Legislature(1997 - 1998)

05/07/1998 04:30 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                                                                               
           HOUSE FINANCE COMMITTEE                                             
              May 7, 1998                                                      
                 4:30 P.M.                                                     
                                                                               
TAPE HFC 98 - 160, Side 1                                                      
TAPE HFC 98 - 160, Side 2                                                      
TAPE HFC 98 - 161, Side 1                                                      
                                                                               
CALL TO ORDER                                                                  
                                                                               
Co-Chair Gene Therriault called the House Finance Committee                    
meeting to order at 4:30 p.m.                                                  
                                                                               
PRESENT                                                                        
                                                                               
Co-Chair Therriault   Representative Kohring                                   
Representative Davies  Representative Martin                                   
Representative Davis   Representative Moses                                    
Representative Kelly   Representative Mulder                                   
                                                                               
Co-Chair Hanley  and Representatives Grussendorf and Foster                    
were absent from the meeting.                                                  
                                                                               
ALSO PRESENT                                                                   
                                                                               
Mel Krogseng, Staff, Senator Taylor; Ben Brown, Staff,                         
Senator Kelly; Annette Kreitzer, Staff, Senate Labor and                       
Commerce Committee; Catherine Reardon, Director, Division of                   
Occupational Licensing, Department of Commerce and Economic                    
Development; Pat Davidson, Legislative Auditor, Legislative                    
Audit Division; Kate Coleman, Radiology Health Specialist,                     
Department of Health and Social Services; John Bitney,                         
Legislative Liaison, Alaska Housing Finance Corporation,                       
Department of Revenue; Catherine Reardon, Director, Division                   
of Occupational Licensing, Department of Commerce and                          
Economic Development; Sidney Heidersdorf, Radiological                         
Physicist, Juneau; Kathleen Strasbaugh, Assistant Attorney                     
General, Department of Law.                                                    
                                                                               
The following testified via the teleconference network: Dr.                    
Woller, President Alaska Dental Society, Fairbanks; Lynn                       
Levengood, Attorney, Anchorage; Stan Leaphart, Fairbanks.                      
                                                                               
SUMMARY                                                                        
                                                                               
SB 160 "An Act relating to registration, inspection, and                       
testing relating to radiological equipment in                                  
dentists' offices."                                                            
                                                                               
SB 160 was HELD in Committee for further                                       
consideration.                                                                 
                                                                               
SB 223 "An Act lowering the age requirement from 60 years                      
to 55 years for purposes of senior housing                                     
programs; and repealing a provision relating to                                
the interest rate on senior housing loans made by                              
the Alaska Housing Finance Corporation."                                       
                                                                               
 CSSB 223 (FIN) am was REPORTED out of Committee                               
with "no recommendation" and with a zero fiscal                                
note by the Department of Revenue, dated 1/28/98.                              
                                                                               
SB 236 "An Act extending the termination date of the                           
Citizens' Advisory Commission on Federal Areas in                              
Alaska; and providing for an effective date."                                  
                                                                               
CSSB 236 (RES) was REPORTED out of Committee with                              
a "do pass" recommendation and with a fiscal                                   
impact note by the Department of Natural Resources                             
dated 3/10/98.                                                                 
                                                                               
SB 358 "An Act relating to disclosure of the use of state                      
funds related to personnel records."                                           
                                                                               
 HCS CSSB 358 (FIN) was REPORTED out of Committee                              
with "no recommendation" and with a fiscal impact                              
note by the Office of the Governor, dated 4/30/98.                             
SENATE BILL NO. 160                                                            
                                                                               
"An Act relating to registration, inspection, and                              
testing relating to radiological equipment in dentists'                        
offices."                                                                      
                                                                               
MEL KROGSENG, STAFF, SENATOR TAYLOR testified in support of                    
SB 160 on behalf of the sponsor, Senator Taylor.  She noted                    
that SB 160 changes the procedures for inspecting and                          
registering dental radiological equipment.  She maintained                     
that on-site inspections by the Department of Health and                       
Social Services are unnecessary because the incidence of x-                    
ray overexposure is so insignificant as to be non-existent.                    
Some states do not have a requirement for registration or                      
inspection of dental radiological equipment.                                   
                                                                               
Ms. Krogseng observed that SB 160 would transfer the                           
registration of dental radiological equipment to the Board                     
of Dentistry.  Inspection activities would be done by the                      
private sector.  The owner or lessee would be responsible                      
for providing the Board with documentation showing that the                    
equipment is registered and has been inspected within the                      
past fives years.                                                              
                                                                               
SB 160 would place the registration of dental radiological                     
equipment with the Board of Dentistry. The owner of the                        
equipment will be responsible for providing documentation to                   
the Board that the equipment is registered and has been                        
inspected within the past five years. The Board will                           
establish inspection criteria.                                                 
                                                                               
Ms. Krogseng stressed that if a dentist uses unregistered or                   
uninspected equipment, they will be subject to a civil                         
penalty in the form of a fine, levied by the Board, not to                     
exceed $5000 for each offense.                                                 
                                                                               
Ms. Krogseng maintained that some dentist have gone as long                    
as seven to ten years without inspections due to a lack of                     
qualified inspectors.  She stressed that dentist want to                       
have inspections.  She asserted that the legislation would                     
make inspections and corrections more efficient. She                           
observed that the Alaskan Dental Society supports the                          
legislation.  She provided members with Amendment 1.                           
Amendment 1 would include completion of a United States                        
Department of Defense biomedical equipment technician's                        
course and the International Certification Commission for                      
Clinical Engineers and Biomedical Technology as allowable                      
qualifications for inspectors (copy on file).                                  
                                                                               
Representative Martin expressed concern with the need for                      
the legislation and questioned if dentist will support the                     
legislation through fees.  Ms. Krogseng clarified that the                     
program would be revenue neutral.  Fees would offset the                       
cost.  The Board of Dentistry would only have an                               
administrative function.  The Board would receive and track                    
forms submitted by private inspectors.  There are a total of                   
241 dentist facilities in Alaska.  There are a number of                       
private sector persons that would qualify as inspectors.                       
                                                                               
Representative Martin asked what insurance the public would                    
have that some objective overview was performed.  He                           
maintained that oversight is needed outside of the dentistry                   
profession.                                                                    
                                                                               
Ms. Krogseng maintained that the risk with dental equipment                    
is miniscule.  She observed that equipment must meet federal                   
standards.                                                                     
                                                                               
DR. WOLLER, PRESIDENT ALASKA DENTAL SOCIETY, FAIRBANKS                         
testified via teleconference in support of the legislation.                    
He stressed that the risk is minimal.  The people that do                      
the actual calibration will monitor equipment and the Board                    
would provide oversight.  He noted that there was a 12-year                    
period where his equipment was not inspected.  He maintained                   
that six feet of air absorbs all radiation.  He explained                      
that the Association recommends that inspections be once                       
every five years.  This is consistent with practices in                        
other states.  Manufactures recommend every year.                              
                                                                               
Representative Davies asked for more information regarding                     
federal regulations.  Dr. Woller noted that there are                          
federal regulations regarding shielding and distance between                   
radiation.  There are no federal permits.                                      
                                                                               
CATHERINE REARDON, DIRECTOR, DIVISION OF OCCUPATIONAL                          
LICENSING, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT                     
provided information regarding SB 160.  She observed that                      
the Dental Board did not request the responsibility.  The                      
Dental Board was opposed to the original legislation.  The                     
Department of Commerce and Economic Development is concerned                   
that the legislation would result in duplication of                            
expertise and effort.  The Department of Health and Social                     
Services is knowledgeable about radiation.  The Dental Board                   
and the Department of Commerce and Economic Development are                    
not knowledgeable about radiation.  The Department of                          
Commerce and Economic Development is concerned about the                       
availability of potential inspectors and the potential cost.                   
Each owner would be responsible for inspections.  The charge                   
could be substantial in rural Alaska.                                          
                                                                               
KATE COLEMAN, RADIOLOGY HEALTH SPECIALIST, DEPARTMENT OF                       
HEALTH AND SOCIAL SERVICES testified in opposition to SB
160.  Ms. Coleman is one of two radiological health                            
specialists employed by Alaska's Department of Health and                      
Social Services.  She expressed concerns that the                              
legislation would diminish the capacity of public health by                    
diluting the regulation of dental x-ray. On the                                
international radiation protection scene, the International                    
Commission of Radiation Protection would like to lower the                     
exposure limit for occupationally exposed radiation workers.                   
The bill would remove from occupationally exposed dental                       
workers government regulation aimed at keeping their                           
radiation exposures to as low as reasonably achievable.                        
                                                                               
Ms. Coleman noted that questions have been raised about the                    
health effects and risk related to dental x-ray exposure.                      
There is an indication of risk in the technical paper of Dr.                   
Smart Smith of the UCLA School of Dentistry. "While the risk                   
from dental radiography is certainly small in terms of other                   
risks we readily assume during our daily lives such as                         
driving, smoking, eating fatty food, there is no basis to                      
assume it is zero .... prudence suggests we should be                          
cautious because of the large numbers of people exposed to                     
dental radiography... Recent studies suggest the lifetime                      
cancer risk from exposure to low levels of ionizing                            
radiation may be greater than previously estimated .... The                    
International Commission for Radiation Protection data shows                   
that the estimated risk has increased four-fold. Cancers                       
other than leukemia typically start to appear about 10 years                   
following exposure and remain in excess for the lifetime of                    
the exposed individuals." Citing specific cancers, Dr. White                   
notes "an association with leukemia, the risk to children                      
being greater. Thyroid cancers increase in humans following                    
exposure to ionizing radiation. About 10% of individuals                       
with such cancers die from their disease. A case-control                       
study has shown an association between brain cancer and                        
previous medical or dental radiography. Several studies have                   
shown an association between tumors of the salivary glands                     
and dental radiography." As long as there is a risk it needs                   
to be monitored the Department of Health and Social Services                   
has responsibility for protecting the public health.                           
                                                                               
Ms. Coleman maintained that there is an absence of checks                      
and balances. She maintained that the bill presents a                          
conflict of interest and the credentials for inspectors are                    
lax. "For instance, are they qualified to operate radiation-                   
measuring equipment, to calculate skin dose, to evaluate                       
film quality, perform shielding calculations and scatter                       
radiation measurements. A certification program for the                        
inspectors administered by the state should be in place to                     
keep the standards high."                                                      
                                                                               
Ms. Coleman asked who would design the inspection                              
procedures?  Will the Board be taking on responsibilities                      
for physics and engineering? What role will the Board have                     
in regulating radionuclides included in Section                                
08.36.075(g)?"                                                                 
                                                                               
Ms. Coleman observed that the bill does not include                            
radiation protection, film processing, nor x-ray operator                      
competence. "Yet, the majority of problems in dental                           
radiography are a result of film processing and operator                       
error. Frequently, in an attempt to improve film quality, an                   
inexperienced operator will increase the radiation exposure                    
rather than use appropriate film processing".                                  
                                                                               
Ms. Coleman asserted that the bill creates duplicate                           
functions between two state agencies. "The type of                             
organization proposed by this bill is unusual by any state's                   
standards since the professional board is so distant from                      
the technical aspects of radiation protection. Alaska, like                    
many other states, struggles to maintain a sufficiently                        
trained supply of personnel to meet the public health needs                    
of the State. It is wasteful to establish parallel lines of                    
expertise in two separate departments".                                        
                                                                               
Ms. Coleman pointed out that AS 18.60.475(a)(7) authorizes                     
the Department of Health and Social Services to "contract                      
with other State agencies to assist them in performing                         
functions that require expertise in determining and reducing                   
the hazards of radiation." She stressed that this                              
authorization is cognizant of the unique qualifications                        
necessary to understand and satisfactorily implement a                         
responsible radiation control program. "It is clearly                          
designed to assure that this relatively rare expertise is                      
shared with other parts of the government. It seems wasteful                   
to depart from that philosophy and establish duplicative                       
expertise in another department".                                              
                                                                               
Ms. Coleman questioned if there would be sufficient                            
resources available statewide to support this function in                      
Alaska. "Passage of this bill would serve to provide less                      
protection for Alaskan citizens. Already thin resources will                   
be spread less effectively."                                                   
                                                                               
Representative Mulder questioned how thin resources would be                   
spread more thinly.  Ms. Coleman explained that the                            
Department of Environmental Conservation, Department of                        
Labor, Department of Health and Social Services and                            
Department of Commerce and Economic Development would all be                   
performing radiation work.  Representative Mulder asked how                    
Dr. Woller's concerns regarding the frequency of inspections                   
would be addressed.  Ms. Coleman clarified that there is                       
currently one full-time and one quarter-time inspector                         
working with the Department of Health and Social Services.                     
She maintained that all facilities would be inspected every                    
three years.  She stressed that an additional inspector was                    
hired in May 1998.                                                             
                                                                               
Representative Mulder observed that the Dental Association                     
supports the legislation.  The Dental Board has not taken a                    
formal position on the proposed committee substitute.                          
                                                                               
In response to a question by Representative Martin, Ms.                        
Coleman clarified that the legislation would remove the                        
responsibility for inspections from the Department of Health                   
and Social Services.  She added that dentist have always had                   
the option of hiring technicians to service their equipment.                   
She emphasized that health specialists do not do the same                      
work as technicians.                                                           
                                                                               
Representative Martin expressed concern with the transfer to                   
the Department of Commerce and Economic Development.  He                       
asked if the Dental Board would rubber-stamp the                               
certification.  Ms. Reardon observed that the Dental Board                     
would contact owners to make sure that they are registered                     
and have submitted their certification.  Violations would be                   
charged.                                                                       
                                                                               
Representative Martin asked if the Dental Board has the                        
ability to oversee medical specialists.  Ms. Reardon noted                     
that the Department of Commerce and Economic Development has                   
staff that assists medical boards.  Staff is not                               
knowledgeable on health care or medical issues.  A clerk                       
position would be hired to process paper.  There are                           
approximately 500 pieces of equipment to register.  The                        
Board will need to formulate regulations.                                      
                                                                               
Representative Davies asked for further clarification in                       
regards to the qualifications of a health specialist and a                     
medical electronic technician.  He noted that an inspector                     
would not need a degree.  They could have four years of                        
experience.  Ms. Coleman explained that a health specialist                    
is trained in radiation protection.  They are not trained in                   
electrical aspect of the equipment.  They are concerned with                   
the radiation exposure to the operator and the patient.  The                   
health specialist assesses the amount of exposure the                          
patient is receiving.  This is compared to the acceptable                      
range.  Problems are frequently not with the equipment, but                    
with the film processing.  The x-ray operator mistakenly                       
turns up the radiation exposure in trying to get a better                      
picture.  The legislation does not direct anyone to look at                    
film processing.                                                               
                                                                               
Representative Davies noted that the Department of Health                      
and Social Services is proposing to test machines every                        
three years.  He asked what is the standard practice.  Ms.                     
Coleman noted that the rate of inspections varies.  She                        
maintained that inspections should be every three years in                     
Alaska because there is not easy access to service                             
companies.                                                                     
                                                                               
Representative Davies asked if radiation is absorbed in six                    
feet in every case.  Ms. Coleman emphasized that x-ray heads                   
are wider and easier to move around.  There is a lack of                       
shielding in the x-ray head.  There is a potential for more                    
radiation.                                                                     
                                                                               
Representative Davies questioned if comments regarding the                     
low level of radiation and long lasting calibration were                       
accurate.  He asked if older equipment would meet this                         
description.  Ms. Coleman observed that she discovered a                       
gassing x-ray tube.  The radiation from the x-ray head was                     
exponentially doubled.  A technician had not caught the                        
problem.                                                                       
                                                                               
Ms. Reardon pointed out that the legislation would take                        
effect 90 days after passage.  She noted that all machines                     
would have to be inspected and display inspection stickers                     
within 90 days.  She suggested that January 1, 1999 as the                     
quickest recommended effective date.                                           
                                                                               
LYNN LEVENGOOD, ATTORNEY, ANCHORAGE testified via                              
teleconference in support of the legislation.  He maintained                   
that he legislation would provide better protection to                         
Alaskans.  Regulators would be able to concentrate on higher                   
dose radioactive equipment.  He observed that machines are                     
in daily use.  He maintained that malfunctions would be                        
perceived in the quality of the x-ray.  He maintained that                     
the risk is minimal.                                                           
                                                                               
SIDNEY HEIDERSDORF, RADIOLOGICAL PHYSICIST, JUNEAU testified                   
in opposition to SB 160.  He observed that he worked in the                    
field of radiation safety for 38 years.  He was the state                      
Radiological Physicist for 20 years.  He emphasized that the                   
public is directly exposed to ionizing radiation from                          
dentistry equipment.  He stressed that oversight should not                    
be transferred to a different department based on the risk                     
level.  He observed that the legislation calls for                             
experience in installing and calibrating x-ray equipment.  A                   
radiological health specialist evaluates radiation risks.                      
The maintenance person is a mechanic.  He emphasized that                      
the jobs are different.  He did not think the qualifications                   
contained in the bill would meet the qualifications needed                     
to do radiological health evaluations.                                         
                                                                               
(Tape Change, HFC 98 - 160, Side 2)                                            
                                                                               
Mr. Heidersdorf maintained that installers are blas  about                     
radiation exposure.  He disagreed that dental x-ray                            
radiation would be absorbed in six feet of air.  He pointed                    
out that it is difficult to compare environmental radiation                    
with dental x-rays.  Dental x-ray radiation is exposed to a                    
small area of the body.  He pointed out that dental x-ray                      
equipment uses the same voltage as other medical x-ray                         
equipment.  The risk is less because of the narrow band.                       
The thyroid is at risk when doing dental x-ray work.  He                       
observed that in his 20 years of work no dentist every                         
requested an inspection.  He maintained that there are other                   
reasons dentist want the program moved to the Department of                    
Commerce and Economic Development.  The federal standard is                    
basically a manufacture standard.  It applies to one year.                     
He viewed the legislation as a company rubber stamp of                         
approval with less oversight.  He stressed that it is unwise                   
to turn the program over to administrators that will not be                    
able to provide oversight.  He acknowledged a problem with                     
frequency of inspections.  He used exposure range to                           
determine priorities in visits.  He recalled that                              
approximately 40 percent of the dentist offices were out of                    
the acceptable exposure range.                                                 
                                                                               
Mr. Heidersdorf referred to page 2, lines 8 and 9. "The                        
board shall adopt the stricter of the two standards unless                     
adoption of the other standard would not present a risk of                     
harm to the public or to the operator of the equipment." He                    
questioned who would make the determination of risk.  He                       
noted the use of "radionuclides" on page 3, line 9.  He                        
stated that he did not know of "radionuclides" in dental x-                    
ray equipment.                                                                 
                                                                               
Representative Kelly stressed that it is not necessary for a                   
person to have a degree in radiation physics.  Mr.                             
Heidersdorf clarified that he objected to the removal of the                   
program from other programs dealing with x-rays.  He                           
maintained that adequate thought has not been given to the                     
people that would be doing the inspections.  He questioned                     
who would establish the standards.  He asked if the Board of                   
Dentistry would develop standards for dental practice.  He                     
stressed that the program is more than hardwire.  He                           
stressed that there is the whole area of use.  How is the                      
film developed is a huge issue.  He asked if inspectors                        
would evaluate the darkroom processing of dental x-rays.                       
The only difference between a x-ray and a light ray is                         
energy.                                                                        
                                                                               
Representative Davies pointed out that 2 - 4 x-rays might be                   
taken at a visit.  Mr. Heidersdorf stressed that the damage                    
is a function of dose level.  The exposure would not be                        
multiplied if the exposure were to a different area of the                     
face.                                                                          
                                                                               
Representative Martin asked what Mr. Heidersdorf would do to                   
improve the legislation.  Mr. Heidersdorf replied that the                     
legislation is a mistake.                                                      
                                                                               
Representative Kelly maintained that it is an administrative                   
problem not a matter of standards.  He spoke in support of                     
the legislation.                                                               
                                                                               
Representative Davies felt it was more than an                                 
administrative issue.  He thought that moving the program to                   
the Board of Dentistry would result in a conflict of                           
interest or an appearance of a conflict of interest.                           
                                                                               
Ms. Krogseng maintained that the educational background of                     
the potential inspectors would be somewhat equivalent to                       
those in the Department of Health and Social Services.   She                   
envisioned that inspectors would go to several villages at                     
one time to reduce costs.  She spoke in support of oversight                   
by the Board of Dentistry.  She reiterated that risks are                      
minimal.  She emphasized that the legislation privatizes.                      
She acknowledged that there could be a problem with the                        
transitioning the program.  She offered a conceptual                           
amendment: "Notwithstanding other provisions of this Act,                      
clinical radiological equipment which has been registered                      
under AS 08.36.075 (c) before January 1, 1999 shall be                         
issued an initial inspection seal valid until July 1, 1999                     
after payment of the fee".                                                     
                                                                               
Representative Martin refereed to subsection (f) on page 3:                    
"Notwithstanding AS 08.01.075 and AS 08.36.315, the only                       
penalty applicable to a licensee for violating this section                    
is the imposition by the board in a disciplinary action of a                   
civil fine not to exceed $5,000 for each violation."  He                       
questioned why it did not include license revocation.  Ms.                     
Krogseng observed that the dentist does not necessarily own                    
the equipment.  She felt that a $5,000 dollar fine would be                    
sufficient.                                                                    
                                                                               
Representative Martin noted that "the board may not adopt a                    
standard under this section that is more stringent than a                      
standard applicable under federal law".  He questioned why                     
the Board should not have flexibility to issue regional                        
standards.  Ms. Krogseng observed that the federal                             
government approves the manufacturer's standards.  She                         
maintained that FDA standards are stringent.                                   
                                                                               
Representative Kohring moved to adopt Amendment 1 on behalf                    
of Senator Taylor.  Amendment 1 would add include completion                   
of a United States Department of Defense biomedical                            
equipment technician's course and the International                            
Certification Commission for Clinical Engineers and                            
Biomedical Technology as allowable qualification for                           
inspectors.  Ms. Krogseng discussed the amendment.  She                        
maintained that the Department of Defense schools are very                     
good.                                                                          
                                                                               
Representative Davies OBJECTED.  He questioned if the new                      
qualifications would be comparable.                                            
                                                                               
Representative Mulder announced that the amendment would be                    
HELD.                                                                          
                                                                               
SB 160 was HELD in Committee for further consideration.                        
SENATE BILL NO. 223                                                            
                                                                               
"An Act lowering the age requirement from 60 years to                          
55 years for purposes of senior housing programs; and                          
repealing a provision relating to the interest rate on                         
senior housing loans made by the Alaska Housing Finance                        
Corporation."                                                                  
                                                                               
BEN BROWN, STAFF, SENATOR KELLY spoke in support of SB 223,                    
on behalf of Senator Kelly, sponsor.  He maintained that SB
223 improves Alaska senior housing programs in Title 18.  He                   
explained that the Senior Housing Revolving Fund was created                   
in the Department of Community and Regional Affairs with the                   
goal of creating senior housing projects.  The Senior                          
Housing Revolving Fund (SHRF) has only been used once due to                   
the merger of the state's programs into the Alaska Housing                     
Finance Corporation (AHFC).  The Senior Housing Revolving                      
Fund could not compete with AHFC programs.  Of the 9 senior                    
housing projects only the Chester Park project in Anchorage                    
has been financed by the Senior Housing Revolving Fund.                        
Chester Park is also a cooperative ownership senior housing                    
facility.  The other projects are nonprofit rental                             
facilities.  He observed that SB 223 would allow the AHFC                      
Board to reduce the eligibility age from 60 to 55 years of                     
age on a case by case basis.  The average age of senior                        
housing occupants is 76 years of age. The original program                     
was in the Department of Community and Regional Affairs.                       
Since bonds were handled by AHFC, proceeds from were                           
deposited into a bond account and periodically transferred                     
to the SHRF account.  Now that the program is in AHFC the                      
bond account is not needed.  The legislation streamlines the                   
program by eliminating the bond account in AHFC. The SHRF                      
will be the depository of future bond sale proceeds and                        
repayments of principles and loans.  The legislation                           
eliminates a surcharge of either 2 points (for construction                    
loans) or half a point (permanent loans) that was needed to                    
pay for the administrative cost.                                               
                                                                               
Representative Kelly asked if sections 4 and 5 are the only                    
sections that relate to age qualifications.  Mr. Brown                         
observed that section 6 deletes the statutory age of 60 for                    
the Senior Citizens Development Fund.  Grants are made from                    
this program.  The removal of the limitation will not open                     
up the grant fund to the issuance of loans.  The grant fund                    
contains separate language that governs the age of                             
eligibility.                                                                   
                                                                               
JOHN BITNEY, LEGISLATIVE LIAISON, ALASKA HOUSING FINANCE                       
CORPORATION, DEPARTMENT OF REVENUE provided the Committee                      
with information regarding SB 223.  He observed that                           
sections 4, 5 and 6 pertain to the age requirements.  The                      
legislation originally defined senior housing at age 55.                       
There is an exemption under the federal Fair Housing Act,                      
that allows exclusion of admission to individuals that are                     
age 60 years and above.  There is a provision that allows                      
admission to individuals 55 years of age and above if 80                       
percent of the occupants are 60 years or above.  There are                     
two programs at AHFC.  The SHRF provides housing for                           
individuals that would not qualify as low income.  He                          
clarified that Chester Park was developed under SHRF.  All                     
other senior housing developments were financed under a                        
program called the Special Needs Multi-family program.                         
                                                                               
(Tape Change, HFC 98 - 161, Side 2)                                            
                                                                               
Mr. Bitney explained that the staff at AHFC put out a                          
proposal to lower the age to 55 years of age.  Concerns were                   
raised regarding lowering to a blanket age 55.  The Alaska                     
Housing Finance Corporation adopted regulations that                           
retained that age 60 limitation but allowed an exemption.                      
Developments under economic distress can apply on an                           
individual basis, for limited amount of time, to lower the                     
age to 55 years.  The current version of SB 223 adopts the                     
age proposals by AHFC. The only reference to age is in                         
section 4.  The Alaska Housing Finance Corporation is given                    
regulation authority in section 4 to establish any age.                        
                                                                               
In response to a question by Representative Davies, Mr.                        
Brown clarified that there is already criteria that governs                    
the allocation of funds from the Housing Development Fund                      
for low income housing.  Mr. Bitney observed that the                          
regulations outlined in section 4 would cover any loan from                    
the revolving fund.  The legislation does not make reference                   
to the age limit under AS 18.56.800.  Representative Davies                    
asked if it would be desirable to extend the provision to AS                   
18.56.800.  Mr. Bitney agreed that it would clarify the                        
legislation.                                                                   
                                                                               
Representative Davies suggested that AS 18.56.799 be changed                   
to AS 18.56.800.  Mr. Brown suggested that change include AS                   
18.56.810.  He pointed out that this would capture both                        
sections that deal with the Housing Development Fund.                          
                                                                               
Representative Davies MOVED to ADOPT to delete "AS                             
18.56.799" and insert "AS 18.56.810".  Mr. Bitney spoke in                     
support of the amendment.  He explained that the subsidy                       
grant represents the difference between the total cost of                      
construction and what the financing piece will be able to                      
afford through the rent structure.  By extending the                           
legislation to AS 18.56.810 the subsidy grant would have the                   
same definition as the loan program.  One current project                      
would be covered.  He did not know how it would affect                         
retroactive grants.                                                            
                                                                               
Representative Martin expressed concern that lowering the                      
age would increase competition for housing among those 60                      
years of age.  He observed that there is more need for                         
senior housing than is being met.                                              
                                                                               
Representative Davies stressed that the legislation would                      
allow the Department the ability to adopt regulation to                        
establish under what circumstance the age could be lowered                     
from 60 to 55 years.  The circumstances would not necessary                    
be the same.  Representative Mulder pointed out that the age                   
could be changed to any number between 55 years or older.                      
                                                                               
Mr. Brown stated that the amendment might not be necessary.                    
He pointed out that AS 18.56.810 states that "senior citizen                   
housing" has the meaning given senior housing in AS                            
18.56.799.  He explained that the age 55 floor is only                         
referred to in the regulatory authority section.  He                           
recommended that the legislation state "senior housing"                        
means construction or improvement undertaken primarily to                      
provide dwelling accommodations for persons 55 years of age                    
or older.                                                                      
                                                                               
Mr. Bitney stated that if the status quo remains that AHFC                     
would adopt the same regulations for the grant fund as for                     
the loan program.                                                              
                                                                               
Representative Davies WITHDREW the MOTION.                                     
                                                                               
Representative Kelly MOVED to report CSSB 223 (FIN)am out of                   
Committee with the accompanying fiscal note.                                   
                                                                               
CSSB 223 (FIN) am was REPORTED out of Committee with "no                       
recommendation" and with a zero fiscal note by the                             
Department of Revenue, dated 1/28/98.                                          
SENATE BILL NO. 236                                                            
                                                                               
"An Act extending the termination date of the Citizens'                        
Advisory Commission on Federal Areas in Alaska; and                            
providing for an effective date."                                              
                                                                               
ANNETTE KREITZER, STAFF, SENATE LABOR AND COMMERCE COMMITTEE                   
spoke in support of SB 236.  She explained that the Senate                     
Labor and Commerce Committee sponsored SB 236 in order to                      
extend the Citizens Advisory Commission on Federal Areas in                    
Alaska.  The Commission would cease to exist after June 30,                    
1998 if it is not extend.  The Commission evaluates federal                    
management, operation, planning, and development for                           
consistency with federal law and congressional intent.  The                    
Commission also holds hearings on the impact of federal                        
regulations and federal management decisions, makes                            
recommendations to state or federal land agencies and                          
reports annually to the governor and the legislature.  There                   
is a $93 thousand dollars fiscal note attached.                                
                                                                               
Representative Kelly spoke in support of the legislation.                      
                                                                               
STAN LEAPHART, FAIRBANKS testified via teleconference in                       
support of the legislation.                                                    
                                                                               
Representative Kelly MOVED to report CSSB 236 (RES) out of                     
Committee with the accompanying fiscal note.  There being NO                   
OBJECTION, it was so ordered.                                                  
                                                                               
CSSB 236 (RES) was REPORTED out of Committee with a "do                        
pass" recommendation and with a fiscal impact note by the                      
Department of Natural Resources dated 3/10/98.                                 
SENATE BILL NO. 358                                                            
                                                                               
"An Act relating to disclosure of the use of state                             
funds related to personnel records."                                           
                                                                               
PAT DAVIDSON, LEGISLATIVE AUDITOR, LEGISLATIVE AUDIT                           
DIVISION testified in support of SB 358.  She explained that                   
the legislation would divide investigations from personnel                     
actions in regards to disclosure.  Personnel actions would                     
remain confidential.  Public disclosure would be allowed                       
when there is a misuse of state resources.  The original                       
legislation was limited to public funds.  The Senate changed                   
"public funds" to "state resources".                                           
                                                                               
Ms. Davidson reviewed the bill.  Section 1(a) identifies                       
that any state agency authorized by law to conduct a state                     
audit can ask for the public release of information.  They                     
would have to ask the employee for permission to release                       
information.  If the employee declines a review procedure                      
would be used as contained in subsection (c).  This protects                   
the employee by allowing someone outside of the                                
investigation to look at it before it can become public.                       
She observed that the Department of Administration, Division                   
of Finance would appoint a review officer for cases                            
involving employees of the executive branch, including                         
employees of the University of Alaska.  She suggested that                     
the appointment be elevated to the commissioner or his                         
designee. She observed that the bill states that the                           
appropriate reviewing officer for employees of the judicial                    
branch is the administrative director of the Alaska Court                      
System.  The appropriate reviewing officer for employees of                    
the legislative branch is the:  (1) director of the                            
Legislative Affairs Agency for employees of the agency; (2)                    
legislative auditor for employees of the division of                           
legislative audit;  (3) legislative fiscal analyst for                         
employees of the division of legislative finance; ombudsman                    
for employees of the Office of the Ombudsman.                                  
                                                                               
Representative Mulder questioned if the expansion from                         
"public funds" to "public resources" was necessary.  Ms.                       
Davidson did not know how expansive the legislation would be                   
under public resources.  Representative Mulder observed that                   
an $100 thousand dollars fiscal note accompanies the                           
expansion.                                                                     
                                                                               
In response to a question by Representative Kelly, Ms.                         
Davidson noted that as the agency conducting the audit that                    
she would first ask the employee for a public release.                         
                                                                               
Representative Davies expressed concern that there are                         
certain aspects of personnel records that maintain privacy,                    
which are not protected in other places in law.  Ms.                           
Davidson reiterated that the intent is to separate personnel                   
action that has been taken from investigation results.                         
Representative Davies acknowledged that it would be                            
important to know that a state employee did an action, but                     
stated that it might not be important to know the identity                     
of the state employee.  Ms. Davidson argued that public                        
officials must be accountable for their actions when they                      
are dealing with financial transactions.  She noted that                       
there might not be as clear a distinction with the use of                      
"public resource".                                                             
                                                                               
Representative Davies stated that he supports the general                      
principle of the legislation.  He stressed that there are                      
already mechanisms for punishing wrongdoers.  He emphasized                    
that information would be helpful in cases where policy                        
might be changed.  He posed a hypothetical situation where a                   
state vehicle was misused through an honest                                    
misinterpretation of the rules.  He stressed that it would                     
not be advantageous to punish the person and damage their                      
reputation.  The information would be useful for future                        
policy decisions.                                                              
                                                                               
KATHLEEN STRASBAUGH, ASSISTANT ATTORNEY GENERAL, DEPARTMENT                    
OF LAW testified that the Department of Law has some                           
reservations similar to those of Representative Davies.  The                   
Department of Law worked with the Legislative Budget and                       
Audit Committee on the original legislation.  They                             
considered the limited issue of financial transactions                         
during discussions.  They agreed that there could be                           
substantial injury to a person's reputation that is accused                    
of misuse, fraud or embezzlement.  The objection process                       
solves a problem that is created under state and federal                       
Constitutions regarding injury of reputation.  There are                       
accepted principles with financial transactions.  The                          
legislation would allow Legislative Budget and Audit                           
Committee to use conclusions instead of doing their own                        
audit.  The Legislative Budget and Audit Committee could use                   
public documents to question the employee.  The fiscal cost                    
would be zero without the change to "public resources".  The                   
use of public resource broadens those things that could be                     
subject to grievances.  She agreed that there needs to be                      
debate about the misuse of public resources, but emphasized                    
that an immediate problem could be resolved with a more                        
limited approach.                                                              
                                                                               
Ms. Strausbaugh stated that she has some reservations                          
regarding name revealing.  She gave the example of an                          
accounting clerk that routinely messed up their work. She                      
observed that an internal audit could be redone.                               
                                                                               
Representative Martin stated that misuse of public money;                      
land or resources should be public knowledge.                                  
                                                                               
Ms. Strausbaugh explained that the Department of Law only                      
advises members of the executive branch to comply with AS                      
39.25.080.  She emphasized that the legislation is a quick                     
fix that was requested by the Legislative Budget and Audit                     
Committee to deal with a specific problem that was costing                     
them a lot of time.  The Department of Law only advises                        
their clients to uphold the law.                                               
                                                                               
Representative Davies noted that if the reviewing officer                      
finds that the audit results are not based on substantial                      
evidence or that the decision is unreasonable, the officer                     
shall prohibit the public release of the audit results.  He                    
questioned if the audit results would then be made public.                     
Ms. Strausbaugh said they would.  Representative Davies                        
concluded that the legislation does not allow the hearing                      
officer to make a distinction between a case where it would                    
be in the public interest to release the generic versus                        
releasing the individual's name.  Representative Martin                        
observed that the Legislative Budget and Audit Committee has                   
been careful with the use of names.                                            
                                                                               
Representative Davies noted that the information is                            
available.  He stated that he wanted to get the facts of the                   
circumstance released to the public, but stressed his                          
concern about instances when the individual is not charged.                    
Representative Mulder felt that there are sufficient                           
protections.                                                                   
ADJOURNMENT                                                                    
                                                                               
The meeting adjourned at 7:10 p.m.                                             
                                                                               
House Finance Committee 16 5/07/98 p.m.                                        

Document Name Date/Time Subjects