Legislature(2017 - 2018)SENATE FINANCE 532

04/03/2018 09:00 AM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 76 MARICULTURE REVOLVING LOAN FUND TELECONFERENCED
<Bill Hearing Postponed until 1:30 p.m.>
+ HB 128 SHELLFISH ENHANCE. PROJECTS; HATCHERIES TELECONFERENCED
<Bill Hearing Postponed until 1:30 p.m.>
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled but Not Heard
<Pending Referral>
+ HB 273 EXTEND: MARIJUANA CONTROL BOARD TELECONFERENCED
Heard & Held
+ HB 274 EXTEND: BD OF PSYCHOLOGISTS/PSYCH ASSOC. TELECONFERENCED
Moved HB 274 Out of Committee
+ HB 275 EXTEND: BOARD OF MASSAGE THERAPISTS TELECONFERENCED
Heard & Held
+ HB 278 EXTEND:CERT. REAL ESTATE APPRAISERS BOARD TELECONFERENCED
Heard & Held
+ HB 279 EXTEND: REAL ESTATE COMMISSION TELECONFERENCED
Heard & Held
+ HB 280 EXTEND: BOARD OF MARITAL & FAMILY THERAPY TELECONFERENCED
Moved HB 280 Out of Committee
+ HB 302 EXTEND: BOARD OF PROFESSIONAL COUNSELORS TELECONFERENCED
Moved HB 302 Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 302                                                                                                            
                                                                                                                                
     "An Act extending the termination  date of the Board of                                                                    
     Professional   Counselors;   and   providing   for   an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:05:02 AM                                                                                                                    
                                                                                                                                
ASHLEY STRAUCH,  STAFF, REPRESENTATIVE ADAM  WOOL, discussed                                                                    
the sponsor statement for HB 302 (copy on file):                                                                                
                                                                                                                                
     HB302  extends  the  sunset  date   for  the  Board  of                                                                    
     Professional Counselors  to June 30, 2026.  I encourage                                                                    
     all  the  members  to   review  the  Legislative  Audit                                                                    
     summary and  the full audit  report. You will  see that                                                                    
     the  Board   has  served   the  public's   interest  by                                                                    
     effectively   licensing  and   regulating  professional                                                                    
     counselors  and certified  counselor supervisors.  From                                                                    
     FY14 to FY16,  the Board has had a 46%  increase in new                                                                    
     licenses,  and  has  issued 190  new  licenses  and  73                                                                    
     supervisor     certifications    over     that    time.                                                                    
     Additionally,  the Board  has worked  to implement  new                                                                    
     tele-health regulations to  guide the distance delivery                                                                    
     of services for mental health occupations.                                                                                 
                                                                                                                                
     The   Board  of   Professional  Counselors   serves  an                                                                    
     important role  in monitoring  licenses and  working to                                                                    
     ensure  that  only  qualified individuals  practice  in                                                                    
     Alaska. The continuation of this  Board is important to                                                                    
     the ongoing  improvement of the  professional counselor                                                                    
     occupation.                                                                                                                
                                                                                                                                
9:06:45 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  discussed the document "A  Sunset Review                                                                    
of  the  Department  of Commerce,  Community,  and  Economic                                                                    
Development,  Board  of   Professional  Counselors  (board)"                                                                    
(copy  on file).  She stated  that the  purpose of  a sunset                                                                    
audit was  to determine  whether a  board or  commission was                                                                    
serving  the public's  interest,  and whether  it should  be                                                                    
extended. She  stated that the  report conclusions  began on                                                                    
page 3. She  stated that, overall, she found  that the board                                                                    
was serving the public's  interest, by effectively licensing                                                                    
and   regulating  professional   counselors  and   counselor                                                                    
supervisors. She  stated that  it was  found that  the board                                                                    
monitored  licensees,   and  worked  to  ensure   that  only                                                                    
qualified individuals  practiced. Furthermore, it  was found                                                                    
that the  board actively  developed and  adopted regulations                                                                    
to  improve  the  profession.   She  recommended  the  full,                                                                    
maximum eight-year extension.  There were no recommendations                                                                    
as  part of  the audit.  She  remarked that  there was  some                                                                    
standard  information  within  the  report.  She  noted  the                                                                    
scheduled licensing activity on page  5. She shared that, as                                                                    
of January 2017, there were  657 active licensees. She noted                                                                    
that it was a 46 percent  increase, as compared to the prior                                                                    
2009 sunset.  She shared  that page 6  showed a  schedule of                                                                    
revenues  and  expenditures.  The  board had  a  surplus  of                                                                    
$70,000  as of  March  31.  She stated  that  the board  and                                                                    
management planned to decrease fees  in FY 18 to address the                                                                    
surplus. The  list of  fees was  on page  7. She  noted that                                                                    
response to the  audit began on page 19.  She announced that                                                                    
the Office  of the Governor  (GOV), the department,  and the                                                                    
board  chair  agreed  that the  board  served  the  public's                                                                    
interest and should be extended to the maximum 8 years.                                                                         
                                                                                                                                
Senator  Micciche  stated  that   he  had  heard  the  audit                                                                    
findings in  another committee. He remarked  that within the                                                                    
discussion, it  was learned that  the cost and time  for the                                                                    
audit was not  covered by the board. He felt  that maybe the                                                                    
legislature should  consider that  the board cover  the cost                                                                    
of the audit.                                                                                                                   
                                                                                                                                
Senator von Imhof  referenced page 6 of the  audit, in which                                                                    
there  was a  deficit in  FY 13,  FY 14,  and FY  15. A  fee                                                                    
structure change  then occurred, so  there was a  surplus in                                                                    
FY  16  and  FY  17.  She  noted  that  the  fees  would  be                                                                    
decreased.  She   wondered  whether  there  was   a  certain                                                                    
allowable surplus  percentage, so there could  possibly be a                                                                    
cushion to be absorbed over time.                                                                                               
                                                                                                                                
Ms. Curtis replied  that statutes did not  provide for that.                                                                    
She  shared that  the statutes  outlined  that license  fees                                                                    
should cover the  cost of regulation. She  stated that there                                                                    
was a problem  over the years of the  allocation of indirect                                                                    
costs,  but was  corrected recently.  She stressed  that the                                                                    
statute  did  not  provide flexibility  or  a  cushion,  but                                                                    
rather stated that  fees should be set to cover  the cost of                                                                    
regulation.                                                                                                                     
                                                                                                                                
9:11:18 AM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  wondered  whether  the  department  had                                                                    
language  suggestions to  address the  peaks and  valleys in                                                                    
the boards  to make  it more sustainable  to those  who were                                                                    
paying fees to the state.                                                                                                       
                                                                                                                                
SARA  CHAMBERS, DEPUTY  DIRECTOR, DIVISION  OF CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,  COMMUNITY  AND  ECONOMIC  DEVELOPMENT,  addressed                                                                    
Senator   von  Imhof's   question.  She   stated  that   the                                                                    
department  had  worked  to examine  how  statute  could  be                                                                    
altered  to provide  more effective  tools. She  shared that                                                                    
there  were struggles  within  the  existing authority,  but                                                                    
those  had been  corrected.  She remarked  that because  the                                                                    
statute  required the  revenues to  approximately equal  the                                                                    
expenditures  for the  programs that  had some  expenditures                                                                    
that  were   impossible  to  anticipate.  She   shared  that                                                                    
licensing fees paid for administrative  costs, and also paid                                                                    
for all  investigations and legal  costs. She  stressed that                                                                    
the licensee paid for those expenditures.                                                                                       
                                                                                                                                
Senator  von   Imhof  announced   that  she  would   have  a                                                                    
conversation about the issue at a later date.                                                                                   
                                                                                                                                
9:16:55 AM                                                                                                                    
                                                                                                                                
Senator Micciche  was concerned that boards  and commissions                                                                    
did not  become profit  centers. He  thought the  matter was                                                                    
worthy of discussion.                                                                                                           
                                                                                                                                
Senator  Stevens  asked if  Ms.  Chambers  was hearing  from                                                                    
licensees  regarding the  unfairness of  fees going  towards                                                                    
the activities of un                                                                                                            
                                                                                                                                
Ms. Chambers answered in the affirmative.                                                                                       
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
DEBRA  HAMILTON, CHAIR,  BOARD  OF PROFESSIONAL  COUNSELORS,                                                                    
SOLDOTNA   (via  teleconference),   stated   that  she   was                                                                    
available for questions.                                                                                                        
                                                                                                                                
Senator Micciche  wondered whether  the balance was  fair in                                                                    
the licensing fees for her board.                                                                                               
                                                                                                                                
Ms. Hamilton replied that she  was currently looking at that                                                                    
issue. She remarked  that she joined the board at  a time of                                                                    
deficit,  had  worked  to  reverse  that  deficit,  and  was                                                                    
currently  in a  surplus.  She shared  that  there was  some                                                                    
feedback regarding the licensure fee increases.                                                                                 
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
9:20:20 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  commented  that  continued  conversation                                                                    
would  be  worthy to  address  the  concern over  peaks  and                                                                    
valleys.  He  remarked that  it  would  be  nice to  find  a                                                                    
solution.                                                                                                                       
                                                                                                                                
Senator  Micciche thought  people  did  not understand  that                                                                    
boards and  commissions were self-funded  and self-regulated                                                                    
and did not use state funds.                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  noted that there  had been a  fiscal not                                                                    
review  with the  Legislative Finance  Division. She  put on                                                                    
the  record that  the  $21,100  was the  cost  of the  board                                                                    
itself.                                                                                                                         
                                                                                                                                
Vice-Chair Bishop  MOVED to report  HB 302 out  of Committee                                                                    
with individual recommendations  and the accompanying fiscal                                                                    
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
HB  302 was  REPORTED  out  of committee  with  a "do  pass"                                                                    
recommendation  and  with  one previously  published  fiscal                                                                    
impact note: FN 1(CED).                                                                                                         
                                                                                                                                
9:24:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:00 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB273 Legislative Audit 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB273 Sponsor Statement 01.19.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 273
HB274 Sponsor Statement 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB274 Supporting Document - 2017 Legislative Audit 1.29.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 274
HB 275 01.19.18 Support Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB 275 Support Gilmour.docx SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 01.19.18 Opposition Letters.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275 Legislative Audit 10.11.17.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB275(FIN) Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 275
HB278 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB278 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB279 Letter of Opposition 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Letter of Support 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB279 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB280 Sponsor Statement 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB280 Supporting Document - 2017 Audit 3.31.18.pdf SFIN 4/3/2018 9:00:00 AM
HB 280
HB302 Sponsor Statement.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
Professional Counselors Audit Report.pdf SFIN 4/3/2018 9:00:00 AM
HB 302
HB 279 Senare Finance Testimony Brollini 2.pdf SFIN 4/3/2018 9:00:00 AM
HB 279
HB 278, 275, 278, 279 DCCED Response - Corporations Buisness, and Professional Licensing 040318.pdf SFIN 4/3/2018 9:00:00 AM
HB 278
HB 76 follow up S FIN (DED).pdf SFIN 4/3/2018 9:00:00 AM
HB 76
HB 279 - Brickman Testimony 4.4.2018.pdf SFIN 4/3/2018 9:00:00 AM
HB 279