Legislature(2001 - 2002)

03/23/2001 01:47 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                       MARCH 23, 2001                                                                                           
                         1:47 P.M.                                                                                              
                                                                                                                                
TAPE HFC 01 - 60, Side A                                                                                                        
TAPE HFC 01 - 60, Side B                                                                                                        
TAPE HFC 01 - 61, Side A                                                                                                        
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Williams called the House  Finance Committee meeting                                                                   
to order at 1:47 P.M.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Bill Williams, Co-Chair                                                                                          
Representative Eldon Mulder, Co-Chair                                                                                           
Representative Con Bunde, Vice-Chair                                                                                            
Representative Eric Croft                                                                                                       
Representative John Davies                                                                                                      
Representative Richard Foster                                                                                                   
Representative John Harris                                                                                                      
Representative Bill Hudson                                                                                                      
Representative Ken Lancaster                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Carl Moses                                                                                                       
Representative Jim Whitaker                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Hugh  Fate;  Representative   Mike  Chenault;                                                                   
Catherine   Reardon,  Director,   Division  of   Occupational                                                                   
Licensing, Department of Community  and Economic Development;                                                                   
Margot  Knuth,  Assistant  Attorney  General,  Department  of                                                                   
Corrections;  Devon  Mitchell,   Executive  Director,  Alaska                                                                   
Municipal Bond  Bank Authority, Department of  Revenue; David                                                                   
Logan,  President,  Dental  Board,   Juneau;  Cheryl  Sutton,                                                                   
Southeast   Alaska   Regional  Dive   Fisheries   Association                                                                   
(SARDFA),  Juneau;  Dave  Stancliff,   Staff,  Representative                                                                   
Scott Ogan.                                                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Janice  Adair, Director,  Division  of Environmental  Health,                                                                   
Department  of  Environmental  Conservation,  Anchorage;  Dr.                                                                   
George  Schaffer, Dental  Board,  Ketchikan; Debra  Stauffer,                                                                   
President,  Alaska State Dental  Association, Anchorage;  Dr.                                                                   
Richard  Gregorin,  Dental  Board,  Anchorage;  Hart  Hodges,                                                                   
Anchorage; Tom Livingston, Architect, Anchorage.                                                                                
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 51     An Act giving notice of and approving the entry                                                                       
          into,   and  the   issuance   of  certificates   of                                                                   
          participation  for, a lease-purchase  agreement for                                                                   
          a seafood and food safety  laboratory facility; and                                                                   
          providing for an effective date.                                                                                      
                                                                                                                                
          HB 51 was HEARD and HELD in Committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
HB 81     An Act extending the termination date of the Board                                                                    
          of Dental Examiners.                                                                                                  
                                                                                                                                
          CS HB 81 (FIN) was reported out of Committee with                                                                     
          a "do  pass" recommendation and with  a fiscal note                                                                   
          by Department of Community  & Economic Development.                                                                   
                                                                                                                                
HB 149    An Act relating to correctional  facility space and                                                                   
          to  authorizing the  Department  of Corrections  to                                                                   
          enter  into an  agreement to  lease facilities  for                                                                   
          the  confinement and care  of prisoners  within the                                                                   
          Kenai Peninsula Borough.                                                                                              
                                                                                                                                
          HB 149 was HEARD and HELD in Committee for further                                                                    
          consideration.  A Subcommittee  consisting of Chair                                                                   
          Representative  Mulder, and members  Representative                                                                   
          Bunde  and Representative  Moses were appointed  to                                                                   
          discuss the legislation.                                                                                              
                                                                                                                                
Co-Chair Williams opened the House  Finance Committee meeting                                                                   
and  noted  that  Speaker  Porter   had  referred  the  State                                                                   
Assessment  Review  Board  document   to  the  Committee  for                                                                   
approval.  He noted  that it would not be considered  at this                                                                   
scheduled  meeting and  asked  that if  any member  disagreed                                                                   
with the document, they should contact his office.                                                                              
                                                                                                                                
HOUSE BILL NO. 51                                                                                                             
                                                                                                                                
     An Act  giving notice of  and approving the  entry into,                                                                   
     and the  issuance of certificates of  participation for,                                                                   
     a  lease-purchase  agreement  for  a  seafood  and  food                                                                   
     safety  laboratory   facility;  and  providing   for  an                                                                   
     effective date.                                                                                                            
                                                                                                                                
JANICE  ADAIR, DIRECTOR,  DIVISION  OF ENVIRONMENTAL  HEALTH,                                                                   
DEPARTMENT OF ENVIRONMENTAL CONSERVATION,  explained that the                                                                   
legislation would address the following concerns:                                                                               
                                                                                                                                
     ·    Noted that the lease expired in December of last                                                                      
          year,  and could only  be extended on  a short-term                                                                   
          basis.    AS  36.30.083   allows  the  Division  of                                                                   
          General  Services  to  extend  a  lease  under  two                                                                   
          conditions:    1)  A  1%  lease  reduction  can  be                                                                   
          achieved  or 2) A 10%  reduction could  be achieved                                                                   
          and  the  American   with  Disabilities  Act  (ADA)                                                                   
          requirements  met.   In  the  case  of the  current                                                                   
          facility, the  lease rate is $1.03/square  foot and                                                                   
          complies with ADA.   She stated that the owners are                                                                   
          not interested  in a  15% reduction in  their lease                                                                   
          rate.   Additionally,  the building is up for sale.                                                                   
     ·    Indicated that  one way or the other,  the lab will                                                                   
          have to  move.  With money previously  appropriated                                                                   
          by the Legislature to look at the most cost-                                                                          
          effective  way  to   replace  the  lab,  a  private                                                                   
          consultant was hired  to do an economic evaluation.                                                                   
          He  determined that  "hands down",  the most  cost-                                                                   
          effective  means would  be a state-owned  facility.                                                                   
          In  fact, leasing a  laboratory rather  than owning                                                                   
          would  cost the  State  56% more  over the  20-year                                                                   
          term of the bond repayment.                                                                                           
     ·    Added  that  the  functions  of  such  a  site  are                                                                   
          required  regulatory  functions  for  the  sale  of                                                                   
          shellfish  and  diary   products  in  national  and                                                                   
          international   commerce   markets.      No   other                                                                   
          laboratories  in the  State perform the  functions,                                                                   
          nor could they under federal rules.                                                                                   
     ·    The laboratory  also certifies private,  commercial                                                                   
          laboratories  to conduct  tests required  under the                                                                   
          Safe  Drinking Water  Act (SDWA)  for public  water                                                                   
          systems.      Unless   a  private   laboratory   is                                                                   
          certified,  Environmental  Protection Agency  (EPA)                                                                   
          will not  accept their test results.   Since Alaska                                                                   
          is a primary State for  the drinking water program,                                                                   
          we could not accept them either.                                                                                      
                                                                                                                                
Ms. Adair noted that the laboratory is currently located in                                                                     
Palmer, and the plan includes relocating it to Anchorage.                                                                       
She enumerated the reasons for the move:                                                                                        
                                                                                                                                
     ·    Anchorage is a central  location that could receive                                                                   
          shellfish samples as  quickly as possible from many                                                                   
          areas of the State.                                                                                                   
     ·    The site  needs to be on a public  sewer system, as                                                                   
          many chemicals are used.                                                                                              
     ·    A  site  is  needed  where there  is  no  excessive                                                                   
          vibrations, dust or  electron-magnetic interference                                                                   
          for the performance of the analytical equipment.                                                                      
     ·    The  lot  size  should  be  between  4-6  acres  to                                                                   
          accommodate the building,  parking and snow machine                                                                   
          storage.                                                                                                              
     ·    The land  should be State  owned to keep  the price                                                                   
          as low as possible.                                                                                                   
                                                                                                                                
Ms.  Adair concluded  that the  location  in Anchorage  would                                                                   
significantly benefit the shellfish  industry.  That location                                                                   
would  reduce the  costs slightly,  but  most importantly  it                                                                   
would speed up  the delivery of the time-sensitive  sample to                                                                   
the laboratory for testing.                                                                                                     
                                                                                                                                
Co-Chair  Mulder inquired  what the anticipated  size  of the                                                                   
facility  would be.   Ms. Adair  replied it  would be  20,530                                                                   
square feet.  The current space  is 10,000 square feet, which                                                                   
is  extremely  inadequate and  has  unsafe conditions.    She                                                                   
noted that eleven  employees would be moved  to Anchorage and                                                                   
that two  offices, one in Homer  and one in Wasilla  would be                                                                   
combined.    She  commented  that  fourteen  employees  would                                                                   
remain in Palmer.  In response  to Co-Chair Mulder, she noted                                                                   
that there  is food testing  only in these laboratories,  not                                                                   
agricultural  testing.   Ms. Adair  discussed the  functions,                                                                   
which would remain outside of Anchorage.                                                                                        
                                                                                                                                
Co-Chair Mulder asked  the number of employees  in the future                                                                   
expected to  be using  the new facility.   Ms. Adair  replied                                                                   
that  the  Department  is  not planning  any  growth  in  the                                                                   
laboratory staff in the near future.                                                                                            
                                                                                                                                
Co-Chair Mulder  noted that  in an  analysis provided  by the                                                                   
Department,  it was  indicated  that without  the bill,  they                                                                   
would be  forced to  go out  and get  a request for  proposal                                                                   
(RFP)  this summer.    Ms. Adair  emphasized  that the  lease                                                                   
cannot be extended at the current  location.  By December 31,                                                                   
2002, the last  of the extensions will be over.   A long-term                                                                   
extension cannot  be done in  that spot, consequently  no RFP                                                                   
for a long-term lease.                                                                                                          
                                                                                                                                
Co-Chair Mulder  questioned that  reasoning.  He  stated that                                                                   
there were  provisions  in current statute  that allowed  for                                                                   
the extension,  however, the current  landlord would  have to                                                                   
agree to a certain  amount of reductions.   Ms. Adair replied                                                                   
that  the  current  landlord  is  not  interested  in  a  15%                                                                   
reduction.  Co-Chair Mulder asked  if there was documentation                                                                   
supporting that statement.   Ms. Adair stated  that there was                                                                   
nothing in writing  as all the conversations  had taken place                                                                   
on the phone.  She offered to check into it.                                                                                    
                                                                                                                                
Co-Chair Mulder questioned the  opposition to privatizing the                                                                   
services.   Ms.  Adair explained  that  there is  information                                                                   
available  from  the  Food  and   Drug  Administration  (FDA)                                                                   
regarding  that concern.   They  technically  have a  program                                                                   
doing that,  but there is no staff  or funding.  There  is no                                                                   
state  in  the  United  States that  does  not  provide  this                                                                   
service  through   a  state  laboratory.     Co-Chair  Mulder                                                                   
requested that further information be forwarded to him.                                                                         
                                                                                                                                
Representative  Croft  referenced  the  "owning"  versus  the                                                                   
"leasing" language.   He asked why it would be  better to own                                                                   
the  lab  by  the  State.    Ms.  Adair  explained  that  the                                                                   
functions of  the laboratory would  be needed on  a long-term                                                                   
basis.   She  pointed  out  that  the shellfish  industry  is                                                                   
growing  and at this  time, there  is no  private lab  in the                                                                   
State  that provides  these  services.   She  enumerated  the                                                                   
reasons  indicating  why  the  State  should  own  their  own                                                                   
facility.  It is important that  the lab can be configured so                                                                   
that it would  provide more advantages over time.   Ms. Adair                                                                   
indicated  that General  Services  Division  had assisted  in                                                                   
developing the plan.                                                                                                            
                                                                                                                                
Representative Hudson inquired  how much had been invested in                                                                   
the proposal to date.  Ms. Adair  stated that in FY99, $145.7                                                                   
thousand general  fund dollars  had been allocated,  and that                                                                   
last year, an  additional $240 thousand general  fund dollars                                                                   
had  been  invested into  the  project,  which to  date,  has                                                                   
almost been used up.                                                                                                            
                                                                                                                                
Representative  Hudson asked if  the lease purchase  would be                                                                   
used over a  20-year period of time.  Ms.  Adair acknowledged                                                                   
that was  correct and that  it would cost approximately  $1.2                                                                   
million  dollars  per year.    Present  lease costs  are  run                                                                   
annually at $115 thousand dollars.                                                                                              
                                                                                                                                
Representative  Hudson questioned  when the Department  would                                                                   
be able  to occupy the facility.   Ms. Adair replied  that it                                                                   
would  take 2.5  to  3 years  to build.    The current  lease                                                                   
expires in December  2002.  She stated that  there would need                                                                   
to be some lease extension if the facility was to be built.                                                                     
                                                                                                                                
Representative Hudson  asked about the  RFP and if  a private                                                                   
company could build  the facility for less money.   Ms. Adair                                                                   
replied that the  Department had not prepared  an RFP because                                                                   
the laboratory specifics  would be very complex  and that the                                                                   
Department does not  have the expertise to outline  that type                                                                   
of detail.                                                                                                                      
                                                                                                                                
Representative  Lancaster  voiced  concern that  the  General                                                                   
Services  Division had  not  contracted an  RFP.   Ms.  Adair                                                                   
agreed  that  they  could  do that  but  that  would  require                                                                   
funding which is not available for hiring those people.                                                                         
                                                                                                                                
Representative  Lancaster  thought  that the  square  footage                                                                   
price being  requested seemed  excessive.  Ms.  Adair replied                                                                   
that  laboratory  areas need  more  space for  equipment  and                                                                   
ventilation  systems.   Representative  Lancaster  reiterated                                                                   
that $5  dollars a square foot  was excessive; he  noted that                                                                   
it is double what "Class A" office space would cost.                                                                            
                                                                                                                                
Vice-Chair Bunde  commented that there currently is  a lot of                                                                   
space available in  Anchorage.  Ms. Adair replied  that there                                                                   
is no  laboratory space available  at this time and  that any                                                                   
space would  need tremendous remodeling  costs.   To renovate                                                                   
any existing space would cost  more than to build a new space                                                                   
for the specifics  required.  She stressed that  it would not                                                                   
be good to have  to move twice.  The Lab is  hoping to extend                                                                   
the current lease until the new building is finished.                                                                           
                                                                                                                                
Representative  Harris  pointed  out  that  there  is  strong                                                                   
opposition to  the move  in the Palmer  area.  He  questioned                                                                   
how  such concerns  should be  addressed.   Ms. Adair  agreed                                                                   
that the solution  presents a dilemma in such  a large state.                                                                   
The  Department always  tries  to balance  the  needs of  the                                                                   
industry  and the  size of  the State.   She  added that  the                                                                   
Department is  trying to be responsive  to those who  use the                                                                   
facility  and  stated  that  only  those  employees  directly                                                                   
associated with these  concerns would be moved  and that most                                                                   
of the employees would remain in Palmer.                                                                                        
                                                                                                                                
In  response  to Representative  Harris  concern,  Ms.  Adair                                                                   
reiterated  that  there is  no  suitable space  available  in                                                                   
Anchorage at this time.                                                                                                         
                                                                                                                                
Co-Chair Mulder referenced the  Certificates-of-Participation                                                                   
(COP), and noted  that they were generally issued  when there                                                                   
was a private contractor building  the facility.  He asked if                                                                   
that  was  still  the anticipated  arrangement.    Ms.  Adair                                                                   
stated that it was and asked the  Devon Mitchell be called on                                                                   
to  testify   regarding  that   concern.    Co-Chair   Mulder                                                                   
reiterated his concerns with the  cost being $666 dollars per                                                                   
square  foot.    He  pointed out  that  the  lease  cost  was                                                                   
equivalent to $60 dollars per square foot.                                                                                      
                                                                                                                                
Representative  Croft emphasized  that this  lab must  not be                                                                   
compared to  office space rental.   He requested  material on                                                                   
cost comparisons of laboratory  space throughout the country.                                                                   
Representative Croft recommended  that the RFP concept not be                                                                   
the  focus.    He indicated  his  surprise  with  the  letter                                                                   
included  in   member's  packets  from  Representative   Ogen                                                                   
voicing his opposition to the legislation.                                                                                      
                                                                                                                                
Representative Hudson  asked if the current  building was for                                                                   
sale and if so, how much would  it cost.  He inquired if that                                                                   
consideration  had been  made.   Ms. Adair  replied that  the                                                                   
current  building is  a reconverted  Piggley Wiggley  grocery                                                                   
store.  There  are many operations that are  insufficient for                                                                   
labatory analysis  which cannot be handled in  that facility.                                                                   
She stressed that it would take  significant renovation costs                                                                   
to make that building functionable.                                                                                             
                                                                                                                                
Representative  Lancaster  inquired  if  the  Food  and  Drug                                                                   
Administration  (FDA) could help  with the design  and layout                                                                   
of a  facility.  Ms.  Adair responded  that the FDA  does not                                                                   
provide that service to the State.                                                                                              
                                                                                                                                
Representative  Lancaster  asked  if there  currently  was  a                                                                   
design  available.    Ms.  Adair  replied  that  the  current                                                                   
crafting would be a design award and then a build award.                                                                        
                                                                                                                                
Co-Chair Mulder  questioned if the size were  decreased, what                                                                   
would be  left out  of the  new project.   Ms. Adair  replied                                                                   
that the Department would ponder that concern.                                                                                  
                                                                                                                                
CHERYL  SUTTON,  SOUTHEAST  ALASKA  REGIONAL  DIVE  FISHERIES                                                                   
ASSOCIATION (SARDFA),  JUNEAU, noted the current  lab is used                                                                   
for processing  gooey duck clams.   SARDFA is  developing the                                                                   
gooey duck clam  fishery.  Fisheries are often  times located                                                                   
in remote areas  throughout the State.  When  weather is bad,                                                                   
it is difficult  to access the lab services.   She noted that                                                                   
there  is  a 30-hour  limit  on  water  sampling time.    The                                                                   
current  lab location  is  difficult  to access.    Anchorage                                                                   
would   be  a   better   location   for  the   industry   for                                                                   
accessibility.  Ms. Sutton noted  that SARDFA has worked with                                                                   
the Department  on these issues.   She supported the  idea of                                                                   
satellite labs for better accessibility.                                                                                        
                                                                                                                                
TAPE HFC 01 - 60, Side B                                                                                                      
                                                                                                                                
Ms.  Sutton  stated  that  any  cost  streamlining  would  be                                                                   
beneficial  to the industry.   She  concluded, advising  that                                                                   
SARDFA supported HB 51.                                                                                                         
                                                                                                                                
Representative  Hudson   asked  if  the  laboratory   at  the                                                                   
Anchorage Seafood  facility would be sufficient.   Ms. Sutton                                                                   
exclaimed  that she had  not been  in that lab.   One  of the                                                                   
difficulties  is  that the  FDA  dictates standards  and  for                                                                   
paralytic shellfish poisoning  (PSP), and those standards are                                                                   
rigid.                                                                                                                          
                                                                                                                                
Representative  Hudson recommended  that  a determination  be                                                                   
made to see if that lab would be sufficient.                                                                                    
                                                                                                                                
Representative Lancaster  inquired if products  were "dumped"                                                                   
if they did not make the 30-hour  test.  Ms. Sutton explained                                                                   
that  the  30-hour  rule  exists for  water  sampling.    For                                                                   
products, there also  is a very time sensitive  limit matter.                                                                   
The  Department of  Environmental  Conservation is  currently                                                                   
working with the industry.                                                                                                      
                                                                                                                                
DAVE STANCLIFF,  STAFF, REPRESENTATIVE SCOTT  OGEN, testified                                                                   
that both the  lease and the options should  be reconsidered.                                                                   
He encouraged the Committee to  check out the options of that                                                                   
lease.   He suggested  that the space  could be modified  and                                                                   
that the owner  of the building was willing  to make changes.                                                                   
Mr. Stancliff  agreed that the  facility is crowded  and that                                                                   
the  space  is  tight, however,  the  requested  square  foot                                                                   
expansion appears to be fairly  "liberal".  He questioned how                                                                   
much of  the new space was  intended to be used  for labatory                                                                   
versus  clerical.  Mr. Stancliff  noted  that  Representative                                                                   
Ogan's office would attempt to work with the Department.                                                                        
                                                                                                                                
Ms.  Adair  responded  to  Representative  Hudson's  concern,                                                                   
noting  that the  ASI  lab  was very  small,  and  acts as  a                                                                   
quality standards lab.   If comparing it to the  needs of the                                                                   
Department, it would be an "apples"  to "oranges" compromise.                                                                   
She added that she had met with  Representative Ogan's office                                                                   
and  that  they had  discussed  that  the  new lab  would  be                                                                   
laboratory space and not new employee space.                                                                                    
                                                                                                                                
HART  HODGES,  (TESTIFIED  VIA   TELECONFERENCE),  ANCHORAGE,                                                                   
offered to answer questions of the Committee.                                                                                   
                                                                                                                                
Representative   Davies   asked  the   appropriate   industry                                                                   
standard for the space size needed.                                                                                             
                                                                                                                                
TOM LIVINGSTON,  (TESTIFIED  VIA TELECONFERENCE),  ARCHITECT,                                                                   
ANCHORAGE,  noted  that  the  space  consideration  had  been                                                                   
technically analyzed  and reconsidered.  He  noted that there                                                                   
are two specifications, which drive the needs of the lab:                                                                       
                                                                                                                                
     ·    The first is safety of the staff; and                                                                                 
     ·    The second is the quality of the science.  He                                                                         
          added that the laboratory intensive building would                                                                    
          make it very expensive.                                                                                               
                                                                                                                                
Representative Davies requested  a comparison of other health                                                                   
lab costs.   Mr. Livingston noted  that he would  submit that                                                                   
information to the Committee.                                                                                                   
                                                                                                                                
HB 51 was HELD in Committee for further consideration.                                                                          
                                                                                                                                
HOUSE BILL NO. 81                                                                                                             
                                                                                                                                
     An Act extending the termination date of the Board of                                                                      
     Dental Examiners.                                                                                                          
                                                                                                                                
REPRESENTATIVE  HUGH FATE  noted that  under Title  8 of  the                                                                   
Alaska  Statutes,   the  Board  of  Dental   Examiners  would                                                                   
terminate  on  June 30,  2001.    A report  released  by  the                                                                   
Legislative  Budget  and Audit  (LBA)  Committee  recommended                                                                   
that  the Legislature  extend the  Board's date  to June  30,                                                                   
2005.   He  claimed  that  the  regulation and  licensing  of                                                                   
qualified  dentists  and  hygienists  benefits  the  public's                                                                   
safety and welfare.   HB 81 would accomplish that  task.  The                                                                   
legislation  also  addresses  some  of the  concerns  of  the                                                                   
Dental Board of Examiners and the Alaska Dental Society.                                                                        
                                                                                                                                
Representative  Fate provided  a  sectional  analysis of  the                                                                   
bill  and  the changes  made  in  the previous  committee  of                                                                   
referral.                                                                                                                       
                                                                                                                                
     Section 1, Page 1, Line 6      -    Extends          the                                                                 
                             th                                                                                                 
termination date from June 30, 2005.                                                                                            
                                                                                                                                
     Section 2, Page 2, Line 1      -    Removes                                                                              
prophylactic,  which is duplicate  language to  preventative,                                                                   
which is  covered under  preventative agent. Prophylactic  is                                                                   
also  confusing  language  because  it is  similar  to  other                                                                   
dental terms like prophylaxis.                                                                                                  
                                                                                                                                
     Section 3, Page 2, Line 11     -    Same reason                                                                          
[Prophylactic  was taken  out of both  locations because  the                                                                   
Department of Law said if one went, they both had to.]                                                                          
                                                                                                                                
     Section 4, Page 2, Line 14     -    Adds  wording   that                                                                 
says, the Governor,  when making appointments,  will consider                                                                   
licensed dentists nominated by  the Alaska Dental Society and                                                                   
licensed   dental   hygienists   nominated  by   the   Dental                                                                   
Hygienists' Association.                                                                                                        
                                                                                                                                
     Section 5, Page 2, Line 22     -    The president of the                                                                 
Board of  Dental Examiners must  be a licensed  dentist under                                                                   
this chapter.                                                                                                                   
                                                                                                                                
     Section 6, Page 3, Lines  5-13 -    Allows    a    board                                                                 
authorized  inspector  to  determine  whether  the  owner  or                                                                   
lessee  of dental  radiological  equipment  is in  compliance                                                                   
with  the inspection  standards  of  the board,  collect  the                                                                   
appropriate fee  and remit the  fee to the board,  and issues                                                                   
an  inspection  seal.  The inspector  would  then  remit  the                                                                   
paperwork  to  the board  and  determine  whether a  seal  is                                                                   
issued or not.                                                                                                                  
                                                                                                                                
     Section 7, Page 3, Lines 16-18      -    Makes a passing                                                                 
score  on  a clinical  exam  given  by the  Central  Regional                                                                   
Dental  Testing Service,  Inc. an  acceptable alternative  to                                                                   
the Western Regional  Examining Board examination  as long as                                                                   
the exam was passed after January 1, 2001.                                                                                      
                                                                                                                                
     Section 8, Page 4, Line 1      -    Requires that the                                                                    
dentist  be currently  licensed  in another  state, with  the                                                                   
same requirements  as Alaska,  in order avoid  re-examination                                                                   
to practice in Alaska.                                                                                                          
                                                                                                                                
     Section 8, Page 4, Line 2,3    -    Language that states                                                                 
a dentist could have taken a dental  exam in one state and be                                                                   
practicing  in another,  and as  long as the  state they  are                                                                   
licensed  in  has  equivalent  requirements  to  Alaska,  the                                                                   
dentist can practice in Alaska.                                                                                                 
                                                                                                                              
     Section 9, Page 6, Line 2      -    Licensed         and                                                                 
practicing in  the same state  in order for them  to practice                                                                   
in Alaska, if that state has equivalent requirements.                                                                           
                                                                                                                                
     Section 10                                                                                                               
     Page 6 Lines 27 to 31     -         Expands the current                                                                    
     Page 7 Lines I to 3                 definition        of                                                                   
Dentistry  to  included  the  American  Dental  Association's                                                                   
definition of  dentistry which allows a dentist  to evaluate,                                                                   
diagnose,  treat, or perform  preventive procedures  relating                                                                   
to diseases,  disorders,  or conditions  of the oral  cavity,                                                                   
maxillofacial area, or adjacent and associated structures.                                                                      
                                                                                                                                
Representative  Davies asked  what it  would take to  satisfy                                                                   
the Dental Board  if the Governor had considered  their list.                                                                   
Representative Fate explained  that there is no obligation to                                                                   
choose from that list.                                                                                                          
                                                                                                                                
Representative Fate requested  that Section 5 be removed from                                                                   
the bill.   Representative Harris  asked why the  House Labor                                                                   
and   Commerce    Committee   had   added    that   language.                                                                   
Representative  Fate  explained  that  at the  time  of  that                                                                   
hearing,   Catherine    Reardon,   Director,    Division   of                                                                   
Occupational Licensing, Department  of Community and Economic                                                                   
Development,  had  voiced  a  concern  about  that  language.                                                                   
Representative Fate noted that  the Department's concerns had                                                                   
been addressed in other parts of the legislation.                                                                               
                                                                                                                                
Representative  Croft asked if  there had been  a controversy                                                                   
in the past  with non-dentists on the Board.   Representative                                                                   
Fate acknowledged that there are lay people on the Board.                                                                       
                                                                                                                                
Representative  Foster MOVED  to  delete Section  5, Page  2,                                                                   
Lines 19-22.  There being NO OBJECTION, it was adopted.                                                                         
                                                                                                                                
DEBRA  STAUFFER, (TESTIFIED  VIA TELECONFERENCE),  PRESIDENT,                                                                   
ALASKA  STATE  DENTAL  ASSOCIATION,  ANCHORAGE,  voiced  full                                                                   
support for HB 81 and the changes made.                                                                                         
                                                                                                                                
DR.  RICHARD   GREGORIN,   (TESTIFIED  VIA   TELECONFERENCE),                                                                   
ANCHORAGE, testified  in support that the language  placed in                                                                   
the bill in the House Labor and  Commerce Committee remain in                                                                   
the  bill.   He reiterated  that he  did not  agree with  the                                                                   
change adopted by the House Finance Committee.                                                                                  
                                                                                                                                
Representative  Fate  noted  that  the  amendment  would  not                                                                   
prevent   the  Dental   Board  to  elect   a  dentist   under                                                                   
regulations in  the State  of Alaska.   He added that  it was                                                                   
approved by  the Administration  and emphasized that  it does                                                                   
not preclude a dentist from being elected to that seat.                                                                         
                                                                                                                                
Dr.  Gregorin  disagreed,  indicating  that  only  a  dentist                                                                   
should be holding that position.   Representative Fate agreed                                                                   
and stated  that the  members  of the board  could choose  to                                                                   
elect a person  that is a dentist.  Dr. Gregorin  asked if it                                                                   
was  possible that  a non-dentist  be elected  to that  seat.                                                                   
Representative Fate  agreed that it was possible  but was not                                                                   
probable.   Dr.  Gregorin commented  that  the Alaska  Dental                                                                   
Society wanted to  be on record indicating that  the position                                                                   
only be held by a dentist.                                                                                                      
                                                                                                                                
DR.   GEORGE  SCHAFFER,   (TESTIFIED   VIA   TELECONFERENCE),                                                                   
ANCHORAGE, spoke  to the amendment.  He recommended  that the                                                                   
Lines  19-21 remain.   Representative  Davies explained  that                                                                   
language already exists in present statute.                                                                                     
                                                                                                                                
Dr.  Schaffer voiced  concern  that a  responsibility of  the                                                                   
President  of that Board  is about  communicating with  other                                                                   
agencies  outside of  the State.   He mentioned  that he  had                                                                   
concerns with  anyone other than  a dentist doing  that work.                                                                   
He insisted  that the requirement  for communication  must be                                                                   
held high and  recommended that only a licensed  dentist hold                                                                   
that position.                                                                                                                  
                                                                                                                                
Representative  Croft noted that  there would  not be  a non-                                                                   
dentist elected to the Board without  the full support of all                                                                   
of the Board.                                                                                                                   
                                                                                                                                
Vice-Chair  Bunde asked  if the same  requirements exist  for                                                                   
the Board of Physicians.                                                                                                        
                                                                                                                                
CATHERINE   REARDON,  DIRECTOR,   DIVISION  OF   OCCUPATIONAL                                                                   
LICENSING, DEPARTMENT OF COMMUNITY  AND ECONOMIC DEVELOPMENT,                                                                   
advised that there is no requirement  that specifies that any                                                                   
particular member  be the Chair  for any of the  occupational                                                                   
licensing boards.                                                                                                               
                                                                                                                                
DAVID  LOGAN,  DENTIST,  PRESIDENT, ALASKA  BOARD  OF  DENTAL                                                                   
EXAMINERS, JUNEAU, noted that  the Board is in support of the                                                                   
version before the Committee and the recommended change.                                                                        
                                                                                                                                
TAPE HFC 01 - 61, Side A                                                                                                      
                                                                                                                                
Dr.  Logan  noted  his  support  in  preserving  the  current                                                                   
statute and the bill as before the Committee.                                                                                   
                                                                                                                                
Co-Chair  Mulder referenced  Section  7 and  8  and asked  if                                                                   
there is "abuse" with dental assistants  providing hygienists                                                                   
work.  Dr.  Logan responded that there isn't  abuse, however,                                                                   
there  is some  misunderstanding  of  what is  allowed  under                                                                   
current  statutes   and  confusion  with  use   of  the  word                                                                   
"prophylactic".   The  Board is  attempting to  clear up  any                                                                   
misinformation regarding the wording in the statutes.                                                                           
                                                                                                                                
Co-Chair Mulder inquired  if there exists a  problem with the                                                                   
licensure  issue.   Dr. Logan  reiterated that  the Board  is                                                                   
attempting to clean up the language  and that the changes are                                                                   
small.                                                                                                                          
                                                                                                                                
Co-Chair Mulder noted the fiscal note.                                                                                          
                                                                                                                                
Representative Foster  MOVED to report CS HB 81  (FIN) out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal  note.  There being NO  OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CS  HB 81  (FIN) was  reported out  of Committee  with a  "do                                                                   
pass" recommendation and with  a fiscal note by Department of                                                                   
Community & Economic Development.                                                                                               
                                                                                                                                
HOUSE BILL NO. 149                                                                                                            
                                                                                                                                
     An Act  relating to correctional  facility space  and to                                                                   
     authorizing the Department  of Corrections to enter into                                                                   
     an  agreement to  lease facilities  for the  confinement                                                                   
     and  care  of  prisoners   within  the  Kenai  Peninsula                                                                   
     Borough.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  MIKE  CHENAULT  explained  that  HB  149  was                                                                   
introduced to  transfer the authority to construct  a private                                                                   
prison  from   Ft.  Greely/Glennallen   area  to   the  Kenai                                                                   
Peninsula Borough.                                                                                                              
                                                                                                                                
The  construction  project would  provide  the  Kenai/Nikiski                                                                   
area with an  additional stable economic base.   In addition,                                                                   
the State  of Alaska  has been  supplementing the economy  of                                                                   
Florence, Arizona  around $20 million  dollars per year.   He                                                                   
emphasized that  it makes  sense to bring  money back  to the                                                                   
State of Alaska.                                                                                                                
                                                                                                                                
MARGOT  KNUTH,  ASSISTANT  ATTORNEY  GENERAL,  DEPARTMENT  OF                                                                   
CORRECTIONS,  provided information  on  the legislation.  She                                                                   
read from a  letter written by Governor Tony  Knowles.  [Copy                                                                   
on File].                                                                                                                       
                                                                                                                                
Ms. Knuth  noted that the prison  expansion is based  on five                                                                   
principles:                                                                                                                     
                                                                                                                                
      •Protecting the public's safety;                                                                                          
      •Addressing statewide and regional needs;                                                                                 
      •Consistency with best correctional practices;                                                                            
      •Community participation through government-to                                                                            
                -government transactions; and                                                                                   
      •Cost-effectiveness.                                                                                                      
                                                                                                                                
The  Kenai private  prison idea  could  meet these  important                                                                   
objectives.   She   noted  that   it   is  clear   that   the                                                                   
Legislature's  intent  in House  Bill  53  was to  develop  a                                                                   
private prison at  the Fort Greely site.  The  State has been                                                                   
attempting  to do that  since.   She added  that there  is no                                                                   
doubt any  change of  focus or development  of a  new private                                                                   
prison plan would involve legislative action.                                                                                   
                                                                                                                                
Ms. Knuth discussed  the Governor's plan indicating  that the                                                                   
most important  criteria was the addressing of  statewide and                                                                   
regional needs.   She  observed that  the statewide  needs do                                                                   
not always  meet the needs  of the inmates  to be  near their                                                                   
hometowns.   Ms. Knuth emphasized  the obligation to  look at                                                                   
pretrial needs  existing in Bethel  and Fairbanks as  well as                                                                   
the relocation of the Arizona prisoners.                                                                                        
                                                                                                                                
Ms.  Knuth  addressed  the  fiscal impact.    She  could  not                                                                   
determine  if the  proposal  would be  cost  effective.   Ms.                                                                   
Knuth  pointed out  the lack of  a capital  cost proposal  or                                                                   
indication of  cost limitations and  scope.  She  referred to                                                                   
experiences currently existing with the Anchorage jail.                                                                         
                                                                                                                                
Co-Chair Williams  noted that the  bill would be placed  in a                                                                   
Subcommittee,  Chaired  by  Representative  Mulder  and  with                                                                   
members Representative Bunde and Representative Moses.                                                                          
                                                                                                                                
HB 149 was HELD in Committee for further consideration.                                                                         
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:45 P.M.                                                                                          

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