Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/14/2017 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 64 UNIFORM ENVIRONMENTAL COVENANTS ACT TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ SB 79 OPIOIDS;PRESCRIPTIONS;DATABASE;LICENSES TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ SB 37 PHARMA BD & EMPLOYEES;DRUG DIST/MANUFAC TELECONFERENCED
Heard & Held
-- Public Testimony --
Bills Previously Heard/Scheduled:
-- Public Testimony --
+= SB 4 NON-CHEMICAL BARBERING;HAIR BRAIDING TELECONFERENCED
Moved SSSB 4 Out of Committee
+= SB 16 FIDUCIARY ACCESS TO DIGITAL ASSETS TELECONFERENCED
Moved SB 16 Out of Committee
+= SB 32 PRESCRIPTIONS FOR BIOLOGICAL PRODUCTS TELECONFERENCED
Moved SB 32 Out of Committee
           SB 64-UNIFORM ENVIRONMENTAL COVENANTS ACT                                                                        
                                                                                                                                
1:49:09 PM                                                                                                                    
CHAIR  COSTELLO   reconvened  the   meeting  and   announced  the                                                               
consideration of SB 64. She noted  it is the first hearing of the                                                               
bill.  The intent  is to  hear  from the  sponsor, take  members'                                                               
questions, take public  testimony, and hold the  bill for further                                                               
consideration. She noted those available for questions.                                                                         
                                                                                                                                
1:49:48 PM                                                                                                                    
RACHEL  HANKE,  Staff,  Senator   Peter  Micciche,  Alaska  State                                                               
Legislature,  presented  an  overview  of SB  64.  She  said  the                                                               
primary goal of the bill  is to return [contaminated] fields back                                                               
to commerce,  resolve liability,  and protect future  owners. She                                                               
explained  that   an  environmental  covenant  is   a  recordable                                                               
interest  in real  property  with no  financial  interest. SB  64                                                               
allows manageable  contamination to  remain with certain  use and                                                               
activity  restrictions.  It  formalizes an  existing  practice  -                                                               
Institutional Controls  - and allows  for covenants to  be placed                                                               
on federal land. The database that is required already exists.                                                                  
                                                                                                                                
1:50:52 PM                                                                                                                    
MS. HANKE reviewed the following sectional analysis for SB 64:                                                                  
                                                                                                                                
     Section  1  adds  a  new   article  to  AS  46.04  that                                                                    
     establishes  all  necessary guidelines  and  procedures                                                                    
     for environmental  covenants for holders who  are bound                                                                    
     by  the  covenant, subordination,  required  documents,                                                                    
     common  law protections,  notice procedures,  recording                                                                    
     rules,  termination procedures,  and creates  a process                                                                    
     for placing  use restrictions on federal  property, and                                                                    
     a database.  It also  provides definitions used  in the                                                                    
     Act.                                                                                                                       
                                                                                                                                
      Section 2 [provides] that DCCED and DNR [may] adopt                                                                       
       necessary regulations [necessary to implement this                                                                       
     Act.]                                                                                                                      
                                                                                                                                
     Section 3 provides for an immediate effective date for                                                                     
     Section 2.                                                                                                                 
                                                                                                                                
1:51:59 PM                                                                                                                    
CHAIR  COSTELLO asked  what the  Uniform Environmental  Covenants                                                               
Act addresses.                                                                                                                  
                                                                                                                                
MS. HANKE  explained that it  is uniform  law that has  been used                                                               
all over the  U.S. to return contaminated properties  back to the                                                               
market.                                                                                                                         
                                                                                                                                
CHAIR  COSTELLO  asked  if  other   states  have  passed  similar                                                               
legislation.                                                                                                                    
                                                                                                                                
MS. HANKE  said yes.  She deferred  to Ms.  Ryan to  provide more                                                               
information.                                                                                                                    
                                                                                                                                
CHAIR  COSTELLO welcomed  Ms. Ryan  and asked  her to  respond to                                                               
both questions.                                                                                                                 
                                                                                                                                
1:52:56 PM                                                                                                                    
KRISTIN  RYAN,   Director,  Division  of  Spill   Prevention  and                                                               
Response,   Department  of   Environmental  Conservation   (DEC),                                                               
explained that her job involves  cleanup of contaminated sites in                                                               
Alaska.                                                                                                                         
                                                                                                                                
MS. RYAN related that SB 64  is a transparency law to communicate                                                               
when DEC  puts restrictions  on properties.  The problem  is that                                                               
sometimes restrictions are not communicated  to future buyers. It                                                               
allows DEC to  place a covenant that would run  with the property                                                               
so  that future  owners are  aware of  restricted uses  placed on                                                               
their  land.  It   is  a  legal  mechanism   to  safely  transfer                                                               
contaminated  property,  and  it  removes a  lot  of  the  stigma                                                               
associated with  contaminated property. She provided  examples of                                                               
restrictions.                                                                                                                   
                                                                                                                                
1:54:46 PM                                                                                                                    
SENATOR MEYER asked if it includes federal lands.                                                                               
                                                                                                                                
MS. RYAN said yes, and the  majority of contaminated sites in the                                                               
state  are  federal  properties.  DEC can't  put  a  covenant  on                                                               
federal  property, but  can impose  a use  restriction. She  used                                                               
Colorado as an example.                                                                                                         
                                                                                                                                
1:55:40 PM                                                                                                                    
SENATOR HUGHES asked how many contaminated sites this impacts.                                                                  
                                                                                                                                
MS.   RYAN  said   DEC  is   currently  monitoring   about  2,000                                                               
contaminated  sites;  over  1,000  are allowed  to  remain  above                                                               
cleanup levels under institutional  control. DEC intends to apply                                                               
covenants to about 1,000 sites going forward.                                                                                   
                                                                                                                                
1:56:20 PM                                                                                                                    
SENATOR HUGHES  observed that  the bill  is not  retroactive. She                                                               
asked how the mechanism works going forward.                                                                                    
                                                                                                                                
MS. RYAN  explained the process  of working with  the responsible                                                               
party  that   has  contaminated  property.  The   department  and                                                               
property  owner  would  make  a   joint  decision  to  leave  the                                                               
contamination  in place  for  a variety  of  reasons. Next,  they                                                               
would establish  a covenant on  the title that includes  a future                                                               
mechanism for removing the covenant and an appeal process.                                                                      
                                                                                                                                
SENATOR  HUGHES  asked   how  long  it  would   take  before  all                                                               
contaminated sites would have covenants.                                                                                        
                                                                                                                                
MS.  RYAN  said  DEC  does  not  project  a  timeframe.  A  large                                                               
percentage of  the 1,000  contaminated sites  will be  cleaned up                                                               
and not  need covenants.  A covenant is  a transparency  tool for                                                               
future buyers.                                                                                                                  
                                                                                                                                
1:58:53 PM                                                                                                                    
CHAIR COSTELLO  asked if Alaska  should take an approach  that is                                                               
similar to the Colorado law.                                                                                                    
                                                                                                                                
MS. RYAN explained that SB 64  is a uniform law from the National                                                               
Conference of Commissioners on Uniform  State Laws (NCCUSL) which                                                               
proposed model  legislation ten years  ago. Colorado  has adapted                                                               
the  law  to fit  its  situation  of  having  a large  amount  of                                                               
contaminated federal  land. They  created a mechanism  for noting                                                               
restrictions on federal property.                                                                                               
                                                                                                                                
She said DEC  has worked closely with NCCUSL  and their testimony                                                               
is  included in  members'  packets. NCCUSL  agreed that  Alaska's                                                               
changes  to  their  model  law are  improvements  and  they  have                                                               
accepted Alaska's  better version. Currently, Alaska  is only one                                                               
of  seven  states  that  has  not  adopted  a  procedure  for  an                                                               
environmental covenant.                                                                                                         
                                                                                                                                
2:00:08 PM                                                                                                                    
CHAIR  COSTELLO   asked  if  the   public  access  page   is  the                                                               
transparency aspect of the bill.                                                                                                
                                                                                                                                
MS. RYAN said  she envisions DEC working with  the records office                                                               
to  put the  restrictions  on  the title,  as  well  as having  a                                                               
database  of contaminated  sites.  The database  is currently  in                                                               
place.                                                                                                                          
                                                                                                                                
CHAIR COSTELLO asked if other  states have experienced opposition                                                               
to this type of legislation.                                                                                                    
                                                                                                                                
MS. RYAN  said DEC has  talked to  many stakeholders and  all are                                                               
supportive  of the  concept. She  pointed out  that there  is one                                                               
letter  from  the  Department  of  Defense  (DOD)  requesting  an                                                               
amendment. DEC  disagrees with that  request related  to concerns                                                               
about  the state  setting any  standards on  federal property,  a                                                               
long-standing debate.  No other states have  encountered problems                                                               
doing what SB 64 proposes.                                                                                                      
                                                                                                                                
2:02:46 PM                                                                                                                    
CHAIR COSTELLO asked if the  bill would apply to "Travesty Wells"                                                               
[in  the National  Petroleum Reserve-Alaska  (NPR-A)] on  federal                                                               
lands.                                                                                                                          
                                                                                                                                
MS. RYAN  said yes, and it  would also apply to  the legacy wells                                                               
on [Bureau  of Land Management  (BLM)] land [within  and adjacent                                                               
to  NPR-A], if  BLM  decides, with  DEC's  involvement, to  lease                                                               
contaminated  sites above  cleanup  levels so  future owners  are                                                               
aware of the contamination.                                                                                                     
                                                                                                                                
2:03:14 PM                                                                                                                    
CHAIR COSTELLO asked how DEC can  have a zero fiscal note if they                                                               
plan to investigate properties and handle communication.                                                                        
                                                                                                                                
MS.  RYAN  responded they  are  already  putting restrictions  on                                                               
properties.  The bill  allows  DEC to  put  restrictions on  land                                                               
titles and this  will not increase workloads. The  database is in                                                               
place and they will absorb costs to write regulations.                                                                          
                                                                                                                                
2:04:13 PM                                                                                                                    
CHAIR  HUGHES asked  if Alaska  is  using the  same mechanism  as                                                               
other states. She voiced concern about DOD's opposition.                                                                        
                                                                                                                                
MS. RYAN said  the federal property aspect of SB  64 is identical                                                               
to Colorado's legislation. It was  implemented several years ago,                                                               
and DOD and the Air Force have been in compliance.                                                                              
                                                                                                                                
2:04:56 PM                                                                                                                    
SENATOR  STEVENS  asks if  SB  64  exonerates  a bad  actor  that                                                               
abandons the contaminated property.                                                                                             
                                                                                                                                
MS.  RYAN said  no.  That person  is still  liable  and would  be                                                               
pursued for cleanup.  The covenant is a  mechanism to communicate                                                               
to future owners if the  owner leaves contamination above cleanup                                                               
levels.                                                                                                                         
                                                                                                                                
SENATOR  STEVENS asked  if the  financial  cost to  the owner  is                                                               
taken into consideration.                                                                                                       
                                                                                                                                
MS.  RYAN said  that is  a factor  DEC considers  and one  of the                                                               
reasons  why contamination  remains.  DEC tries  to minimize  the                                                               
risks  and can  allow the  contamination  to remain  in place  by                                                               
imposing restrictions. Their goal is to limit exposure pathways.                                                                
                                                                                                                                
2:06:30 PM                                                                                                                    
SENATOR  MEYER   asked  how  DEC   determines  whether   land  is                                                               
contaminated. He provided an example  of buried batteries that no                                                               
one knew about.                                                                                                                 
                                                                                                                                
2:06:54 PM                                                                                                                    
MS. RYAN said DEC needs to  be notified to become involved in the                                                               
process.   They   often   find   out   about   those   kinds   of                                                               
contaminations.  She  gave  an example  of  lead  acid  batteries                                                               
discovered  in Wrangell  after several  iterations of  ownership.                                                               
They  use the  Department of  Law  to help  find the  responsible                                                               
party.                                                                                                                          
                                                                                                                                
SENATOR MEYER asked if realtors have a position on SB 64.                                                                       
                                                                                                                                
MS. RYAN said  they agree with the concept, but  don't want it to                                                               
be overly  cumbersome. DEC  has agreed to  work with  them during                                                               
the drafting of regulations.                                                                                                    
                                                                                                                                
2:08:09 PM                                                                                                                    
CHAIR HUGHES asked what types of things might be in a covenant.                                                                 
                                                                                                                                
MS. RYAN referred  to a flyer in members'  packets that describes                                                               
a covenant.  She provided examples  of restrictions:  no digging,                                                               
no wells, and no day care, depending on the contamination.                                                                      
                                                                                                                                
SENATOR HUGHES  added - no  residential land use,  no disturbance                                                               
of  soil,  construction  worker notice,  engineer-controlled  for                                                               
soil, no drilling, and no use of groundwater.                                                                                   
                                                                                                                                
MS.  RYAN said  those  are some  examples.  She provided  another                                                               
example of no allowed vapor intrusion.                                                                                          
                                                                                                                                
2:10:13 PM                                                                                                                    
CHAIR  COSTELLO closed  public testimony  on SB  64 and  held the                                                               
bill in committee.                                                                                                              
                                                                                                                                

Document Name Date/Time Subjects
SB 64 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Sectional Analysis Ver. J.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Fiscal Note DEC.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Fiscal Note DNR.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Background - Fact Sheet.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Background - Uniform Law Commission.PDF SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Support Letter - Cook Inlet Housing Auth..pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Supporting Document - DOD Response Memo.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 64 - Opposition Letter - DOD.pdf SL&C 3/14/2017 1:30:00 PM
SB 64
SB 79 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Sectional Analysis.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Fiscal Note DHSS.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 64.PDF SL&C 3/14/2017 1:30:00 PM
SB 64
SB 37.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Sponsor Statement.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Sectional Analysis.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Fiscal Note DCCED.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Support Letter - AKPhA.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Support Letter - Board of Pharmacy.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 37 - Supporting Background -DSCSA FDA.pdf SL&C 3/14/2017 1:30:00 PM
SB 37
SB 79 - Public Testimony.tif SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Supporting Background - Medicaid Reform PDMP Pharmacy FAQs.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 -Supporting Background - AKPDMP Report 29th Legislature.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 -Supporting Background - Medicaid Reform Controlled Substance Advisory Committee.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - Benefits and Harms of Opioids Guide from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - DHSS Bulletin.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - Guidelines for Prescribing Opioids from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79
SB 79 - Support Background - PDMP Guide from CDC.pdf SL&C 3/14/2017 1:30:00 PM
SB 79