Legislature(2021 - 2022)ADAMS 519

04/09/2021 09:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 99 PHYSICAL/OCCUPATIONAL THERAPY BD/PRACTICE TELECONFERENCED
Heard & Held
+ HB 117 EXTEND BOARD OF DIRECT-ENTRY MIDWIVES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 9, 2021                                                                                            
                         9:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:03:12 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the  House Finance Committee meeting                                                                    
to order at 9:03 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative Matt  Claman, Sponsor; Joey  Bosworth, Staff,                                                                    
Representative   Matt  Claman;   Kris  Curtis,   Legislative                                                                    
Auditor, Alaska Division of Legislative Audit.                                                                                  
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Dr. LeeAnne  Carrothers, Alaska Government  Affairs Liaison,                                                                    
Alaska   Physical   Therapy  Association;   Sara   Chambers,                                                                    
Director,   Division    of   Corporations,    Business   and                                                                    
Professional  Licensing, Department  of Commerce,  Community                                                                    
and Economic  Development; Bethel Buh-Lyle, Chair,  Board of                                                                    
Certified Direct-Entry Midwives.                                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 99     PHYSICAL/OCCUPATIONAL THERAPY BD/PRACTICE                                                                             
                                                                                                                                
          HB 99 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 117    EXTEND BOARD OF DIRECT-ENTRY MIDWIVES                                                                                 
                                                                                                                                
          HB 117 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Merrick reviewed the agenda for the meeting.                                                                           
                                                                                                                                
HOUSE BILL NO. 99                                                                                                             
                                                                                                                                
     "An  Act relating  to the  State  Physical Therapy  and                                                                    
     Occupational  Therapy Board;  relating to  the practice                                                                    
     of physical  therapy; and relating  to the  practice of                                                                    
     occupational therapy."                                                                                                     
                                                                                                                                
9:03:55 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MATT  CLAMAN, SPONSOR, thanked  the committee                                                                    
for hearing HB  99. He was carrying the bill  at the request                                                                    
of   the   Alaska    Physical   and   Occupational   Therapy                                                                    
Associations. He read a prepared statement:                                                                                     
                                                                                                                                
     House  Bill  99  amends   the  governing  statutes  for                                                                    
     physical   therapists,  physical   therapy  assistants,                                                                    
     occupational   therapists   and  occupational   therapy                                                                    
     assistants practicing  in Alaska. The changes  it makes                                                                    
     are  designed to  bring Alaska  statutes  in line  with                                                                    
     national  standards and  terminology, and  overall make                                                                    
     the  administrative experience  of these  professionals                                                                    
     smoother and up to date.  This bill is sponsored by the                                                                    
     State Physical Therapy  and Occupational Therapy Board,                                                                    
     which believes  HB 99 will  help the Board in  its work                                                                    
     to protect  the public.  A letter stating  that support                                                                    
     is in your packet.                                                                                                         
                                                                                                                                
     Currently,   physical   therapists,  physical   therapy                                                                    
     assistants,  occupational therapists,  and occupational                                                                    
     therapy  assistants   are  represented  by   the  state                                                                    
     Physical Therapy  and occupational Therapy  Board. This                                                                    
     board  is  made up  of  one  physician, three  physical                                                                    
     therapists,  two   occupational  therapists,   and  one                                                                    
     member of the public.                                                                                                      
                                                                                                                                
     The first  change made  by this bill  is to  remove the                                                                    
     physician  from  this  board   and  replace  them  with                                                                    
     another occupational  therapist, thereby  balancing the                                                                    
     representation of the professions on the board.                                                                            
                                                                                                                                
     There is good reason for  this change. When the statute                                                                    
     was  originally  written,  the  work  of  physical  and                                                                    
     occupational   therapists   required  referral   by   a                                                                    
     physician. This  has not  been the  case in  Alaska for                                                                    
     more than 30 years.                                                                                                        
                                                                                                                                
     HB 99 also enables the  board to discipline a therapist                                                                    
     who commits  infractions under AS  08.84.120 such  as a                                                                    
     conviction of  a felony, gross negligence,  or abuse of                                                                    
     alcohol.  Currently,  the  board  has  the  ability  to                                                                    
     revoke or deny  a license based on  infractions but has                                                                    
     no ability to discipline.                                                                                                  
                                                                                                                                
     This bill also clarifies  the language and requirements                                                                    
     for  those   therapists  who  receive   their  training                                                                    
     outside the United States  ensuring that their training                                                                    
     is equivalent  to a U.S. professional  physical therapy                                                                    
     training program and  also exempting therapists trained                                                                    
     in an English  language program from having  to take an                                                                    
     English proficiency test.                                                                                                  
                                                                                                                                
     Further,  this  bill  updates language  in  the  Alaska                                                                    
     statutes that  reference an accrediting entity  that no                                                                    
     longer  exists and  makes  the  language more  general,                                                                    
     allowing the  state board to designate  the appropriate                                                                    
     accrediting entity as needed.  Several other updates to                                                                    
     terminology are made to update the language.                                                                               
                                                                                                                                
     House Bill  99 does  not constitute a  restructuring of                                                                    
     the  relevant  statute, but  it  contains  a number  of                                                                    
     long-awaited changes. This  is a way to  make it easier                                                                    
     for professionals to do business in Alaska.                                                                                
                                                                                                                                
Representative Claman indicated his staff would walk                                                                            
through the sectional analysis of the bill.                                                                                     
                                                                                                                                
9:06:56 AM                                                                                                                    
                                                                                                                                
JOEY   BOSWORTH,   STAFF,    REPRESENTATIVE   MATT   CLAMAN,                                                                    
introduced himself and read the sectional analysis:                                                                             
                                                                                                                                
     Section 1                                                                                                                  
    AS 08.84.010. Creation and membership of the board.                                                                         
     Removes the seat  for a physician and  balances out the                                                                    
     board with  3 physical  therapists or  physical therapy                                                                    
     assistants   and    3   occupational    therapists   or                                                                    
     occupational therapy  assistants along with  one public                                                                    
     member, to make up the  7-member board. It also changes                                                                    
     the  term  "physical  therapy assistant"  to  "physical                                                                    
     therapist  assistant" in  this  section and  throughout                                                                    
     the entire  statute. This change  is to conform  to the                                                                    
     industry title used nationally.                                                                                            
                                                                                                                                
     Section 2                                                                                                                  
     AS 08.84.030. Qualifications for licensing.                                                                                
     Allows the  board to have  broader authority  over what                                                                    
     entities   will  have   accreditation  oversight   over                                                                    
     physical  therapy  &   occupational  therapy  education                                                                    
     programs. Some  of the  accrediting entities  listed in                                                                    
     statute  are now  either renamed  or  no longer  exist,                                                                    
     making  that   statute  obsolete.  Section   2  removes                                                                    
     language  from  the   statute  relating  to  additional                                                                    
     supervised  field  work  that  occupational  therapists                                                                    
     must complete as these requirements  are covered by the                                                                    
     accrediting bodies.                                                                                                        
                                                                                                                                
     Section 3                                                                                                                  
     AS 08.84.032. Foreign-educated applicants.                                                                                 
     Changes   the  section   headline  from   "trained"  to                                                                    
     "educated."  New   language  is  added   that  requires                                                                    
     foreign-educated   physical   therapist   or   physical                                                                    
     therapy   assistant  students   to   have  attended   a                                                                    
     "substantially" equivalent educational  program that is                                                                    
     accredited  by a  U.S.  accreditation  entity that  has                                                                    
     been  approved  by  the board.  Outdated  and  obsolete                                                                    
     language is removed that can  be found on page 4, lines                                                                    
     3 -9 of this bill.                                                                                                         
                                                                                                                                
     Added  to subsection  (3) of  this section  is language                                                                    
     that  would  require  that   a  physical  therapist  or                                                                    
     physical therapist assistant  pass a test demonstrating                                                                    
     competency  of  the  English  language  only  if  their                                                                    
     program was  taught in  a foreign  language. Subsection                                                                    
     (4)  requires that  a foreign-educated  applicant is  a                                                                    
     legal alien  or a U.S citizen.  Subsection (7) requires                                                                    
     them  to  pay  the  required fee  and  meet  any  other                                                                    
     qualifications  for licensure  set by  the board  under                                                                    
     08.84.010(b).                                                                                                              
                                                                                                                                
     All the above  changes in Section 3  are replicated for                                                                    
     occupational   therapists   or   occupational   therapy                                                                    
     assistants on page  4, lines 27-31 and over  to page 5,                                                                    
     lines 1-22.                                                                                                                
                                                                                                                                
     Section 4                                                                                                                  
     AS 08.84.060. Licensure by acceptance of credentials.                                                                      
     Makes conforming terminology changes.                                                                                      
                                                                                                                                
     Section 5                                                                                                                  
     AS 08.84.065(c). Temporary changes.                                                                                        
     Makes conforming terminology changes.                                                                                      
                                                                                                                                
     Section 6                                                                                                                  
     AS 08.84.075(b). Limited permit.                                                                                           
     Makes conforming terminology changes.                                                                                      
                                                                                                                                
     Section 7                                                                                                                  
     AS 08.84.075(c). Limited permit.                                                                                           
     Changes language that would now  require that a limited                                                                    
     permit is valid for 120 consecutive days.                                                                                  
                                                                                                                                
     Section 8                                                                                                                  
     AS 08.84.075(d). Limited permit.                                                                                           
    Allows only one limited permit per 12-month period.                                                                         
                                                                                                                                
     Section 9                                                                                                                  
     AS 08.84.090. Licensure.                                                                                                   
     Updates licensure terminology.                                                                                             
                                                                                                                                
     Section 10                                                                                                                 
     AS  08.84.120(a). Refusal,  revocation, and  suspension                                                                    
     of license.                                                                                                                
     Adds disciplinary action as a  possibility to actions a                                                                    
     board  might  consider  for   an  infraction  of  their                                                                    
     licensure  and  updates  terminology in  item  (7)  and                                                                    
     states in  (9) that failure  to comply with the  law or                                                                    
     regulations  or  order of  the  board  might result  in                                                                    
     disciplinary action or suspension of a license.                                                                            
                                                                                                                                
     Section 11                                                                                                                 
    AS 08.04.130(a). False claim of license prohibited.                                                                         
     Adds updated credentialing and terminology.                                                                                
                                                                                                                                
     Section 12                                                                                                                 
    AS 08.84.130(b). False claim of license prohibited.                                                                         
     Updates terminology.                                                                                                       
                                                                                                                                
     Section 13                                                                                                                 
     AS 08.84.190. Definitions.                                                                                                 
     Adds  a   new  paragraph  defining  the   updated  term                                                                    
     "physical therapist assistant."                                                                                            
                                                                                                                                
     Section 14                                                                                                                 
     AS 11.41.470(1). Definitions.                                                                                              
     Updates  definitions  in  criminal  law/sexual  assault                                                                    
     statute.                                                                                                                   
                                                                                                                                
     Section 15                                                                                                                 
     AS 47.17.290(14). Definitions.                                                                                             
     Updates   terminology   under  definitions   in   child                                                                    
     protection statute.                                                                                                        
                                                                                                                                
     Section 16                                                                                                                 
     AS 08.84.190(7). Definitions.                                                                                              
     Repeals subsection  (7), which is the  definition using                                                                    
     outdated term of  physical therapy assistant; according                                                                    
     to  Leg. Legal,  when the  actual "term"  used for  the                                                                    
     definition is being changed, the  entire citing must be                                                                    
     repealed.  The new  definition is  set out  on page  8,                                                                    
     Section 13, lines 11-14.                                                                                                   
                                                                                                                                
     Section 17                                                                                                                 
     Applicability                                                                                                              
     Sets out  the applicability  clauses for  licensure for                                                                    
     sections 2 and 3 of this Act and for sections 7 and 8.                                                                     
                                                                                                                                
     Section 18                                                                                                                 
     Uncodified law                                                                                                             
     Transition   language  for   the   board  vacancy   and                                                                    
     appointments for  the PT/OT board, and  states that the                                                                    
     changes do not  apply to current licensees  until it is                                                                    
     time for  their licensure renewal and  then all changes                                                                    
     to the law will apply.                                                                                                     
                                                                                                                                
Representative Merrick recognized that Representative                                                                           
Carpenter had joined the meeting.                                                                                               
                                                                                                                                
9:09:21 AM                                                                                                                    
                                                                                                                                
Representative Josephson asked if  the bill would remove the                                                                    
need  for a  referral from  a  physician or  whether it  was                                                                    
already  in law.  Rep. Claman  indicated it  was already  in                                                                    
law.                                                                                                                            
                                                                                                                                
Representative  Josephson  asked  if  referrals  were  done.                                                                    
Representative  Claman  replied  that  a  referral  was  not                                                                    
required  to  see  a  physical   therapist  or  required  by                                                                    
insurance. He  shared a personal  experience related  to the                                                                    
topic. He thought it had been  30 years since a referral was                                                                    
required.                                                                                                                       
                                                                                                                                
Representative  Merrick  indicated   there  was  an  invited                                                                    
testifier online.  She invited her  to place herself  on the                                                                    
record.                                                                                                                         
                                                                                                                                
DR.  LEEANNE CARROTHERS,  ALASKA GOVERNMENT  AFFAIRS LIASON,                                                                    
ALASKA  PHYSICAL THERAPY  ASSOCIATION (via  teleconference),                                                                    
was available for questions.                                                                                                    
                                                                                                                                
Representative  Merrick  conveyed that  Representative  Wool                                                                    
had  joined  the  meeting.   The  committee  would  continue                                                                    
hearing HB 99 at a later meeting.                                                                                               
                                                                                                                                
HB  99  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
9:11:50 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:33 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
HOUSE BILL NO. 117                                                                                                            
                                                                                                                                
     "An Act extending the termination date of the Board of                                                                     
     Certified Direct-Entry Midwives; and providing for an                                                                      
     effective date."                                                                                                           
                                                                                                                                
9:12:39 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  DAN ORTIZ,  SPONSOR,  thanked the  committee                                                                    
for hearing HB  117. The bill extended  the termination date                                                                    
for  the Board  of Certified  Direct-Entry Midwives  to June                                                                    
30, 2023.  It was a  2-year extension at  the recommendation                                                                    
of  the  Division  of  Legislative   Audit.  The  board  was                                                                    
comprised  of  5  members: Two  direct-entry  midwives;  one                                                                    
physician  licensed   by  the   state  medical   board;  one                                                                    
certified nurse-midwife  licensed by  the Board  of Nursing;                                                                    
and one public member. Under  the statute the board examined                                                                    
and   issued    certificates   and    permits,   established                                                                    
regulations    for    the   certification    and    practice                                                                    
requirements,  ordered  disciplinary actions,  and  approved                                                                    
curricula  and   standards  for  education,   training,  and                                                                    
apprenticeships. The  bill had a  $21,800 fiscal  note which                                                                    
was  covered  with  the revenues  from  licensing  fees.  He                                                                    
relayed the list of available testifiers.                                                                                       
                                                                                                                                
Representative LeBon asked why the  extension was only for 2                                                                    
years.   Vice-Chair  Ortiz   deferred  to   the  legislative                                                                    
auditor,   Kris  Curtis,   as  she   recommended  a   2-year                                                                    
extension.                                                                                                                      
                                                                                                                                
9:14:47 AM                                                                                                                    
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE  AUDIT,  would   review  the  legislative  audit                                                                    
report  for the  Board of  Certified Direct-Entry  Midwives.                                                                    
She  relayed   that  the   Division  of   Legislative  Audit                                                                    
conducted a sunset review of  the Board of Certified Direct-                                                                    
Entry Midwives. She thought members  had a copy of the audit                                                                    
report, dated June  2020 in their packets. The  purpose of a                                                                    
sunset audit was to determine  whether a board or commission                                                                    
was serving the  public's interest and whether  it should be                                                                    
extended. She read a portion of the report:                                                                                     
                                                                                                                                
     Overall, the audit concluded that  the board served the                                                                    
     public's interest by  conducting meetings in accordance                                                                    
     with  state laws  and effectively  certifying midwives.                                                                    
     The  board adopted  regulatory changes  to improve  the                                                                    
     profession but  failed to pursue statutory  changes due                                                                    
     to  concerns  over  related  costs.  Additionally,  the                                                                    
     audit   found  the   peer   review   process  was   not                                                                    
     effectively  monitored by  the  board and  improvements                                                                    
     were   needed  over   the  Division   of  Corporations,                                                                    
     Business and Professional Licensing's (DCBPL)                                                                              
     investigative process.                                                                                                     
                                                                                                                                
     In  accordance with  AS 08.03.010(c)(8),  the board  is                                                                    
     scheduled to  terminate on June 30,  2021. We recommend                                                                    
     the  legislature extend  the  board's termination  date                                                                    
     two  years, to  June 30,  2023, which  is significantly                                                                    
     less than  the eight-year  maximum allowed  in statute.                                                                    
     The  reduced extension  is due  to an  issue identified                                                                    
     during the  audit that may  impact the  board's ability                                                                    
     to  protect the  public and  the board's  reluctance to                                                                    
     recommend  statutory  changes   in  the  public's  best                                                                    
     interest. The details of the  issue are not included in                                                                    
     this  report  to  preserve the  confidentiality  of  an                                                                    
     ongoing investigation.  The reduced  extension reflects                                                                    
     the need for continued oversight.                                                                                          
                                                                                                                                
Ms. Curtis directed  members to turn to page 7  of the audit                                                                    
showing the standard licensing statistics  for the board. As                                                                    
of  January 2020,  the board  had 51  certified direct-entry                                                                    
midwives  and  apprentice  midwives.   Page  8  contained  a                                                                    
schedule  of fees.  In  FY  17 the  fees  were increased  to                                                                    
address a  deficit. As a  result, the occupation had  one of                                                                    
the highest, if not the highest, fee of any occupation.                                                                         
                                                                                                                                
Ms.  Curtis  directed  members  to page  9  which  showed  a                                                                    
schedule of  revenues and expenditures.  It showed  that the                                                                    
board  had a  deficit of  just  over $19,000  as of  January                                                                    
2020. She  indicated that  at the time  of the  audit, DCBPL                                                                    
management  believed   that  the  deficit  would   be  fully                                                                    
resolved by the end of FY 21.                                                                                                   
                                                                                                                                
Ms. Curtis indicated the  division had three recommendations                                                                    
for improvements  beginning on  page 11  of the  report. She                                                                    
read Recommendation 1:                                                                                                          
                                                                                                                                
     The  board  should  recommend  statutory  changes  that                                                                    
     benefit  the public.  The board  identified  a need  to                                                                    
     change   certification  statutes   to  align   Alaska's                                                                    
     midwifery  laws with  national standards.  However, due                                                                    
     to  the  legal costs  involved  with  the project,  the                                                                    
     board did not recommend statutory changes.                                                                                 
                                                                                                                                
Ms. Curtis read Recommendation 2 on page 12:                                                                                    
                                                                                                                                
     DCBPL's     chief     investigator    should     ensure                                                                    
     investigations are  completed timely. Three  cases open                                                                    
     over 180 days from July  2016 through January 2020 were                                                                    
     evaluated  by auditors.  All three  were found  to have                                                                    
     unjustified  periods of  inactivity ranging  between 54                                                                    
     and  114  days.  It  was also  noted  that  supervisory                                                                    
     review of two of the  three cases was not documented as                                                                    
     required  by DCBPL  procedures,  indicating review  did                                                                    
     not  occur  or  did   occur  and  was  not  documented.                                                                    
     According  to  DCBPL  staff,  the  inactivity  was  the                                                                    
     result of turnover and competing priorities.                                                                               
                                                                                                                                
Ms. Curtis read Recommendation 3 on page 12:                                                                                    
                                                                                                                                
     The board  should improve oversight of  the peer review                                                                    
     process.  The  board  delegated  peer  reviews  to  the                                                                    
     Midwives   Association    of   Alaska's    Action   and                                                                    
     Accountability  Committee. However,  the board  did not                                                                    
     establish procedures to  provide assurance that reviews                                                                    
     were adequately  completed. The board did  not consider                                                                    
     the  need  for or  importance  of  monitoring the  peer                                                                    
     review  process.  According  to  AS  08.65.030(b),  the                                                                    
     board  may,  by regulation,  require  a  CDM undergo  a                                                                    
     uniform  or  random period  of  peer  review to  ensure                                                                    
     quality  of care.  Inadequate  monitoring  of the  peer                                                                    
     review  process increases  the  risk  that the  reviews                                                                    
     will be  deficient, which increases the  risk to public                                                                    
     safety.                                                                                                                    
                                                                                                                                
Ms. Curtis  indicated the  responses to  the audit  began on                                                                    
page  23. The  commissioner of  the Department  of Commerce,                                                                    
Community, and Economic Development  (DCCED) did not respond                                                                    
to  Recommendations   1  and  Recommendation  3,   as  those                                                                    
recommendations were  directed to the board.  In response to                                                                    
Recommendation   2,   the   commissioner  state   that   the                                                                    
department  was going  to  add  a supervisory  investigative                                                                    
position to help  with the caseloads. She  noted the Chair's                                                                    
response was on page  25. The Chair expressed disappointment                                                                    
with   the    2-year   recommended    extension.   Regarding                                                                    
Recommendation 1  the Chair believed  that the  board should                                                                    
not be penalized for their  fiscal responsibility, as it was                                                                    
a way to reduce costs.  In response to Recommendation 2, the                                                                    
Chair  concurred  with  the  finding  but  stated  that  she                                                                    
believed it should not have  impacted the term of extension,                                                                    
as  the duty  to  investigate fell  on  the department.  She                                                                    
continued  that   regarding  Recommendation  3,   the  Chair                                                                    
concurred with the recommendation.                                                                                              
                                                                                                                                
9:20:10 AM                                                                                                                    
                                                                                                                                
Representative Josephson  asked about the  statutory changes                                                                    
recommended  by  the  auditor  and why  the  board  had  not                                                                    
approached  the   legislature  for  a  change.   Ms.  Curtis                                                                    
responded  that it  was their  perception that  it would  be                                                                    
costly.  She   noted  in  the  department's   response  that                                                                    
although they  did not have comments  on the recommendation,                                                                    
they remarked  that the  cost associated  with that  type of                                                                    
project was small.                                                                                                              
                                                                                                                                
Representative  Josephson  noted  Ms. Curtis  had  mentioned                                                                    
some statutory  changes that should  be made that  the board                                                                    
had identified.  However, they lacked the  resources to make                                                                    
those  changes. He  wondered  why  they had  not  come to  a                                                                    
legislator for  assistance. Ms. Curtis reported  that it was                                                                    
their perception that  it would be costly. She  noted in the                                                                    
department's  response  that  although  they  did  not  have                                                                    
comments  on the  recommendation, they  did not  think there                                                                    
would be many costs. There  was only a small cost associated                                                                    
with that type of project.                                                                                                      
                                                                                                                                
Representative Josephson  noted that  in 2014  Senator Kelly                                                                    
[a  previous Alaska  Senator from  Fairbanks] sponsored  and                                                                    
saw the passage  of Senate Bill 156 []. He  was a legislator                                                                    
at the time  and had some concerns with  the bill. Although,                                                                    
he voted  for it.  The bill  stripped away  the prescriptive                                                                    
statutory authority for direct-entry  midwives and gave them                                                                    
the  authority to  writ the  regulations  that would  define                                                                    
their  scope.  He  wondered if  the  legislature  should  be                                                                    
concerned that if there was  much disclosure about the case,                                                                    
a person  could be identified.  He asked if  the legislature                                                                    
should   be  concerned   about  how   direct-entry  midwives                                                                    
perceived their own scope of practice.                                                                                          
                                                                                                                                
Ms. Curtis indicated  she had to proceed  with caution based                                                                    
on the  recommendation of Legislative Legal  Services on her                                                                    
answer. She reported  that in the previous  sunset audit she                                                                    
had  recommended to  the legislature  to consider  alternate                                                                    
forms of  regulating the board.  At that point,  her concern                                                                    
was  that with  such a  small  number of  licensees and  the                                                                    
weight of  investigations it would  drive the costs  so high                                                                    
creating a barrier  into the occupation. She  feared that if                                                                    
the  fees  were  very  high it  would  prevent  people  from                                                                    
practicing  or lead  some of  them to  drop off.  Four years                                                                    
ago, she  testified and made  the recommendation,  no action                                                                    
was  taken.  In  hindsight,  the number  of  licensees  only                                                                    
decreased by  3 even with the  high fees. A small  number of                                                                    
licensees  created   problems  with  fees.  She   would  not                                                                    
otherwise answer the representative's question directly.                                                                        
                                                                                                                                
9:23:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:26:01 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Thompson  had a question about  the length of                                                                    
time   of  investigations.   He   wondered   if  DCCED   was                                                                    
responsible  for the  investigations.  Ms. Curtis  responded                                                                    
affirmatively.  She  indicated  that  there  was  designated                                                                    
staff within DCBPL that did investigations.                                                                                     
                                                                                                                                
Representative   Thompson  asked   if   the   cost  of   the                                                                    
investigations  was  the  responsibility of  the  board.  He                                                                    
wondered if licensing  fees would have to be  raised to meet                                                                    
those costs if necessary.  Ms. Curtis indicated AS 08.01.065                                                                    
required the  department to  adopt regulations  to establish                                                                    
the   amount  and   manner   of   payment  of   application,                                                                    
examination,  license fees,  and  permit  fees. The  statute                                                                    
required that it  covered the cost of  regulating the board.                                                                    
Essentially, all occupations paid their way.                                                                                    
                                                                                                                                
Representative Thompson  asked about the length  of time for                                                                    
an  investigation. He  speculated  that investigations  were                                                                    
taking 180  days. Ms. Curtis  Deferred to Ms.  Chambers, the                                                                    
director of DCBPL.                                                                                                              
                                                                                                                                
9:27:58 AM                                                                                                                    
                                                                                                                                
SARA CHAMBERS, DIRECTOR,  DIVISION OF CORPORATIONS, BUSINESS                                                                    
AND   PROFESSIONAL   LICENSING,  DEPARTMENT   OF   COMMERCE,                                                                    
COMMUNITY  AND  ECONOMIC DEVELOPMENT  (via  teleconference),                                                                    
reported  that all  of the  license  investigations had  the                                                                    
same process. However, the  investigations vary depending on                                                                    
the  type of  suspected  infraction. The  department had  17                                                                    
professional  investigators to  handle  the  case load.  The                                                                    
process prioritized the life,  health, and safety cases. The                                                                    
division  had struggled  for several  years with  keeping up                                                                    
with some of the case  work, especially for the low priority                                                                    
cases that  do not  pose an immediate  threat. She  had been                                                                    
working to overcome the delays where possible.                                                                                  
                                                                                                                                
Ms.  Chambers  continued  that  much  of  the  investigation                                                                    
process relied on receiving  documentation from the licensee                                                                    
under investigation  and from the complainant.  Sometimes it                                                                    
involved  obtaining  copies  of sensitive  and  confidential                                                                    
medical  and  hospital  records which  could  take  time  to                                                                    
process.  She   believed  the  division  could   improve  on                                                                    
documenting delays  so that all  parties could see  that the                                                                    
division was actively working the  cases and the delays were                                                                    
reasonable.  It  was an  area  the  Division of  Legislative                                                                    
Audit  had suggested  DBCPL improve.  She had  put some  new                                                                    
standards in place and added staff to reach that goal.                                                                          
                                                                                                                                
9:30:52 AM                                                                                                                    
                                                                                                                                
Representative   Thompson    suggested   that    since   the                                                                    
investigative fees  were passed  onto the board  and license                                                                    
holders,   it   might   be  helpful   to   have   additional                                                                    
investigators to expediate the investigations.                                                                                  
                                                                                                                                
Ms.  Chambers relayed  that it  was  one of  the things  the                                                                    
division did  to help improve timeliness  and documentation.                                                                    
It was  important to have  adequate staff to support  all of                                                                    
the  investigations.   The  division  added   an  additional                                                                    
supervisor  in   the  previous  few  months.   The  division                                                                    
currently  had   a  chief  investigator  and   three  senior                                                                    
investigators who  report to the  chief. The  division could                                                                    
certainly  use additional  investigators to  improve quality                                                                    
control  as the  complexity and  volume of  cases increased.                                                                    
The  downside  was that  the  cost  would  be passed  on  to                                                                    
licensees.                                                                                                                      
                                                                                                                                
Ms. Chambers  reported that for  the last several  years the                                                                    
division had  worked on some alternative  methods that would                                                                    
help  spread  the  cost of  investigations,  similar  to  an                                                                    
insurance   policy,  that   would  help   smaller  licensing                                                                    
programs  such  as  the   Board  of  Certified  Direct-Entry                                                                    
Midwives (a program  that only had about  50 licensees) from                                                                    
having  to  bear  huge costs.  Currently,  a  fully  fledged                                                                    
midwives licensee paid  about $3500 every 2  years for their                                                                    
license.  Even though  they had  made  amazing strides,  had                                                                    
willingly  accepted the  responsibility, and  worked through                                                                    
their  debt, they  were only  one  major investigation  away                                                                    
from  incurring   additional  debt  and  seeing   the  cycle                                                                    
continue.                                                                                                                       
                                                                                                                                
Ms.  Chambers  relayed  that  the  division  had  worked  to                                                                    
propose  legislation and  legislation had  been proposed  in                                                                    
the prior  several years to  change the scheme.  However, it                                                                    
would  take a  statutory change  to make  a change.  She was                                                                    
open  to speaking  with  legislators who  might  be open  to                                                                    
hearing more.                                                                                                                   
                                                                                                                                
Representative  Thompson   was  happy   to  help   with  the                                                                    
legislation. Ms. Chambers thanked Representative Thompson.                                                                      
                                                                                                                                
Representative  LeBon  clarified  that   his  asking  to  be                                                                    
recognized was relating to the copying of the document.                                                                         
                                                                                                                                
9:34:03 AM                                                                                                                    
                                                                                                                                
Representative  Rasmussen  was   curious  about  the  2-year                                                                    
extension  given that  the reduced  extension  was cited  as                                                                    
being  due to  an  issue identified  during  the audit  that                                                                    
might impact the  board's ability to protect  the public and                                                                    
the board's  reluctance to recommend statutory  changes. She                                                                    
assumed that  midwives were primarily dealing  with pregnant                                                                    
mothers and babies. She thought  2 full cycles of births was                                                                    
a little alarming given the  reluctance to seriously address                                                                    
the issues  brought out in  the audit. She asked  Ms. Curtis                                                                    
to  speak  to  the  2-year recommendation  versus  a  1-year                                                                    
recommendation.                                                                                                                 
                                                                                                                                
Ms. Curtis  responded that  when the  division did  a sunset                                                                    
audit  it started  on  the year  before  it terminates.  The                                                                    
current audit was  dated June 2020. By the  time she reviews                                                                    
the  audit with  the legislature  it was  a year  later. She                                                                    
indicated  that  2  years  was really  the  lowest  term  of                                                                    
extension because of reporting times to the legislature.                                                                        
                                                                                                                                
Representative  Wool was  concerned with  the timeliness  of                                                                    
investigations and the  board being penalized due  to a lack                                                                    
of   investigators  within   DCCED.   He   asked  how   many                                                                    
investigators resided within the department.                                                                                    
                                                                                                                                
Ms. Curtis  would defer the  number of investigators  to Ms.                                                                    
Chambers. However,  she could speak to  the representative's                                                                    
question regarding whether there  was merit in talking about                                                                    
the   number  of   investigators  and   the  timeliness   of                                                                    
investigations. She clarified that  the issue identified was                                                                    
different than her  recommendation. Her recommendation about                                                                    
the  timeliness  of  investigators was  completely  separate                                                                    
from  the issue  she  identified. She  continued to  explain                                                                    
that more than half of  the time she looked at investigative                                                                    
function making  similar recommendations. Timeliness  was an                                                                    
issue DBCPL was working on improving.                                                                                           
                                                                                                                                
Ms. Chambers  responded that the  division had less  than 20                                                                    
investigators.   She  had   a  team   of  approximately   20                                                                    
investigative  staff.  Three  of   them  are  paralegal  and                                                                    
administrative   staff.    She   had    fewer   professional                                                                    
investigators  that  supported  the 43  different  licensing                                                                    
programs. She  strived to train  them and keep  them focused                                                                    
on  particular   areas  in  order  to   gain  knowledge  and                                                                    
experience over  time. She provided some  examples. However,                                                                    
all  of  the  staff  can   float  from  program  to  program                                                                    
depending on  need. Direct-Entry  Midwives have had  a small                                                                    
number  of  investigative  cases  but were  typically  of  a                                                                    
serious  nature. She  suspected  that  the investigator  who                                                                    
would be assigned  to midwives would also be  working on two                                                                    
or  three other  healthcare  programs at  the  same time  to                                                                    
ensure  the division  was using  its resources  efficiently.                                                                    
Sometimes  that   could  have  a  negative   affect  on  the                                                                    
division's  effectiveness. The  division tried  to strike  a                                                                    
balance.                                                                                                                        
                                                                                                                                
Co-Chair Merrick relayed that  the committee had been joined                                                                    
by Representative Edgmon.                                                                                                       
                                                                                                                                
Representative Wool  was under the impression  that only one                                                                    
investigator  was   assigned  to  the  Board   of  Certified                                                                    
Direct-Midwives. He read  from a letter from  the board that                                                                    
stated that  they were  not in a  position to  make activity                                                                    
happen  when   DCBPL  could  not   keep  staff   members  or                                                                    
prioritize midwifery  investigations. He asked how  long the                                                                    
current  midwifery investigator  had been  working with  the                                                                    
division and whether they had been  a part of the audit from                                                                    
the start.                                                                                                                      
                                                                                                                                
Ms.  Chambers  indicated  that there  had  been  significant                                                                    
turnover within  the division. Earlier  in the  current year                                                                    
three  of the  investigator  positions  vacant. She  offered                                                                    
that division  was juggling  prioritizing life,  health, and                                                                    
safety  cases  with  much  lower   priority  cases  and  the                                                                    
experience of investigator. There  had been turnover for the                                                                    
specific  investigator position  during  the  period of  the                                                                    
audit.  She also  indicated that  the  investigator for  the                                                                    
midwifery  board  would  also   be  working  other  programs                                                                    
because of the necessity of the resources of the division.                                                                      
                                                                                                                                
Representative  Wool  thought  the board's  claim  had  some                                                                    
merit. He questioned  the costs related to  the board audit.                                                                    
He wondered the cost of licensing  for a nurse compared to a                                                                    
midwife.  Ms. Chambers  reported that  typically a  nurse or                                                                    
physician  license was  about $200.  She  pointed out  there                                                                    
were more than  20,000 nursing licensees and  5,000 to 6,000                                                                    
physicians,  physician   assistants,  and   paramedics  that                                                                    
shared in the cost  of investigations. The midwifery program                                                                    
had 50  licensees. Economy  of scale  played a  large factor                                                                    
based  on how  the  law  was written.  The  impact was  much                                                                    
greater on  the smaller  programs when  there was  a sizable                                                                    
investigation.  She   relayed  that  her   staff  maintained                                                                    
positive  timekeeping. Therefore,  boards and  programs were                                                                    
only charged  for the time  worked on their cases.  If there                                                                    
were delays, the board was not being charged.                                                                                   
                                                                                                                                
9:44:10 AM                                                                                                                    
                                                                                                                                
Representative  Wool  asked  if the  revenue  from  billable                                                                    
hours by the investigative staff  went to the department. He                                                                    
understood  economy of  scale.  He provided  an example.  He                                                                    
wondered  about  a  proposal   to  aggregate  licensing  and                                                                    
creating  a larger  pool.  A small  board  of a  specialized                                                                    
professional  had a  larger investigative  burden. He  asked                                                                    
about  the   typical  cost  of  an   investigation  for  the                                                                    
midwifery board.  Ms. Curtis deferred  to Ms.  Chambers. Ms.                                                                    
Chambers would  be happy to  submit a written  response. The                                                                    
cost  of  investigations  varied greatly.  Co-Chair  Merrick                                                                    
asked  Ms.  Chambers  to  repeat   the  dollar  amount.  Ms.                                                                    
Chambers would like to submit dollar amounts in writing.                                                                        
                                                                                                                                
Representative  Josephson asked  how many  investigators her                                                                    
division had in  FY 12 through FY 14.  Ms. Chambers recalled                                                                    
that the division had only  added 1 or 2 investigators since                                                                    
that  time. The  division  would have  had approximately  16                                                                    
investigators. The division had  not grown the investigative                                                                    
section since then.                                                                                                             
                                                                                                                                
Co-Chair  Merrick   asked  if   Ms.  Chambers   had  further                                                                    
comments. Ms. Chambers  thought she had covered  most of the                                                                    
information. She  wanted to report  that the board  had been                                                                    
working with the  division and had seen a  stronger and open                                                                    
relationship  between members  of the  board and  management                                                                    
within the  division to make  improvements since  the audit.                                                                    
She  had  witnessed  the board  taking  the  recommendations                                                                    
seriously.                                                                                                                      
                                                                                                                                
Co-Chair Merrick indicated the Board chair was available.                                                                       
                                                                                                                                
9:50:12 AM                                                                                                                    
                                                                                                                                
BETHEL  BUH-LYLE,  CHAIR,  BOARD OF  CERTIFIED  DIRECT-ENTRY                                                                    
MIDWIVES  (via  teleconference),  reported came  on  to  the                                                                    
board  in  March 202.  She  was  grateful to  Representative                                                                    
Ortiz  for sponsoring  the  board's sunset  bill.  As a  new                                                                    
member of  the board,  hearing of  the board's  deficits and                                                                    
what  it needs  to do  better  had spurred  members to  work                                                                    
diligently on doing  so. The two audit  reviews she believed                                                                    
pertained  to  the  midwifery practice  were  the  statutory                                                                    
changes and the peer review process.                                                                                            
                                                                                                                                
Ms.  Buh-Lyle reported  the board  revamped the  peer review                                                                    
process in June 2020 and was  waiting for it to be finalized                                                                    
through the  regulatory process. It was  rewritten such that                                                                    
the  board took  back complete  control of  its peer  review                                                                    
process and  gave the board  authority to  take disciplinary                                                                    
actions as needed.  The board had done audits  on charts and                                                                    
peer reviews since 2014 and  found there had been sufficient                                                                    
oversight.                                                                                                                      
                                                                                                                                
Ms. Buh-Lyle  spoke of statutory  changes. One of  the board                                                                    
members had  recently been rewriting the  entire statutes to                                                                    
align with international standards.  She relayed that on the                                                                    
prior Wednesday  the board had  a 3-hour work  session going                                                                    
line-by-line  to  bring the  standards  to  the level  of  a                                                                    
leader in  the United States.  The documents were  headed to                                                                    
the legal  department for review.  The board was  pushing to                                                                    
match the auditor's request.                                                                                                    
                                                                                                                                
Representative Rasmussen  asked if the chair  would describe                                                                    
the midwife practice.  She wondered what type  of health and                                                                    
safety issues might arise that would  lead to a claim and an                                                                    
investigation  into their  practice. Ms.  Buh-Lyle responded                                                                    
that the  board's current  regulations stated  that midwives                                                                    
must submit  a chart for peer  review on any transport  of a                                                                    
mother or  baby. The issue  had to  result in a  9-1-1 call.                                                                    
For  instance,  a baby  might  struggle  to transition  well                                                                    
after birth. An ambulance transport  would occur and even if                                                                    
a  baby was  released  within 12  hours,  there were  things                                                                    
midwives were  required to do. She  provided another example                                                                    
of  an  emergency  warranting ambulance  transport.  Whether                                                                    
there was a  poor outcome, such as the death  of a mother or                                                                    
baby, midwives  were required to  submit the full  chart for                                                                    
peer  review to  ensure proper  protocols were  followed. In                                                                    
the new  peer-review process,  the charts  were sent  to and                                                                    
reviewed by the board.                                                                                                          
                                                                                                                                
9:54:54 AM                                                                                                                    
                                                                                                                                
Representative   Carpenter  clarified   that  the   statutes                                                                    
currently  being   re-written  seemed  like   a  substantial                                                                    
amount. The finding  stated that the board  needed to change                                                                    
certification   statutes.  He   had   quickly  referred   to                                                                    
AS 08.65.060 through  AS 08.65.080  and noted there  was not                                                                    
much substance. He was curious  what the board was rewriting                                                                    
to  accommodate  national  or  international  standards.  He                                                                    
wondered  if  she  was   only  talking  about  certification                                                                    
standards or about the entire midwifery profession.                                                                             
                                                                                                                                
Ms.  Curtis elaborated  that one  of the  criteria that  the                                                                    
auditor   used  was   to  evaluate   whether  a   board  was                                                                    
recommending  statutory changes  in  the public's  interest.                                                                    
The  auditor  looked at  the  board's  annual reports.  Each                                                                    
annual  report  for 3  years  they  identified the  need  to                                                                    
change  the  statutes  to align  their  laws  with  national                                                                    
standards.  The  auditor  did not  involve  themselves  with                                                                    
which  statutes  needed  to   change.  Rather,  the  auditor                                                                    
considered that there was a  need that they were not filling                                                                    
due to concerns over  increasing their licensing costs which                                                                    
was not in the public's interest.                                                                                               
                                                                                                                                
Representative  Carpenter  asked  for clarity  on  risk.  He                                                                    
wondered if there  was a list of statutes that  needed to be                                                                    
changed or  were in  question that  needed to  be rewritten.                                                                    
Ms. Curtis  responded that  that recommendation  had nothing                                                                    
to  do with  the issue  identified by  the auditor  that was                                                                    
causing her to recommend a 2-year extension.                                                                                    
                                                                                                                                
Ms. Buh-Lyle indicated that the  statutes that the board was                                                                    
looking at changing  had to do with word  usage. She relayed                                                                    
that the board was proposing  to change the word "certified"                                                                    
to "licensed," a national standard.  Changing the word would                                                                    
allow for midwives  to be paid by  more insurance companies.                                                                    
Women would like  to be able to choose on  a hospital birth.                                                                    
However, some  insurance companies  would not pay  a direct-                                                                    
entry midwife  because of the  use of the  word "certified."                                                                    
The  board  was moving  in  the  direction of  the  national                                                                    
recommendations  set  by  the  North  American  Registry  of                                                                    
Midwives.                                                                                                                       
                                                                                                                                
Co-Chair  Merrick reviewed  the agenda  for the  afternoon's                                                                    
meeting.                                                                                                                        
                                                                                                                                
HB  117  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:59:03 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:59 a.m.                                                                                          

Document Name Date/Time Subjects
HB 117 Additional Document 3.19.21.pdf HFIN 4/9/2021 9:00:00 AM
HB 117
HB 117 Sponsor Statement version A.pdf HFIN 4/9/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 117
HB 117 Sunset Review DLA 6.19.2020.pdf HFIN 4/9/2021 9:00:00 AM
HB 117