Legislature(1997 - 1998)
01/31/1997 09:00 AM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 51 APPROVE CENTRALIZED PUBLIC HEALTH LAB CHAIRMAN WILKEN announced that SB 51 would be the next order of business. The committee recessed at 9:58 a.m., awaiting the arrival of Senator Kelly. The committee was called to order at 9:59 a.m. Number 482 SENATOR KELLY , Prime Sponsor of SB 51, informed the committee that last year this bill passed the House, came to the Senate. There was a great deal of support in the Senate, but the bill was unable to get to third reading on the final day of session and therefore, the bill died. Senator Kelly believed that in the zeal to close the fiscal gap, capital facilities throughout Alaska are being overlooked. In spite of the fiscal gap, Alaska will have to work something out within the long-range strategy in order to invest more money in capital projects. Senator Kelly said that SB 51 is a good first step and indicated that he is working on another plan. CHAIRMAN WILKEN noted that Forrest Browne from the Department of Revenue was present in order to answer questions as well as Tom Lane from the Division of Administration in DHSS. Number 453 DR. GREG HAYES , Chief of the Section of Public Health Laboratories in DHSS, informed the committee that he had been in Alaska for three years. Prior to that, Dr. Hayes was the Director of the Public Health Laboratories for Indiana. Dr. Hayes discussed his education in this field. The new consolidated Public Health Laboratory facility addressed in SB 51 would be located in Anchorage. The new facility would include the functions of the Anchorage and Juneau Public Health Laboratories and the Medical Examiner's Laboratory. Design and construction costs would be paid through debt financing through the sale of certificates of participation for a lease purchase of the facility. The services of the State Public Health Laboratory are directed towards prevention and control of disease in the community which differs from clinical laboratories focusing on individual care. The Public Health Laboratory focuses on communicable disease testing and work in partnership with the Centers for Disease Control and private laboratories in Alaska. The Public Health Laboratory fulfills an assessment, policy development and assurance role. Advanced testing for infectious agents not routinely performed in the private sector are performed by the Public Health Laboratory. Data is constantly being gathered for targeted disease control efforts. In the event of an epidemic, the Public Health Laboratory is able to apply state of the art technology for rapid testing of large numbers of specimens. Furthermore, the Public Health Laboratory specializes in disease surveillance and the recognition of new and reemerging diseases. Number 425 Dr. Hayes reviewed some examples of how the Public Health Laboratory has benefited Alaskans. The State Laboratory provides essential services for disease surveillance, control, and prevention as well as recognition of new and emerging diseases. Alaska's Public Health Laboratory is an essential component of the state and national public health system. Moreover, the State Public Health Laboratory's mission is to provide scientific and technical information for disease prevention and is Alaska's first line of defense for recognizing and controlling the spread of communicable diseases. Dr. Hayes reviewed the core functions of the Public Health Laboratory which are very different from the role of a private clinical laboratory. Dr. Hayes pointed out that even the most ardent supporters of governmental privatization are reluctant to argue for privatizing the public health function. All 50 states and U.S. territories have public health laboratories of which none are privatized. Dr. Hayes discussed the criteria commonly used by state governments in order to determine whether privatization is appropriate or not. None of the criteria fit the Public Health Laboratory. He noted that if testing were privatized, multiple contracts would be necessary since no one private laboratory performs all types of testing currently performed at the State Public Health Laboratory. Furthermore, for many tests there are no private laboratories that perform the test. The few tests that a private laboratory could perform would merely be added to its current work load being sent out of state. Number 347 Dr. Hayes explained why a new facility is necessary. Two of the facilities are in disrepair with mechanical and structural inadequacies for conducting laboratory testing. The laboratories are in leased space with poor facility layouts and space limitations for future growth. The Juneau and Anchorage facilities have major health and safety concerns such as inadequate ventilation systems for working with infectious organisms. The Juneau and Anchorage facilities also have inadequate wiring. Dr. Hayes discussed specific examples of these problems. Further, the State Medical Examiner needs to find a permanent home. Currently, the Medical Examiner resides in the Department of Public Safety's Crime Detection Laboratory. The Crime Laboratory needs this space in order to develop a much needed DNA analysis laboratory. Dr. Hayes stated that construction of a new facility would save the state money. An unrecoverable investment would be necessary to repair the current facilities, and consultants say that the facilities could not be brought up to code. A new facility would maintain an essential public health service more cheaply and more efficiently. The duplication of activities at multiple locations would not be necessary. Dr. Hayes stated that a new facility would solve the following problems: the fragmentation of services, leased and temporary space, current facilities ill design for current operations, a significant capital investment to fix current facilities although the facilities would not meet code, and the state does not need nor can it afford four separate facilities. Dr. Hayes noted that there have been 14 separate studies since 1985 regarding how to correct problems and position the state laboratories for the future. The conclusion of these studies strongly support the construction of a new facility. In the first year of occupancy, a new facility would save the state $293,000 and would save DHSS approximately $218,000 in personnel and lease costs. Further, the Department of Administration would save $75,000 in lease costs. The cost of the new facility is estimated to be $18,440,000 with annual payments of $2,420,000 for 10 years with a total estimated debt of $24,130,000. The costs from last year's proposal have been adjusted for inflation and the assumptions of the coroner's responsibilities by the Medical Examiner's Program. With regard to the Medical Examiner, it is imperative that the Medical Examiner Laboratory be near Public Safety's Crime Detection Laboratory due to their close interaction and cooperation. Dr. Hayes presented a map depicting the most desirable sites for this project. In conclusion, Dr. Hayes requested the committee's support of this projects. Number 273 SENATOR ELLIS asked if the new facility would be able to accommodate the functions of the Fairbanks laboratory at some point in the future. DR. HAYES said that would be a new project. Funds were cut from last year's bill for a centralized laboratory, so Fairbanks was not included in the project. SENATOR ELLIS asked if Alaska's public health mission made more sense if the Fairbanks laboratory were consolidated with the facility in Anchorage. Is that the most ideal situation? DR. HAYES said that would be a matter of opinion. From his perspective in last year's bill, a centralized option was in the best interest of the state. However, that has changed through the political process. SENATOR ELLIS inquired as to if this project would include the possibility of an addition for future needs. DR. HAYES explained that when the meeting with the architects occurs, there is a certain footage included for the growth in any new building. If additional space for the future can be had, it will be planned in the building. In response to Senator Ellis, Dr. Hayes believed that there is a yearly lease arrangement for the Fairbanks laboratory. TOM LANE interjected that the lease is from the University and there is no concern for the future. DR. HAYES noted that the Juneau Laboratory is on a monthly lease. DR. MICHAEL PROPST , the State Medical Examiner, said that he was present to answer questions. Number 231 MARILYN GEORGE said that Dr. Hayes did not seem to take into consideration the weather in Alaska. The ability to send the tests to Juneau is important. Often, the planes do not get in. The Juneau Laboratory does the microbiology, and often time is of the essence with the results. Ms. George believed that the Juneau Laboratory should not be closed. She also mentioned the job displacement created by the closure of the Juneau Laboratory. CHAIRMAN WILKEN asked if anyone else wanted to testify. Hearing none, he announced that a vote on SB 51 would taken on Monday. SENATOR GREEN pointed out that SB 51 does not include a location. She agreed to talk with Senator Kelly regarding this issue. SENATOR KELLY reiterated the importance to place the facility adjacent to the Crime Laboratory as explained by Dr. Hayes. SENATOR GREEN thought this would be a great facility to be located in the Mat-Su.
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