Legislature(2011 - 2012)BARNES 124
01/20/2012 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB279 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 279 | TELECONFERENCED | |
HB 279-EXTENDING CERTAIN BOARDS & COMMISSIONS
3:24:14 PM
CHAIR OLSON announced that the only order of business would be
HOUSE BILL NO. 279 "An Act extending the termination dates of
the Board of Nursing, the Board of Dental Examiners, the Board
of Barbers and Hairdressers, the Big Game Commercial Services
Board, the Alcohol Beverage Control Board, and the Alaska
Seismic Hazards Safety Commission; and providing for an
effective date."
3:24:16 PM
REPRESENTATIVE MIKE HAWKER, Alaska State Legislature, speaking
as the chair of the Legislative Budget and Audit Committee that
requested HB 279, stated that this bill is a housekeeping
measure, which would reauthorize the various boards and
commissions with sunset provisions in effect in accordance with
statute. This bill is an omnibus bill bringing forward all the
agencies that need reauthorization this legislative session.
This consolidation of sunset audits in an omnibus bill helps to
obtain efficiencies - rather than to have multiple bills come
before the legislature. The boards and commissions included in
this bill are the Alcoholic Beverage Control Board ("ABC
Board"), the Alaska Seismic Hazards Safety Commission, the Big
Game Commercial Services Board (BGCSB), the Board of Barbers and
Hairdressers, the Board of Dental Examiners, and the Board of
Nursing. He pointed out that four of these boards or
commissions came before the legislature last session, that the
omnibus bill had passed, but that bill had included an amendment
the governor found unacceptable, and so the governor vetoed the
bill. The specific amendment had substantial judiciary
consequences, but did not receive review by the judiciary
committees since the amendment was tacked on late in the
legislative session.
REPRESENTATIVE HAWKER identified the boards that were affected
by the veto as the Board of Barbers and Hairdressers, the Board
of Dental Examiners (BDE), and the Board of Nursing (BON) and
the Alcoholic Beverage Control Board ("ABC Board"). He noted
two additional boards also up for reauthorization this year as
the Big Game Commercial Services Board (BGCSB) and the Alaska
Seismic Hazards Safety Commission. He reported that the dates
recommended for extension are those brought forward by the
state's legislative auditor. He said he was bringing forward
the bill as the chair of the Legislative Budget & Audit
Committee.
3:28:06 PM
THOR STACEY, Member, Alaska Professional Hunters Association
(APHA) stated that the APHA strongly supports extension of the
BGCSB. He said that the APHA believes the BGCSB has been very
effective in raising industry standards and adopting regulations
that promote ethical and responsible development for big game
guides and transporters.
3:29:56 PM
REPRESENTATIVE SADDLER asked him to outline the issues that APHA
is most interested in at this time.
MR. STACEY answered that when the BGCS board was reinstated, the
thrust of APHA's interest was to raise testing standards used to
license new guides and assistant guides. After the original
BGCSB sunsetted, the standards had been significantly
downgraded, and specifically did not contain an oral portion of
the exam. The oral exam was especially important when
considering qualifications of registered guides since they have
the authority to contract hunts and represent the industry. He
noted that he holds a registered guide license and is an active
big game guide in Alaska. He related that he took the
examination during the interim between the boards, when the exam
was administered by the division. However, the exam he took
only consisted of a written examination, which did not reflect
the types of standards the industry finds as adequate and good
for Alaska. Once the board had been reinstated an oral portion
- strongly supported by the APHA - has been added. This allows
qualified professionals to act as proctors, administer the
examination, and assist in helping to score the exams. He
offered his belief that this has raised industry participation
across the board. Many guides and transporters attend the BGCSB
meetings, which has helped to successfully resolve numerous
issues.
3:32:05 PM
MR. STACEY explained that the APHA currently supports another
bill before the legislature, sponsored by Representative Feige.
When the original BGCSB sunsetted, the BGCSB's regulations were
placed into statute. The APHA would like to transfer some of
these statutes to regulations to allow the industry to be more
responsive to changes in the profession and add more flexibility
when the business environment changes. It would also allow the
industry to adopt constructive regulations to promote
responsible resource development.
3:32:49 PM
REPRESENTATIVE SADDLER asked him to predict the activities for
the next extension of the BGCSB board.
MR. STACEY answered that his industry would like to continue to
address standards for the licensed professionals. He noted that
even guides and transporters outside the APHA would like to see
transporter licenses addressed, including water-based
transporters and air transporters - anyone who transports for
big game commercial services.
3:34:06 PM
KELLY VREM, Registered Guide-Outfitter member, Big Game
Commercial Services Board (BGCSB), Department of Commerce,
Community & Economic Development (DCCED), mentioned that he is
also supports the bill previously mentioned - sponsored by
Representative Feige - since the housekeeping measures of this
dynamic industry currently are cumbersome. He related that the
industry faces an evolving process as game populations change.
He noted that while he is a new board member as of March 2011,
he has attended meetings since the 1970s when he was an
assistant guide. With respect to HB 279, he offered his belief
that the BGCSB serves a purpose and he would like to see it
continue.
3:36:20 PM
CHAIR OLSON, after first determining no one else wished to
testify on the BGCSB and the Alaska Seismic and Hazards Safety
Commission, turned to the Alcoholic Beverage Control Board "ABC
Board" and related his understanding the executive director has
comments.
3:37:28 PM
SHIRLEY GIFFORD, Executive Director, Alcoholic Beverage Control
Board ("ABC Board"), Department of Public Safety (DPS) read from
prepared remarks [original punctuation provided]:
Representative Olson, Representative Johnson and
Members of the House Labor & Commerce Committee,
Thank you for this opportunity to speak in favor of
HB279, an Act that would extend the termination dates
of six different boards and commissions. I am speaking
specifically to the extension of the Alcoholic
Beverage Control Board. I have served as the Director
for the ABC Board for the past three years. For three
years prior to my appointment as director I served as
a member of the board of directors. I understand the
important work the ABC Board conducts in the control
of manufacturing, bartering, possessing, and selling
of alcoholic beverages in the state.
The ABC Board is currently in the wind down year with
a mandate to close our doors on June 30th. This action
would set the state back significantly in the progress
we have made in licensing of liquor establishments and
enforcement of the laws and regulations that govern
the operations of these licensed premises. We have
made many positive changes within the agency and our
employees are competent, professional, ethical, and
helpful to licensees, members of the public, members
of other agencies, and members of local governing
bodies.
The ABC Board has made mistakes in the past, I fully
expect we will make mistakes in the future; however,
we continue to work hard to establish safeguards to
lessen those mistakes. We have made excellent progress
in the development of our policies and procedures as
well as with our available resources, the
implementation of a fair and objective strategic
enforcement plan.
Since I have been in my position I have heard from
industry representatives that licensees were
dissatisfied with the ABC Board. Therefore, I created
a written mail-in survey to gather, anonymously, if
they wished, feedback from licensees. We mailed
surveys to 1,439 licensees and included a self-
addressed stamped envelope. After three months and the
mailings all but ceased to arrive we tallied the
results from 257 completed surveys. I understand an 18
percent return on mail-in surveys is a decent return.
In all rated categories from very poor to superior the
licensing staff of the ABC Board scored above average
to superior. In all rated categories from strongly
disagree to strongly agree in areas such as the
investigator demonstrated respect; the investigator
explained the purpose of the visit; the investigator
was knowledgeable; the investigator was professional
and appropriate, the enforcement staff scored agree to
strongly agree and in the one category rated from very
poor to superior, e.g. if the contact was in response
to the licensee's request, the process of getting the
licensee's issue resolved, the enforcement staff rated
above average.
The ABC Board recently contracted with the University
of Alaska Anchorage to conduct a study to identify
ways to achieve higher rates of compliance that are
being seen in tobacco compliance checks.
3:41:39 PM
MS. GIFFORDS continued:
That report should be available within the next week
or two and I believe it will provide the ABC Board
with an excellent tool to guide our future in the
prevention of underage persons purchasing alcoholic
beverages.
In fiscal year 2011 the ABC Board for the first time,
according to available records, attained the goals of
percentages of compliance checks in eight regions
designated by the board. In meeting our goals the
compliance checks increased from 700 in fiscal year
2010 to 804 in fiscal year 2011. Compliance by
industry members increased by three percent - from 85%
to 88%. The goal set is 95% for all regions and three
regions nearly met the goal - licensees in the
Fairbanks North Star Borough were 93% compliant, in
the City and Borough of Juneau were 93% compliant, and
in the Mat-Su Borough were 92% compliant. The industry
is on an excellent track and we look forward to
improvements in other areas of the state.
This year we sent information packets to all licensees
rather than just renewal forms to approximately one
half of the licensees who were up for their biennial
renewal.
3:43:01 PM
MS. GIFFORDS continued:
Partnering with Alaska Cabaret, Hotel, Restaurant &
Retailers Association, CHARR, CHARR provided a "born
on" calendar, "born on" sticker, and a brochure
entitled "16 Required Points for Alcohol Server
Education in Alaska." I believe these are excellent
tools that if followed by all industry members the
incidences that put licensees at risk would decrease
substantially. We will continue our efforts to
educate. We continue to conduct formal training for
any licensee who requests and we address questions
received through our website. All of us at the ABC
Board on a daily basis either answer questions from
licensees on the phone or in e-mail, or assist
licensees who come to the office.
We have a lot of work to do and to not extend the ABC
Board would set us back as the state explores
alternative ways to license establishments and enforce
alcoholic beverage laws.
I respectfully urge you to pass HB279 that includes
the extension of the ABC Board to June 30, 2015. Thank
you.
3:44:04 PM
CHAIR OLSON asked for a copy of her written testimony and also
for a report he anticipated would be released next week.
MS. GIFFORDS agreed to do so.
3:44:14 PM
REPRESENTATIVE SADDLER asked about the "windup" of the ABC Board
and whether operations were slowing up or winding down and for
her to describe the effect of the impending deadline on the
operations.
MS. GIFFORD answered that she has not taken any aggressive
efforts to wind down the ABC Board since she hopes the
legislature will act on this bill. She stated she will be
prepared by the end of the legislative session to take any
necessary action to cease board operations by June 30, 2012.
She pointed out she has received two interpretations on what a
final sunset might mean: first, that staff would remain since
the functions to license and enforce are necessary and would
continue, but the actual board would disappear; and second, that
the board would remain, but staff would not. At this time, she
said she was unclear of the actual impact of the impending
sunset.
3:45:53 PM
REPRESENTATIVE SADDLER asked - in the event that the ABC Board
is extended - for her to discuss what she would do differently
over the next eight or so years.
MS. GIFFORD answered that she would like to see a more concerted
effort on compliance checks - noting that the board has been on
a good track - since these checks result in compliance. She
offered her belief that last year proved that point, but one
year does not provide a sufficient track record. Instead,
several years need to be reviewed and the program should be
adjusted as necessary, including updating any regulations and
statutes to assist licensees in the "good, lawful operation" of
their premises. She offered her belief that the board is on a
good path to reach 95 percent compliance. Some naysayers think
95 percent compliance cannot be reached but she thinks the track
record for the Fairbanks, Juneau, and the Matanuska-Susitna
Borough areas have already proven that it is possible. She said
these communities should be commended.
3:47:32 PM
REPRESENTATIVE SADDLER asked whether any survey results
indicated areas in which the board did not score so well.
MS. GIFFORD reviewed her notes and then indicated that the
survey consisted of 11 questions on licensing and 10 on the
enforcement efforts. She said some misconception still exists
on the process the investigators use to determine compliance
checks. She described one response to the survey appeared to be
from an angry person. The survey contains contact information
so she called the person. The person had mistakenly thought
that false identification had been used for underage buyers
during compliance checks. She was able to clarify the process
used by the ABC Board's investigators. This resulted in an
amicable call, one in which the person seemed satisfied with her
answers. She concluded that just "opening up communications"
provides a means to educate licensees on compliance checks.
3:49:24 PM
REPRESENTATIVE JOHNSON said he recognizes the ABC Board is in a
tenuous position, but the audit recommendations indicate clear
action steps for the ABC Board to take. He paraphrased from the
auditor's recommendation No. 1 [Audit Control Number 12-20063-
09], dated July 27, 2009], as follows:
There is no enforcement strategy to prioritize and
apply resources in a cohesive fashion to enforce
alcohol beverage laws. The agency does not know if
inspecting and checking half the licensees is a good
or bad outcome for their efforts, an efficient or
effective use of their resources, or in the best
interest of the public. The ABC Board continues to be
without a systematic strategy to ensure resources are
used effectively and efficiently to enforce the
alcoholic beverage laws. The ABC Board members should
make it a priority to develop and implement this
recommendation.
REPRESENTATIVE JOHNSON referred to the second audit
recommendation. He said, "...should develop and enforce written
policies and procedures to ensure their staff's compliance with
state laws and decisions..." He indicated this is somewhat
troubling. He read, "There are instances of non-compliance and
non-enforcement with state laws, overpayments to municipalities,
possible nonpayment of fees by license holders, and incomplete
and inaccurate tracking of data. The ABC Board's staff does not
have sufficient oversight and accountability over the staff's
activities to ensure compliance with state laws and decisions
made by the board and director." He also asked how the agency
could determine that it has 95 percent compliance if the board
does not have adequate tracking. He asked for a status update
on the two recommendations noting the audit was issued a year
ago.
3:51:37 PM
MS. GIFFORD answered the audit language quoted was language from
earlier audit recommendations, which contains dated information.
She indicated that he ABC Board currently has clear, strategic
goals, a system in place - including tracking forms - to ensure
investigators are not duplicating their efforts on compliance
checks. She related that the tracking system is automated in
the database. She acknowledged that previously, investigators
would drive around and randomly select premises they did not
think were recently checked. However, due to technology and
strategies in place for fair compliance checks - based on
information in the system - investigators operate differently.
She was hired on January 5, 2009, and auditors spent the next
five months in her office. She said she implemented policies
and procedures soon after the initial meeting with auditors in
2009. Additionally, she worked to correct issues as the
auditors brought them to her attention. She expected Ms. Curtis
to provide an updated report to the committee. She said she met
with auditors on Tuesday to discuss one outstanding issue
pertaining to coding revenues in the system, which is being
addressed with the assistance of the Department of Public
Safety's (DPS) finance staff. She also noted she would add
another code to track permits. She offered her belief that the
committee will find the ABC Board has met the recommendations
put out several years ago [in the audit.]
3:53:37 PM
REPRESENTATIVE JOHNSON said he hoped for this answer. He found
it was disconcerting to see noncompliance with state laws and
looked forward to the updated report.
3:53:58 PM
REPRESENTATIVE THOMPSON related his understanding that teams of
two have been citing bartenders or servers for serving an
inebriated person and that the inebriated person has also been
arrested. He asked if any disparity exists between the standard
for an inebriated person in a bar and for a person driving under
the influence of alcohol. He wondered if the regulation for
inebriated on premises needed to be clarified, noting that he
has not specifically read the regulations. He stated that a
person in a bar might be too impaired to drive, but have planned
to take a cab home. He further asked whether the standard for
being inebriated on premises and driving while intoxicated
needed to be addressed.
MS. GIFFORD answered that the standards are not the same. She
offered that a blood alcohol level of .08 while driving is the
not the same standard used for a drunken person on premise. She
said the correct terminology is a "drunken person" and that
would pertain to characteristics exhibited by a person such as
stumbling, an inability to stand up, falling off a bar stool,
throwing up, inability to talk, and bloodshot or unfocused eyes.
She thought most people could recognize when a person is a
"drunken person" but that this standard is not the same as for a
person who is under the influence who should not drive a car.
She offered her belief that the statutes and regulations are
clear with respect to the definitions. She has heard informally
that people say that bars are where you get drunk, but it is
illegal to get drunk on a premise. She indicated the licensees'
feedback is that they do not want a "drunken person" in their
bars. She reiterated the people being escorted out of bars, or
those being cited or arrested are the people licensees do not
want on their premises.
3:56:40 PM
J. KATE BURKHART, Executive Director, Alaska Mental Health Board
Advisory Board on Alcoholism and Drug Abuse (ABADA), Department
of Health and Social Services (DHSS) began by mentioning that
Robert Coghill, chair of ABADA has joined her today. She
emphasized that she is solely representing the ABADA, but is not
representing the Department of Health and Social Services (HSS).
She said ABADA appreciates the "ABC Board's" inclusion in the
Omnibus bill and ABADA supports the extension of the ABC Board
since it provides a critical component to the overall substance
abuse prevention system in the state. Part of the strategy for
reducing substance abuse - at the national and state level -
involves reducing and preventing underage drinking. The
strategies related to reducing access to alcohol to minors and
those under the age of 21 include the duties Ms. Gifford
outlined, such as compliance checks, preventing third party
purchases by adults for those under the age of 21 - underage
drinking - and training for retailers and their employees. She
said she was encouraged to hear Ms. Gifford speak of the
partnership with the industry, with respect to the education and
use of the "born on" stickers and cards. She acknowledged that
the Cabaret, Hotel, Restaurant, & Retailers Association (CHARR),
has continued to work hard to ensure its members receive
training, which is a critical component to our prevention
system. She referred to her written comments for data that
shows great progress made to curb underage drinking in Alaska.
It has taken over 15 years - about the same time as it has taken
to curb tobacco use - to make this progress. She said it takes
a long time to change people's minds and their behaviors. She
noted that Alaska's high school youth has reported less active
alcohol use. Additionally, she reported that Alaska's
statistics are better than the national average, which she
applauded. She concluded by expressing ABADA's support for the
extension of the ABC Board.
REPRESENTATIVE SADDLER asked for any areas ABADA supports for
improvements to the ABC Board's operations or activities.
MS. BURKHART responded that one area she previously discussed
with Ms. Gifford and she was encouraged to hear mentioned was
the increased partnership and cooperation with the industry.
The ABC Board's job has been to ensure compliance with Alaska's
laws and that only lawful sales are made. She stated ABADA has
benefited from partnering with the industry and retailers in
other areas of prevention, such as fetal alcohol spectrum
disorder. "It has been a great opportunity for us," she said.
The ABADA has gained a better understanding of the industry's
perspective on alcohol, alcohol sales, and the use of alcohol.
She stressed that ABADA is not a teetotal organization, but one
that believes in responsible use or abstinence as choices. The
ABADA's job is to focus on preventing the negative consequences
of alcoholism and drug abuse. Based on her own experience she
identified this as one area she was interested in seeing
improvement. She referred to Ms. Gifford's comments that the
relationship with industry is improving and concurred she'd also
like to see it continue to improve. She thought it possible for
the ABC Board to operate as an enforcement and licensing
organization, but also have a collaborative relationship with
the industry.
4:01:41 PM
ROBERT COGHILL, Chair, Alcoholic Beverage Control Board ("ABC
Board"), Department of Public Safety (DPS) stated he previously
spent nine years serving on the Fairbanks School Board. He
related that he is very concerned about children, which is one
reason he is on the ABATA board. He acknowledged the progress
he has seen in the last decade, with respect to liquor stores -
noting he owns shares in a liquor store. He pointed out the
training staff receives is preventing alcohol use [underage
drinking] as a result of the "ABC Board's" efforts.
4:03:04 PM
PATRICIA REYNAGA, Registered Nurse, stated that she has been a
registered nurse for 42 years. She supports the reauthorization
of the Board of Nursing. She attends the majority of the Board
of Nursing's quarterly meetings and has done so for years. She
has observed the board making decisions after thoughtful
discussion and testimony during its meetings. The board posts
and often refers to its mission during the decision-making
process. She thanked members for their time.
4:04:00 PM
SHERRY BUTTERS, Retiree, said she is a retired First Sergeant
[Alaska National Guard], but has worked - about eight years -
with kids while serving for the Counterdrug Support Program in
the Drug Demand Reduction Division. She emphasized her support
for the continuation of the ABC Board to protect our children
from alcohol. She said that the earlier kids start drinking,
the earlier they get into trouble, plus alcohol and drug use can
reduce their ability to join the military. She also said, "It
really sets them up for failure in life."
4:05:08 PM
REPRESENTATIVE SADDLER asked for the trend in recruitment.
MS. BUTTERS answered that problems with substance abuse issues
have prevented youth from joining the military. As an aside,
she mentioned another reason not related to alcohol and drug use
that has prevented youth from joining the military is impaired
hearing. She surmised their hearing loss may be related to
playing loud music. She also emphasized that youth cannot join
the military if they have been cited for underage drinking until
they reach the age of 21. She pointed out that generally if
youth have not joined by the ages of 18 or 19, they do not
consider joining the military.
4:06:20 PM
REPRESENTATIVE SADDLER asked whether she has observed any issues
such as the use of bath salts or synthetic use.
MS. BUTTERS agreed she has seen the type of drug use he
described. She said that this type of drug use has not been an
issue for those youth wishing to enlist, but it has been an
issue for young soldiers already serving in the military. She
clarified that soldiers can be busted for any type of substance
abuse that alters their state of being. She reiterated that the
military does not screen for those types of substances, but if
active duty soldiers are caught using drugs they will get into
trouble.
4:07:18 PM
CHAIR OLSON, after first determining no one else wished to
testify, closed public testimony on HB 279.
4:07:48 PM
KRIS CURTIS, Acting Legislative Auditor, Legislative Audit
Division, explained the last full audit for the ABC Board was
dated July 2009. The auditors have followed up with the board
last year and again this week with respect to the prior audit
recommendations. The audit concluded that the ABC board should
be extended and was serving a public purpose; however, auditors
made several recommendations regarding improving the
effectiveness and efficiency of the board. The auditors
recommended a stronger internal control environment be
implemented to include written policies, operational procedure,
and a strategic plan governing the enforcement activities.
Since that time many improvements have been made. Almost all of
the auditor's recommendations have been implemented. She
agreed, that as Ms. Gifford discussed, one outstanding
recommendation remains regarding licensing revenues. The
licensing fee revenues recorded in the ABC Board's data base did
not agree nor was it reconciled with the same revenues recorded
in the state's accounting system. This deficiency continues to
exist. She related auditors discussed this matter with the
DPS's administrative staff who indicated that turnover in the
fiscal staff has delayed addressing the issue. However, the
department is currently trying to address the issue.
4:09:23 PM
REPRESENTATIVE JOHNSON recalled the auditors recommended the ABC
Board be extended to 2014.
MS. CURTIS agreed that the 2009 audit recommended extension
until 2014.
REPRESENTATIVE JOHNSON asked whether that date is still
appropriate.
MS. CURTIS said she believed the follow-up audit recommended a
one-year extension. In 2010, the auditors performed a more
informal status update. Thus, the auditors did not come up with
a recommended date, per se, but just followed up with the prior
recommendations.
4:10:20 PM
REPRESENTATIVE JOHNSON asked whether the auditors had a revised
recommended date or would retain the initial recommended sunset
date of 2014.
MS. CURTIS answered that the extension dates in HB 279 seemed
reasonable and would allow the auditors to go back and do a full
sunset review.
4:10:39 PM
CHAIR OLSON asked whether the division thought the ABC Board was
moving in the appropriate direction.
MS. CURTIS answered that the division has seen many of their
recommendations implemented, which she attributed as benefits
derived from the audit recommendations. She acknowledged that
the division noticed quite an improvement once Ms. Gifford took
the position as director.
CHAIR OLSON agreed that has been her record with at least one
other agency.
4:11:38 PM
MS. CURTIS turned to the Alaska Seismic Hazards Safety
Commission. She stated that the audit report was dated June
2011. The purpose of the sunset review was to determine if the
termination date of the commission should be extended and
whether it was serving the public's interest. She reported that
based on the auditors review, the division found that the
commission is operating effectively and serves a public purpose.
The auditors recommended that the commission be extended until
June 30, 2016, and this date is reflected in HB 279. The report
recommended four improvements: First, the commission should
develop a strategic plan to guide its efforts to mitigate
seismic hazard risk in Alaska; second, the commission should
develop procedures to ensure the public notice of meetings is
published timely; third, the auditors recommended that the
commission follow its own adopted procedures with respect to
habitually absent members; and finally, auditors made a
recommendation to the Office of the Governor to fill
appointments to the commission in a more timely manner.
4:12:56 PM
REPRESENTATIVE SADDLER asked whether any long-term vacancies had
occurred.
MS. CURTIS answered that the auditors had reported that one
local government position was open for nine months due to an
insufficient applicant pool.
4:13:27 PM
MS. CURTIS turned to the Big Game Commercial Services Board
(BGCSB). She stated that the audit is dated September 2011.
The audit's purpose was to determine whether the board should be
continued and if it serves a public interest. The auditors
recommended the termination date of the BGCSB be extended to
June 20, 2016, as listed in HB 279. The auditors determined the
board has served the public interest by providing reasonable
assurance that individuals licensed to guide, transport, and
outfit are qualified to do so. The BGCSB has successfully
developed regulations to improve the big game commercial
industry. The limit of a four-year extension was due to the
board not fully implementing the prior audit recommendations and
the less than sufficient support services from the division.
The sunset report included one new recommendation and five
repeat recommendations. The new recommendation requested the
division and board address the poor security controls over
electronic and paper versions of hunt and transport records.
She stated that this information is confidential by statute, but
the division does not have staff with the technical capabilities
to restrict access to the electronic records. She further
stated the division does not have the policies and procedures in
place to ensure the physical files are safeguarded. The
auditors also recommended the prior audit recommendations, which
cover a variety of issues, including poor operational support by
the division in both the administrative and investigative areas.
She noted that licensing fees continue to be insufficient to
support the board's operations. At the end of FY 11, the board
had a deficit of almost $375,000. The auditors recommended that
the first aid requirements needed to provide consistency between
the guide-outfitter licensee types. The board continues to
desire a data base of hunt records and reports. This takes a
significant amount of administrative time and given the board's
fiscal condition does not appear to be a prudent use of funds
given the little value it demonstrates.
4:16:22 PM
MS. CURTIS, turned to Board of Barbers and Hairdressers and
agreed, in response to a question, that there were no new
issues. She mentioned that the extension dates recommended for
Board of Barbers and Hairdressers, Board of Dental Examiners,
and Board of Nursing are the same dates contained in HB 279.
4:16:55 PM
REPRESENTATIVE JOHNSON indicated his desire to cut state
government to streamline the process for businesses to operate.
He asked whether all these boards are necessary.
MS. CURTIS related that when conducting the first audit of the
Alaska Seismic Hazards Safety Commission, auditors recommended
terminating the commission. At the time, it was a new
commission and no board members had yet been appointed. The
auditors agreed that if it was the legislature's intent to
continue the commission, the commission should appoint local
representation from areas impacted from seismic risk. She
reported the appointments occurred and the commission has been
running since then. The auditors determined the commission was
serving a public interest given its statutory responsibilities
so the auditors recommended an extension.
4:18:03 PM
REPRESENTATIVE JOHNSON reiterated his interest in determining
whether an activity is something that government should be
involved in and if the commission is necessary.
MS. CURTIS noted the auditors do take that into consideration,
but she has nothing to recommend as far as termination of this
commission.
4:18:33 PM
REPRESENTATIVE SADDLER noted the fiscal notes are very small.
He acknowledged that the board members are volunteers and
provide expertise, time, and experience to benefit the state.
He asked whether the state is getting the appropriate "bang for
the buck" for money spent on the boards.
MS. CURTIS answered that the audit did not look at that specific
value. She reported that the Alaska Seismic Hazards Safety
Commission has a $10,000 annual budget, which is not a lot of
money. The auditors did not estimate or quantify the value.
The ABC Board has an annual budget of $1.4 million. She
clarified that none of the sunset criteria that the division
uses has the auditors evaluate and provide a specific value
judgment.
REPRESENTATIVE SADDLER referred to his experience with boards
and commissions. He thanked board members, characterized the
service as thankless service, and offered that the committee
appreciates service on boards and commissions.
4:19:55 PM
CHAIR OLSON noted Representative Saddler has spent significant
time on boards and commissions.
4:20:09 PM
REPRESENTATIVE HAWKER stated that he has brought this bill
forward as the chair of the Legislative Budget and Audit
Committee. He asked this committee to provide the evaluative
process. He offered his belief that the committee has
identified issues with the ABC Board and the long sequence of
recurring audits. He recalled the 2009 audit was the third
audit conducted by the Legislative Audit Division over the past
seven years. The auditors consistently discussed the
significant management deficiencies the agency had. He noted
that the auditors are clearly seeing changes in the agency. He
offered differences exist between whether an agency exists for a
good and valid purpose and should be renewed and how well an
agency might be executing those responsibilities. He emphasized
the ABC Board as an appropriate function of government that
should be reauthorized regardless of how well the agency
functions internally.
4:21:50 PM
REPRESENTATIVE HAWKER referred to the Alaska Seismic Hazards
Safety Commission. He said he was hesitant to bring this
reauthorization forward. He stated that after reading the audit
carefully, it makes one wonder why the commission does exist.
He related that as the bill moves through the legislature that
legislators may want to review the commission from a cost-
benefit analysis to the state. He reiterated that it is the L&C
committee's decision on whether to move the bill forward. He
reported that he is comfortable with the bill as presented and
would appreciate moving it forward for further consideration in
the legislature.
4:22:36 PM
CHAIR OLSON recalled how contentious the bill was last year.
4:22:50 PM
REPRESENTATIVE JOHNSON moved to report HB 279 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 279 was reported from the
House Labor and Commerce Standing Committee.