Legislature(2013 - 2014)SENATE FINANCE 532

03/06/2013 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 16 BD OF ARCHITECTS, ENGINEERS, SURVEYORS TELECONFERENCED
Moved SB 16 Out of Committee
+= SB 21 OIL AND GAS PRODUCTION TAX TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
Department of Natural Resources
Department of Revenue
EconOne
PFC Energy
Roger Marks
Bills Previously Heard/Scheduled
= SB 23 AIDEA: LNG PROJECT; DIVIDENDS; FINANCING
Moved CSSB 23(FIN) Out of Committee
SENATE BILL NO. 16                                                                                                            
                                                                                                                                
     "An  Act  relating to  the  Board  of Registration  for                                                                    
     Architects, Engineers,  and Land  Surveyors and  to the                                                                    
     Department   of  Commerce,   Community,  and   Economic                                                                    
     Development."                                                                                                              
                                                                                                                                
9:10:10 AM                                                                                                                    
                                                                                                                                
MARGARET DOWLING, STAFF, SENATOR CATHY GIESSEL, explained                                                                       
SB 16. She referred to the Sponsor Statement.                                                                                   
                                                                                                                                
     SB   16   revises    statutes   governing   architects,                                                                    
     engineers, and land surveyors  in Alaska, designating a                                                                    
     full-time  investigator  specifically   for  the  State                                                                    
     Board  of Registration  for Architects,  Engineers, and                                                                    
     Land Surveyors (AELS).                                                                                                     
     The AELS Board's mission, as  defined in statute, is to                                                                    
     protect public  health, safety and welfare  by ensuring                                                                    
     that  those  entering  the practices  of  architecture,                                                                    
     engineering, and land  surveying meet minimum standards                                                                    
     of  competency,  and  maintain those  standards  during                                                                    
     their practice,  by requiring licensure to  practice in                                                                    
     the  state.  The  Board   enforces  the  licensure  and                                                                    
     competency  requirements  and  responds  to  complaints                                                                    
     brought by the public.                                                                                                     
                                                                                                                                
     Currently,   the  AELS   Board  shares   one  part-time                                                                    
     investigator  with  six  other boards  that  oversee  a                                                                    
     total  of 18,095  licensees, of  which 6,439  licensees                                                                    
     are under the AELS Board.                                                                                                  
                                                                                                                                
     According  to  the  board,   because  of  the  negative                                                                    
     economic  conditions in  various  parts  of the  United                                                                    
     States,  a  significant   number  of  corporations  and                                                                    
     individuals  are  relocating  to Alaska  and  many  are                                                                    
     practicing  without proper  licensure  or knowledge  of                                                                    
     applicable  statutes and  regulations.  In 2012  alone,                                                                    
     the  AELS   Board  added  490  new   licensees  to  its                                                                    
     oversight.                                                                                                                 
                                                                                                                                
     In  addition to  the already  growing workload  for the                                                                    
     part-time  AELS  Board  investigator, pressure  on  the                                                                    
     investigator to spend  time on the other  six boards to                                                                    
     which   he  is   also  assigned   is  increasing.   The                                                                    
     efficiency and  effectiveness of the  State's licensing                                                                    
     investigation  process  is   further  reduced  by  only                                                                    
     having a  single shared investigator who  must maintain                                                                    
     knowledge of  the various  statutes and  regulations of                                                                    
     seven different boards.                                                                                                    
                                                                                                                                
     SB  16 also  removes the  constraint that  examinations                                                                    
     for   licensure  be   written.  With   advancements  in                                                                    
     technology,  examinations are  moving to  an electronic                                                                    
     format which will further increase efficiency.                                                                             
                                                                                                                                
     SB  16 will  better equip  the AELS  Board to  maintain                                                                    
     proper oversight  of its licensees, thereby  uphold the                                                                    
     reputation and integrity of  the disciplines within its                                                                    
     purview, and  ultimately ensure its ability  to protect                                                                    
     public health, safety, and welfare.                                                                                        
                                                                                                                                
Ms.  Dowling explained  the fiscal  note. She  stressed that                                                                    
regulatory boards must  be self-supporting through licensing                                                                    
fees. She pointed  out that the board  had sufficient carry-                                                                    
forward program receipts to cover  the initial cost. The new                                                                    
influx  of  revenue  would  be  generated  in  November  and                                                                    
December of 2013, as the  license fees become due. She noted                                                                    
that, currently, the  license fees were $125  for a two-year                                                                    
license. She  remarked that  the fee  could be  increased if                                                                    
needed, but stressed that  an anticipated fee-increase would                                                                    
be minimal.                                                                                                                     
                                                                                                                                
Senator Dunleavy  surmised that  the fee  would pay  for the                                                                    
extra position.  Ms. Dowling agreed,  and stressed  that the                                                                    
fee must pay for it.                                                                                                            
                                                                                                                                
Senator  Dunleavy   wondered  if   the  position   would  be                                                                    
eliminated,  if  the fees  were  not  able  to pay  for  the                                                                    
position. Ms. Dowling deferred to Mr. Habegar.                                                                                  
                                                                                                                                
DON  HABEGAR, DIRECTOR,  DIVISION OF  CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY    AND   ECONOMIC    DEVELOPMENT   (DCCED)    (via                                                                    
teleconference),  replied  that  there was  a  mechanism  by                                                                    
statute  whereby   a  board's  revenue  and   expenses  were                                                                    
annually  reviewed.  He  added  that  every  two  years  the                                                                    
professional  licensing groups  renewed  their licenses.  He                                                                    
stressed that  the annual and  biannual reviews  allowed the                                                                    
division the  ability to adjust  fees according  to statute;                                                                    
and   could  increase   or  decrease   fees  based   on  the                                                                    
equilibrium between revenues and expenses.                                                                                      
                                                                                                                                
Senator Dunleavy  surmised that  the license fees  would pay                                                                    
for  the  new  position.  Mr.  Habeger  responded  that  the                                                                    
license fees would pay for the position.                                                                                        
                                                                                                                                
9:16:30 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy asked if the  position would be eliminated,                                                                    
if the license fees were not  available to cover the cost of                                                                    
the  position.  Mr.  Habeger   responded  that  the  statute                                                                    
required  the   division  to  collect  revenues   that  were                                                                    
approximately equal  to the fee;  however there may  be less                                                                    
revenue,  which would  cause a  fee  adjustment to  backfill                                                                    
unanticipated  cost.   He  stressed   that  the   fees  were                                                                    
collected two years in advance of expenses.                                                                                     
                                                                                                                                
Senator  Dunleavy   remarked  that  he  was   interested  in                                                                    
monitoring the growth of the operating budget.                                                                                  
                                                                                                                                
Senator   Bishop   wondered   if  the   revenue   adjustment                                                                    
requirement  was  written  in  statute  or  regulation.  Mr.                                                                    
Habeger  responded  that  the   statute  required  DCCED  to                                                                    
collect  revenues   that  approximately   equaled  expenses,                                                                    
followed by  adjusting the fees  through the  regulatory the                                                                    
process. He  stated that there  was an analysis;  followed a                                                                    
presentation to  the board; the  board gives  their approval                                                                    
or feedback;  the regulatory package  is released,  and open                                                                    
to comments; resulting in adjustments or adoption.                                                                              
                                                                                                                                
Senator  Bishop noted  an increase  in the  workload by  116                                                                    
cases, and  wondered if  there were  more fraud  cases since                                                                    
the onset of the recession.  Mr. Habeger replied that he was                                                                    
unsure of  the types of cases  in review, and deferred  to a                                                                    
board member to reply to that inquiry.                                                                                          
                                                                                                                                
Senator  Bishop agreed  to  receive a  response  at a  later                                                                    
date.                                                                                                                           
                                                                                                                                
HARLEY     HIGHTOWER,      ARCHITECT,     ANCHORAGE     (via                                                                    
teleconference),  explained that  the board  was very  large                                                                    
and  complex; and  stressed  that it  was  difficult for  an                                                                    
investigator  to  keep  current  on  all  the  statutes  and                                                                    
regulations.  He  stated  that  he  had  been  a  practicing                                                                    
architect  since  1974.  He  specifically  stated  that  the                                                                    
registration fee was very reasonable.                                                                                           
                                                                                                                                
9:21:05 AM                                                                                                                    
                                                                                                                                
COLIN MAYNARD,  CIVIL ENGINEER,  AELS BOARD,  ANCHORAGE (via                                                                    
teleconference), testified  in support of SB  16. He pointed                                                                    
out that there were  currently 15 engineering licenses which                                                                    
included  landscape   architects  and  land   surveyors.  He                                                                    
explained that there were roughly  2.5 investigators for the                                                                    
board  four  years prior,  but  the  investigators were  now                                                                    
shared between six different boards.  He stressed that there                                                                    
were so many cases, so  the investigations were difficult to                                                                    
complete in  a timely manner.  He stressed that SB  16 would                                                                    
provide  a more  even investigation  and enforcement  of the                                                                    
licensing  laws. He  remarked that  the fees  fluctuate from                                                                    
year to  year, and stressed that  oil money was not  used to                                                                    
support the board.                                                                                                              
                                                                                                                                
JANET   M.  MATHESON,   ARCHITECT,  AMERICAN   INSTITUTE  OF                                                                    
ARCHITECTS,  FAIRBANKS  (via teleconference),  testified  in                                                                    
support  of SB  16. She  stressed that  the bill  provided a                                                                    
necessary  change to  enforce professional  practice in  the                                                                    
state  for public  safety  reasons,  because the  geographic                                                                    
disparity  of  enforcement   was  currently  difficult.  She                                                                    
reiterated that  the change would be  funded by professional                                                                    
licensing fees.                                                                                                                 
                                                                                                                                
DALE NELSON,  CIVIL ENGINEER,  CHAIR OF  ALASKA PROFESSIONAL                                                                    
DESIGN   COUNCIL   LEGISLATIVE    COMMITTEE,   PALMER   (via                                                                    
teleconference),  testified   in  support   of  SB   16.  He                                                                    
explained  that  the   Alaska  Professional  Design  Council                                                                    
(APDC)   represented  many   different  types   of  licensed                                                                    
professions. He remarked  that details of the  bill had been                                                                    
published in the APDC newsletter,  and presented to the APDC                                                                    
Legislative Committee.  He stressed  that APDC  had received                                                                    
only  positive responses  to the  proposals outlined  in the                                                                    
bill.  He  stated  that  he  had  been  a  practicing  civil                                                                    
engineer   since  1973,   and  had   personally  experienced                                                                    
fluctuating licensing fees.                                                                                                     
                                                                                                                                
9:26:49 AM                                                                                                                    
                                                                                                                                
Senator  Bishop wondered  if the  proposed  position was  an                                                                    
exempt  position.  Ms.  Dowling   deferred  to  Mr.  Habeger                                                                    
responded that the position was not an exempt position.                                                                         
                                                                                                                                
Vice-Chair Fairclough  queried who would be  responsible for                                                                    
the  supervising responsibility  of  the  secretary and  the                                                                    
investigator. She  noted that  the line  of command  for the                                                                    
investigator was placed with the  board, and wondered if the                                                                    
board  would  conduct  an  annual  performance  review.  Mr.                                                                    
Habeger  responded that  there  was administrative  activity                                                                    
with  human resource  support and  evaluations. He  stressed                                                                    
that the  division had  the ability  to discipline,  but the                                                                    
board was  focused on directing where  investigations should                                                                    
occur in the state.                                                                                                             
                                                                                                                                
Vice-Chair   Fairclough  stressed   that  the   fiscal  note                                                                    
reflected  a range  18  position  to conduct  investigations                                                                    
into alleged  violations, and would be  directly responsible                                                                    
and  accountable to  the board.  She wondered  if the  board                                                                    
would be  responsible for  performance reviews.  Mr. Habeger                                                                    
replied that  the board  had an  annual review  process that                                                                    
was presented  to the division,  and was used  as additional                                                                    
guidance.                                                                                                                       
                                                                                                                                
Vice-Chair  Fairclough  wondered  if  the  secretary  was  a                                                                    
shared position.  Mr. Habeger  responded that  the secretary                                                                    
position was dedicated to the board.                                                                                            
                                                                                                                                
Vice-Chair  Fairclough  surmised  that there  would  be  two                                                                    
dedicated positions. Mr. Habeger  agreed that there would be                                                                    
two dedicated positions, if the bill were passed.                                                                               
                                                                                                                                
9:30:08 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Fairclough   MOVED  to  REPORT  SB   16  out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
SB  16  was REPORTED  out  of  committee  with a  "do  pass"                                                                    
recommendation and  with a new  fiscal impact note  from the                                                                    
Department of Commerce, Community and Economic Development.                                                                     
                                                                                                                                

Document Name Date/Time Subjects
SB 16 - AELS Board Position Paper on Investigator - January 18, 2013 - Copy.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Letter of Support - AIA.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Letter of Support - Burdett Lent.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Letter of Support - Harley Hightower.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Letter of Support - Richard Heieren.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Sectional Analysis.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 - Sponsor Statment 012913.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 DCCED Senate LC Follow up 021113.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
3 6 13 SB23 Gas in FBX.pdf SFIN 3/6/2013 9:00:00 AM
SB 23
SB023CS(LC)-DCCED-AIDEA-03-05-13.pdf SFIN 3/6/2013 9:00:00 AM
SB 23
SB023CS(LC)-DCCED-AIDEA-03-05-13B.pdf SFIN 3/6/2013 9:00:00 AM
SB 23
SB016-DCCED-CBPL-03-06-13.pdf SFIN 3/6/2013 9:00:00 AM
SB 16
SB 16 Senate FIN Follow up 03-07-13.pdf SFIN 3/6/2013 9:00:00 AM
SB 16