Legislature(2003 - 2004)
02/27/2003 01:43 PM House FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 27, 2003
1:43 P.M.
TAPE HFC 03 - 28, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:43 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
Representative Mike Chenault
ALSO PRESENT
Representative Nancy Dahlstrom; Rick Urion, Director,
Division of Occupational Licensing, Department of Community
and Economic Development; Ron Miller, Executive Director,
Alaska Industrial Development and Export Authority (AIDEA);
Sarah Fisher-Goad, Alaska Industrial Development and Export
Authority (AIDEA); Kimberly Hanger, Staff, Representative
Nancy Dahlstrom; Pat Davidson, Director-Legislative Auditor,
Division of Legislative Audit; Robert Funt, Attorney, TECK
COMINCO, Anchorage.
PRESENT VIA TELECONFERENCE
Nancy Sanders, Chair, Board of Nursing, Anchorage; Dorothy
Fulton, Director, Board of Nursing, Anchorage; Mary
Weymiller, Member, Board of Nursing, Anchorage.
SUMMARY
HB 73 An Act extending the termination date of the State
Medical Board.
HB 73 was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by
the Department of Community & Economic
Development.
HB 74 An Act extending the termination date of the Board
of Nursing.
HB 74 was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by
the Department of Community & Economic
Development.
HB 112 An Act relating to the authority of the Alaska
Industrial Development and Export Authority to
issue bonds; and providing for an effective date.
HB 1112 was reported out of Committee with a "do
pass" recommendation and with a fiscal note by
HOUSE BILL NO. 73
An Act extending the termination date of the State
Medical Board.
REPRESENTATIVE NANCY DAHLSTROM noted that AS 08.64.010
established the State Medical Board and provided for the
appointment of members by the Governor. The Board consists
of five licensed physicians, one licensed physician
assistant, and two persons with no direct financial
interests in the healthcare industry. HB 73, if enacted
would extend the Board operation for another 4 years to June
30, 2007.
She commented that the Board serves the public interest by
establishing the minimum education and work experience
requirements that individuals must meet to become licensed
physicians, osteopaths, podiatrists, paramedics, and
physicians assistants. The Board further serves the public
interest by investigating complaints against licensed
professionals and taking disciplinary licensing action when
appropriate. The Board has consistently proven to be
efficient and Representative Dahlstrom recommended that they
be extended until June 30, 2007.
KIMBERLY HANGER, STAFF, REPRESENTATIVE NANCY DAHLSTROM,
stated that in accordance with the intent of Title 24 &
Title 44 of the Alaska Statutes, the Division of Legislative
Audit viewed the activities of the Medical Board. The
conclusion resulting from that audit was a recommendation
for an extension of the Board. She referenced a letter
received from Catherine Reardon, previous Director of the
Division of Occupational Licensing in the Department of
Community and Economic Development, which endorses the
findings and recommends the extension.
Ms. Hanger referenced Amendment #1. (Copy on File). The
amendment would extend the Board through 2011.
Co-Chair Harris inquired if the previous Committee of
referral had recommended the extension date of 2007.
Representative Dahlstrom explained that there was discussion
on that date and the previous Committee had agreed upon it.
After the review of the audit recommendations and in
cooperation with the Senate, the amendment was added. The
original bill was drafted with the 2007 extension date.
Co-Chair Harris asked the cost of doing an audit and
questioned why the Legislature would want to extend the
sunset. Representative Dalstrom informed members that the
Legislature could request an audit at any time; however, she
did not know the cost of performing an audit.
Co-Chair Harris pointed out that the fiscal note indicates
that the funds would come from Receipt Support Services
(RSS). He believed that the Board was not projected to
spend any extra funds through the coming fiscal years.
Representative Dalstrom acknowledged that was correct.
Co-Chair Harris MOVED to ADOPT Amendment #1, which would
change the extension date from 2007 to 2011. There being NO
OBJECTION, the amendment was adopted.
RICK URION, DIRECTOR OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT, indicated that the
Division does support the extension of the Board to 2011.
He stated that the Board has done a good job and encouraged
the Board's extension to 2011.
Vice-Chair Meyer MOVED to report CS HB 73 (FIN) out of
Committee.
There being NO OBJECTION, it was so ordered.
CS HB 73 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Community & Economic Development.
HOUSE BILL NO. 74
An Act extending the termination date of the Board of
Nursing.
REPRESENTATIVE NANCY DAHLSTROM noted that AS 08.64.010
established the Board of Nurses, whose members are appointed
by the Governor, consist of one licensed practical nurse
currently involved in institutional nursing service, one
registered nurse engaged in baccalaureate nursing, three
registered nurses at large, and two persons with no director
financial interests in the healthcare industry. HB 74, if
enacted would extend the Board operation for another 4 years
to June 30, 2007.
She explained that the Board serves the public interest by
establishing minimum education and work experience
requirements that individuals must meet to become licensed
nurses or certified nursing aides. The Board further
services the public interest by investigating complaints
against licensed professionals and taking disciplinary
licensing action when appropriate.
KIMBERLY HANGER, STAFF, REPRESENTATIVE NANCY DAHLSTROM,
stated that in accordance with the intent of Title 24 &
Title 44 of the Alaska Statutes, the Division of Legislative
Audit reviewed the activities of the Board. The conclusions
resulting from that audit was a recommendation for an
extension of the Board. She referenced a letter received
from Catherine Reardon, previous Director of the Division of
Occupational Licensing in the Department of Community and
Economic Development, which endorses the findings and
recommends the extension.
Ms. Hanger pointed out Amendment #1. (Copy on File). The
amendment would extend the Board through 2011.
Representative Hawker noted that within the audit, there had
been two recommendations:
· One involving procedures for notification of the
pharmacies; and
· One on the self-evaluation checklist.
He inquired what the Board had done regarding those
recommendations.
Ms. Hanger explained that regarding the first
recommendation, the audit was correct and that they do not
have a specific procedure for the Board of Pharmacies. The
Board of Nursing met with Margaret Snowden, Chair, Board of
Pharmacy. The Board met with her and devised a plan to
communicate with that Board and currently, they are keeping
better records.
The second concern recommended that the Board of Nursing
develop and implement a self evaluation checklist for the
organization certified nursing aid training program. Ms.
Hanger acknowledged that was an excellent recommendation.
The Board has implemented a procedure for directing staff to
develop a self-monitoring checklist.
Representative Stoltze MOVED to ADOPT Amendment #1. There
being NO OBJECTION, it was adopted.
Co-Chair Harris asked Ms. Davidson about changing the date
and what savings that would provide the State.
PAT DAVIDSON, DIRECTOR-LEGISLATIVE AUDITOR, DIVISION OF
LEGISLATIVE AUDIT, advised that the cost of sunset audits
can range anywhere between $8 to $20 thousand dollars
depending upon the sort of issues that come up during the
course of an audit. In terms of the Medical Board and the
Nursing Board, the key concerns regard whether they are
proactive with legislation and not relying upon the sunset
process to bring concerns forward. She noted that it is
important that they are acting financially appropriate when
additional costs are incurred.
Ms. Davidson noted that for both the boards, their prior
extension was eight years and because those boards have
always addressed their key concerns, the Audit Committee
recommends the extension. Boards are required to cover some
costs, however, they do not cover the costs of legislative
or audit time.
Co-Chair Harris inquired if during the audit reviews, there
had been members that had complaints.
Ms. Davidson responded that there were no significant
complaints with regard to the boards and that membership of
the boards have to bear the cost associated with
investigations.
Co-Chair Harris asked what the agreement was regarding the
$192 contractual dollars. Ms. Davidson responded that
typically those are legal costs for investigations and/or
regulatory changes.
NANCY SANDERS, (TESTIFIED VIA TELECONFERENCE), CHAIR, BOARD
OF NURSING, ANCHORAGE, spoke in support of HB 74 and urged
passage of the legislation. She offered to answer questions
of the Committee.
MARY WEYMILLER, (TESTIFIED VIA TELECONFERENCE), MEMBER,
BOARD OF NURSING, ANCHORAGE, noted her support and urged
passage of HB 74.
RICK URION, DIRECTOR OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT, testified in support of
HB 74. He noted that Board provides a valuable service. He
urged passage of the bill so that they can continue their
'good work'.
Vice-Chair Meyer MOVED to report CS HB 74 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CS HB 74 (FIN) was reported out of Committee with a "do
pass" recommendation and with a new fiscal note by the
Department of Community & Economic Development.
HOUSE BILL NO. 112
An Act relating to the authority of the Alaska
Industrial Development and Export Authority to issue
bonds; and providing for an effective date.
RON MILLER, EXECUTIVE DIRECTOR, ALASKA INDUSTRIAL
DEVELOPMENT AND EXPORT AUTHORITY (AIDEA), ANCHORAGE,
explained that HB 112 would extend AIDEA's general bonding
authority to July 1, 2007. Without extension, AIDEA would
need legislative authorization to issue bonds for
development projects under $10 million dollars. AIDEA would
also be restricted from issuing any bonds to finance the
purchase of loan participations without legislation
authorization.
Mr. Miller provided examples of bonds that AIDEA has issued
that would require legislative authorization after July 1,
2003 if the bonding authority were to sunset.
· $8,020,000 AIDEA Revolving Fund Bonds, Series 1995A,
which provided tax-exempt funds for a loan
participation made to Kodiak Fish-Meal Company for a
fish by-product processing plant.
· $7,000,000 AIDEA Revolving Fund Bonds, Series 1991A,
which provided tax-exempt funds for the expansion
and improvement of the Unalaska Marine Center. The
project had legislative authorization.
Mr. Miller continued, the following requirement would not be
affected by HB 112:
· All development projects over $10,000,000 dollars
for which bonds are to be issued require legislative
authorization prior to issuing bonds.
· Prior to issuing bonds over $6,000,000 dollars,
AIDEA is required to receive approval from the local
government in which the projects are to be located.
· All development projects for which bonds are to be
issued require AIDEA to make findings that the
project is economically and financially feasible.
Mr. Miller noted that recently, AIDEA has only issued
refunding and conduit revenue bonds, which are not affected
by HB 112. If the bill does not pass, AIDEA would continue
to have the ability to issue refunding bonds and conduit
revenue bonds; however, the sunset extension provides AIDEA
the flexibility to assist in the financing of key
development projects. If the authorization is allowed to
sunset and depending on the timing of the potential
projects, AIDEA may have to wait for legislative
authorization to issue bonds. Allowing the bond authority
to sunset would eliminate a tool for AIDEA to assist
projects that could provide an economic benefit to the
State.
Co-Chair Harris MOVED to ADOPT work draft #23-GH1018\D,
Cook, 2/25/03 as the version of the bill before the
Committee. (Copy on File).
There being NO OBJECTION, it was adopted.
Co-Chair Harris asked in the new Section 2, what the repeals
references in Sections #3 and #19 were.
Mr. Miller responded that was a sunset provision on the
municipal tax exemption provision connected with the Red Dog
Mine. The legislation was passed in FY00, and there was
some question over the tax assessment. Prior to 1999, use
of that system was not assessed by the State tax assessor.
In 1999, the determination was changed and the legislature
in 2000, passed law to address the situation.
The Lone Mountain Transportation System is an AIDEA owned
project. TECK COMINCO has a none-exclusive use on it for
which they pay. For unknown reasons, the tax assessor in
1999, decided to access TECK COMINCO's use of that facility
for borough tax purposes. The proposed legislation would
remove that sunset.
Co-Chair Harris suggested that Representative Moses would be
interested in the Unalaska Marine Center project. He asked
if the Legislature did not authorize the bill, would there
need to be another piece of legislation. Mr. Miller
responded that was an example of a project that AIDEA would
have had to get legislative authorization for. AIDEA did
move forward with that project in 1991 and they did receive
some legislative authorization on the project.
Representative Stoltze referenced Section 2, indicating that
had been a product of Senator Halford.
ROBERT FUNT, ATTORNEY, REPRESENTING TECK COMINCO, ANCHORAGE,
indicated that he had been working on the project since
1999. He offered to answer questions of the Committee
regarding the assessment or related to the Red Dog Mine.
Representative Stoltze referenced Section 2. He stated that
he would not want to see these types of assets acting as
'impediments' to areas wanting to organize. He supported
repealing those sections.
Representative Foster MOVED to report CS HB 112 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal note.
There being NO OBJECTION, it was so ordered.
CS HB 112 (FIN) was reported out of Committee with a "do
pass" recommendation and with a zero fiscal note #1 by the
Department of Community & Economic Development.
ADJOURNMENT
The meeting was adjourned at 2:16 P.M.
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