMITTEE
SENATE BILL NO. 126
"An Act relating to the State Board of Registration for
Architects, Engineers, and Land Surveyors; relating to
architects, engineers, land surveyors, and landscape architects;
and providing for an effective date."
- MOVED SB 126 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 45
SHORT TITLE: DIRECT HEALTH AGREEMENT: NOT INSURANCE
SPONSOR(s): SENATOR(s) WILSON
01/25/23 (S) READ THE FIRST TIME - REFERRALS
01/25/23 (S) HSS, L&C
02/07/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/07/23 (S) Heard & Held
02/07/23 (S) MINUTE(HSS)
02/09/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/09/23 (S) Heard & Held
02/09/23 (S) MINUTE(HSS)
02/21/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/21/23 (S) Scheduled but Not Heard
02/23/23 (S) HSS AT 3:30 PM BUTROVICH 205
02/23/23 (S) Moved CSSB 45(HSS) Out of Committee
02/23/23 (S) MINUTE(HSS)
02/24/23 (S) HSS RPT CS 1DP 4NR SAME TITLE
02/24/23 (S) DP: WILSON
02/24/23 (S) NR: TOBIN, KAUFMAN, GIESSEL, DUNBAR
03/27/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
03/27/23 (S) Heard & Held
03/27/23 (S) MINUTE(L&C)
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/05/23 (S) Heard & Held
04/05/23 (S) MINUTE(L&C)
04/19/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 85
SHORT TITLE: PERM FUND; EMPLOYMENT; ELIGIBILITY
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR
02/24/23 (S) READ THE FIRST TIME - REFERRALS
02/24/23 (S) L&C, FIN
04/05/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/05/23 (S) Heard & Held
04/05/23 (S) MINUTE(L&C)
04/19/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 126
SHORT TITLE: ARCHITECT/ENGINEER REGISTRATION BOARD
SPONSOR(s): LABOR & COMMERCE
04/11/23 (S) READ THE FIRST TIME - REFERRALS
04/11/23 (S) L&C, FIN
04/12/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
04/12/23 (S) Heard & Held
04/12/23 (S) MINUTE(L&C)
04/19/23 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
JASMINE MARTIN, Staff
Senator David Wilson
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave a recap of SB 45.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Presented an explanation of changes from
version U to version R for SB 45.
COREY BIGELOW, Operations Manager
Permanent Fund Dividend (PFD) Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Gave a recap of SB 85 and answered
questions.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the changes Amendment 1 makes to
SB 85.
KIM LANE, Eligibility Manager
Permanent Fund Dividend (PFD) Division
Department of Revenue (DOR)
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 85.
LAURA ACHEE, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Gave a recap of SB 126.
ACTION NARRATIVE
1:35:10 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:35 p.m. Present at the
call to order were Senators Gray-Jackson, Dunbar and Chair
Bjorkman.
SB 45-DIRECT HEALTH AGREEMENT: NOT INSURANCE
1:36:06 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO. 45
"An Act relating to insurance; relating to direct health care
agreements; and relating to unfair trade practices."
He stated that this is the third hearing of this bill and
Jasmine Martin would give a recap.
1:36:36 PM
JASMINE MARTIN, Staff, Senator David Wilson, Alaska State
Legislature, Juneau, Alaska, gave a recap of SB 45. She stated
that this bill would allow healthcare providers and their
patients to enter into direct healthcare agreements and clarify
that these do not lie within the state insurance bounds.
CHAIR BJORKMAN solicited a motion to adopt the proposed
committee substitute for SB 45.
1:37:17 PM
SENATOR GRAY-JACKSON moved to adopt the committee substitute
(CS) for SB 45, work order 33-LS0211\R, as the working document.
CHAIR BJORKMAN objected for the purpose of discussion.
1:37:47 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented an explanation of changes
from version U to version R of SB 45. He stated that the first
change is in the title, relating to the duties of the director
of the Division of Insurance in the Department of Commerce,
Community and Economic Development (DCCED). An addition on line
4 provides for an effective date. Another addition regarding
healthcare services provided under a direct healthcare agreement
reads as, "care provided by a primary care provider to that
patient", along with additional language in the bill that
specifies the definition relating to the primary care physician.
The next change on page 4, is the deletion of a section from
line 19 to line 22, removing the portion of the bill that would
exempt this by regulation of the Division of Insurance. An
insertion puts this clearly under the direction of the Division
of Insurance and includes language that provides for penalties.
Language has been added that requires physicians licensed under
AS 08.64 who established residency in the state. Language
defining a primary care provider has been added to paragraph 10.
On the last page there are three new sections. One section is
transition language to allow the director of the Division of
Insurance to begin drafting regulations. The remaining sections
are effective date clauses.
CHAIR BJORKMAN removed his objection. Finding no further
objections, CSSB 45, work order 33-LS0211\R, was adopted as the
working document.
CHAIR BJORKMAN said the committee received three amendments for
consideration. The amendments were drafted to the previous
version U of the bill, CSSB 45(HSS), rather than CSSB 45, work
order 33-LS0211/R. The committee will consider the amendments as
conceptual amendments, and grants Legislative Legal the
authority to make conforming changes to the bill for any
conceptual amendment the committee adopts.
1:42:21 PM
SENATOR DUNBAR moved to conceptually adopt Amendment 1, work
order 33-LS0211\U.1, for SB 45.
33-LS0211\U.1
Marx
3/28/23
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: CSSB 45(HSS)
Page 3, line 29:
Delete "or (g)"
CHAIR BJORKMAN objected for the purpose of discussion.
SENATOR DUNBAR explained that Amendment 1 deletes subsection
(g).
1:43:51 PM
CHAIR BJORKMAN removed his objection; he found no further
objection and Amendment 1 was adopted.
1:44:08 PM
SENATOR DUNBAR did not offer Amendment 2.
SENATOR DUNBAR moved to conceptually adopt Amendment 3, work
order 33-LS0211\U.6, for CSSB 45.
33-LS0211\U.6
Wallace
4/6/23
AMENDMENT 3
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: CSSB 45(HSS)
Page 2, following line 24:
Insert a new subsection to read:
"(c) The amount of the periodic fee may not
be based solely on the patient's health status or
sex."
Reletter the following subsections accordingly.
Page 3, line 29:
Delete "(c) or (g)"
Insert "(d) or (h)"
Page 3, line 31:
Delete "(f) or (g)"
Insert "(g) or (h)"
Page 6, line 24:
Delete "AS 21.03.025(n)"
Insert "AS 21.03.025(o)"
Page 6, line 25:
Delete "AS 21.03.025(n)"
Insert "AS 21.03.025(o)"
Page 6, line 27:
Delete "AS 21.03.025(n)"
Insert "AS 21.03.025(o)"
CHAIR BJORKMAN objected for purposes of discussion.
SENATOR DUNBAR explained that Amendment 3 inserts a new
subsection that reads "The amount of the periodic fee may not be
based solely on the patient's health status or sex." This
subsection is intended to prevent gender discrimination in fees.
The remaining amendment contains conforming changes.
1:45:00 PM
CHAIR BJORKMAN removed his objection.
1:45:07 PM
SENATOR GRAY-JACKSON sought clarification that Amendment 3
pertains to health status as well as sex.
SENATOR DUNBAR answered yes. He clarified that the page and line
numbers in Amendment 3 do not match version \R of the bill,
noting that Legislative Legal will make conforming changes in
the final version of the bill.
1:46:03 PM
CHAIR BJORKMAN removed his objection; he found no further
objection and Amendment 3 was adopted.
CHAIR BJORKMAN sought the will of the committee.
1:46:30 PM
SENATOR GRAY-JACKSON moved to report CSSB 45, work order 33-
LS0211\R, as amended, from committee with individual
recommendations and attached fiscal note(s). She further moved
that the committee grant Legislative Legal authorization to make
conforming changes.
1:46:57 PM
CHAIR BJORKMAN found no objection and CSSB 45(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
1:47:11 PM
At ease.
SB 85-PERM FUND; EMPLOYMENT; ELIGIBILITY
1:50:13 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 85 "An Act relating to record
checks for certain employees of the Department of Revenue;
relating to permanent fund dividends; and providing for an
effective date."
He stated that this is the second hearing of this bill. It is
the chair's intention to finish hearing public testimony, then
look to the will of the committee regarding an amendment.
1:50:59 PM
COREY BIGELOW, Operations Manager, Permanent Fund Dividend (PFD)
Division, Department of Revenue (DOR), Juneau, Alaska, gave a
recap of SB 85, stating it does four things. The first section
adds statutory authority for the PFD division to conduct
background checks on its employees and provides statutory
authority for the Department of Public Safety (DPS) to conduct
those background checks for the division. The second section
would allow mariners attending qualified vocational programs to
qualify for an allowable absence. The next section adds a new
subsection to AS 43.23.008 to define the term "education on a
fulltime basis" for the purpose of calculating allowable
absences. Lastly it allows the division the use of electronic
notice of levy, which would streamline communication and save on
postage costs.
1:53:11 PM
CHAIR BJORKMAN opened public testimony on SB 85; finding none,
he closed public testimony. He sought a motion to adopt the
amendment in the bill packets.
1:53:45 PM
SENATOR GRAY-JACKSON moved to adopt Amendment 1, work order 33-
GS1337\A.1, for SB 85 on behalf of Senator Bjorkman.
33-GS1337\A.1
Nauman
4/7/23
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR BJORKMAN
TO: SB 85
Page 5, line 31, following "claimed":
Insert "(i)"
Page 6, line 1, following "subsection;":
Insert "or
(ii) under (5)
of this subsection if the individual
is not claiming an absence under (1) -
(4) or (6) - (16) of this subsection;"
1:54:10 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, gave a brief explanation of
Amendment 1 to SB 85.
1:55:19 PM
CHAIR BJORKMAN sought clarification that under current law
someone can be gone for any reason for up to 180 days and still
receive their permanent fund dividend.
MR. JACKSON directed the question to the Permanent Fund Dividend
Division.
1:56:23 PM
KIM LANE, Eligibility Manager, Permanent Fund Dividend (PFD)
Division, Department of Revenue (DOR), Juneau, Alaska, answered
that someone can be gone for 180 days.
1:56:57 PM
CHAIR BJORKMAN asked whether the current limit for purposes of
medical treatment was 45 days.
MS. LANE responded that the allowable absence is verified and
can be for as many days as necessary. She explained that if the
cumulative absence exceeds a medical absence of 45 days, such as
50 days of vacation time, the additional time would need to be
accounted for and verified.
1:58:08 PM
SENATOR GRAY-JACKSON sought clarification that 45 days of
medical leave, followed by 50 days of vacation days would still
qualify for the PFD.
MS. LANE answered yes, that would still be under 180 days and
explained further. She said that a resident can be out of state
for 45 days for medical purposes, and additionally another 180
days.
SENATOR GRAY-JACKSON said she would like to discuss this offline
to further understand.
MR. JACKSON clarified that he was talking about allowed
absences. He said that if a resident who would normally qualify
for the PFD went on vacation out of state for 50 days and upon
returning needed to take time for unforeseen medical
circumstances, they would now be disqualified.
2:00:21 PM
SENATOR DUNBAR asked whether the administration's position is
that this amendment would make a change to the existing statute
or if the division is stating what the law currently is.
MS. LANE replied that Amendment 1 is not changing the allowable
absence. The amendment changes the duration of an allowable
absence in addition to continuous medical treatment.
SENATOR DUNBAR sought clarification that Amendment 1 makes a
meaningful change by increasing the number of allowable absent
days.
MS. LANE responded that Amendment 1 does not change the
allowable absence period, rather the amount of time spent
outside the state in addition to the allowable absence period.
2:02:05 PM
CHAIR BJORKMAN sought confirmation that Amendment 1 allows a
person to have an excused medical absence over and above 180
days, which is currently the maximum number of days allowed.
MS. LANE asked Senator Bjorkman to repeat the question.
CHAIR BJORKMAN repeated that Amendment 1 allows for a 45-day
absence on top of the 180-day absence currently allowed.
MS. LANE replied that Amendment 1 is extending how much time in
addition an individual can be out of the state.
MR. BIGELOW said it is a difficult concept to explain. Amendment
1 refers to the days in addition to the allowable absence. He
offered a supposition to explain the amendment. Suppose an
individual went on vacation for a duration longer than the
current allowable absence and then returned to Alaska. The
individual was later required to seek medical treatment out-of-
state. Amendment 1 would extend the initial 45 days to 180 days.
That is the "in addition to" that would add to.
2:04:22 PM
CHAIR BJORKMAN found no further objection and Amendment 1 was
adopted.
2:04:42 PM
SENATOR DUNBAR sought clarification that if someone was gone for
180 days and did not have a medical emergency, they would still
qualify for the PFD.
2:05:16 PM
MR. BIGELOW answered that is true.
2:05:41 PM
SENATOR GRAY-JACKSON moved to report SB 85, work order 33-
GS1337\A, as amended, from committee with individual
recommendations and attached fiscal note(s).
2:06:00 PM
CHAIR BJORKMAN found no objection and CSSB 85(L&C) was reported
from the Senate Labor and Commerce Standing Committee.
2:06:16 PM
At ease.
SB 126-ARCHITECT/ENGINEER REGISTRATION BOARD
2:07:41 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 126 "An Act relating to the
State Board of Registration for Architects, Engineers, and Land
Surveyors; relating to architects, engineers, land surveyors,
and landscape architects; and providing for an effective date."
He stated that this is the second hearing of this bill and Laura
Achee would provide a recap of the bill.
2:08:16 PM
LAURA ACHEE, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, gave a recap of SB 126 stating that
it is essentially a straightforward, revisor's bill
incorporating newer industry terminology.
2:09:37 PM
CHAIR BJORKMAN opened public testimony on SB 126; finding none,
he closed public testimony.
2:11:21 PM
SENATOR GRAY-JACKSON moved to report SB 126, work order 33-
LS0367\R, from committee with individual recommendations and
attached fiscal note(s).
2:11:40 PM
CHAIR BJORKMAN found no objection and SB 126 was reported from
the Senate Labor and Commerce Standing Committee.
2:12:07 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:12 p.m.