Legislature(2005 - 2006)SENATE FINANCE 532
04/18/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB69 | |
| SB139 | |
| SJR11 | |
| SB151 | |
| SB110 | |
| SB147 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 139 | TELECONFERENCED | |
| + | SJR 11 | TELECONFERENCED | |
| + | SB 69 | TELECONFERENCED | |
| += | SB 151 | TELECONFERENCED | |
| += | SB 70 | TELECONFERENCED | |
| += | SB 110 | TELECONFERENCED | |
| = | SB 147 | ||
9:08:36 AM 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." This was the first hearing for this bill in the Senate Finance Committee. TOM MAHER, Staff to Senator Gene Therriault, read testimony into the record as follows. This legislation stems from recommendations contained in two reports by the Division of Legislative Audit. (Section 1) of this legislation extends the sunset date of the Board of Marital and Family Therapy from June 30, 2005 to June 30, 2010 per the audit recommendation contained in that report (page 9). SB 139 also incorporates recommendations contained in the audit of the Alaska Sunset Process and Selected Investigative Issues. First, (Sections 2 and 4) for boards that are terminated, this legislation clarifies the transfer of authority for regulatory and disciplinary powers to the Department of Commerce, Community and Economic Development. While the Department has assumed the responsibility for administering the regulated occupation after a board has terminated, the statutes do not clearly give the Department the authority to do so. This change will help address this uncertainty. Second, SB 139 (Sections 3 and 5) changes the standard sunset period for occupational boards in AS 08.03.020(c) and non- occupational boards in AS 44.66.010(c) from "not to exceed four 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/regulatory agencies. Finally, (Section 6) two criteria are added to statute that the auditors must consider in the course of a sunset review: · The extent to which the board, commission, or agency has effectively attained its objectives and the efficiency with which it has operated. · The extent to which the board, commission, or agency duplicates the activities of another governmental agency or the private sector. Expanding the criteria will assure that auditors will measure the efficiency and effectiveness of boards, commissions or agencies under review. The Senate Labor and Commerce Committee approved one amendment offered by the Administration addressing what occurs when a board is terminated. Section 2 of the bill was amended with language that states "all statutory authority of the board is transferred to the department" and a new Section 4 was added that further defines the transition of board regulation when terminated. While the original version of the bill contained language aimed at addressing board termination, the Labor and Commerce Committee preferred the additional language offered by the Administration. Finally, there is one fiscal note from Occupation Licensing - passage of this legislation will incur no additional costs - and the outlying fiscal years the fiscal note merely shows the cost of continuing this board at the current level already included in the budget. 9:12:18 AM Senator Dyson announced for the record that his wife is licensed by the Board of Marital and Family Therapy. Senator Dyson supported the Audit recommendation that this board be consolidated with the Board of Professional Counselors. He asked if other legislation has been introduced that would accomplish this. Mr. Maher answered that legislation pertaining to the Board of Professional Counselors is under consideration. 9:13:01 AM PAT DAVIDSON, Director, Division of Legislative Audit, clarified that the other legislation would retain the Board of Professional Counselors as a separate entity. It was determined to therefore draft this legislation to provide that the Board of Marital and Family Therapy remain separate as well. 9:13:37 AM Senator Dyson asked if any legislation was pending that would combine the two boards. Ms. Davidson replied that no legislation has been introduced. 9:13:52 AM Senator Dyson opined this was "unfortunate". He understood the directive that fees collected by the boards should cover the operating expenses of the board. However, if a board, especially one with limited membership must take adverse action, the legal costs increase the overall operating expenses of the board and the fees must subsequently be increased. In this event, practitioners withdraw from membership in the board and join a separate board with lower fees. 9:14:50 AM Co-Chair Green spoke to the ongoing dilemma when professionals seek to become licensed. The system is not designed to provide for one board to absorb the membership of other boards. She asked about the distinction between the two boards and whether one profession carries a higher risk or requires a greater degree of oversight. 9:15:36 AM Ms. Davidson informed that current statute stipulates that the "occupation" must be financially self-supporting. Therefore, regardless whether the boards were combined, the fees must be established to "level out" the expenses of each occupation. Other pending legislation would change this to provide that the board must be financially self-supporting. The Division of Legislative Audit considered the concept of an overall mental behavioral health board including professional counselors, marital and family counselors, social workers, psychologists and psychological associates. The audit's concluded a combined board of professional counselors and marital and family counselors would be appropriate because of the common educational background and experience. She qualified that the professional counselors "adamantly opposed" such a merger. 9:17:10 AM Co-Chair Green clarified that the membership of the Board of Professional Counselors is opposed to such a merger. 9:17:19 AM Ms. Davidson affirmed, noting that the Board of Professional Counselors has a financial surplus, while the Board of Marital and Family Counselors has a deficit. The cost of regulating these occupations includes investigations, hearing officers, and disciplinary actions. A Division of Legislative Audit report of the sunset review process contains recommendations to the Division of Occupational Licensing for streamlining the investigative unit to become more effective. This could provide some financial reduction in fees imposed for occupations. 9:18:06 AM Co-Chair Green asked if this legislation addresses the issue of extending the termination date of boards and commissions from four years to eight years; specifically an initial four year review for new boards, and reviews every eight years thereafter. 9:18:31 AM Ms. Davidson replied that current language provides that the term of boards is not to exceed eight years. At any time, the legislature could request an audit of a board or commission. Enabling legislation establishing a new board would also provide a schedule for review of that board. 9:19:01 AM Co-Chair Green did not disagree that an audit review every four years could be onerous; however, this process is not unreasonable for new boards. 9:19:20 AM Co-Chair Green asked the reasons for extending sunset review from four to eight years. 9:19:26 AM Ms. Davidson responded that most boards and commissions subject to termination dates are occupational and have been in existence for several years. The fees necessary to cover operational expenses "already sets a pretty high threshold" for professionals intending to practice in Alaska. An analysis of the sunset processes of other states found six states have repealed their sunset provisions; another six states have suspended the process; four states have a four year sunset review process; three states have a standard six year extension; and eight states have a ten year extension. The report also discusses other alternatives. Rather than relying on the sunset process, one suggestion is the concept of a sunrise process that would establish thresholds before any new boards or commissions are set in statute. Once established, boards are difficult to eliminate. 9:21:30 AM Co-Chair Green agreed "there's always a constituency that gets created." 9:21:38 AM Ms. Davidson affirmed. The Division of Legislative Audit primarily considers efficiency and effectiveness rather than whether the board should exist. Boards must issue annual reports of their activities and provide accountability. The legislature "isn't without information with respect to these organizations," although this information is not to the extent that an audit provides 9:22:17 AM Co-Chair Green asked if problems have been identified in the sunset review audit process that should have been found earlier. 9:22:39 AM Ms. Davidson replied that the issues tend to be "hot topics" within the profession rather than regulation of the profession. She gave as an example the Regulatory Commission of Alaska, which is always controversial. She recommended focus on whether boards are effective and efficient and whether other professional organizations exist that could serve the board purpose. 9:23:42 AM Co-Chair Green noted that two recommendations contained in the audit report would provide the legislature greater ability to assess whether a board or commission should be continued. Ms. Davidson opined this would provide "greater focus" in the audit process. The two recommendations are already undertaken, although they would now be addressed more specifically. However, the Division of Occupational Licensing is "on notice" that future audits would specifically review this. 9:24:53 AM Senator Stedman offered a motion to report the bill from Committee with individual recommendations and accompanying fiscal note. There was no objection and CS SB 139 (L&C) MOVED from Committee with zero fiscal note #1 from the Department of Commerce, Community and Economic Development.
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