Legislature(2005 - 2006)CAPITOL 17

04/25/2005 03:15 PM House LABOR & COMMERCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 137 EVICTING INSTITUTIONAL PROPERTY USERS TELECONFERENCED
Heard & Held
+ SB 139 OCCUPATIONAL BDS/AGENCIES TELECONFERENCED
Moved HCS CSSB 139(L&C) Out of Committee
+ SB 140 BAN INTERNET SPYWARE TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
= HB 249 ENHANCED 911 SURCHARGES
Moved CSHB 249(L&C) Out of Committee
SB 139-OCCUPATIONAL BDS/AGENCIES                                                                                              
                                                                                                                                
CHAIR ANDERSON  announced that the  next order of  business would                                                               
be  CS  FOR  SENATE  BILL  NO.  139(L&C),  "An  Act  relating  to                                                               
termination  and oversight  of  boards,  commissions, and  agency                                                               
programs; extending the termination date  of the Board of Marital                                                               
and Family Therapy; and providing for an effective date."                                                                       
                                                                                                                                
TOM MAHER,  Staff to Senator Gene  Therriault, Legislative Budget                                                               
& Audit Committee, Alaska State  Legislature, explained that CSSB
139(L&C) stems  from recommendations contained in  two reports by                                                               
the Division of Legislative Audit.   Section 1 of the legislation                                                               
extends  the sunset  date  of  the Board  of  Marital and  Family                                                               
Therapy from June  30, 2005, to June 30, 2010,  as recommended by                                                               
the  audit included  in the  committee packet.   The  legislation                                                               
also incorporates  recommendations from the audit  of the "Alaska                                                               
Sunset Process  and Selected Investigative  Issues".   Sections 2                                                               
and 4 of this legislation clarify  that for those boards that are                                                               
terminated,  the   transfer  of  authority  for   regulatory  and                                                               
disciplinary powers  to the Department of  Commerce, Community, &                                                               
Economic  Development (DCCED).   Although  DCCED has  assumed the                                                               
responsibility for  administering the regulated  occupation after                                                               
a board has  terminated, the statutes do not  clearly provide the                                                               
department the authority to do so.   Mr. Maher expressed the hope                                                               
that this change will address the uncertainty.                                                                                  
                                                                                                                                
MR. MAHER continued by pointing out  that Sections 3 and 5 change                                                               
the  standard  sunset  period  for   occupational  boards  in  AS                                                               
08.03.020(c) and  nonoccupational boards in AS  44.66.010(c) from                                                               
"not  to exceed  fours years"  to  "not to  exceed eight  years".                                                               
Increasing the  standard sunset period  allows for better  use of                                                               
audit staff,  committee time, and  makes the sunset  process less                                                               
consuming  for  boards  and  regulatory   agencies.    Mr.  Maher                                                               
highlighted that since Alaska's  sunset process has matured, most                                                               
of  the sunset  reviews  are less  about  eliminating boards  and                                                               
commissions and more about operational  performance.  In fact, 12                                                               
states have  either repealed or  suspended their  sunset process.                                                               
The  most  common standard  is  for  an  extension of  10  years,                                                               
although Alaska  and three other  states have maintained  a four-                                                               
year  extension standard.   He  noted that  the legislature  will                                                               
still be  able to set  whatever time limit it  deems appropriate,                                                               
regardless of this statutory change.                                                                                            
                                                                                                                                
MR.  MAHER specified  that to  focus on  operational performance,                                                               
this  legislation   requires  specific  analysis   of  efficiency                                                               
effectiveness  and  the  avoidance of  duplication  of  functions                                                               
during the  sunset review.  In  Section 6 two criteria  that must                                                               
be  considered during  the course  of  the sunset  review by  the                                                               
auditors is  added to statute.   "First, the extent to  which the                                                               
board,  commission,  or  agency   has  effectively  attained  its                                                               
objectives and  the efficiency  with which  it has  operated; and                                                               
second,  the extent  to which  the board,  commission, or  agency                                                               
duplicates the  activities of another governmental  agency or the                                                               
private  sector," he  said.   Therefore,  expanding the  criteria                                                               
assures   that  auditors   will   measure   the  efficiency   and                                                               
effectiveness  of the  entities under  review.   He informed  the                                                               
committee that  the Senate Labor and  Commerce Standing Committee                                                               
approved  an  amendment  offered  by  the  administration,  which                                                               
inserted the  language "all statutory  authority of the  board is                                                               
transferred  to  the  department"  in Section  2.    Furthermore,                                                               
Section  4,  which  further  defines   the  transition  of  board                                                               
regulation when a board is terminated,  was added.  He then noted                                                               
that there is  one fiscal note from the  Division of Occupational                                                               
Licensing  and  explained:   "passage  of  this legislation  will                                                               
incur no additional  cost, the outlying years of  the fiscal note                                                               
merely  show the  cost of  continuing this  board at  the current                                                               
level, as already included in the budget."                                                                                      
                                                                                                                                
4:20:42 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON  surmised then that the  legislation maintains the                                                               
current  status  in  which  fees  cover the  cost.    He  further                                                               
surmised that the  legislation extends the board to  2010 and the                                                               
amendment  in  the Senate  merely  codifies  that the  department                                                               
takes over if a board sunsets.                                                                                                  
                                                                                                                                
MR. MAHER agreed with the chair's understanding.                                                                                
                                                                                                                                
CHAIR ANDERSON noted that he  liked [paragraphs] (10) and (11) on                                                               
page  3 of  the legislation.    Those paragraphs  seem to  insert                                                               
missions and  measures to ensure  that the board,  commission, or                                                               
agency attains  its objectives  and does  so efficiently.   Chair                                                               
Anderson opined that  such isn't the case for any  other board or                                                               
commission renewal.                                                                                                             
                                                                                                                                
REPRESENTATIVE  ROKEBERG pointed  out that  the paragraphs  would                                                               
apply to all boards and commissions.                                                                                            
                                                                                                                                
4:22:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GUTTENBERG  turned attention to page  2, lines 13-                                                               
14,  which  transfer statutory  authority  of  the board  to  the                                                               
department.  Representative  Guttenberg related his understanding                                                               
that  after  an entity  sunsets,  the  language establishing  the                                                               
entity remains in statute.   Therefore, he surmised that the only                                                               
way  to prevent  the department  from administering  a commission                                                               
that  the  legislature  has  (indisc.)   is  through  the  budget                                                               
process.                                                                                                                        
                                                                                                                                
PAT  DAVIDSON,  Legislative   Auditor,  Division  of  Legislative                                                               
Audit, Alaska  State Legislature,  explained that currently  if a                                                               
board is sunset, the regulations  implementing the statute become                                                               
void because  the board is  given powers.  However,  the statutes                                                               
remain  and   thus  statutes  may   conflict  with   the  current                                                               
licensing.   For example,  statutes may  specify only  a licensed                                                               
professional  can   perform  a   certain  occupation,   but  that                                                               
occupation is no  longer being licensed.  Therefore,  there is no                                                               
effective mechanism  to totally  shut down  an occupation.   This                                                               
language  was intended  to place  the onus  on the  department to                                                               
make the statutory  changes that change it to  a regulation under                                                               
the division or alternatively  eliminating the licensing function                                                               
altogether.  She  highlighted that under current  statute it does                                                               
happen automatically.                                                                                                           
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  posed a  situation  in  which it's  a                                                               
commission without any powers, duties, and responsibilities.                                                                    
                                                                                                                                
MS. DAVIDSON replied, "To the  extent that there's any regulation                                                               
in place  that makes the  agency happen, those  regulations, when                                                               
the  board  sunsets,  are voided."    Therefore,  the  department                                                               
couldn't  necessarily  do  anything.    In  further  response  to                                                               
Representative Guttenberg,  Ms. Davidson  said that  a commission                                                               
without any written regulations would continue.                                                                                 
                                                                                                                                
4:24:58 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG  said that he didn't  entirely understand                                                               
Section 2 because  it would seem that  transferring the statutory                                                               
authority  of a  [sunset]  board would  keep  its regulatory  and                                                               
statutory scheme of enforcement alive.                                                                                          
                                                                                                                                
4:25:57 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON pointed out that this  is an extension to 2010 and                                                               
thus he surmised that if  the extensions continue, Section 2 will                                                               
never apply.                                                                                                                    
                                                                                                                                
MS. DAVIDSON clarified that Section  1 is a stand-alone provision                                                               
that extends the Board of Marital  and Family Therapy.  The other                                                               
sections change the  licensing statutes overall.   In response to                                                               
Representative Rokeberg's  earlier question, Ms.  Davidson agreed                                                               
that  [Section 2]  would  allow the  department  to continue  the                                                               
regulation of  an activity.   However, there is not  an effective                                                               
way to  shut it down because  the statutes don't "go  away."  The                                                               
desire, she opined,  is to transfer the  authority of eliminating                                                               
the statutes [of  entities that have sunset] and  have a smoother                                                               
transition.  For  instance, according to statutes  one can't sell                                                               
eyeglasses  or   contact  lenses   without  being   a  physician,                                                               
optometrist, or  dispensing optician.  The  recommendation was to                                                               
change  the  Board  of Dispensing  Opticians  to  a  registration                                                               
process  while continuing  to allow  people  to sell  eyeglasses.                                                               
However, that result doesn't occur with a sunset.                                                                               
                                                                                                                                
REPRESENTATIVE   ROKEBERG   acknowledged   the   administration's                                                               
position in that it dislikes  boards and commissions.  Therefore,                                                               
he  said he  wasn't  sure  that he  agreed  with the  legislature                                                               
transferring  legislative authority  over boards  and commissions                                                               
to the administration.                                                                                                          
                                                                                                                                
REPRESENTATIVE  GUTTENBERG  asked  if   the  result  of  the  new                                                               
language in Section  2 would be a case in  which the authority is                                                               
transferred to  the department, which  phases out the  entity and                                                               
the division brings forth cleanup language.                                                                                     
                                                                                                                                
4:29:35 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  replied, "In  general terms,  yes."   She explained                                                               
that the  goal is  to avoid statutory  conflict between  a sunset                                                               
board with no regulations while  a licensing requirement remains.                                                               
Therefore,  the agency  or  the department  would  take steps  to                                                               
introduce legislation  to either "shut down"  licensing or change                                                               
the  statutes.   She noted  that  it could  also be  done by  the                                                               
legislature.  However,  there is the need  for statutory changes.                                                               
"It's  just  that  the  sunset  is too  blunt  an  instrument  to                                                               
necessarily get to what that end goal is," she said.                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG  pointed out  that although  it may  be a                                                               
messy process, it  has worked for 40 years.   He highlighted that                                                               
when an entity  is sunset, there is a wind-down  year in which to                                                               
address the entity.                                                                                                             
                                                                                                                                
REPRESENTATIVE CRAWFORD announced  that he's not in  favor of the                                                               
legislation  as it  is now.   Furthermore,  he recalled  that the                                                               
Board of  Marital and  Family Therapy  is one  of the  six boards                                                               
that House [legislation] attempts to extend.                                                                                    
                                                                                                                                
4:32:04 PM                                                                                                                    
                                                                                                                                
MS.  DAVIDSON clarified  that  the Board  of  Marital and  Family                                                               
Therapy wasn't included in that  legislation.  She explained that                                                               
the Legislative  Budget & Audit  Committee usually  addresses any                                                               
board extension that wasn't addressed near the end of session.                                                                  
                                                                                                                                
4:32:44 PM                                                                                                                    
                                                                                                                                
MS. DAVIDSON  informed the committee  that within the  audit, the                                                               
notion  of  combining  behavioral  health  boards  was  reviewed.                                                               
However,  the professional  counselors were  strongly opposed  to                                                               
combining  with  marital  and family  therapists.    Furthermore,                                                               
there had already been legislation  put forth to extend the Board                                                               
of Professional Counselors as a single entity.                                                                                  
                                                                                                                                
REPRESENTATIVE  ROKEBERG pointed  out that  in the  audit report,                                                               
the recommendation  was to change  extensions from four  to eight                                                               
years.  He inquired as to why eight years was chosen.                                                                           
                                                                                                                                
MS. DAVIDSON  said that many  factors were considered  when eight                                                               
years  was chosen,  including the  standard  extensions in  other                                                               
states.  While 10 years  is the most frequent extension standard,                                                               
past  practice has  shown that  double extensions  under Alaska's                                                               
current four-year  standard have  passed.  Ms.  Davidson reminded                                                               
the committee  that the eight years  is the number of  years that                                                               
an extension cannot exceed.   However, any legislator can request                                                               
a review of any governmental operation.                                                                                         
                                                                                                                                
CHAIR ANDERSON  opined that four  years is an  appropriate amount                                                               
of time because it's not too extensive.                                                                                         
                                                                                                                                
4:35:19 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   LEDOUX,   recalling  Representative   Rokeberg's                                                               
earlier  comment,  inquired as  to  why  this process  should  be                                                               
changed after it has worked well for 20 years.                                                                                  
                                                                                                                                
MS.  DAVIDSON informed  the  committee  that since  approximately                                                               
1980,  18  entities  have  been   terminated  and  23  have  been                                                               
reestablished.     The  "Guide  Board"  was   probably  the  most                                                               
problematic and was  a situation in which  the department stepped                                                               
in  to  regulate  the  occupation,   although  it  had  no  legal                                                               
authority to do  so.  Therefore, past practices  were reviewed in                                                               
an attempt to determine a way to smooth the process a bit.                                                                      
                                                                                                                                
4:37:22 PM                                                                                                                    
                                                                                                                                
CHAIR ANDERSON noted his desire to forward the legislation.                                                                     
                                                                                                                                
REPRESENTATIVE ROKEBERG  pointed out that the  legislature speaks                                                               
through not  acting some times,  which he indicated was  the case                                                               
in  relation  to the  "Guide  Board".    If this  legislation  is                                                               
adopted, then  the power to  regulate the profession is  given to                                                               
the governor  and it's taken out  of the hands of  the boards and                                                               
commissions and the legislature.                                                                                                
                                                                                                                                
CHAIR ANDERSON  announced then that  he would  hold SB 139.   [SB
139 was taken up at the end of this meeting.]                                                                                   
                                                                                                                                
SB 139-OCCUPATIONAL BDS/AGENCIES                                                                                              
                                                                                                                                
CHAIR  ANDERSON  returned the  committee's  attention  to CS  FOR                                                               
SENATE BILL  NO. 139(L&C),  "An Act  relating to  termination and                                                               
oversight of boards, commissions,  and agency programs; extending                                                               
the termination date of the  Board of Marital and Family Therapy;                                                               
and providing for an effective date."                                                                                           
                                                                                                                                
CHAIR ANDERSON  moved that  the committee  adopt Amendment  1, as                                                               
follows:                                                                                                                        
                                                                                                                                
     Delete Sections 2 and 4.                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG  objected, and inquired as  to the reason                                                               
for deleting Section 4.                                                                                                         
                                                                                                                                
4:54:11 PM                                                                                                                    
                                                                                                                                
TOM MAHER,  Staff to Representative Gene  Therriault, Legislative                                                               
Budget and  Audit Committee, Alaska State  Legislature, explained                                                               
that Section 4  [proposes the same thing -  to transfer statutory                                                               
authority of the board to the  department] as the new language in                                                               
Section 2.                                                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG removed his objection.                                                                                  
                                                                                                                                
There being no further objections, Amendment 1 was adopted.                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  moved to report  CSSB 139(L&C),  as amended,                                                               
out  of   committee  with  individual  recommendations   and  the                                                               
accompanying fiscal  notes.  There  being no objection,  HCS CSSB
139(L&C) was reported from the House Labor and Commerce Standing                                                                
Committee.                                                                                                                      

Document Name Date/Time Subjects