Legislature(2007 - 2008)HOUSE FINANCE 519

02/07/2007 01:30 PM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 18 POSTSECONDARY MEDICAL & OTHER EDUC. PROG. TELECONFERENCED
Moved CSHB 18(HES) Out of Committee
+ HB 34 SALES BY WINERY LICENSEE TELECONFERENCED
Moved Out of Committee
+ HB 87 CITIZEN ADVISORY COMM ON FEDERAL AREAS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      February 7, 2007                                                                                          
                         1:41 P.M.                                                                                              
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Meyer called the House  Finance Committee meeting to                                                                   
order at 1:41:55 PM.                                                                                                          
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Mike Chenault, Co-Chair                                                                                          
Representative Kevin Meyer, Co-Chair                                                                                            
Representative Bill Stoltze, Vice-Chair                                                                                         
Representative Harry Crawford                                                                                                   
Representative Les Gara                                                                                                         
Representative Mike Hawker                                                                                                      
Representative Reggie Joule                                                                                                     
Representative Mike Kelly                                                                                                       
Representative Mary Nelson                                                                                                      
Representative Bill Thomas Jr.                                                                                                  
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Richard Foster                                                                                                   
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Representative  Gabrielle LeDoux;  Michael Pawlowski,  Staff,                                                                   
Co-Chair  Meyer; Sue  Stancliff,  Staff, Representative  Mike                                                                   
Kelly; Christine  Marasigan, Staff, Representative  Gabrielle                                                                   
LeDoux;  Diane  Barrans,  Executive  Director,  Postsecondary                                                                   
Education  Commission, Department  of Education; Pat  Pitney,                                                                   
Vice President  of Planning &  Budget, University  of Alaska;                                                                   
Rod Bettie, President, Alaska  State Hospital & Nursing Homes                                                                   
Association (ASHNHA); Tina Cunning,  Alaska National Interest                                                                   
Lands Conservation  Act (ANILCA), Coordinator,  Department of                                                                   
Fish & Game                                                                                                                     
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Joel Gilbertson,  Regional Director, Strategic  Development &                                                                   
Administration,  Providence  Hospital, Anchorage;  Dr.  Peter                                                                   
Marshal,   Family  &  General   Practitioner,  Chair,   WWAMI                                                                   
Committee, North  Pole; Dr.  Roland Gower, President,  Alaska                                                                   
State   Medical   Association,   Anchorage;   Doug   Griffin,                                                                   
Director, Alcohol  Beverage Control Board  (ABCB), Anchorage;                                                                   
Steve Thomsen, Alaska Wilderness  Wines, Kodiak; Dick Mylius,                                                                   
Deputy  Director,   Division  of   Mining  Land   and  Water,                                                                   
Department   of  Natural   Resources;   Pat  Luby,   Advocacy                                                                   
Director,  Alaska  Association  of  Retired  Persons  (AARP),                                                                   
Anchorage; Susanne Tryck, Director,  Alaska Regional Affairs,                                                                   
University  of   Washington  School  of   Medicine;  Kathleen                                                                   
Dalton, Fairbanks                                                                                                               
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 18     An Act amending the functions and powers of the                                                                       
          Alaska Commission  on Postsecondary  Education; and                                                                   
          relating  to the repayment  provisions for  medical                                                                   
          education   and   postsecondary    degree   program                                                                   
          participants.                                                                                                         
                                                                                                                                
          CS HB 18 (HES) was reported out of Committee with                                                                     
          a  "do pass"  recommendation  and with  a new  zero                                                                   
          note  by the  House  Finance Committee  and  fiscal                                                                   
          note #1  by the Alaska Commission  on Postsecondary                                                                   
          Education dated 1/31/07.                                                                                              
                                                                                                                                
HB 34     An Act relating to sales of wine by a winery                                                                          
          licensee.                                                                                                             
                                                                                                                                
          HB 34 was reported out of Committee with a "do                                                                        
          pass" recommendation  and with zero note  #1 by the                                                                   
          Department of Public Safety.                                                                                          
                                                                                                                                
HB 87     An  Act   reestablishing  the  Citizens'   Advisory                                                                   
          Commission  on Federal Management Areas  in Alaska;                                                                   
          and providing for an effective date.                                                                                  
                                                                                                                                
          HB 87 was HEARD & HELD in Committee for further                                                                       
          consideration.                                                                                                        
                                                                                                                                
1:44:12 PM                                                                                                                    
HOUSE BILL NO. 18                                                                                                             
                                                                                                                                
     An Act amending  the functions and powers  of the Alaska                                                                   
     Commission on  Postsecondary Education; and  relating to                                                                   
     the  repayment  provisions  for  medical  education  and                                                                   
     postsecondary degree program participants.                                                                                 
                                                                                                                                
MICHAEL PAWLOWSKI,  STAFF, CO-CHAIR MEYER, explained  that HB                                                                   
18 is  intended to  increase the  number of  students in  the                                                                   
WWAMI program.  The WWAMI program  is Alaska's medical school                                                                   
program  and is  a partnership  between Washington,  Wyoming,                                                                   
Alaska, Montana  and Idaho  (WWAMI), in  which each  of those                                                                   
states contributes  to the Medical  School at  the University                                                                   
of Washington (UW) based on the  amount of students they have                                                                   
entering  the   program.    For   Alaska,  that   number  has                                                                   
traditionally  been  10.   The  WWAMI student  pays  in-state                                                                   
tuition at the University of Washington  and agrees to return                                                                   
to Alaska to practice medicine.                                                                                                 
                                                                                                                                
Mr. Pawlowski  continued, a student  must repay a  portion of                                                                   
the  State's subsidy  if  they  do not  return  to Alaska  to                                                                   
practice medicine.  The State  forgives 20% of the obligation                                                                   
for each  year they  practice in Alaska.   The WWAMI  program                                                                   
has  been  immensely  successful and  has  received  national                                                                   
recognition  for several years.   It has  been ranked  the #1                                                                   
Family   Medical  Education   program  in   America  for   15                                                                   
consecutive years.                                                                                                              
                                                                                                                                
Mr.  Pawlowski  noted  that  Alaska  needs  to  expand  WWAMI                                                                   
because  the   State  is   facing  a  significant   physician                                                                   
shortage; a shortage  which leads to more expensive  and less                                                                   
available   medical   care   throughout   Alaska.     HB   18                                                                   
accomplishes the following:                                                                                                     
                                                                                                                                
   · Expanding the WWAMI program in section 1                                                                                   
   · Allowing students to serve their residency outside                                                                         
     Alaska without accumulating interest in Section 2 -                                                                        
     (There are limited opportunities to pursue residency in                                                                    
     Alaska now with only 12 slots at Providence);                                                                              
   · Envisioning 20 students entering WWAMI a year, which                                                                       
     means that eight of those would have no opportunity to                                                                     
     pursue their residency in Alaska                                                                                           
                                                                                                                                
Expanding   the   WWAMI   program   was  one   of   the   key                                                                   
recommendations  in  the recently  released  report,  "Alaska                                                                   
Physician  Supply  Task  Force"   included  in  the  packets.                                                                   
Alaska already has fewer physicians  per capita than the rest                                                                   
of  the  U.S.     And  as  our  physicians   are  approaching                                                                   
retirement age, the State needs  to do everything possible to                                                                   
recruit more and  HB 18 is a first step toward  bridging that                                                                   
gap.                                                                                                                            
                                                                                                                                
1:46:36 PM                                                                                                                    
                                                                                                                                
Representative  Thomas  referenced  language  "sufficient  to                                                                   
accommodate  20 new  people  each year"  &  wondered if  that                                                                   
amount would  be compounded  each year.   He wanted to  be on                                                                   
record, clarifying  that would  only be  20 students  a year.                                                                   
Mr. Pawlowski acknowledged it  was not a compounding equation                                                                   
and would only be 20 new freshmen each year.                                                                                    
                                                                                                                                
Representative  Gara hoped  to finely  tune the  legislation.                                                                   
He pointed out the shortage in  the State of certain types of                                                                   
doctors.  He  noted that many doctors come  to Alaska because                                                                   
they make  a lot more money.   He proposed  tying eligibility                                                                   
for participants that  are willing to go into  the fields the                                                                   
State has serious shortages.   Mr. Pawlowski thought it would                                                                   
be difficult to  adjust for a career path,  not understanding                                                                   
specifics when entering into the medical path.                                                                                  
                                                                                                                                
Representative   Gara  recommended   adding  incentives   for                                                                   
specific areas  & if  those were not  met, the student  would                                                                   
not  be given  the  subsidies and  the  annual loan  payments                                                                   
would not be forgiven.                                                                                                          
                                                                                                                                
1:50:41 PM                                                                                                                    
                                                                                                                                
Representative Nelson  inquired why the proposed  legislation                                                                   
stopped at the  number 10, given the serious  need throughout                                                                   
the State.  Mr. Pawlowski explained  that the bill intends to                                                                   
"establish the floor", understanding  capacity issues in both                                                                   
the University  of Alaska and  the University  of Washington.                                                                   
Increasing the number could be worked out over time.                                                                            
                                                                                                                                
1:52:08 PM                                                                                                                    
                                                                                                                                
JOEL  GILBERTSON,  (TESTIFIED VIA  TELECONFERENCE),  REGIONAL                                                                   
DIRECTOR, STRATEGIC DEVLEOPMENT  & ADMINISTRATION, PROVIDENCE                                                                   
HOSPITAL,  ANCHORAGE, discussed  that the physician  shortage                                                                   
in  the State  of Alaska  at this  time is  a serious  public                                                                   
health  threat.    There  is  a  physician  shortage  in  all                                                                   
specialty types  making for fragmented and reduced  access to                                                                   
care.  In the  Anchorage market place, there are  a number of                                                                   
seniors unable to receive basic primary care services.                                                                          
                                                                                                                                
Mr. Gilbertson  recommended increasing the WWAMI  class size,                                                                   
a  move that  Providence  Hospital  strongly  supports.   The                                                                   
WWAMI  program   has  been  a  key  element   for  retention.                                                                   
Approximately  85% of  the  students graduating  through  the                                                                   
program  have  remained in  Alaska.   Those  individuals  are                                                                   
involved in core services of the  State.  It has been a great                                                                   
investment.  He acknowledged that  the problem is still acute                                                                   
statewide.                                                                                                                      
                                                                                                                                
Representative  Crawford  commented  on  concerns  voiced  by                                                                   
constituents in Anchorage that  medical access is at a crisis                                                                   
point.   He thought that the  bill would provide  a beginning                                                                   
step, however,  worried about  how to address  the short-term                                                                   
fix.   Mr. Gilbertson agreed  that there  is a need  for both                                                                   
short and  long term fixes.  The  bill would not be  the sole                                                                   
solution;  core problems  need  to be  addressed.   The  U.S.                                                                   
Congressional delegation  has taken an interest  in access to                                                                   
care.                                                                                                                           
                                                                                                                                
There are a number of efforts  in the Anchorage area that are                                                                   
happening  right  now.   One  is the  Anchorage  Neighborhood                                                                   
Health Center,  which handles many Natives coming  from rural                                                                   
communities.   The program has inadequate facilities  and can                                                                   
not meet  the volume  demand.   The clinic  is undergoing  an                                                                   
assessment through  the Denali Commission to look  at ways to                                                                   
grow  the center.    The other  large  primary care  facility                                                                   
practicing  in Anchorage  is  the Family  Medicine  Residency                                                                   
Program.    That  clinic  trains  residents,  receiving  some                                                                   
federal  support,  however,  has  been loosing  money  on  an                                                                   
annual  basis.  Most  states support  their programs  through                                                                   
direct funding  and reimbursements.   Alaska's  reimbursement                                                                   
thus far, has barely kept up with  what is happening in other                                                                   
states.   There is  interest in  strengthening the  residency                                                                   
program.                                                                                                                        
                                                                                                                                
Representative  Crawford   questioned  what  was   needed  to                                                                   
enhance the program.  Mr. Gilbertson  explained that there is                                                                   
no  one solution  to solving  the crisis.   The  Neighborhood                                                                   
Health Center  is largely  a capital  project.  That  revenue                                                                   
structure  is  stronger as  they  have  access to  cost  base                                                                   
reimbursement;  their issue is  physical space and  capacity.                                                                   
It  is a  capital project.   He  urged that  both clinics  be                                                                   
strengthened & expanded and requested further funding.                                                                          
                                                                                                                                
2:01:15 PM                                                                                                                    
                                                                                                                                
Representative  Gara understood that  where a person  goes to                                                                   
medical  school  has a  relationship  on  where they  end  up                                                                   
practicing, and  where the residency  program is done  has an                                                                   
even stronger  affect on where  they end up practicing.   Mr.                                                                   
Gilbertson agreed that was true.                                                                                                
                                                                                                                                
Representative  Gara   noted  that  the   residency  programs                                                                   
offered in  Alaska are not as  substantial as they  could be.                                                                   
Mr. Gilbertson advised that the  residency program would like                                                                   
to expand the number  of slots available in Alaska.   Given a                                                                   
more  predictable  revenue  stream,  they would  be  able  to                                                                   
expand their  actual office  hours.   A secondary benefit  of                                                                   
more  residents coming  out  of the  program,  would be  more                                                                   
doctors feeding out into rural areas.                                                                                           
                                                                                                                                
Representative  Gara  questioned  if  the  residency  program                                                                   
provided practitioners  for both  the rural and  urban areas.                                                                   
Mr. Gilbertson explained that  a good percentage have gone on                                                                   
to   work  in   rural  areas   through   the  Native   Health                                                                   
Corporations.   It helps with  the long-term training,  being                                                                   
around primary care and internal medicine.                                                                                      
                                                                                                                                
Representative Gara  recommended that a quicker  solution for                                                                   
those  closer  to  practicing,   would  be  consideration  of                                                                   
expanding State support of the  residency program, especially                                                                   
in family care.                                                                                                                 
                                                                                                                                
2:05:04 PM                                                                                                                    
                                                                                                                                
DR. PETER  MARSHALL, (TESTIFIED  VIA TELECONFERENCE),  FAMILY                                                                   
AND GENERAL PRACTICE, CHAIR OF  WWAMI ADMISSIONS, NORTH POLE,                                                                   
referenced the  letter he submitted to the  member's packets.                                                                   
(Copy on File).                                                                                                                 
                                                                                                                                
Dr. Marshall discussed  the dire need for medical  doctors in                                                                   
the bush  areas and in Fairbanks  & Anchorage.   He addressed                                                                   
the barriers that Alaska students  encounter when applying to                                                                   
other  schools.   Alaska, currently,  only has  10 spots  and                                                                   
last  year,   there  were  78   applicants.     The  students                                                                   
attempting  to  get  into the  program  apply  against  other                                                                   
states;  states   tend  to  be  "stringy"  with   the  spots,                                                                   
reserving  them  for their  own  residents.   Well  qualified                                                                   
students are  at a disadvantage  in trying to apply  to other                                                                   
medical  schools.   Doubling  the  class  size to  20,  would                                                                   
increase the ration and would help the situation.                                                                               
                                                                                                                                
2:08:46 PM                                                                                                                    
                                                                                                                                
Representative  Crawford  commented  that  Amendment  1,  25-                                                                   
LS0131\K.1,  Mischel,  2/06/07,   could  have  increased  the                                                                   
program number  from 20 to  30.    He was informed  there was                                                                   
not  enough physical  space  to accommodate  that  many.   He                                                                   
agreed to  not offer the  amendment at  this time.   He asked                                                                   
when the program  could be expanded.  Dr.  Marshall responded                                                                   
that he was not  equipped to answer that.   The University of                                                                   
Washington (UW) has  made a decision to increase  their class                                                                   
size  over  the next  few  years.   He  believed  eventually,                                                                   
Alaska could  have 30 students  in the program  and supported                                                                   
such a plan.                                                                                                                    
                                                                                                                                
2:11:10 PM                                                                                                                    
                                                                                                                                
ROD BEATTIE, PRESIDENT, ALASKA  STATE HOSPITAL & NURSING HOME                                                                   
ASSOCIATION (ASHNHA),  JUNEAU, noted  that the membership  of                                                                   
his agency  has identified the  proposed issue as  their most                                                                   
critical  concern this  legislative session.   He  referenced                                                                   
the agency handout.  (Copy on File).                                                                                            
                                                                                                                                
ASHNHA  strongly  supports  passage  of  HB 18.    There  are                                                                   
approximately  seven ways to  get additional physicians  into                                                                   
Alaska:                                                                                                                         
                                                                                                                                
   · Medical schools                                                                                                            
   · Residency programs statewide                                                                                               
   · Federal assignments                                                                                                        
   · Self selection                                                                                                             
   · Loan repayment programs                                                                                                    
   · Recruitment bonuses                                                                                                        
   · Travelers                                                                                                                  
                                                                                                                                
Mr. Beattie  reiterated that HB  18 is critical  legislation.                                                                   
He pointed out that Alaska currently  suffers from a shortage                                                                   
of over  300 physicians.   The  public is  not receiving  the                                                                   
care needed.   He  urged that  the bill  move swiftly  out of                                                                   
Committee and  that the University  of Washington  is looking                                                                   
for a quick response; timing is critical.                                                                                       
                                                                                                                                
2:16:14 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  questioned how soon  ASHNHA needs to  know if                                                                   
passage of the  bill could happen.  Mr. Beattie  replied that                                                                   
the deadline  to complete  the contract  negotiations  is the                                                                   
beginning of March 2007.                                                                                                        
                                                                                                                                
Representative  Gara  asked  the  areas  of  the  most  acute                                                                   
shortages.    Mr.  Beattie  responded  a  lot  of  the  newer                                                                   
specialty areas and elder care,  OB's, surgeries, cardiology,                                                                   
and  internal medicine.   He  added  that targeting  students                                                                   
into specific areas would be problematic.                                                                                       
                                                                                                                                
Co-Chair Meyer  asked if the State's residency  program could                                                                   
accommodate  all   20  students;  he  understood   that  only                                                                   
Providence  Hospital  offered   a  residency  program.    Mr.                                                                   
Beattie  replied  that  was correct  and  that  it  currently                                                                   
offers a 12-position residency program.                                                                                         
                                                                                                                                
2:18:07 PM                                                                                                                    
                                                                                                                                
DR. ROLAND GOWER, (TESTIFIED VIA  TELECONFERENCE), PRESIDENT,                                                                   
ALASKA  STATE MEDICAL  ASSOCIATION  (ASMA), GENERAL  SURGEON,                                                                   
ANCHORAGE,  provided  a copy  of  his  testimony.   (Copy  on                                                                   
File).                                                                                                                          
                                                                                                                                
Dr. Gower pointed out that ASMA  strongly supports HB 18.  He                                                                   
echoed  the  crisis  given  the  doctor  shortage  throughout                                                                   
Alaska.  There is a nationwide  shortage and recruitment will                                                                   
not get  any easier  in the  future for  Alaska.  He  thought                                                                   
that it  made sense  for Alaska  to "grow  our own  students"                                                                   
into the  field.   There are  Alaska students  that want  the                                                                   
training  but do  not have  a  school to  go to.   The  State                                                                   
providing a reasonable  payback acts as an incentive.   It is                                                                   
important  to nurture this  resource.   He offered  to answer                                                                   
questions of the Committee.                                                                                                     
                                                                                                                                
Representative  Gara  inquired   how  the  legislation  would                                                                   
increase the  family residency program throughout  the State.                                                                   
Dr. Gower  explained he  was not an  expert on that  program.                                                                   
There  is a  critical  mass consideration  of  the number  of                                                                   
physicians that  can be trained  in that area.   He commented                                                                   
on specialty  training and  thought it  would be possible  to                                                                   
provide some  training to specialists  in Alaska but  many of                                                                   
that  type  training  can  not  happen  in  the  State.    He                                                                   
recommended   perhaps  creating   rotations  in  the   Alaska                                                                   
hospitals with residents from other states.                                                                                     
                                                                                                                                
2:24:21 PM                                                                                                                    
                                                                                                                                
PAT LUBY, (TESTIFIED VIA TELECONFERENCE),  ADVOCACY DIRECTOR,                                                                   
ALASKA  ASSOCIATION  OF RETIRED  PERSONS  (AARP),  ANCHORAGE,                                                                   
stated  that AARP  supports  HB  18.   He claimed  that  AARP                                                                   
members tend  to see physicians  more often than  the younger                                                                   
set.  Now seniors  are staying in the State  after retirement                                                                   
since  the  health services  are  improving.    HB 18  is  an                                                                   
excellent first  step in  addressing the statewide  physician                                                                   
shortage.  He urged support.                                                                                                    
                                                                                                                                
2:26:12 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer   noted  that  Representative   Crawford  had                                                                   
WITHDRAWN his amendment.                                                                                                        
                                                                                                                                
Co-Chair  Meyer pointed  out the  fiscal notes,  highlighting                                                                   
the new  note by  the University  of Alaska.   Representative                                                                   
Hawker noted  the number  of new  positions being added  into                                                                   
the system  and the  note associated.   He  worried that  the                                                                   
student-faculty  ratio was  excessive.   He  pointed out  the                                                                   
capital expenditure request included.   Representative Hawker                                                                   
requested a better evaluation.                                                                                                  
                                                                                                                                
Co-Chair  Meyer agreed  that the  capital  request should  be                                                                   
addressed  in the Capital  Budget.   Mr. Pawlowski  clarified                                                                   
that under  the program,  until the  actual slots are  added,                                                                   
the incoming class at UAA would not be above 20 people.                                                                         
                                                                                                                                
2:29:43 PM                                                                                                                    
                                                                                                                                
PAT PITNEY, VICE  PRESIDENT OF PLANNING &  BUDGET, UNIVERSITY                                                                   
OF ALASKA, advised that the fiscal  note before the committee                                                                   
was precise.  There would not  be two part-time positions; of                                                                   
the $344 thousand,  approximately $44 thousand  dollars would                                                                   
be used  for staffing assistance.   It would add  to staffing                                                                   
support for the WWAMI program.   The two faculty would add to                                                                   
the  existing faculty  in  the current  program.   There  are                                                                   
seven faculty  in the  program and  approximately ½  of those                                                                   
are dedicated  for WWAMI teaching.   They are  also dedicated                                                                   
to some  biological and chemistry  teaching positions  in the                                                                   
other  departments  and research  and  service.   The  course                                                                   
curriculum in  the first  year is very  intensive.   There is                                                                   
course work  with lab and  teaching requirements; it  is more                                                                   
one-on-one.   It would be a  significantly larger load.   She                                                                   
stressed that the request to move  to 20 students will happen                                                                   
at the beginning of next school year.                                                                                           
                                                                                                                                
Representative  Hawker  did  not  understand  the  merits  or                                                                   
demerits of  the ratio argument.   He was concerned  with the                                                                   
travel  component, the  contractual &  supplies.  Ms.  Pitney                                                                   
explained that those  numbers were a rough estimate  and they                                                                   
assume a modest salary.  The travel  allocation would be used                                                                   
for the entire department.                                                                                                      
                                                                                                                                
Co-Chair Meyer thought the fiscal  request should be analyzed                                                                   
during a subcommittee  process.  Co Chair Chenault  agreed it                                                                   
should  be   examined  during   subcommittee  before   moving                                                                   
forward;  he  recommended  that the  capital  expenditure  be                                                                   
included in the Capital Budget  Request (CBR).  He asked that                                                                   
the fiscal note  be removed and provided to  the subcommittee                                                                   
for consideration.                                                                                                              
                                                                                                                                
2:34:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer reminded members  that the University received                                                                   
$475 thousand  dollars last year with the  understanding that                                                                   
the remainder would be allocated FY08.                                                                                          
                                                                                                                                
Representative  Gara inquired  if  the bill  should pass  how                                                                   
that  would be  affecting the  capital request  process.   He                                                                   
asked  if  construction would  be  completed  by then.    Ms.                                                                   
Pitney  responded that  the $475  thousand appropriated  last                                                                   
year was being used as the planning  part of the construction                                                                   
process.   In the  event that the  bill passes, the  original                                                                   
$475  thousand dollars  allows  the planning  and the  second                                                                   
allocation in the amount of $475  thousand dollars will cover                                                                   
the  overall   construction.    Construction   completion  is                                                                   
planned for during the summer  and will be ready for incoming                                                                   
students.                                                                                                                       
                                                                                                                                
Representative Gara  asked if the capital upgrade  was really                                                                   
needed.  Ms. Pitney emphasized it was.                                                                                          
                                                                                                                                
2:36:57 PM                                                                                                                    
                                                                                                                                
Co Chair  Chenault  referenced comments  that the  allocation                                                                   
from last  year budget  was being  used for  planning of  the                                                                   
renovation.   Ms.  Pitney responded  that  the University  is                                                                   
preparing for  success of  the program as  the need  is high;                                                                   
the planning portion was less than $475 thousand dollars.                                                                       
                                                                                                                                
Co Chair Chenault understood the  concern to get the funding.                                                                   
He worried about the funding from  last year being used.  Ms.                                                                   
Pitney replied only a small piece of that amount was used.                                                                      
                                                                                                                                
2:38:50 PM                                                                                                                    
                                                                                                                                
SUSANNE  TRYCK,  (TESTIFIED  VIA  TELECONFERENCE),  DIRECTOR,                                                                   
ALASKA REGIONAL  AFFAIRS, UNIVERSITY OF WASHINGTON  SCHOOL OF                                                                   
MEDICINE, explained  that the issue of the  number of faculty                                                                   
in  the  program  is  a bit  difficult  to  grasp.    At  the                                                                   
University  of  Alaska -  Anchorage  (UAA), the  numbers  for                                                                   
faculty is  lower than in  some of other  states.  It  is not                                                                   
uncommon  for a  faculty in  the second  year at  the UW,  to                                                                   
teach three or four lectures in  a semester.   There is a lot                                                                   
of time involved  in research, which makes the  teaching time                                                                   
less.  The proposed numbers are  in line with the other WWAMI                                                                   
states.                                                                                                                         
                                                                                                                                
Ms.  Tryck clarified  that they  can not  accommodate all  20                                                                   
WWAMI  students  in the  family  medicine  residency  program                                                                   
unless they only  intend to practice family  medicine.  There                                                                   
is no  direct link  in terms  of the  numbers.   It would  be                                                                   
cumbersome  to  attempt  to tie  the  shortage  of  statewide                                                                   
doctors with those  students selected for the  WWAMI program.                                                                   
The  amount of  time  it takes  to  complete  the program  is                                                                   
usually  seven years.   Ms. Tryck  urged that  the bill  pass                                                                   
from committee at this time given the deadline.                                                                                 
                                                                                                                                
2:42:00 PM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer recommended  that  the University  of  Alaska                                                                   
fiscal note be reduced to zero.                                                                                                 
                                                                                                                                
Vice Chair  Stoltze MOVED  to REPORT  CS HB  18 (HES)  out of                                                                   
Committee  with  individual  recommendations   and  with  the                                                                   
accompanying fiscal notes including  the new zero note by the                                                                   
House  Finance   Committee.    Vice  Chair   Stoltze  briefly                                                                   
OBJECTED.                                                                                                                       
                                                                                                                                
Vice Chair Stoltze  noted that he supports the  initiative to                                                                   
bring more  doctors into  Alaska.  He  worried if it  had not                                                                   
been  mandated,   it   would  not  have   come  through   the                                                                   
University.  He complimented the  statewide professionals for                                                                   
making the  legislation happen  and wanted  to make  sure the                                                                   
leadership  on   the  issue  continues  to  be   the  medical                                                                   
community.  Vice Chair Stoltze WITHDREW his OBJECTION.                                                                          
                                                                                                                                
There being NO further OBJECTIONS, it was so ordered.                                                                           
                                                                                                                                
CS  HB 18  (HES) was  reported out  of Committee  with a  "do                                                                   
pass" recommendation  and with a  new zero note by  the House                                                                   
Finance  Committee   and  fiscal   note  #1  by   the  Alaska                                                                   
Commission on Postsecondary Education dated 1/31/07.                                                                            
                                                                                                                                
                                                                                                                                
AT EASE:            2:44:39 PM                                                                                                
RECONVENED:         2:50:46 PM                                                                                                
                                                                                                                                
HOUSE BILL NO. 34                                                                                                             
                                                                                                                                
     An Act relating to sales of wine by a winery licensee.                                                                     
                                                                                                                                
2:51:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GABRIELLE   LEDOUX,  SPONSOR,   testified  in                                                                   
support  of   the  legislation.   She  explained   that  wine                                                                   
production in Alaska  has just started to develop.   Wineries                                                                   
are now "mom &  pop" businesses.  Under current  law, none of                                                                   
the wineries can sell or ship  a bottle of wine to a customer                                                                   
within  the State  unless the  customer is  on the  premises.                                                                   
Currently, out-of-state wineries  can ship their product into                                                                   
the State of Alaska.  HB 34 would  level the playing field by                                                                   
allowing  in-state  wineries   to  ship  within  Alaska.  The                                                                   
legislation is  identical to HB  431, which passed  the House                                                                   
         th                                                                                                                     
in the 24 legislative session.                                                                                                  
                                                                                                                                
DOUG  GRIFFIN,  (TESTIFIED  VIA   TELECONFERENCE),  DIRECTOR,                                                                   
ALCOHOL BEVERAGE  CONTROL BOARD  (ABCB), ANCHORAGE,  spoke in                                                                   
support  of  the   legislation.    He  emphasized   that  the                                                                   
legislation would be a beneficial  tool to in-state wineries,                                                                   
needing  to  understand  that  there  are  "dry"  communities                                                                   
within Alaska.                                                                                                                  
                                                                                                                                
Representative Hawker identified  concerns regarding underage                                                                   
drinking  & the dry  communities.   Mr. Griffin  acknowledged                                                                   
such  problems and  maintained  that there  is  an effort  to                                                                   
restrict sales to  those under 21 year old.   He acknowledged                                                                   
that   internet  shipments   are  occurring   and  that   the                                                                   
legislation would  allow in-state companies to  ship but that                                                                   
it  must be  delivered to  a person  at least  21 years  old,                                                                   
making sure that a record was signed for the product.                                                                           
                                                                                                                                
2:56:11 PM                                                                                                                    
                                                                                                                                
Co  Chair  Chenault  observed  that wineries  would  have  to                                                                   
follow  all  the current  Alaska  State  laws.   Mr.  Griffin                                                                   
agreed, pointing  out that they  could lose their  ability to                                                                   
operate &  ship product if  they do not  follow the law.   Co                                                                   
Chair  Chenault   mentioned  the  penalties  that   would  be                                                                   
attached.                                                                                                                       
                                                                                                                                
In response to a question by Vice  Chair Stoltze, Mr. Griffin                                                                   
explained that 5 gallons equates  to 2 cases of standard unit                                                                   
size bottles.                                                                                                                   
                                                                                                                                
2:57:58 PM                                                                                                                    
                                                                                                                                
Representative Thomas asked if  wine could be shipped outside                                                                   
Alaska.  Mr.  Griffin noted that the bill allows  shipping of                                                                   
up to 5 gallons out-of-state for personal use.                                                                                  
                                                                                                                                
2:59:07 PM                                                                                                                    
                                                                                                                                
STEVE   THOMSEN,  (TESTIFIED   VIA  TELECONFERENCE),   ALASKA                                                                   
WILDERNESS   WINES,  KODIAK,   spoke   in   support  of   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Representative Hawker MOVED to  report HB 34 out of Committee                                                                   
with  the   accompanying  fiscal   note.    There   being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
HB  34  was  reported  out of  Committee  with  a  "do  pass"                                                                   
recommendation  and with zero  note #1  by the Department  of                                                                   
Public Safety.                                                                                                                  
                                                                                                                                
                                                                                                                                
AT EASE:       3:01:03 PM                                                                                                     
RECONVENED:    3:02:27 PM                                                                                                     
                                                                                                                                
HOUSE BILL NO. 87                                                                                                             
                                                                                                                                
     An Act reestablishing the Citizens' Advisory Commission                                                                    
     on Federal Management Areas in Alaska; and providing                                                                       
     for an effective date.                                                                                                     
                                                                                                                                
REPRESENTATIVE MIKE  KELLY, SPONSOR, spoke in  support of the                                                                   
legislation & noted  that it had been discussed  in the House                                                                   
Resources Committee.   He requested that his  staff report on                                                                   
the bill.                                                                                                                       
                                                                                                                                
SUE STANCLIFF,  STAFF, REPRESENTATIVE  MIKE KELLY,  explained                                                                   
that the Citizens'  Advisory Commission on federal  areas was                                                                   
                               th                                                                                               
established in  1981 by the  12  Alaska State  Legislature in                                                                   
order to  provide assistance  to the  citizens of Alaska  who                                                                   
are affected  by the management  of federal lands  within the                                                                   
State.                                                                                                                          
                                                                                                                                
The Commission  was repealed  after Governor Knowles  removed                                                                   
funding,  even though  the  legislature  approved the  sunset                                                                   
extension to  2003.  HB 87  has a sunset provision  extending                                                                   
the  Commission until  2014.   The  need  for the  Commission                                                                   
arose  primarily from  conflicts due  to the  passage of  the                                                                   
Alaska National  Interest Lands Conservation Act  (ANILCA) in                                                                   
1980,  which  changed  the federal  land  management  climate                                                                   
while attempting to protect Alaskans'  access and traditional                                                                   
activities on federal lands.   The Commission is charged with                                                                   
the  responsibility  of  researching issues  to  assist  land                                                                   
users,   monitoring   federal   statutes,   regulations   and                                                                   
management decisions in order  to assist citizens to minimize                                                                   
or  resolve   potential  conflicts  with  the   federal  land                                                                   
managers.                                                                                                                       
                                                                                                                                
Ms.  Stancliff   continued,  the  Commission   was  effective                                                                   
assuring that land management  decisions were consistent with                                                                   
Congressional  intent and  protecting  interests of  Alaska's                                                                   
citizens.  Twenty-five  years later, the State has  a loss of                                                                   
institutional memory  and of the  promises made  to Alaskans.                                                                   
Rules  are easily  overlooked  when the  fed's are  rewriting                                                                   
management plans  for refuges and parks.   Responsible public                                                                   
access and traditional uses on  the federal lands are just as                                                                   
important to  citizens and  communities throughout  the State                                                                   
now as they were when the Commission  was originally created.                                                                   
Individuals  still need  the assistance  that the  Commission                                                                   
previously provided them.                                                                                                       
                                                                                                                                
3:06:04 PM                                                                                                                    
                                                                                                                                
Representative Kelly spoke in  support of the Commission.  He                                                                   
stressed  that  those persons  do  not  have an  advocate  in                                                                   
interactions with the federal  land managers and often, there                                                                   
is a differing approach.                                                                                                        
                                                                                                                                
Co-Chair  Meyer understood  that the Commission  would  be an                                                                   
advisory group.  Representative Kelly replied correct.                                                                          
                                                                                                                                
3:08:07 PM                                                                                                                    
                                                                                                                                
KATHLEEN DALTON,  (TESTIFIED VIA TELECONFERENCE),  FAIRBANKS,                                                                   
spoke  in support  of the  legislation.   She recommended  an                                                                   
amendment  which would  require the  Commission to  inventory                                                                   
other land users.  She commented  on the insufficient "teeth"                                                                   
in   the  relationship   to  the   Commission's  duties   and                                                                   
recommended  stronger language.    She pointed  out the  zero                                                                   
fiscal note accompanying the legislation.                                                                                       
                                                                                                                                
3:12:26 PM                                                                                                                    
                                                                                                                                
DICK   MYLIUS,   (TESTIFIED   VIA   TELECONFERENCE),   DEPUTY                                                                   
DIRECTOR, DIVISION  OF MINING  LAND AND WATER,  DEPARTMENT OF                                                                   
NATURAL  RESOURCES, ANCHORAGE,  provided  the Committee  some                                                                   
back-ground  information regarding  the previous  Commission,                                                                   
which was housed  within the Department of  Natural Resources                                                                   
in  Fairbanks.   That  Department  actively  reviews  federal                                                                   
regulations.   The focus of the  Commission would be  to look                                                                   
at individual concerns regarding  federal land managers.  The                                                                   
Department does not  have the staffing ability  at this time.                                                                   
The Commission  could  fill that  void.  Mr.  Mylius did  not                                                                   
have an opinion as to which department  the Commission should                                                                   
be  housed.     The  staff   previously  was   in  Fairbanks.                                                                   
Initially, it  was staffed with  ten people, however,  toward                                                                   
the end, the number decreased to one.                                                                                           
                                                                                                                                
TINA  CUNNING, COORDINATOR,  ALASKA  NATIONAL INTEREST  LANDS                                                                   
CONSERVATION ACT  (ANILCA), DEPARTMENT OF FISH  & GAME, noted                                                                   
that she  had worked  in the early  implementation  phases of                                                                   
ANILCA and worked closely with  the executive director of the                                                                   
Citizen's  Advisory Commission.    She stated  that they  had                                                                   
been a valuable resource, which  could not be accomplished by                                                                   
any department.    There are a  number of  ways citizens  can                                                                   
deal  with disputes,  since the  Commission has  been out  of                                                                   
service, but individuals  do not want to be  in conflict with                                                                   
the  federal   managers,  which   have  control   over  their                                                                   
activities.    She  warned  that  there is  no  one  to  help                                                                   
citizens walk  through the  red tape,  without going  to that                                                                   
level and then causing bad feelings with federal managers.                                                                      
                                                                                                                                
3:17:37 PM                                                                                                                    
                                                                                                                                
Representative  Hawker questioned  if those activities  would                                                                   
be  duplicated through  the State  Ombudsman's  office.   Ms.                                                                   
Cunning clarified  that the State Ombudsman  deals with State                                                                   
issues, not  federal laws.   Representative Hawker  suggested                                                                   
that statutory  authority  to the Ombudsman  Office might  be                                                                   
changed through legislation to include those concerns.                                                                          
                                                                                                                                
3:18:54 PM                                                                                                                    
                                                                                                                                
Representative   Kelly   asked   examples   of   the   former                                                                   
Commission's  activities.    Ms.  Cunning  advised  that  the                                                                   
Commission  was "out  of commission"  for 10  years.  In  the                                                                   
early 1980's,  the management plans were being  developed for                                                                   
the conservation  system units.  There are about  135 million                                                                   
acres in  Alaska in special  units.  The original  management                                                                   
plans  for  those  units  were   supposed  to  encompass  the                                                                   
compromise provisions of ANILCA  for public use activities on                                                                   
that land.   She recalled one example of when  the Commission                                                                   
was very  effective in  the development  of the Kodiak  plan.                                                                   
There  was  a strong  leaning  by  planners to  proceed  with                                                                   
extreme limitations  on the public use of those  cabins.  The                                                                   
implement  weather and  bears  make those  cabins valuable  &                                                                   
popular.   They attempted  to eliminate  those cabins  on the                                                                   
refuge.  It was not an issue the  State would deal with.  The                                                                   
Commission raised  the issues and the original  decisions are                                                                   
"sticking".                                                                                                                     
                                                                                                                                
Another  example  dealt  with   a  series  of  problems  with                                                                   
trapping   cabins,  protected   under  ANILCA;  the   federal                                                                   
managers  have  a  history  of  wanting  to  eliminate  those                                                                   
cabins.  The  Commission worked with trappers  to cut through                                                                   
red tape.   The Commission was  also effective in Title  1 of                                                                   
ANILCA boundaries  adopted under the  Alaska Lands Act.   The                                                                   
National Park Service did not  publish their boundaries after                                                                   
four years.   The Commission  brought the issues  forward and                                                                   
was successful in having the boundaries mapped.                                                                                 
                                                                                                                                
3:23:38 PM                                                                                                                    
                                                                                                                                
Representative  Thomas asked  for  information regarding  the                                                                   
former Commission's restrictions.                                                                                               
                                                                                                                                
Co-Chair  Meyer stated  the  bill would  be  held to  discuss                                                                   
housing location and appropriate staffing levels.                                                                               
                                                                                                                                
3:25:19 PM                                                                                                                    
                                                                                                                                
Representative  Hawker was concerned  with the  indeterminate                                                                   
fiscal  note,   referencing  a  hearing  in   April  1998  on                                                                   
reauthorization.    There  were arguments  made  that  budget                                                                   
cutting  had  affected  the  operations  of  the  Commission.                                                                   
History indicates that it needs  to be 5 or more employees to                                                                   
be effective.                                                                                                                   
                                                                                                                                
Representative  Kelly commented  on  the housing  issue.   He                                                                   
said  that  they  had  considered  both  the  Office  of  the                                                                   
Governor and  the Department of  Natural Resources.   He felt                                                                   
that the  Department of Natural  Resources would be  the most                                                                   
likely  outcome &  the Department  would work  to reduce  the                                                                   
fiscal note.  He observed that  the problem is more prevalent                                                                   
in  areas  with large  conservation  units.    Representative                                                                   
Kelly discussed the constant pressure  on those utilizing the                                                                   
areas.                                                                                                                          
                                                                                                                                
3:29:19 PM                                                                                                                    
                                                                                                                                
Representative  Nelson   mentioned  concerns   regarding  the                                                                   
geographic allocation of board  members.  She requested it be                                                                   
stipulated    that   there    is    a   rural    participant.                                                                   
Representative Kelly agreed to discuss that.                                                                                    
                                                                                                                                
Co-Chair Meyer stated that HB 87 would be HELD in Committee                                                                     
for further consideration.                                                                                                      
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 3:29 P.M.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects