Legislature(2023 - 2024)ADAMS 519

05/11/2023 01:30 PM House FINANCE

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Audio Topic
02:08:33 PM Start
02:09:51 PM SB55 CS FOR SENATE BILL NO. 55(FIN)
02:26:55 PM HB193
02:42:53 PM HB89
03:31:58 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 8:00 am 5/12/23 --
-- Delayed to 30 Minutes After Session --
+ SB 41 APPROP: CAPITAL/SUPPLEMENTAL TELECONFERENCED
<Pending Referral>
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 55 EXTND BDS: MEDICAL, DIRECT-ENTRY MIDWIVES TELECONFERENCED
Moved SB 55 Out of Committee
*+ HB 193 INTERNET FOR SCHOOLS TELECONFERENCED
Heard & Held
+ HB 89 DAY CARE ASSIST./CHILD CARE GRANT PROGRAM TELECONFERENCED
Heard & Held
CS FOR SENATE BILL NO. 55(FIN)                                                                                                
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Certified   Direct-Entry    Midwives;   extending   the                                                                    
     termination  date  of  the  State  Medical  Board;  and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
2:09:51 PM                                                                                                                    
                                                                                                                                
MERCEDES   COLBERT,   STAFF,  SENATOR   BILL   WIELECHOWSKI,                                                                    
SPONSOR,  thanked the  committee for  hearing the  bill. She                                                                    
explained that  the bill would  extend the  termination date                                                                    
of  the Board  of  Certified Direct-Entry  Midwives and  the                                                                    
termination  date of  the State  Medical Board.  She relayed                                                                    
that  the state  auditor recommended  a four-year  extension                                                                    
date  through  June 30,  2027  for  the Board  of  Certified                                                                    
Direct-Entry  Midwives and  an eight-year  extension through                                                                    
June 30, 2031  for the State Medical Board.  She deferred to                                                                    
Kris Curtis, legislative auditor  for details on the audits.                                                                    
Additionally,  the  Department  of Commerce,  Community  and                                                                    
Economic Development  (DCCED) was  available to  address the                                                                    
fiscal note.                                                                                                                    
                                                                                                                                
Co-Chair Foster asked for a review of the audit.                                                                                
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE  AUDIT, began  with the  audit findings  for the                                                                    
State  Medical Board  (copy on  file).  The audit  concluded                                                                    
that the board developed  and adopted regulations to protect                                                                    
the  public,  improve  the  licensing  process,  and  expand                                                                    
access  to  healthcare  during the  pandemic.  Further,  the                                                                    
board served the public's  interest by effectively licensing                                                                    
physicians, osteopaths, and  podiatrists; however, emergency                                                                    
courtesy licenses  for physician assistants were  not always                                                                    
issued in  accordance with  law. The  audit also  found that                                                                    
the board's workload had  increased substantially during the                                                                    
audit period.  The board  met frequently,  sometimes weekly,                                                                    
to consider  pandemic-related regulations and the  number of                                                                    
license applications  considered by  the board  increased 28                                                                    
percent compared  to the pre-pandemic period.  She explained                                                                    
the increase  was a  result of  physicians traveling  to the                                                                    
state to help  meet the need for  healthcare services during                                                                    
the  pandemic  and  out  of  state  practitioners  providing                                                                    
services via telehealth.                                                                                                        
                                                                                                                                
Ms. Curtis  relayed that board  turnover and  vacancies were                                                                    
common  during   the  audit  period,   but  even   with  the                                                                    
challenges, the audit found  the board operated effectively.                                                                    
The  audit recommended  an eight-year  extension, which  was                                                                    
the  maximum allowed  in statute.  She  directed members  to                                                                    
page 8  of the audit  report showing  licensing information.                                                                    
As  of March  2022,  there were  5,878  active licenses  and                                                                    
permits  for  the board.  Page  10  showed the  schedule  of                                                                    
revenues and  expenses, showing that  as of March  2022, the                                                                    
board had a surplus of approximately $506,000.                                                                                  
                                                                                                                                
Ms. Curtis directed  members to page 14 of  the audit report                                                                    
and  highlighted  two   recommendations.  First,  the  audit                                                                    
recommended that  the board's executive director  ensure all                                                                    
board  meetings were  adequately public  noticed. The  audit                                                                    
found that six  of 32 meetings were not  publicly noticed or                                                                    
not   publicly  noticed   accurately.   Second,  the   audit                                                                    
recommended  that  the  board ensure  emergency  regulations                                                                    
comply with  statute. The  audit found  that when  the board                                                                    
established  the  physician   assistant  emergency  courtesy                                                                    
license regulation,  they did not ensure  that the applicant                                                                    
had  a  collaborative  plan with  a  supervising  physician,                                                                    
which  was   a  statutory  requirement.  She   relayed  that                                                                    
management's response  to the  audit began  on page  25. She                                                                    
reported that  the governor,  commissioner, and  board chair                                                                    
concurred with the findings  and recommendations. She stated                                                                    
that overall, it was a fairly clean audit.                                                                                      
                                                                                                                                
2:14:29 PM                                                                                                                    
                                                                                                                                
Ms. Curtis  addressed the  audit findings  for the  Board of                                                                    
Certified Direct-Entry  Midwives (copy  on file).  The audit                                                                    
concluded  that the  board served  the public's  interest by                                                                    
conducting  its   meetings  in   an  effective   manner,  by                                                                    
supporting statutory  changes when deemed necessary,  and by                                                                    
actively  working  towards  amending  its  regulations.  The                                                                    
audit  also concluded  that the  board and  the Division  of                                                                    
Corporations,  Business  and Professional  Licensing  (CBPL)                                                                    
staff did  not consistently certify midwives  and apprentice                                                                    
midwives   in  accordance   with   the   law.  Further,   an                                                                    
investigation that  concerned a  potential threat  to public                                                                    
safety  was  not  addressed  by  CBPL  investigators  in  an                                                                    
efficient  manner.  The  audit recommended  the  legislature                                                                    
extend the  board four years,  which was half of  the eight-                                                                    
year  maximum  allowed  in statute.  The  reduced  extension                                                                    
recommendation  was   based  on  a  need   for  more  timely                                                                    
oversight of  the board and on  the fact that the  board had                                                                    
some draft  regulations that would significantly  change how                                                                    
it licensed midwives in the future.                                                                                             
                                                                                                                                
Ms. Curtis turned to page 5  of the audit report and relayed                                                                    
that  there  were  47   certified  midwives  and  apprentice                                                                    
midwives  as of  June  2022.  Page 7  showed  a schedule  of                                                                    
revenues  and expenses  showing a  surplus of  approximately                                                                    
$68,000   as   of   March  2022.   The   audit   made   four                                                                    
recommendations  for improvement  beginning  on  page 9.  In                                                                    
regard to the investigations that  were not done timely, the                                                                    
audit  recommended that  the commissioner  consult with  the                                                                    
governor's  office and  other policy  makers to  improve the                                                                    
recruitment and retention of  investigators. She stated that                                                                    
because recruitment  and retention was a  statewide problem,                                                                    
it  should be  addressed at  a statewide  policy level.  The                                                                    
second  recommendation was  similar in  regard to  improving                                                                    
the  recruitment and  retention  of  licensing staff,  which                                                                    
contributed  to  the  licensing  errors  discovered  in  the                                                                    
audit.                                                                                                                          
                                                                                                                                
Ms.  Curtis  turned to  page  11  of  the audit  report  and                                                                    
addressed the audit recommendation  for the director to work                                                                    
with  the  board  to ensure  the  online  renewal  licensing                                                                    
application form  was sufficient to monitor  compliance with                                                                    
continuing education.  Additionally, the  license referenced                                                                    
incorrect  regulations,  which  should be  cleaned  up.  The                                                                    
fourth recommendation, located on  page 12, recommended that                                                                    
the  Office   of  the  Governor's  Boards   and  Commissions                                                                    
director  work   with  the  board  to   identify  interested                                                                    
applicants to fill  board vacancies in a  timely manner. She                                                                    
detailed that  the board  was composed  of five  members and                                                                    
for 20 months  it was down two positions and  for two months                                                                    
it   was  down   three  positions.   She  shared   that  the                                                                    
commissioner, board  chair, and governor's  office concurred                                                                    
with the findings and  recommendations. She highlighted that                                                                    
on page 26,  the chair asked for an  eight-year extension as                                                                    
opposed  to  a four-year  extension.  The  request was  made                                                                    
because  the recommendations  were mainly  addressed to  the                                                                    
department and governor's office.                                                                                               
                                                                                                                                
2:17:46 PM                                                                                                                    
                                                                                                                                
Representative Hannan  noted that the  audit recommendations                                                                    
did  not  really  pertain  to  actions  by  the  board.  She                                                                    
considered  various extension  options including  four, six,                                                                    
and  eight  years. She  reasoned  it  was incumbent  on  the                                                                    
agency  to  ensure  the board  was  adequately  staffed  and                                                                    
[investigations]  were   done  in   a  timely   manner.  She                                                                    
considered herself  to be a  fairly new legislator,  but she                                                                    
recalled  renewing the  board once  before.  She thought  it                                                                    
seemed there would always be a  sort of panic to get on step                                                                    
when  they  were  down  on   staff  and  the  concerns  were                                                                    
timeliness but  not actions of  the board. She asked  if she                                                                    
was missing something.                                                                                                          
                                                                                                                                
Ms. Curtis replied  it was a common  question whenever there                                                                    
were recommendations  addressed to the division  and not the                                                                    
board. She stated it was  a legislative oversight mechanism.                                                                    
She recommended  taking a  look at  the board  again earlier                                                                    
rather   than   later   because   the   board   planned   to                                                                    
significantly    change    how   it    licensed    midwives.                                                                    
Additionally, she believed  it was important to  keep an eye                                                                    
on  the  investigations for  a  board  that impacted  public                                                                    
safety.  She noted  it was  the second  time there  had been                                                                    
issues with the investigations.                                                                                                 
                                                                                                                                
Representative Hannan  asked Ms. Curtis to  elaborate on any                                                                    
communications the  auditors had  with the  department about                                                                    
their focus  and ability to  address the concerns  raised in                                                                    
the   audit.  She   asked  if   the   department  had   more                                                                    
investigators.  She   wondered  if  the  deficits   [in  the                                                                    
division] would remain in four  years. She did not recall an                                                                    
increase in  the division's budget for  an investigator. She                                                                    
believed  the positions  were unfilled.  She wondered  about                                                                    
filling  or addressing  the positions  and turning  licenses                                                                    
and investigations around in a timelier fashion.                                                                                
                                                                                                                                
2:20:22 PM                                                                                                                    
                                                                                                                                
Ms.  Curtis  answered  that  the  licensing  issue  was  not                                                                    
necessarily   about  timing   but  about   not  having   the                                                                    
appropriate documentation  in the files or  not following up                                                                    
on certain things. She stated  it was attributed to turnover                                                                    
and  vacancies.  She  stated  the same  was  true  with  the                                                                    
investigations. She  relayed that the particular  case was a                                                                    
threat  to public  safety  and had  been  identified in  the                                                                    
audit  three years  earlier. She  reported that  no progress                                                                    
had  been made  on the  issue. She  detailed that  the chief                                                                    
investigator stated  the division had an  untenable workload                                                                    
due to  a high number of  cases and a high  number of vacant                                                                    
positions and  that efforts to  hire had  been unsuccessful.                                                                    
She relayed it was a  statewide issue. She explained that it                                                                    
may not be  a budgetary situation if the  division could not                                                                    
find  someone  to  apply  for  a position  or  remain  in  a                                                                    
position. She  considered it  may indicate  a need  for more                                                                    
statewide policy pertaining to recruitment and retention.                                                                       
                                                                                                                                
Representative  Josephson asked  if the  board and  midwives                                                                    
had to pay the  audit fees if they had to  come back in four                                                                    
years.                                                                                                                          
                                                                                                                                
Ms.  Curtis  answered   that  there  was  no   cost  to  the                                                                    
department for a  sunset; it was just  the department's time                                                                    
and  energy dealing  with the  auditors. She  explained that                                                                    
sunset  audits  were part  of  the  Division of  Legislative                                                                    
Audit's  budget.  She explained  that  if  there were  seven                                                                    
sunsets in  a given year,  more of the  division's resources                                                                    
would  go towards  the audits  as opposed  to doing  special                                                                    
audits at the request of the committee.                                                                                         
                                                                                                                                
Representative Josephson  asked from the perspective  of the                                                                    
midwives and  board chair  why it was  so important  for the                                                                    
board  to receive  a seven-year  extension  versus four.  He                                                                    
asked if it felt insulting to the board and licensees.                                                                          
                                                                                                                                
Ms.  Curtis answered  that the  individuals were  passionate                                                                    
about their  work and the  volunteers worked very  hard. She                                                                    
stated  that   time  and  time   again  she  saw   that  the                                                                    
individuals felt like  it was like a grade  on their report.                                                                    
She stated they wanted an "A"  and did not feel that a four-                                                                    
year  extension indicated  an A.  She acknowledged  that the                                                                    
individuals  were doing  a wonderful  job, they  worked very                                                                    
hard, and the  recommendation was not a  reflection of their                                                                    
time.                                                                                                                           
                                                                                                                                
Co-Chair Foster noted  that both of the  boards would expire                                                                    
June  30, 2023  if the  bill was  not passed.  He asked  Ms.                                                                    
Colbert if  she had anything to  add prior to the  review of                                                                    
the fiscal note.                                                                                                                
                                                                                                                                
Ms. Colbert thanked  the committee for hearing  the bill and                                                                    
thanked the  senator's intern for  carrying the bill  in the                                                                    
other body.                                                                                                                     
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal note.                                                                          
                                                                                                                                
2:23:43 PM                                                                                                                    
                                                                                                                                
SYLVAN  ROBB, DIRECTOR,  DIVISION OF  CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND ECONOMIC  DEVELOPMENT,  highlighted that  the                                                                    
total annual cost to extend  both boards was $25,200 from FY                                                                    
25 through  FY 29. She noted  there were no costs  shown for                                                                    
FY  24 because  per statute,  if boards  were not  extended,                                                                    
there  was  a  one-year  wind down  period;  therefore,  the                                                                    
division would pay for the board  in FY 24 regardless of the                                                                    
status of the bill.                                                                                                             
                                                                                                                                
Representative Hannan asked how  the department was doing in                                                                    
hiring the investigative position  and filling the vacancies                                                                    
that had created some demerits on the audit.                                                                                    
                                                                                                                                
Ms. Robb responded that the  division had been successful in                                                                    
staffing  its investigations  unit.  She  detailed that  the                                                                    
unit had been  fully staffed until the end of  March with 23                                                                    
filled positions. An individual had  retired at the of March                                                                    
and the position had been  filled with an internal promotion                                                                    
meaning  there would  still  be a  vacancy.  She stated  the                                                                    
division  was  doing much  better  in  terms of  having  the                                                                    
investigation positions filled.                                                                                                 
                                                                                                                                
Representative Hannan  asked if  the department  believed it                                                                    
would  be able  to support  the board  to fully  comply with                                                                    
statute for the next four years if the sunset was extended.                                                                     
                                                                                                                                
Ms. Robb replied affirmatively.                                                                                                 
                                                                                                                                
Co-Chair  Edgmon  MOVED  to  REPORT   CSSB  55(FIN)  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSSB 55(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN2 (CED).                                                                                                         
                                                                                                                                

Document Name Date/Time Subjects
HB 89 Presentation v.3.pdf HFIN 5/11/2023 1:30:00 PM
HB 89