ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 16, 2024
1:33 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Kelly Merrick, via teleconference
Senator Forrest Dunbar
MEMBERS ABSENT
Senator Elvi Gray-Jackson
COMMITTEE CALENDAR
SENATE BILL NO. 134
"An Act relating to insurance data security; amending Rule 26,
Alaska Rules of Civil Procedure, and Rules 402 and 501, Alaska
Rules of Evidence; and providing for an effective date."
- MOVED CSSB 134(L&C) OUT OF COMMITTEE
SENATE BILL NO. 166
"An Act establishing the Alaska mental health and psychedelic
medicine task force; and providing for an effective date."
- MOVED CSSB 166(L&C) OUT OF COMMITTEE
SENATE BILL NO. 191
"An Act relating to the power of the Alaska Housing Finance
Corporation to make or purchase mortgage loans."
- BILL HEARING CANCELED
PREVIOUS COMMITTEE ACTION
BILL: SB 134
SHORT TITLE: INS. DATA SECURITY; INFO. SECURITY PRGRMS
SPONSOR(s): SENATOR(s) KAUFMAN
04/21/23 (S) READ THE FIRST TIME - REFERRALS
04/21/23 (S) L&C, JUD, FIN
02/05/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/05/24 (S) Heard & Held
02/05/24 (S) MINUTE(L&C)
02/16/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
BILL: SB 166
SHORT TITLE: MENTAL HEALTH/PSYCHEDELIC MED. TASK FORCE
SPONSOR(s): SENATOR(s) DUNBAR
01/16/24 (S) PREFILE RELEASED 1/8/24
01/16/24 (S) READ THE FIRST TIME - REFERRALS
01/16/24 (S) L&C, JUD
02/05/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/05/24 (S) Heard & Held
02/05/24 (S) MINUTE(L&C)
02/16/24 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
SENATOR JAMES KAUFMAN, District F
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Sponsor of SB 134.
LORI WING-HEIER, Director
Division of Insurance
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Answered questions on SB 134.
KONRAD JACKSON, Staff
Senator Jesse Bjorkman
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Explained the summary of changes for SB 134.
SETH TIGARIAN, Staff
Senator Forrest Dunbar
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: Provided a correction during the hearing on
SB 166.
MICAELA FOWLER, Deputy Commissioner
Department of Commerce, Community and Economic Development
(DCCED)
Juneau, Alaska
POSITION STATEMENT: Provided an overview of the fiscal note for
SB 166.
ACTION NARRATIVE
1:33:14 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:33 p.m. Present at the
call to order were Senators Merrick (via teleconference),
Dunbar, Bishop and Chair Bjorkman.
SB 134-INS. DATA SECURITY; INFO. SECURITY PRGRMS
1:34:35 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
134, "An Act relating to insurance data security; amending Rule
26, Alaska Rules of Civil Procedure, and Rules 402 and 501,
Alaska Rules of Evidence; and providing for an effective date."
1:35:07 PM
SENATOR JAMES KAUFMAN, District F, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 134. He gave a brief overview of
SB 134, explaining that this legislation would update and
upgrade data security within the insurance industry by adding
additional requirements. He surmised that many Alaskans
understand and share data security concerns.
1:36:50 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community and Economic Development (DCCED), Juneau,
Alaska, answered questions on SB 134.
1:36:59 PM
SENATOR DUNBAR asked how difficult it would be to enforce SB
134.
1:37:12 PM
MS. WING-HEIER shared her understanding that most agencies and
insurance companies already have the corporate governance in
place to address the changes made by SB 134. She explained that
currently, there is no channel for companies to report cyber-
events to her - and to ensure that consumers are notified.
1:37:33 PM
SENATOR DUNBAR asked if the sponsor is considering an amendment
to add this.
1:37:48 PM
SENATOR KAUFMAN replied that this is included in SB 134.
1:37:56 PM
SENATOR DUNBAR referred to the fiscal note and asked if these
changes could be made with current division staff.
1:38:20 PM
MS. WING-HEIER replied yes.
1:38:24 PM
SENATOR DUNBAR asked if there would be any potential unforeseen
consequences as a result of these changes.
1:38:40 PM
MS. WING-HEIER replied no. She explained that SB 134 includes a
timeframe for compliance and indicated that it would be a smooth
transition. She shared her belief that the legislation is well-
written and noted that it was vetted at the National Association
of Insurance Commissioners (NAIC).
1:39:10 PM
At ease
1:39:40 PM
CHAIR BJORKMAN reconvened the meeting.
1:39:49 PM
CHAIR BJORKMAN opened public testimony on SB 134; finding none,
he closed public testimony.
1:40:08 PM
CHAIR BJORKMAN solicited a motion.
1:40:13 PM
SENATOR BISHOP moved to adopt the committee substitute (CS) for
SB 134, work order 33-LS0253\S, as the working document.
1:40:26 PM
CHAIR BJORKMAN objected for purposes of discussion.
1:40:35 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, explained the summary of changes
for SB 134. He explained that the committee substitute changes
the effective dates by moving each ahead by one year.
1:41:13 PM
CHAIR BJORKMAN removed his objection. He found no further
objection and CS for SB 134 was adopted as the working document.
1:41:19 PM
CHAIR BJORKMAN invited discussion.
1:41:45 PM
SENATOR BISHOP asked if there is a timeline for the new
regulations.
1:41:53 PM
MS. WING-HEIER replied that the regulations would likely take 6
months.
1:42:19 PM
CHAIR BJORKMAN solicited the will of the committee.
1:42:22 PM
SENATOR BISHOP moved to report committee substitute (CS) for SB
134, work order 33-LS0253\S, from committee with individual
recommendations and attached fiscal note(s).
1:42:48 PM
CHAIR BJORKMAN found no further objection and CSSB 134(L&C) was
reported from the Senate Labor and Commerce Standing Committee.
SB 166-MENTAL HEALTH/PSYCHEDELIC MED. TASK FORCE
1:43:12 PM
CHAIR BJORKMAN announced the consideration of SENATE BILL NO.
166, "An Act establishing the Alaska mental health and
psychedelic medicine task force; and providing for an effective
date."
1:43:33 PM
At ease
1:45:17 PM
CHAIR BJORKMAN reconvened the meeting.
1:45:37 PM
SENATOR DUNBAR, speaking as sponsor of SB 166, noted that there
is a proposed committee substitute (CS) and explained that the
CS - which changes the nature of the task force - was drafted
with input from the department as well as the sponsor of similar
legislation in the House. He said that the overriding purpose of
the task force remains to prepare Alaska for the likely federal
legalization of certain psychedelic substances in a medical
context. One major change is to move the staffing from the
Department of Commerce, Community, and Economic Development
(DCCED) to the legislature - thus creating a legislative task
force. He noted that these changes, along with others later in
the document, resulted in a zero fiscal note.
1:46:53 PM
CHAIR BJORKMAN solicited a motion.
1:47:00 PM
SENATOR BISHOP moved to adopt the committee substitute (CS) for
SB 166, work order 33-LS1062\Y, as the working document.
[SENATOR BJORKMAN objected for purposes of discussion.]
1:47:16 PM
SENATOR DUNBAR explained the summary of changes for CSSB 166,
work order 33-LS1062\Y. He paraphrased from the following
summary of changes:
[Original punctuation provided.]
SUMMARY OF CHANGES
CSSB 166: MENTAL HEALTH/PSYCHEDELIC MED. TASK FORCE
Version S to Version Y
Section 1 (a):
• The task force has been moved from the Department
of Commerce, Community, and Economic Development
to the Legislature.
• Language is added to clarify that the purpose of
the task force is to ensure the state is prepared
if the federal government authorizes prescription
of psychedelic medicines, not to advocate for or
against the medicalization of psychedelics.
Section 1 (a)(4): Language is updated to clarify that
the purpose of the task force is to consider legal and
regulatory changes that may be necessary upon federal
medical approval of psychedelics.
Section 1 (b)(5): The language "one of whom must be a
recognized ethnoherbalist," is deleted, to give the
Alaska Native Health Board more latitude to choose
their representatives to the task force.
Section 1 (b)(8): A new subsection adds a member
representing psychiatric nurse practitioners, selected
by the Alaska Advanced Practice Registered Nurse
Alliance. This change recognizes that nurses may be
involved in the administration of psychedelic
medicines.
Section 1 (b)(9): A new subsection adds a member
representing licensed therapists and counselors,
selected by the Alaska Addiction Professionals
Association. This change recognizes that therapists or
counselors would be involved in the administration of
psychedelic medicines. Subsequent sections have been
renumbered.
Section 1 (e): Language providing for travel
reimbursement and per diem is removed.
Section 1 (f)(2): Language is deleted which instructed
the task force to make members available for
legislative hearings, as the task force will terminate
before the next legislative session.
Section 1 (g): The termination date of the task force
is corrected to the convening of the Thirty-Fourth
Alaska Legislature, rather than the Thirty-Fifth
Alaska Legislature. This change aligns with the
existing task force report due date of December 31,
2024
1:49:51 PM
CHAIR BJORKMAN found no further objection and CSSB 166 was
adopted as the working document.
1:50:09 PM
SETH TIGARIAN, Staff, Senator Forrest Dunbar, Alaska State
Legislature, Juneau, Alaska, provided a correction during the
hearing on SB 166. He clarified that work order 33-LS1062\Y was
before the committee.
1:50:40 PM
At ease
1:51:28 PM
CHAIR BJORKMAN reconvened the meeting.
1:52:02 PM
MICAELA FOWLER, Deputy Commissioner, Department of Commerce,
Community and Economic Development (DCCED), Juneau, Alaska,
provided an overview of the fiscal note for SB 166. She
explained that the CS places the task force within the
legislative branch and thus removes all costs to the department.
She noted that the department would maintain a seat on the task
force; however, this would not result in any additional costs.
1:52:36 PM
SENATOR BISHOP noted that the CS includes DCCED (the
commissioner or their designee) in the list of task force
members and asked if the department plans to participate in this
process.
1:53:00 PM
MS. FOWLER replied yes. She said that the designee may be the
director of the Division of Corporations, Business, and
Professional Licensing (CBPL).
1:53:44 PM
CHAIR BJORKMAN solicited the will of the committee.
1:53:49 PM
SENATOR BISHOP moved to report CSSB 166, work order 33-LS1062\Y,
from committee with individual recommendations and attached
fiscal note(s).
1:54:17 PM
CHAIR BJORKMAN found no objection and CSSB 166(L&C) was reported
from the House Labor and Commerce Standing Committee.
1:54:42 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 1:54 p.m.