Legislature(2011 - 2012)HOUSE FINANCE 519

04/09/2012 09:00 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to 2:15 pm Today --
+= HB 286 G.O. BONDS FOR PORTS TELECONFERENCED
Heard & Held
+ SB 92 DENTISTS/DENTAL HYGIENISTS/ASSISTANTS TELECONFERENCED
Moved HCS CSSB 92(L&C) Out of Committee
+ SB 130 ALASKA NATIVE LANGUAGE COUNCIL TELECONFERENCED
Moved HCS CSSB 130(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 9, 2012                                                                                            
                         9:05 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:05:14 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stoltze called the  House Finance Committee meeting                                                                    
to order at 9:05 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Stoltze, Co-Chair                                                                                           
Representative Bill Thomas Jr., Co-Chair                                                                                        
Representative Anna Fairclough, Vice-Chair                                                                                      
Representative Mia Costello                                                                                                     
Representative Mike Doogan                                                                                                      
Representative Bryce Edgmon                                                                                                     
Representative Les Gara                                                                                                         
Representative David Guttenberg                                                                                                 
Representative Reggie Joule                                                                                                     
Representative Mark Neuman                                                                                                      
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong, Staff,  Representative Bill Stoltze; Angela                                                                    
Rodell, Deputy  Commissioner, Treasury  Division, Department                                                                    
of Revenue; Denise Michels, Mayor,  City of Nome; Dana Owen,                                                                    
Staff, Senator Dennis Egan;  David Logan, Legislative Chair,                                                                    
Alaska Dental Society;  Don Habeger, Director, Corporations,                                                                    
Business   and   Professional   Licensing,   Department   of                                                                    
Commerce,  Community and  Economic Development;  Joe Michel,                                                                    
Staff, Representative Bill Stoltze.                                                                                             
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Christine   Klein,   Chief    Operating   Officer,   Calista                                                                    
Corporation;  Gail  Walden,   Member,  Alaska  State  Dental                                                                    
Hygienists'   Association,   Wasilla;   Daisy-May   Barrera,                                                                    
University of Alaska  Fairbanks Student, Bethel; Ukallaysaaq                                                                    
Okleasik,  Planning  Director,   Northwest  Arctic  Borough,                                                                    
Kotzebue;  Crystal Rogers,  University  of Alaska  Southeast                                                                    
Student, Juneau.                                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 286    G.O. BONDS FOR PORTS                                                                                                  
                                                                                                                                
          HB  286  was  HEARD  and  HELD  in  Committee  for                                                                    
          further consideration.                                                                                                
                                                                                                                                
HCS CSSB 92(FIN)                                                                                                                
          DENTISTS/DENTAL HYGIENISTS/ASSISTANTS                                                                                 
                                                                                                                                
          HCS  CSSB 92(FIN)  was REPORTED  out of  committee                                                                    
          with   a  "do   pass"   recommendation  and   with                                                                    
          previously  published  fiscal   impact  note:  FN3                                                                    
          (CED).                                                                                                                
                                                                                                                                
HCS CSSB 130(STA)                                                                                                               
          ALASKA NATIVE LANGUAGE COUNCIL                                                                                        
                                                                                                                                
          HCS CSSB  130(FIN) was  REPORTED out  of committee                                                                    
          with   a  "do   pass"   recommendation  and   with                                                                    
          previously  published  fiscal   impact  note:  FN2                                                                    
          (CED).                                                                                                                
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An Act providing  for and relating to  the issuance of                                                                    
     general obligation bonds for  the purpose of paying the                                                                    
     cost of  municipal port projects; and  providing for an                                                                    
     effective date."                                                                                                           
                                                                                                                                
9:06:30 AM                                                                                                                    
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  proposed  committee                                                                    
substitute (CS) for HB 286,  Work Draft 27-GH2769\B (Kirsch,                                                                    
4/6/12).                                                                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
JAMES   ARMSTRONG,  STAFF,   REPRESENTATIVE  BILL   STOLTZE,                                                                    
discussed   that  the   CS  would   issue  $453,499,200   in                                                                    
transportation  general obligation  (G.O.) bonds  across the                                                                    
state.  He remarked  that the  House and  Senate had  worked                                                                    
together to  develop a  balanced package.  Projects included                                                                    
in  the   bill  were  shown   in  the  capital   budget  for                                                                    
appropriation   authority.   He  recommended   a   technical                                                                    
amendment that would replace  the word "reconstruction" with                                                                    
the word  "construction" in relation  to a Katlian  Bay Road                                                                    
item (page 3, line 16).                                                                                                         
                                                                                                                                
Co-Chair Stoltze noted that the  change would be substantive                                                                    
and not technical  and that the issue would  be addressed in                                                                    
the   amendment  process.   Mr.   Armstrong  remarked   that                                                                    
committee members  had been  in possession of  the CS  for a                                                                    
couple of  days and he  was not  aware of any  other changes                                                                    
that needed to occur.                                                                                                           
                                                                                                                                
Co-Chair Stoltze  clarified that there had  been suggestions                                                                    
made   regarding   the   appropriate  titles   and   project                                                                    
descriptions in  the CS. He  asked for a description  of the                                                                    
bill and the Department of  Revenue's (DOR) role in the bond                                                                    
process.                                                                                                                        
                                                                                                                                
ANGELA  RODELL,  DEPUTY   COMMISSIONER,  TREASURY  DIVISION,                                                                    
DEPARTMENT OF REVENUE, explained  that the bill provided for                                                                    
the  issuance of  $453,499,200 in  G.O.  bonds. The  state's                                                                    
debt was managed by DOR  and the issuance would be conducted                                                                    
out of  its office.  The debt would  be issued  piecemeal as                                                                    
the projects  were ready to  be funded to ensure  that items                                                                    
were  not  prefunded  prior to  being  "shovel"  ready.  The                                                                    
department  believed it  was appropriate  to issue  debt for                                                                    
the  projects  that  were   long-term;  the  current  market                                                                    
conditions made  it very  affordable to  issue debt  and the                                                                    
issuance would  allow the  state to use  its cash  for other                                                                    
purposes and to  pay down its higher cost  debt. She relayed                                                                    
that  the projects  in the  CS were  significantly different                                                                    
than  the ones  proposed by  the  governor, but  all of  the                                                                    
projects included were appropriate for debt issuance.                                                                           
                                                                                                                                
9:10:22 AM                                                                                                                    
                                                                                                                                
Representative Doogan  wondered whether all of  the projects                                                                    
proposed by the governor were  incorporated into the CS. Mr.                                                                    
Armstrong replied  that the Senate  Transportation Committee                                                                    
had added two projects.                                                                                                         
                                                                                                                                
Representative  Doogan  clarified  that he  wanted  to  know                                                                    
whether all  of the governor's original  items were included                                                                    
in the bill.  Mr. Armstrong responded that all  of the items                                                                    
were included albeit in smaller amounts.                                                                                        
                                                                                                                                
Co-Chair Stoltze commented on the size of the bond package.                                                                     
                                                                                                                                
Mr. Armstrong  added that  funding for  a Ward  Cove project                                                                    
was  removed  from HB  286  and  had  been included  in  the                                                                    
proposed capital budget.                                                                                                        
                                                                                                                                
Representative  Gara   queried  what  the   public's  annual                                                                    
payment cost  would be and how  long it would last  when the                                                                    
full  bond was  issued. Co-Chair  Stoltze answered  that the                                                                    
amount was listed in the fiscal note.                                                                                           
                                                                                                                                
Mr.  Armstrong  referred to  the  Office  of Management  and                                                                    
Budget  fiscal note.  The total  cost  would be  $36,392,000                                                                    
beginning in FY 17 for a period of 20 years.                                                                                    
                                                                                                                                
Representative  Gara   asked  for  an  estimate   of  annual                                                                    
payments  made resulting  from a  bond that  had passed  two                                                                    
years earlier. He  was interested to know how  much the bill                                                                    
would add on  to existing future debt.  Co-Chair Stoltze was                                                                    
interested in the amount that had  been paid down on debt as                                                                    
well.                                                                                                                           
                                                                                                                                
Mr.   Armstrong  replied   that  the   education  bond   was                                                                    
$29,772,000  for  a  $397,300,000   package  that  had  been                                                                    
developed two years earlier.                                                                                                    
                                                                                                                                
Ms. Rodell  added that  there was $197  million of  the past                                                                    
authorization that DOR  had not issued because  the need for                                                                    
the  funds  had  not  surfaced as  of  yet;  the  department                                                                    
expected to issue the amount  during FY 13. She relayed that                                                                    
a  refunding had  been done  in January  2012 that  provided                                                                    
approximately $27  million in all-in savings,  which equaled                                                                    
about $3 million per year.                                                                                                      
                                                                                                                                
9:14:00 AM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough  pointed to the fiscal  note and asked                                                                    
for  an  explanation of  the  difference  between the  terms                                                                    
"tax-exempt"  and  "tax  exempt"  listed in  the  bill.  Ms.                                                                    
Rodell replied that tax-exempt  meant completely tax exempt.                                                                    
The non-hyphenated term "tax exempt"  referred to tax exempt                                                                    
subject to the alternative minimum  tax, which was a federal                                                                    
tax code related  to the nature of  projects. She elaborated                                                                    
that in  the case  of private  activity projects  (most port                                                                    
projects fell into the category  because they were leased to                                                                    
private industry)  tax exempt income  on a bond  was subject                                                                    
to the  alternative minimum tax  if the taxpayer had  to pay                                                                    
an alternative minimum tax.                                                                                                     
                                                                                                                                
Co-Chair  Thomas discussed  that  G.O. bond  money had  been                                                                    
appropriated  for  a  Cordova   bridge  a  couple  of  years                                                                    
earlier; however,  the bridge  had been  washed out  and was                                                                    
closed indefinitely.  He would  talk with the  Department of                                                                    
Transportation and Public Facilities  (DOT) to determine the                                                                    
appropriate course  of action,  given that G.O.  bonds could                                                                    
not  be reappropriated.  He reported  that his  office would                                                                    
research the issue and follow up with DOR.                                                                                      
                                                                                                                                
Representative  Guttenberg   wondered  whether   there  were                                                                    
restrictions  on conducting  project  work  before the  bond                                                                    
issuance  in   February  2013.  He  assumed   that  projects                                                                    
included on the  list would be shovel-ready at  the time the                                                                    
bonds were issued.                                                                                                              
                                                                                                                                
Mr. Armstrong replied that DOT  planned to add some money to                                                                    
its   accelerated  capital   fund  account   in  order   for                                                                    
preliminary  work  on some  of  the  projects to  begin.  He                                                                    
relayed that  the capital budget  included $4 million  to $5                                                                    
million and  that there was a  request to increase it  by $3                                                                    
million.                                                                                                                        
                                                                                                                                
Representative Guttenberg wondered  whether the amount would                                                                    
be  included in  the capital  budget. Mr.  Armstrong replied                                                                    
that funding  was in the governor's  proposed capital budget                                                                    
and that  he would provide  the detailed information  to the                                                                    
committee.                                                                                                                      
                                                                                                                                
Representative   Guttenberg   queried  the   state's   total                                                                    
outstanding  bond obligation  and its  overall maximum  bond                                                                    
issuance level. Ms. Rodell replied  that the state's current                                                                    
debt  obligation  was  approximately $650  million  to  $660                                                                    
million.  Markets  and rating  agencies  would  look to  the                                                                    
state's   overall  debt   including  the   unfunded  pension                                                                    
liability,  and any  moral and  lease  obligation debt.  The                                                                    
amount was well within the  limits of the state's ability to                                                                    
withstand  debt; Alaska  currently had  tremendous financial                                                                    
reserves,   which  created   flexibility  around   financing                                                                    
infrastructure projects.                                                                                                        
                                                                                                                                
Representative   Doogan   asked   about  the   location   of                                                                    
Mertarvik,  Alaska (page  2, line  26  of the  legislation).                                                                    
Representative  Joule replied  that  Mertarvik  was the  new                                                                    
site chosen for the move from Newtok.                                                                                           
                                                                                                                                
9:18:37 AM                                                                                                                    
                                                                                                                                
Co-Chair Thomas  noted that the  bill would come  before the                                                                    
committee again following public testimony.                                                                                     
                                                                                                                                
Co-Chair Stoltze  WITHDREW his OBJECTION to  the adoption of                                                                    
the CS.  There being  NO further  OBJECTION, Work  Draft 27-                                                                    
GH2769\B was ADOPTED.                                                                                                           
                                                                                                                                
9:19:29 AM                                                                                                                    
                                                                                                                                
DENISE MICHELS,  MAYOR, CITY OF NOME,  thanked the committee                                                                    
for considering  Nome's initial  request. She  requested the                                                                    
inclusion of  an additional $40  million for a total  of $50                                                                    
million. She communicated that the  city had been working on                                                                    
becoming the  deep-draft Arctic port  for the  nation. There                                                                    
was a 35  percent design showing that the port  could get to                                                                    
minus 35 percent  to support all vessels going  up for Outer                                                                    
Continental Shelf (OCS) leases;  the city's data showed that                                                                    
Port of  Nome numbers had  gone up with  increased drilling.                                                                    
She furthered that annual dockings  had increased from 30 in                                                                    
1988  to  304  at  present.   The  city  was  looking  at  a                                                                    
partnership with the state to  support the industry, job and                                                                    
economic   development   creation,   and  to   ensure   that                                                                    
enforcement existed. She noted the  funding tied in with the                                                                    
Northern Waters  Task Force Report,  the 2009  Arctic Marine                                                                    
Shipping Report,  and other  state planning  documents (Road                                                                    
to Resources and road to Nome).                                                                                                 
                                                                                                                                
Representative  Gara wondered  how people  would feel  about                                                                    
dredging  in  an  area  where people  mined  for  gold.  Ms.                                                                    
Michels  replied that  Nome was  working with  all users  to                                                                    
prevent  any user  conflict. She  relayed that  dredging had                                                                    
increased significantly  since 1990;  there were  51 permits                                                                    
in the  current year. The  state had received $9  million in                                                                    
revenue on increased lease sales.                                                                                               
                                                                                                                                
CHRISTINE   KLEIN,   CHIEF    OPERATING   OFFICER,   CALISTA                                                                    
CORPORATION (via teleconference),  thanked the committee for                                                                    
its  time. She  pointed out  that  funding for  the Port  of                                                                    
Emmonak had  been dropped from  the legislation.  She shared                                                                    
that the  $16.5 million project was  shovel ready. Currently                                                                    
there was no  existing port on the lower  Yukon River; there                                                                    
was a  fishery that  was very important  to the  region. She                                                                    
requested  that  the project  be  reinserted  into the  bond                                                                    
package.                                                                                                                        
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Mr.   Armstrong   referenced   an  earlier   question   from                                                                    
Representative Guttenberg  and pointed  to information  on a                                                                    
Project Acceleration Account on page 84 of the CS.                                                                              
                                                                                                                                
Representative Gara  asked whether  the Port of  Emmonak was                                                                    
included  in the  capital budget.  Co-Chair Stoltze  did not                                                                    
know. He would  relay the concern to  Senator Lyman Hoffman.                                                                    
Representative  Edgmon  clarified   that  the  district  was                                                                    
Senator Olson's.                                                                                                                
                                                                                                                                
HB  286  was  HEARD  and   HELD  in  Committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:25:22 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:31:00 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 92(FIN)                                                                                                
                                                                                                                                
     "An Act relating to dental hygienists, dentists,                                                                           
    dental assistants, dental hygiene, and dentistry."                                                                          
                                                                                                                                
9:31:35 AM                                                                                                                    
                                                                                                                                
DANA OWEN,  STAFF, SENATOR DENNIS  EGAN, discussed  that the                                                                    
proposal  for  the  legislation  had  been  brought  to  the                                                                    
sponsor by  a committee  of dentists and  dental hygienists.                                                                    
He  explained  that  the  related   statutes  had  not  been                                                                    
reviewed  or revised  in  over 20  years;  during that  time                                                                    
there had been significant  changes in dentist practices and                                                                    
regulation.  He   relayed  that  Dr.  David   Logan,  former                                                                    
president  of  the  dental  board  was  present  to  provide                                                                    
detail. He  furthered that due  to the bill's high  level of                                                                    
detail it had been amended in each committee of referral.                                                                       
                                                                                                                                
Co-Chair  Stoltze  asked  for  a  general  overview  of  the                                                                    
legislation.                                                                                                                    
                                                                                                                                
Mr. Owen  observed that  it was unusual  to have  two groups                                                                    
such as  dentists and hygienists  come together on  a single                                                                    
bill;  groups   that  overlapped  in  their   practice  were                                                                    
frequently at odds over their scope of practice.                                                                                
                                                                                                                                
Co-Chair  Stoltze  had  detected some  tension  between  the                                                                    
dentists  and   hygienists  on   prior  iterations   of  the                                                                    
legislation;  both groups  would  have a  chance to  testify                                                                    
during the meeting.                                                                                                             
                                                                                                                                
DAVID  LOGAN,  LEGISLATIVE  CHAIR,  ALASKA  DENTAL  SOCIETY,                                                                    
thanked  the sponsor's  office for  all of  its work  on the                                                                    
legislation. He shared  that the society had  reached out to                                                                    
the Alaska  State Dental Hygienists' Association  (ASDHA) in                                                                    
recognition   that  the   bill  affected   both  groups   of                                                                    
professions. He  relayed that a  substantial amount  of time                                                                    
had gone into the development  of the legislation, given the                                                                    
numerous  necessary changes.  He  explained  that under  the                                                                    
legislation the dental board  investigator position would be                                                                    
increased from  part-time to  full-time, which  would result                                                                    
in an  increase of licensure  fees for license  holders. The                                                                    
legislation  accomplished  multiple   items  including,  the                                                                    
determination of who was eligible  to own a dental practice,                                                                    
the ability for  a practice to transition  out following the                                                                    
death of a practitioner, and significant language cleanup.                                                                      
                                                                                                                                
9:36:31 AM                                                                                                                    
                                                                                                                                
Representative Wilson  asked what the increase  in licensure                                                                    
fees would  be. Mr.  Logan responded  that the  fee increase                                                                    
would  be  determined  by   the  Division  of  Corporations,                                                                    
Businesses and  Professional Licensing (CBPL). He  had heard                                                                    
estimates of a potential $100 increase.                                                                                         
                                                                                                                                
Representative Guttenberg  referred to a  former constituent                                                                    
who  had  been  licensed  and  practiced  dentistry  in  New                                                                    
Zealand for  10 years; the  individual had not been  able to                                                                    
obtain a license to practice  in Alaska. He wondered whether                                                                    
the  legislation   would  address   the  issue.   Mr.  Logan                                                                    
responded   that   the   bill   revised   the   section   on                                                                    
qualifications  for licensure  and the  ability to  obtain a                                                                    
license  through   a  credentialing   process  based   on  a                                                                    
dentist's previous  practice and  history. He  observed that                                                                    
there were  dentists credentialing in frequently  from other                                                                    
countries. He deferred the question  to the director of CPBL                                                                    
for additional detail.                                                                                                          
                                                                                                                                
Representative  Guttenberg replied  that the  individual had                                                                    
been told that  he would need to go back  to school in order                                                                    
to  obtain a  license in  the  state. He  would discuss  the                                                                    
matter with the CBPL director.                                                                                                  
                                                                                                                                
Vice-chair Fairclough  asked whether  the bill  altered past                                                                    
legislation  that allowed  dental hygienists  to travel  and                                                                    
work in  rural areas without  the supervision of  a dentist.                                                                    
Mr.  Logan replied  that there  was  one section  clarifying                                                                    
allowed procedures, but that no  substantial change had been                                                                    
made.                                                                                                                           
                                                                                                                                
Vice-chair Fairclough asked for  the specific section in the                                                                    
legislation. Mr.  Logan pointed  to Section  13, page  8. He                                                                    
expounded that the bill would  insert the word "licensed" in                                                                    
front of the words "dental hygienist."                                                                                          
                                                                                                                                
9:39:27 AM                                                                                                                    
                                                                                                                                
Representative  Doogan surmised  that the  bill would  allow                                                                    
other   entities   to   own   dental   practices   including                                                                    
municipalities  and higher  education facilities.  Mr. Logan                                                                    
responded in the affirmative;  Section 37.08.367 defined who                                                                    
could own a dental practice.                                                                                                    
                                                                                                                                
Representative  Doogan wondered  why  the ability  to own  a                                                                    
dental  practice would  be expanded  to other  entities. Mr.                                                                    
Logan replied that  an entity may want to own  a facility to                                                                    
provide care for poor people.                                                                                                   
                                                                                                                                
Co-Chair  Stoltze  surmised   that  examples  would  include                                                                    
neighborhood   health   clinics   or   the   Department   of                                                                    
Corrections. Mr. Logan replied in the affirmative.                                                                              
                                                                                                                                
Representative  Doogan  believed  the provision  opened  the                                                                    
door  for multiple  dentists to  take  a share  in a  larger                                                                    
facility and  to expand the  number of people licensed  in a                                                                    
particular place.                                                                                                               
                                                                                                                                
9:41:23 AM                                                                                                                    
                                                                                                                                
Mr.  Logan   replied  that  there  was   currently  no  size                                                                    
restriction on the number of  dentists or hygienists allowed                                                                    
to work in one practice.                                                                                                        
                                                                                                                                
Representative Doogan asked whether the  bill would set up a                                                                    
situation  in which  a  number of  dentists  could create  a                                                                    
"Crowns  R Us"  practice. Mr.  Logan replied  that the  bill                                                                    
would not limit  the ability for dentists to  open a "Crowns                                                                    
R Us" practice.                                                                                                                 
                                                                                                                                
Representative  Neuman asked  whether the  bill strengthened                                                                    
or weakened  hygiene requirements. Mr. Logan  responded that                                                                    
the  bill  would  only  clean  up  any  antiquated  language                                                                    
related to dental hygienist  requirements. He furthered that                                                                    
current statute referred to a  state exam; however, the exam                                                                    
had  not   been  conducted   for  approximately   20  years.                                                                    
Qualifications  remained the  same  and included  graduation                                                                    
from hygiene school, passing a  national written test, and a                                                                    
regional practical board.                                                                                                       
                                                                                                                                
9:43:40 AM                                                                                                                    
                                                                                                                                
GAIL   WALDEN,  MEMBER,   ALASKA  STATE   DENTAL  HYGIENISTS                                                                    
ASSOCIATION,  WASILLA  (via teleconference),  supported  the                                                                    
bill. She  was on the  committee that had worked  to review,                                                                    
update,  and  condense  the Dental  Practice  Act  that  was                                                                    
addressed  in  the  legislation before  the  committee.  She                                                                    
stated  that the  bill maintained  the  current high  dental                                                                    
hygiene standards,  licensure, and practice. She  added that                                                                    
the   bill  updated   a  significant   amount  of   outdated                                                                    
information in statute.                                                                                                         
                                                                                                                                
Co-Chair  Stoltze believed  that the  process that  had gone                                                                    
into developing  the legislation was notably  better than in                                                                    
prior attempts  because dentists  and hygienists  had worked                                                                    
together.                                                                                                                       
                                                                                                                                
Representative  Neuman  pointed  to  Section  3  related  to                                                                    
dental hygienist  qualifications. He asked  for verification                                                                    
that the  bill only  provided cleanup  language and  did not                                                                    
hinder  the ability  of existing  hygienists to  practice in                                                                    
Alaska. Ms.  Walden responded that ASDHA  felt strongly that                                                                    
the  language  would  not make  changes  that  would  affect                                                                    
dental  hygienists  or  impact   care.  She  emphasized  the                                                                    
association's support for the wording included in the bill.                                                                     
                                                                                                                                
Representative Guttenberg  asked about the goal  of proposed                                                                    
language in Section 21: "the  board may delegate the board's                                                                    
power to  act here  and decide  matters." Mr.  Logan replied                                                                    
that the  mechanism allowed  the board  to delegate  some of                                                                    
the administrative capacities to the division. The day-to-                                                                      
day  paperwork   would  be  virtually  impossible   for  the                                                                    
practicing professionals on the board.                                                                                          
                                                                                                                                
9:46:42 AM                                                                                                                    
                                                                                                                                
Representative  Guttenberg asked  for verification  that the                                                                    
bill would  give some of  the board's responsibility  to the                                                                    
department. Mr.  Logan replied that  the board  was assigned                                                                    
certain  powers  under  the  central  statutes  and  it  was                                                                    
necessary  to have  the  ability to  delegate  items to  the                                                                    
division from a practical  standpoint; decisions would still                                                                    
be made by the board.                                                                                                           
                                                                                                                                
Ms. Walden thanked the committee for hearing the bill.                                                                          
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Representative  Wilson asked  about  current licensure  fees                                                                    
and  how  much  they   would  increase  under  the  proposed                                                                    
legislation.                                                                                                                    
                                                                                                                                
DON   HABEGER,   DIRECTOR,    CORPORATIONS,   BUSINESS   AND                                                                    
PROFESSIONAL  LICENSING, DEPARTMENT  OF COMMERCE,  COMMUNITY                                                                    
AND ECONOMIC  DEVELOPMENT, replied  that currently  a dental                                                                    
license  fee  renewal  cost   approximately  $290  to  $300;                                                                    
renewal for a dental hygienist  license was $120. There were                                                                    
a number of  factors included in the determination  of a new                                                                    
fee; a new position would be  created to meet the mandate of                                                                    
the  legislation. There  was  currently  a part-time  dental                                                                    
investigator;   the  work   would  be   shifted  and   other                                                                    
professions  would pick  up  the 30  percent  to 50  percent                                                                    
cost. Professionals  would not pick  up the entire  cost; on                                                                    
the high-end the increase would  be approximately $80 on top                                                                    
of the current price. He  did not believe the analysis would                                                                    
show the high-end increase because  the board had a $100,000                                                                    
roll-forward that may be used.  A discussion and decision on                                                                    
the  fees  would   take  place  with  the   board  and  once                                                                    
determined the detail would be set in regulation.                                                                               
                                                                                                                                
Vice-chair Fairclough  asked whether  the increase  would be                                                                    
proportionately  raised  between   the  dentist  and  dental                                                                    
hygienist  licensees. Mr.  Habeger  answered  that CBPL  was                                                                    
required  to have  the discussion  with the  board prior  to                                                                    
setting the  fees; therefore,  he did  not know  whether the                                                                    
increase would be directly proportional or equal.                                                                               
                                                                                                                                
Vice-chair Fairclough wondered who  was sitting on the board                                                                    
in  order  to determine  how  the  fees would  be  allocated                                                                    
between the two groups.                                                                                                         
                                                                                                                                
9:51:17 AM                                                                                                                    
                                                                                                                                
Ms.  Walden  replied that  ASDHA  understood  that the  fees                                                                    
would be  up for  discussion. She  believed the  board would                                                                    
factor  in that  there were  more investigations  related to                                                                    
dentistry than dental hygiene.                                                                                                  
                                                                                                                                
Representative Doogan noted that  the initial fiscal note of                                                                    
$113,000  was  reduced  to $107,000  [in  subsequent  fiscal                                                                    
years]. He  wondered whether  the remainder  represented the                                                                    
leftover cost after  the fee increase. He  asked whether the                                                                    
fiscal note would be zeroed  out. Mr. Habeger responded that                                                                    
the initial $113,000 recognized  necessary startup costs for                                                                    
items such  as office  equipment; because those  items would                                                                    
not be needed in subsequent  years the cost had been reduced                                                                    
[after FY 13].                                                                                                                  
                                                                                                                                
Representative Doogan asked whether  the note should be zero                                                                    
[after FY  13]. Mr. Habeger  replied that the  startup costs                                                                    
would be reduced to zero in subsequent years.                                                                                   
                                                                                                                                
Representative Doogan  pointed to  the annual  $107,000 cost                                                                    
that  extended  out  beyond  the  first  year.  Mr.  Habeger                                                                    
replied that certain costs would  continue and were factored                                                                    
into  the  $107,000   including,  the  investigator  salary,                                                                    
transportation  costs  of  approximately  $2,000  per  year,                                                                    
contractual costs such as the  involvement of the Department                                                                    
of Law if an investigation went to a hearing, and other.                                                                        
                                                                                                                                
Representative Doogan surmised that  the additional cost was                                                                    
related  to  law enforcement  and  not  salary. Mr.  Habeger                                                                    
replied  in   the  affirmative.  He  specified   that  costs                                                                    
included in  the $107,000 subsequent  to FY 13 would  be for                                                                    
the investigator, and  support services (including telephone                                                                    
and internet).                                                                                                                  
                                                                                                                                
Representative  Doogan  thought  that  the  fiscal  increase                                                                    
resulting from the legislation would  be covered by dentists                                                                    
and dental  hygienists; he no  longer believed that  was the                                                                    
case.                                                                                                                           
                                                                                                                                
Co-Chair Stoltze noted  that Representative Doogan's initial                                                                    
understanding was correct.                                                                                                      
                                                                                                                                
9:55:29 AM                                                                                                                    
                                                                                                                                
Vice-chair   Fairclough  pointed   to   the  Department   of                                                                    
Commerce, Community and Economic  Development Fiscal Note 3.                                                                    
She explained  that for personnel  services, costs  would be                                                                    
funded  by receipts  received by  professionals. The  fiscal                                                                    
note included  funds for travel, services,  and commodities.                                                                    
Commodities began  at $6,000  in FY 13  and were  reduced to                                                                    
$1,000 from  FY 14 to  FY 18. The department  was requesting                                                                    
$112,900 in  FY 13 from  receipts collected from  dental and                                                                    
dental  hygiene   licensing;  the  figure  was   reduced  to                                                                    
$107,000 annually  from FY 14  through FY 18. There  was one                                                                    
full-time position that  would be hired in  perpetuity to be                                                                    
supported by licensing fees.                                                                                                    
                                                                                                                                
Co-Chair Stoltze MOVED  to ADOPT Amendment 1  (by request of                                                                    
the sponsor):                                                                                                                   
                                                                                                                                
     Page 15, following line 27:                                                                                                
                                                                                                                                
     Insert a new bill section to read:                                                                                         
     "* Sec.  30. AS  08.36.234 is amended  by adding  a new                                                                    
     subsection to read:                                                                                                        
     (d)   A   dentist   applying  for   licensure   without                                                                    
     examination  shall  be  interviewed in  person  by  the                                                                    
     board or by  a member of the board before  a license is                                                                    
     issued.  The   interview  must  be  recorded.   If  the                                                                    
     application is  denied on the  basis of  the interview,                                                                    
     the  denial  shall  be  stated  in  writing,  with  the                                                                    
    reasons for it, and the record shall be preserved."                                                                         
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
Co-Chair Thomas OBJECTED for discussion.                                                                                        
                                                                                                                                
Mr.  Owen explained  that the  amendment  addressed an  item                                                                    
that had  been overlooked  earlier in  the bill  process. He                                                                    
asked Dr. Logan to explain the intent of the amendment.                                                                         
                                                                                                                                
Mr. Logan  communicated that  dentists and  hygienists could                                                                    
obtain a  license by taking an  exam at one of  the regional                                                                    
boards  or hygienists  could use  their past  five years  of                                                                    
practice history  as a  basis. He  furthered that  the board                                                                    
felt that there were not  really any meaningful questions to                                                                    
ask during the hygienist  licensure process; similarly there                                                                    
was not  much to ask  dentists coming out of  school because                                                                    
they  had  no  practice   experience  or  track  record.  He                                                                    
detailed  that the  amendment would  make  it mandatory  for                                                                    
dentists who were credentialing  into the state to interview                                                                    
with the board because they did have a past track history.                                                                      
                                                                                                                                
Representative Costello asked about  the decision to include                                                                    
the language  "or by  a member of  the board."  She believed                                                                    
that  the   responsibility  for  the  people   applying  for                                                                    
licensure  in the  state should  be taken  on by  the entire                                                                    
board. Mr. Logan replied that  the decision had been made by                                                                    
Legislative  Legal  Services with  the  goal  of giving  the                                                                    
board  flexibility.  He was  agreeable  to  the change  that                                                                    
would include the board in its entirety.                                                                                        
                                                                                                                                
Representative Costello  MOVED to AMEND Amendment  1 on line                                                                    
5 to delete "or by a member of the board."                                                                                      
                                                                                                                                
Representative Guttenberg OBJECTED  for discussion. He asked                                                                    
whether a decision by one member  of the board would have to                                                                    
be  ratified by  the entire  board. Mr.  Logan replied  that                                                                    
each  application  for  credentialing was  ratified  by  the                                                                    
majority of the board.                                                                                                          
                                                                                                                                
Representative  Guttenberg   asked  for   verification  that                                                                    
Amendment  1  would  allow  the  examination  of  a  dentist                                                                    
credentialing into  the state  to be  conducted by  a single                                                                    
board  member   and  the  change  under   the  amendment  to                                                                    
Amendment 1  would require the  examination to  be conducted                                                                    
by   the  entire   board.  Mr.   Logan   responded  in   the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Representative  Gara agreed  that all  of the  board members                                                                    
should  have  the opportunity  to  ask  questions during  an                                                                    
examination of  a dentist credentialing  into the  state. He                                                                    
asked  for  verification  that  his  understanding  was  the                                                                    
intention of the amendment to Amendment 1.                                                                                      
                                                                                                                                
Representative Costello replied in the affirmative.                                                                             
                                                                                                                                
Co-Chair Stoltze  observed that there may  be occasions when                                                                    
the  board was  not able  to get  together for  a couple  of                                                                    
months, which could  delay an interview. He did  not want to                                                                    
cripple the board's ability to conduct interviews.                                                                              
                                                                                                                                
Vice-chair Fairclough  wondered how the change  would impact                                                                    
a dentist  who moved  to an  isolated location  for service;                                                                    
the person  may be  required to travel  to a  board meeting.                                                                    
She asked  how often the  board met. Mr. Logan  replied that                                                                    
the  board  met  quarterly. He  relayed  that  jurisprudence                                                                    
examinations   occurred   at  board   meetings;   therefore,                                                                    
interviewees  would  be required  to  attend  a meeting  for                                                                    
their interview.                                                                                                                
                                                                                                                                
10:02:52 AM                                                                                                                   
                                                                                                                                
Representative  Joule  wondered  whether  the  amendment  to                                                                    
Amendment 1  would require  all members of  the board  to be                                                                    
present at  the board meeting  to conduct an  interview. Mr.                                                                    
Owen  replied  that  the  quorum to  do  business  would  be                                                                    
sufficient.                                                                                                                     
                                                                                                                                
10:04:55 AM                                                                                                                 
RECESSED                                                                                                                        
                                                                                                                                
2:21:11 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Stoltze indicated that  an amendment to Amendment 1                                                                    
had  been discussed  earlier  in the  morning.  He asked  if                                                                    
there were any amendments to Amendment 1.                                                                                       
                                                                                                                                
Representative    Edgmon   asked    whether   the    earlier                                                                    
contemplated amendment  was no  longer part of  Amendment 1.                                                                    
Co-Chair  Stoltze  indicated  there were  no  amendments  to                                                                    
Amendment 1.                                                                                                                    
                                                                                                                                
Co-Chair Thomas  WITHDREW objection. There being  NO further                                                                    
OBJECTION Amendment 1 was adopted.                                                                                              
                                                                                                                                
Co-Chair  Thomas MOVED  to report  HCS CSSB  92(FIN) out  of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB  92(FIN) was REPORTED  out of committee with  a "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
impact note: FN3 (CED).                                                                                                         
                                                                                                                                
2:23:45 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:26:40 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 130(STA)                                                                                               
                                                                                                                                
          "An  Act establishing  the Alaska  Native Language                                                                    
          Preservation and Advisory  Council and relating to                                                                    
          the preservation,  restoration, and revitalization                                                                    
          of Alaska Native languages."                                                                                          
                                                                                                                                
                                                                                                                                
Co-Chair  Stoltze  turned  over   the  gavel  to  Vice-chair                                                                    
Fairclough.                                                                                                                     
                                                                                                                                
Representative  Wilson  MOVED  to ADOPT  proposed  committee                                                                    
substitute (CS)  for CSSB  130(FIN) Work  Draft 27-LS0779\R,                                                                    
(Mischel, 4/9/12) as a working document.                                                                                        
                                                                                                                                
Representative Doogan OBJECTED for discussion.                                                                                  
                                                                                                                                
JOE    MICHEL,   STAFF,    REPRESENTATIVE   BILL    STOLTZE,                                                                    
communicated that  the only  change included  in the  CS was                                                                    
the addition  of Section (f) on  page 2, line 26,  that read                                                                    
"the  department shall  provide staff  as needed  to support                                                                    
the  council; the  staff must  demonstrate competency  in an                                                                    
Alaska Native language."                                                                                                        
                                                                                                                                
Representative  Doogan WITHDREW  his objection.  There being                                                                    
NO further OBJECTION, the CS was ADOPTED.                                                                                       
                                                                                                                                
Vice-chair   Fairclough  read   the  bill   title  for   the                                                                    
committee. She OPENED public testimony.                                                                                         
                                                                                                                                
DAISY-MAY BARRERA,  UNIVERSITY OF ALASKA  FAIRBANKS STUDENT,                                                                    
BETHEL (via  teleconference), provided opening  testimony in                                                                    
her native  Yupik language. She  voiced her support  for the                                                                    
bill. She  believed the bill  was very important  for future                                                                    
generations. She recommended the  appointment of an elder to                                                                    
the  council;  elders  were viewed  as  the  foundation  and                                                                    
backbone of  their cultural ideas and  traditions. The elder                                                                    
would serve as a guide and  mentor in the establishment of a                                                                    
very  important  program.   Additionally,  she  advised  the                                                                    
appointment of a  young person to serve on the  council as a                                                                    
role model for Alaskan  youths. She believed the appointment                                                                    
would  send a  powerful  message  that indigenous  languages                                                                    
were part of  Alaska's heritage and needed  to be protected.                                                                    
She believed that the involvement  of multiple parties would                                                                    
help  to  rebuild  relationships  and  to  repair  differing                                                                    
worlds. The  leadership of the legislature  joining with the                                                                    
12  regions   would  develop  the  healthiest   approach  to                                                                    
identify the need  of each language to be  protected for the                                                                    
future. She  closed her testimony  in Yupik and  thanked the                                                                    
committee for its time.                                                                                                         
                                                                                                                                
UKALLAYSAAQ  OKLEASIK, PLANNING  DIRECTOR, NORTHWEST  ARCTIC                                                                    
BOROUGH,   KOTZEBUE  (via   teleconference),  testified   in                                                                    
support  of  the  bill. The  borough  supported  the  Alaska                                                                    
Native Language  Advisory Council  and believed it  was long                                                                    
overdue. He encouraged  the passage of the bill  in order to                                                                    
preserve and  advance the  state's proud  cultural heritage.                                                                    
Linguists   around  the   world  considered   Alaska  Native                                                                    
languages   to   be   endangered.   He   stated   that   the                                                                    
disappearance of the languages  had huge social implications                                                                    
that  included depression,  self-destructive behaviors,  and                                                                    
community  shame.  The  council  would be  a  positive  step                                                                    
towards  putting  healthy  communities forward.  Within  the                                                                    
Northwest Arctic region the Inupaiq  language was in serious                                                                    
decline.  Studies  indicated that  only  18  percent of  the                                                                    
population  could  understand  the   language  and  only  14                                                                    
percent could speak it fluently.  He stressed that immediate                                                                    
action  was needed  in order  to  strengthen the  languages.                                                                    
Borough   resolutions  had   been  passed   recognizing  the                                                                    
importance  of  the  native  language;  the  language  could                                                                    
increase    cultural     heritage,    support    sustainable                                                                    
communities, and encourage  collaboration among generations.                                                                    
He reiterated the borough's support of the bill.                                                                                
                                                                                                                                
CRYSTAL  ROGERS,  UNIVERSITY  OF ALASKA  SOUTHEAST  STUDENT,                                                                    
JUNEAU  (via teleconference),  offered a  younger generation                                                                    
perspective.  She   began  her   testimony  in   her  native                                                                    
language. She highlighted that there  were more young people                                                                    
studying their  native languages  than may be  realized. She                                                                    
stated  that there  were many  youths committed  to learning                                                                    
their native  languages and  that help  was needed  from the                                                                    
legislature and  the governor. She supported  the passage of                                                                    
the bill and thanked the committee for its time.                                                                                
                                                                                                                                
2:39:22 PM                                                                                                                    
                                                                                                                                
Vice-chair Fairclough CLOSED public testimony.                                                                                  
                                                                                                                                
Representative Wilson  reviewed the Department  of Commerce,                                                                    
Community and Economic Development  fiscal note. The request                                                                    
was $240,200 for FY 13  and $216,200 for outlying years from                                                                    
FY 14  through FY 18.  Funding would  pay for two  new full-                                                                    
time positions.                                                                                                                 
                                                                                                                                
Representative  Guttenberg  asked  whether  there  were  any                                                                    
amendments. Vice-chair Fairclough  replied that an amendment                                                                    
by Co-Chair Thomas had been rolled into the CS.                                                                                 
                                                                                                                                
Representative Wilson asked for  verification that there was                                                                    
only one fiscal note.  Vice-chair Fairclough answered in the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
2:41:03 PM                                                                                                                    
                                                                                                                                
Representative  Doogan  expressed  strong  support  for  the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative Joule  MOVED to report HCS  for CSSB 130(FIN)                                                                    
out  of committee  with individual  recommendations and  the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
HCS CSSB 130(FIN)  was REPORTED out of committee  with a "do                                                                    
pass"  recommendation and  with previously  published fiscal                                                                    
impact note: FN2 (CED).                                                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
2:46:01 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:45 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
HB 286 CS WORKDRAFT 27-GH2769-B.pdf HFIN 4/9/2012 9:00:00 AM
HB 286
HB286CS(FIN)-DOR-TRS-04-06-12NEW.pdf HFIN 4/9/2012 9:00:00 AM
HB 286
SB 92 Lttr from OR Board of Dentistry.PDF HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 lttr supporting, ADPAC-DAPAC.PDF HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 CBPL memo, Habeger 04012011.PDF HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 ANTHC letter 3-31-11.PDF HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 lttr, SCF proposed amendment.pdf HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 Sponsor Statement for H FIN.pdf HFIN 4/9/2012 9:00:00 AM
SB 92
SB 92 Sectional Analysis and Summary of Changes for HFIN.pdf HFIN 4/9/2012 9:00:00 AM
SB 92
SB92 AMENDMENT 1 STOLTZE.pdf HFIN 4/9/2012 9:00:00 AM
SB 92
SB 130 Cursory Survey.pdf HFIN 4/9/2012 9:00:00 AM
SB 130
SB 130 Sponsor Statement.pdf HFIN 4/9/2012 9:00:00 AM
SB 130
SB 130 Legal Services Memo 11.08.11 attachments.pdf HFIN 4/9/2012 9:00:00 AM
SB 130
SB 130 Explanation of Changes.pdf HFIN 4/9/2012 9:00:00 AM
SB 130
SB 130 Cursory Survey.pdf HFIN 4/9/2012 9:00:00 AM
SB 130