Legislature(2011 - 2012)HOUSE FINANCE 519

03/08/2011 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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+ HB 13 WORKERS' COMPENSATION: MEDICAL FEES TELECONFERENCED
Moved Out of Committee
+ HB 80 SELF DEFENSE TELECONFERENCED
Heard & Held
+ HB 126 OMNIBUS BOARD EXTENSIONS TELECONFERENCED
Moved CSHB 126(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 126                                                                                                            
                                                                                                                                
     "An Act  extending the termination  dates of  the Board                                                                    
     of Nursing,  the Board of  Dental Examiners,  the Board                                                                    
     of Barbers and  Hairdressers, the Regulatory Commission                                                                    
     of Alaska,  and the  Alcoholic Beverage  Control Board;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
9:30:45 AM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze  discussed that there  was a CS for  HB 126                                                                    
that amended  the omnibus sunset extension  bill and removed                                                                    
the Regulatory  Commission of Alaska  (RCA) and  the Alcohol                                                                    
Beverage Control Board (ABC).                                                                                                   
                                                                                                                                
Vice-chair  Fairclough  MOVED  to   ADOPT  Work  Draft  CSHB
126(FIN) 27-LS0321\I (Kirsh, 3/1/11).                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
RENA   DELBRIDGE,   STAFF,   REPRESENTATIVE   MIKE   HAWKER,                                                                    
discussed  that Representative  Hawker  was the  Legislative                                                                    
Budget and Audit chairman and  that he supported the omnibus                                                                    
extension. She  relayed that Representative  Hawker believed                                                                    
the  omnibus was  the most  efficient mechanism  for routine                                                                    
board and commission extensions.                                                                                                
                                                                                                                                
Co-Chair  Stoltze noted  that noncontroversial  sunset bills                                                                    
usually  came before  the committee  one at  a time  and had                                                                    
individual sponsors.                                                                                                            
                                                                                                                                
Representative Gara commented that he  did not need a verbal                                                                    
review  of  the   reports  in  the  file,   given  that  the                                                                    
extensions were noncontroversial.                                                                                               
                                                                                                                                
Co-Chair Stoltze asked for a brief explanation of the bill.                                                                     
                                                                                                                                
PAT DAVIDSON,  LEGISLATIVE AUDITOR, DIVISION  OF LEGISLATIVE                                                                    
AUDIT, discussed  the division's recommendation  that boards                                                                    
should  make  timely   investigations.  She  explained  that                                                                    
health and  safety issues  were dealt  with first  and there                                                                    
were   long   periods    of   inactivity   associated   with                                                                    
investigations of complaints for boards.                                                                                        
                                                                                                                                
Ms.  Davidson  notified  the committee  that  the  financial                                                                    
status  of  the  Board  of   Barbers  and  Hairdressers  was                                                                    
generally  alright; however,  the division  recommended that                                                                    
the public  member either resign or  surrender their license                                                                    
because board  members were  not supposed  to engage  in the                                                                    
profession they were actively regulating.  The member was no                                                                    
longer an  active hairdresser, but according  to statute the                                                                    
surrender of  a license  or the  resignation from  the board                                                                    
was  required. Apart  from the  timely investigations  there                                                                    
had  been  no  recommendations   for  the  Board  of  Dental                                                                    
Examiners. The board's accumulated  surplus was addressed by                                                                    
the reduction of fees during the FY 09 renewal cycle.                                                                           
                                                                                                                                
Ms.  Davidson pointed  to  the Board  of  Nursing which  had                                                                    
three  specific  recommendations.   First,  the  appropriate                                                                    
entities  should   be  notified   when  an   advanced  nurse                                                                    
practitioner's authority to  write prescriptions was revoked                                                                    
or  suspended by  the  board. Second,  the  board needed  to                                                                    
improve  its oversight  of certified  nurse's aide  training                                                                    
programs.  Sporadic  onsite   reviews  had  been  conducted;                                                                    
however,  there had  been  no processing  or  review of  the                                                                    
self-evaluation  forms   that  were   submitted  biannually.                                                                    
Third, the current licensed  practical nurse (LPN) appointed                                                                    
to the board did not  meet the statutory qualifications. She                                                                    
explained that  according to statute the  board position was                                                                    
to be  held by  an LPN working  in an  institutional nursing                                                                    
situation, but  the current board  member was working  as an                                                                    
emergency  medical  technician. The  board  had  built up  a                                                                    
substantial   financial  surplus   as  a   result  of   past                                                                    
accounting errors  and had indicated  its intention  to drop                                                                    
fees  as much  as  20 percent  in the  FY  11/FY 12  renewal                                                                    
cycle.                                                                                                                          
                                                                                                                                
9:36:57 AM                                                                                                                    
                                                                                                                                
Representative  Wilson asked  how long  the division  gave a                                                                    
board to fill a position when a member was asked to resign.                                                                     
                                                                                                                                
Ms. Davidson replied that the  Division of Legislative Audit                                                                    
did  not have  the ability  to enforce  its recommendations.                                                                    
She specified that  once the issue had  been identified that                                                                    
it was  up to  the appropriate  division to  take corrective                                                                    
action.                                                                                                                         
                                                                                                                                
Representative  Gara wondered  whether the  boards that  had                                                                    
received  recommendations  for  a  member  to  resign  would                                                                    
report to the committee once the resignation had occurred.                                                                      
                                                                                                                                
Co-Chair  Stoltze  explained  that   Don  Habeger  with  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
(CCED) would address the question.                                                                                              
                                                                                                                                
Vice-chair Fairclough  wondered whether it would  be helpful                                                                    
for  Representative   Hawker  to  issue  a   letter  to  the                                                                    
department on  behalf of the  House Finance  and Legislative                                                                    
Budget  and Audit  Committees that  requested compliance  on                                                                    
the  recommendations  and asked  it  to  follow-up with  the                                                                    
committee no later than the  end of session or the following                                                                    
year. She discussed the ability  to know whether boards were                                                                    
in compliance prior to a bill vote on the House floor.                                                                          
                                                                                                                                
Representative Guttenberg wondered about  the purpose of the                                                                    
prohibition that existed in AS  44.66.050 (e) that prevented                                                                    
the  bill  from  reestablishing   more  than  one  board  or                                                                    
commission.                                                                                                                     
                                                                                                                                
Ms.  Davidson  replied that  according  to  statute, a  bill                                                                    
should  have no  more  than one  board extension  associated                                                                    
with it. She did not know the history of the statute.                                                                           
                                                                                                                                
Co-Chair Stoltze remembered  a bill that had  included 12 to                                                                    
15 board extensions before his time in the legislature.                                                                         
                                                                                                                                
9:40:21 AM                                                                                                                    
                                                                                                                                
DON  HABEGER, DIRECTOR,  DIVISION  OF CORPORATIONS  BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT,  addressed an  earlier                                                                    
question  from Representative  Gara.  He  believed that  the                                                                    
member  in  question  had  surrendered  the  license,  which                                                                    
brought  the   Board  of   Barbers  and   Hairdressers  into                                                                    
compliance.  He would  get  back to  the  committee with  an                                                                    
affirmative answer.                                                                                                             
                                                                                                                                
Mr.  Habeger examined  other issues  and  concerns that  had                                                                    
been  discussed.  The  division was  working  diligently  to                                                                    
correct  the  timely  investigation   issue  that  had  been                                                                    
highlighted in  each legislative audit.  As a result  of the                                                                    
audit the division had replaced  an old database that lacked                                                                    
a mechanism  to flag older  cases. The division  was working                                                                    
to implement  a new  system that  was specifically  made for                                                                    
licensing  activities  nationwide.  The  division  hoped  to                                                                    
report  the following  year  that  the timely  investigation                                                                    
problems had been resolved.                                                                                                     
                                                                                                                                
Mr. Habeger communicated that there  had been a $1.4 million                                                                    
roll-forward  related to  nurses' fees.  Fees were  reviewed                                                                    
and adjusted  on an annual  basis. Some  of the fees  he had                                                                    
reviewed had increased and others  had remained the same. He                                                                    
explained that any existing surpluses  were used to amortize                                                                    
licensing fees.                                                                                                                 
                                                                                                                                
Representative  Neuman recalled  that the  Board of  Nursing                                                                    
had lacked  the ability  to resolve a  situation in  which a                                                                    
non-licensed nurse  practitioner had  written prescriptions.                                                                    
He  wondered  whether  Mr. Habeger  was  familiar  with  the                                                                    
situation.                                                                                                                      
                                                                                                                                
Mr. Habeger replied that he  was familiar with one case that                                                                    
the  division   had  recently   handled.  He   relayed  that                                                                    
licensing actions  had been brought against  the individual.                                                                    
He had worked with the  board's chair and executive director                                                                    
to develop  a way to  make reporting available to  a broader                                                                    
group. He added  that the Board of  Nursing website included                                                                    
information on licensing action.                                                                                                
                                                                                                                                
9:45:12 AM                                                                                                                    
                                                                                                                                
Representative  Neuman   asked  about   the  inappropriately                                                                    
occupied positions  on the  Board of  Nursing that  had been                                                                    
cited in the  audit. He contemplated whether  a reduction to                                                                    
the  eight-year  board  term   was  necessary  in  order  to                                                                    
increase  the legislature's  oversight. He  wondered how  to                                                                    
deal   with   the   board   positions   that   were   filled                                                                    
inappropriately.                                                                                                                
                                                                                                                                
Mr. Habeger responded that he  did not recall the issue with                                                                    
the Board of  Nursing. He agreed that it was  a challenge to                                                                    
keep  track of  the 129  board members  on approximately  20                                                                    
boards. He noted the concern and would keep it in mind.                                                                         
                                                                                                                                
Representative  Wilson  cited  the  Legislative  Budget  and                                                                    
Audit  recommendation that  the  director  of boards  should                                                                    
fill the LPN position with  an individual that was currently                                                                    
involved in  institutional nursing services.  She understood                                                                    
that the  current Board of  Nursing LPN position  was filled                                                                    
by an  individual in the  emergency field and asked  CCED to                                                                    
notify the committee when the issue had been corrected.                                                                         
                                                                                                                                
Representative  Gara asked  how quickly  CCED could  let the                                                                    
committee  know  about  the  course  of  action  related  to                                                                    
removing the board member. He  noted that once the committee                                                                    
approved  the board  that it  had  no authority  to get  the                                                                    
department to replace the position.                                                                                             
                                                                                                                                
Mr. Habeger replied  that he would work  with the governor's                                                                    
office, as it  was responsible for the  appointment of board                                                                    
positions.  He believed  that the  issue had  been rectified                                                                    
shortly after  the legislative audit  had been  released. He                                                                    
would provide the  committee with a detailed  answer as soon                                                                    
as possible.                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  referenced earlier  commentary  regarding                                                                    
the eight-year board  term and noted that any  member on the                                                                    
committee   could  introduce   legislation   to  address   a                                                                    
dysfunction.                                                                                                                    
                                                                                                                                
Representative   Gara  requested   that   CCED  notify   the                                                                    
Legislative Audit  Division when  the issues related  to the                                                                    
Board of Barbers  and Hairdressers and the  Board of Nursing                                                                    
had been  resolved. He asked the  Legislative Audit Division                                                                    
to let the  committee know whether it felt  that the concern                                                                    
had been addressed.                                                                                                             
                                                                                                                                
Mr. Habeger responded in the affirmative.                                                                                       
                                                                                                                                
Co-Chair  Stoltze observed  that the  governor's office  was                                                                    
ultimately responsible for making the substantive changes.                                                                      
                                                                                                                                
Vice-chair Fairclough communicated  that the committee could                                                                    
zero-out the  fiscal note or  ask the House  Rules Committee                                                                    
chair to hold the bill  until the requested answers had been                                                                    
provided.                                                                                                                       
                                                                                                                                
Co-Chair  Stoltze was  comfortable  moving  the fiscal  note                                                                    
forward. He reflected on more  challenging issues related to                                                                    
boards  and commissions  in  the past.  He  opined that  the                                                                    
current issues were substantive, but solvable.                                                                                  
                                                                                                                                
9:51:09 AM                                                                                                                    
                                                                                                                                
Representative   Doogan  expressed   his  expectation   that                                                                    
affirmative  answers  would  be  provided prior  to  a  bill                                                                    
hearing on the House floor.                                                                                                     
                                                                                                                                
Co-Chair Stoltze responded that  the committee would ask the                                                                    
House  Rules Committee  chair  to hold  the  bill until  the                                                                    
answers had been received.                                                                                                      
                                                                                                                                
Representative Doogan  did not anticipate any  problems, but                                                                    
was aware that problems did happen.                                                                                             
                                                                                                                                
Ms.  Delbridge responded  that  the  Legislative Budget  and                                                                    
Audit  Committee  would  be  happy   to  make  certain  that                                                                    
concerns   were  addressed   and   to   ensure  that   audit                                                                    
recommendations were followed.                                                                                                  
                                                                                                                                
Vice-chair Fairclough  MOVED to report CSHB  126(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
Representative Gara  OBJECTED for purpose of  discussion. He                                                                    
wanted to  make certain that  the controversial RCA  and ABC                                                                    
boards were voted on during  the current session, given that                                                                    
both boards sunset in the current year.                                                                                         
                                                                                                                                
Co-Chair Stoltze  believed the issues related  to the boards                                                                    
were  more substantive,  but not  controversial. He  relayed                                                                    
that the committee would address each of the boards.                                                                            
                                                                                                                                
Representative Gara WITHDREW his OBJECTION.                                                                                     
                                                                                                                                
CSHB  126(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass"  recommendation and  with  a new  fiscal  note by  the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                
9:54:12 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:57:12 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB13 Sectional Analysis.pdf HFIN 3/8/2011 9:00:00 AM
HB 13
HB13 Sponsor Statement.pdf HFIN 3/8/2011 9:00:00 AM
HB 13
HB13 Supporting Documents 2010 NCCI AK Med.pdf HFIN 3/8/2011 9:00:00 AM
HB 13
HB13 Supporting Documets - MSRC Nov 2009 Report pages 11-12.pdf HFIN 3/8/2011 9:00:00 AM
HB 13
HB126-NEWFNCCED-RCA-02-17-11.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126-NEWFNCCED-CBPL-02-16-11.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB13 Supporting Documents OR Rate Study Comparison.pdf HFIN 3/8/2011 9:00:00 AM
HB 13
HB126 Supporting Documents-RCA Sunset Review.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-RCA Audit Summary.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Nursing Sunset Review.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Nursing Audit Summary.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-LB&A Subcommittee Recommendation ABC Board.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Dental Examiners Audit Summary.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Dental Ex Sunset Review.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Barbers and Hairdressers Sunset Review.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-Barbers and Hairdressers Audit Summary.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Sponsor Statement LB&A letterheada.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-ABC Audit Summary 2009.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB126 Supporting Documents-ABC Sunset Review.pdf HFIN 3/8/2011 9:00:00 AM
HB 126
HB80 HJUD Letter to HFIN 02-14-11.pdf HFIN 3/8/2011 9:00:00 AM
HB 80
HB 80 Sponsor Statement for HFIN.docx HFIN 3/8/2011 9:00:00 AM
HB 80
HB126 CS Work Draft 27LSO321-I.pdf HFIN 3/8/2011 9:00:00 AM
HB 126