Legislature(2005 - 2006)HOUSE FINANCE 519
02/14/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB42 | |
| HB102 | |
| HB115 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 42 | TELECONFERENCED | |
| + | HB 102 | TELECONFERENCED | |
| + | HB 115 | TELECONFERENCED | |
HOUSE FINANCE COMMITTEE
February 14, 2005
1:40 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:40:39 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Jim Holm
Representative Reggie Joule
Representative Mike Kelly
Representative Bruce Weyhrauch
MEMBERS ABSENT
Representative Carl Moses
ALSO PRESENT
Jim Van Horn, Staff, Representative Jim Elkins; Josh
Applebee, Staff, Representative Tom Anderson; Mark Pfeffer,
Co-Owner, Venture Development Group, Anchorage; Ben
Mulligan, Staff, Representative Bill Stoltze; Rick Urion,
Director Occupational Licensing, Department of Community and
Economic Development
PRESENT VIA TELECONFERENCE
Bill Williams, Former State Legislator, Saxman; Joe
Williams, Ketchikan; Yebe Hicks, Saxman City Council,
Saxman; Frank Seludo, Vice Mayor, Saxman; Jim Jordan,
Executive Director, Alaska State Medical Association,
Anchorage; Dr. George Stewart, Physician, Anchorage
SUMMARY
HB 42 An Act naming the Joe Williams, Sr., Coastal
Trail.
HB 42 was reported out of Committee with a "do
pass" recommendation and with zero note #2 by the
House Transportation Committee for the Department
of Transportation & Public Facilities.
HB 102 An Act relating to the licensure of foreign
medical graduates; and providing for an effective
date.
HB 102 was reported out of Committee with a "do
pass" recommendation and with zero note #1 by the
Department of Community & Economic Development.
HB 115 An Act relating to charges paid or collected by
users or occupants of an airport facility owned or
controlled by the state.
CS HB 115 (TRS) was reported out of Committee with
a "do pass" recommendation and with a zero note #1
by the Department of Transportation & Public
Facilities.
1:41:18 PM
HOUSE BILL NO. 42
An Act naming the Joe Williams, Sr., Coastal Trail.
JIM VAN HORN, STAFF, REPRESENTATIVE JIM ELKINS, testified in
support of HB 42. He noted that HB 42 names three miles of
trail alongside the South Tongass Highway between Ketchikan
and Saxman, the Joe Williams Sr. Coastal Trial.
Mr. Van Horn indicated that Mr. Williams advocated for the
construction of a trail because residents from those
communities, for many years, lived without means of
transportation and commonly walked the three miles between
the towns. Mr. Van Horn added that when the trail was
completed, it quickly became a favorite walking and
bicycling path used by visitors and locals alike.
Mr. Van Horn summarized that passage of the legislation
would honor the memory of a highly respected member of the
Native Community in Southeast Alaska. He pointed out the
letters of support in member's packets and the zero fiscal
note.
1:44:26 PM
BILL WILLIAMS, (TESTIFIED VIA TELECONFERENCE), FORMER STATE
REPRESENTATIVE, SAXMAN, commented on the great effort that
his father put into matters of the land for Native Alaskans.
He stated that Joe Williams was a great man that worked hard
for thirty-eight years on matters related to Ketchikan. He
urged that the Committee pass HB 42.
Representative Weyhrauch asked if the proposal was for a
trail or bike path. Mr. Williams said it would be a bike
path that would follow the South Tongass Highway.
1:49:11 PM
JOE WILLIAMS JR., (TESTIFIED VIA TELECONFERENCE), KETCHIKAN,
discussed that it would be a "great honor" for the Village
of Saxman and the Native community of Ketchikan to have a
trail named after their father. He voiced his support for
the legislation.
1:50:20 PM
YEBE HICKS, (TESTIFIED VIA TELECONFERENCE), SAXMAN CITY
COUNCIL, SAXMAN, testified in support of the legislation.
He stated that he works with children in Saxman and thought
that naming the path after Joe Williams would be a "source
of pride" for Native youth. Elders used to walk that path a
long time ago. He testified in support of the legislation,
reiterating that it would be an honor for the entire
community.
1:51:20 PM
FRANK SELUDO, (TESTIFIED VIA TELECONFERENCE), VICE MAYOR,
SAXMAN, voiced his support for HB 42. He acknowledged that
Joe Williams did great work for the community of Ketchikan
and urged passage of the bill.
1:52:07 PM
Representative Foster MOVED to report HB 42 out of Committee
with individual recommendations and with the accompanying
fiscal note. There being NO OBJECTION, it was so ordered.
HB 42 was reported out of Committee with a "do pass"
recommendation and with zero note #2 by the House
Transportation Committee for Department of Transportation &
Public Facilities.
1:53:24 PM
HOUSE BILL NO. 102
An Act relating to the licensure of foreign medical
graduates; and providing for an effective date.
BEN MULLIGAN, STAFF, REPRESENTATIVE BILL STOLTZE, explained
the legislation, noting that the purpose was to help
alleviate the shortage of physicians in Alaska, which are
more noticeable in the specialty fields.
The legislation will allow, at the discretion of the Alaska
State Medical Board, individuals graduating from foreign
medical schools, the ability to practice medicine in Alaska.
Currently, there is a 2-year United States graduate medical
education residency program requirement. The proposed
legislation would make it easier to practice medicine in
Alaska. The requirements will remain as stringent as they
currently are for persons graduating from medical school in
the United States.
Mr. Mulligan pointed out that the last section offers
recommendations for the board; they may choose not to adopt
those stipulations.
1:54:47 PM
Representative Hawker questioned if this idea had been run
by either Providence or Regional Hospital.
Vice-Chair Stoltze advised that he had not "run it by" the
actual hospitals, however, it has been looked at by the
hospital representatives he met in the Capitol hall's and
they offered "a thumbs up".
Representative Weyhrauch asked the definition of an "active
medical practice" as outlined in Section 3. Mr. Mulligan
offered to check that out. He pointed out that Jim Jordan,
the Executive Director of the Alaska State Medical
Association was on line.
Representative Weyhrauch referenced Section 3 and asked if
the doctor was a general practioner, would they be carrying
a board certified "specialty" license. Mr. Mulligan
advised that would not fall under the American Board of
Medical Specialties but thought that it would fall under the
American Medical Board. He offered to provide further
information on that concern.
Representative Weyhrauch asked if the physician did not have
a current board specialty but did have a long practice of
general medicine, would they be excluded from being able to
practice under the proposed bill. Mr. Mulligan advised that
the stipulations are only guidelines and may or may not be
decided to be worthy requirements.
Representative Weyhrauch questioned why those two
requirements had been set apart from all the other possible
requirements. Mr. Mulligan explained that one of the
specifics was the medical specialty and that the legislation
attempts to fill vacancies for specific medical practices.
Representative Weyhrauch asked why the listed two hospitals
had been the only included. Mr. Mulligan offered to provide
that information.
Co-Chair Meyer noted that there are testifiers on-line that
could address these concerns.
1:58:54 PM
RICK URION, DIRECTOR, OCCUPATIONAL LICENSING, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT, testified
enthusiastically in support for the legislation. He claimed
that licensing laws are written in such a way that they
leave no discretion. HB 102 would solve some problems and
would provide the Board with opportunities to make choices
while protecting the public. He emphasized that it is
important to pass the legislation.
Representative Kelly questioned if background checks would
be made on these applicants. Mr. Urion advised that most of
these people are living in the United States and have been
for many years. He did not foresee any problems.
2:01:19 PM
JIM JORDAN, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, ALASKA STATE MEDICAL ASSOCIATION, ANCHORAGE, noted
he had submitted written testimony included in member's
packets. (Copy on File). Mr. Jordan stated that the Alaska
State Medical Association strongly supports HB 102.
Mr. Jordan reiterated physician shortages that exist in the
Anchorage hospitals. Providence Medical system did a study
in 2002, which indicated at that time, they were short 200
physicians. He stressed the fact that there is a shortage
and as the State moves forward toward 2009, the shortage
will become bigger. The numbers will only grow without
passage of the bill. He thought that HB 102 could help to
address these alarming concerns.
Mr. Jordan mentioned physicians currently in active
practice. He acknowledged that it is important to guarantee
that physicians have guidelines for applying for certain
positions; they must be practicing and actively seeing
patients. Mr. Jordan advised that general practice usually
has a specialty area. For board certification, it is
recognized that to qualify for core competency, there would
be extensive peer review.
Mr. Jordan addressed "accreditation counsel" for graduate
medical education from the Royal College of Physicians in
Canada. He commented that is the entity, which credits
medical education programs in the United States and Canada.
That college goes through extensive accreditation procedures
for graduate medical education, primarily provided through
hospitals.
2:05:43 PM
Representative Croft asked the justification for the broad
amount of discretion that the legislation would provide to
the Board. Mr. Jordan stressed that it is a "very
professional" State Medical Board, who would not want to
"water" down any credentials. They would be determining
other alternative measures of competency.
2:07:44 PM
DR. GEORGE STEWART, (TESTIFIED VIA TELECONFERENCE),
PHYSICIAN, ANCHORAGE, voiced his support for the proposed
legislation. He noted that he has been practicing in
Anchorage for over 30-years and is a specialist in the area
of lung disease. At present time, there should be 10
physicians in that area of critical care medicine; however,
there are only 8. He pointed out that he is now 68 years
old and should have retired years ago but because of the
shortage, he professionally has not been able to do so.
Some of the other physicians with those specialties are also
in their 60's.
The purpose of the proposed legislation is not to lower the
standard but rather provide the Board with the discretion to
license physicians that are qualified, but do not meet the
exact letter of three years of practice in the United
States. He emphasized that there is consequently, a serious
shortfall of physicians statewide, which will only become
worse without passage of the legislation.
Dr. Stewart voiced strong support for the proposed
legislation.
Vice-Chair Stoltze noted that his specialist had a 3 to 4
month waiting period and asked Dr. Stewart if that was
typical. Dr. Stewart replied that is common and for some
new patients, the wait time can be as long as 6 months.
Representative Weyhrauch referenced Section 3, recommending
a conceptual amendment be added that the practitioner is
able to read and write English. Mr. Jordan explained that
there are protections in place as the medical boards tests
require fluency in English.
Representative Weyhrauch addressed Section 3, Section C,
suggesting to delete "means" and insert "includes". He
thought that "means" would limit the two entities. Mr.
Jordan advised that the correct word is "means", as the
reference in that section goes back to the original body of
the licensing law, which recognizes graduate medical
programs in the United States. The only bodies recognized
are the two listed.
2:16:52 PM
Representative Croft asked why there was a limit to only
those two in a bill promoting flexibility. He thought that
the discretion in Section B was removed by the North
American definition of "hospital".
Mr. Jordan responded that the recognized hospital language
relates to foreign medical graduates that have satisfied the
3-year medical graduation requirement in the United States.
Latitude is still given, through the regulatory process, for
an equivalency. However the State Medical Board would have
the authority to bend regulations for that specific program.
Representative Croft pointed out that Sections A & B could
be either/or and were narrowly defining the type of
hospital, which the person must have their 2-year additional
postgraduate training at. He said that was odd; he
suggested a regulation placed under "B" to address that.
2:20:00 PM
Co-Chair Meyer agreed with the sponsor and Mr. Jordan.
Representative Foster MOVED to report HB 102 out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
HB 102 was reported out of Committee with a "do pass"
recommendation and with a zero note #1 by the Department of
Community & Economic Development.
2:20:45 PM
AT EASE: 2:20:52 PM
CONVENE: 2:24:00 PM
HOUSE BILL NO. 115
An Act relating to charges paid or collected by users
or occupants of an airport facility owned or controlled
by the state.
JOSH APPLEBEE, STAFF, REPRESENTATIVE TOM ANDERSON, noted
that HB 115 would provide a mechanism for customer facility
charges or Consumer Finance Charges (CFC) to improve airport
facilities without the expenditures of State funds. The
most common projects that CFC's are used to fund are car
rental facilities. The bill provides a revenue stream to
maintain and operate the facilities, without requiring an
increase in the airport-operating budget, as the cost of
maintenance would be paid for by the related customer
facility maintenance charges.
He reiterated that HB 115 would implement a valuable private
market tool to construct improvements to Alaska airports,
without the expenditure of public funds. It would help to
improve amenities provided to the traveling public, both
Alaskan and non-Alaskan.
Mr. Applebee advised that this would be a private industry
initiated project, sponsored by local airport car rental
companies. He stated that they are in the process of
undertaking a similar project at Ted Stevens International
Airport in Anchorage. The project was delayed by 9-11
events and is now moving ahead. During negotiations with
the State over the implementation of the project, bond
counsel identified certain issues with language set forth in
Ch. 99, SLA 2001. That language needs to be clarified to
ensure that the bonds are marketable.
Mr. Applebee continued, issues revolve around clarifying a
new revenue stream generated by the CFC, which would not be
considered revenue for the State. The bond is a private
initiative and ensures that the bond trustee, not the State,
take custody for those funds. Without that clarification,
the 2001 language does not adequately clarify that the CFC's
are not revenues for the State to use for making the
determination of whether they would are subject to pre-
existing airport bonds. The definition of what bond related
purposes that the CFCs can be applied to, would also clarify
inclusion of debt reserve funds and other bond underwriter
requirements.
Mr. Applebee pointed out that HB 115 offers:
· New jobs,
· Efficiency and innovation in the car rental market,
· Partnership with private enterprise,
· Modernization to compete with airports nationally, and
· Enhanced convenience.
Vice-Chair Stoltze pointed out that the Attorney General
alluded to technical changes. Mr. Applebee advised that
they were working with that office; those changes are not
substantive enough to hold the bill up.
2:28:08 PM
Vice-Chair Stoltze asked where in the legislative process
would those considerations be addressed. Mr. Applebee
stated that until the changes are "flushed out" under the
current title, they will be addressed by the time the bill
passes out of the House to the Senate.
2:29:03 PM
Representative Weyhrauch questioned the statement regarding
"without public funds". Mr. Applebee stated that the
mechanism described in statute, the customer facility
charges, passed on to the consumer in addition to the public
maintenance charges, are the funds that would be used to
construct and maintain that facility without public funds.
Representative Weyhrauch asked where in the bill was that
language located. Mr. Applebee explained that the language
refers to the customer facility charges and that there are
not public funds.
Representative Weyrauch asked if the sponsor would object to
including that language. Mr. Applebee did not think it
would be appropriate within the drafting language. He
thought that the sponsor would know. Representative
Weyrauch requested to incorporate that intent into the bill.
Co-Chair Meyer requested that language be held until full
testimony had been taken.
Representative Hawker pointed out that the answer to that
concern was included on Page 3, Line 6, "if the State on
behalf of the department did not incur the indebtedness".
2:31:09 PM
Vice-Chair Stoltze asked if it was intended that the
legislation only apply to international airports. Mr.
Applebee responded that the intent was to provide it to any
area that has a market that could be sustained through their
customer activity, to build and maintain a facility.
Vice-Chair Stoltze inquired if it would be problematic to
limit it to that and not including rural airports. Mr.
Applebee replied that the sponsor would not object to that,
however it would limit them in any future circumstance and
the possibility of that area developing a market that could
sustain it.
Vice-Chair Stoltze pointed out that the airport in his
district, is the only rural airport that makes money in the
State. He acknowledged that he wanted to protect the small
business owners.
2:33:21 PM
Representative Weyhrauch understood that only the Anchorage
airport would be affected. Mr. Applebee replied that
currently, the only market studies and planned projects are
in Anchorage.
Representative Weyhrauch asked how many airport facilities
in Alaska are owned and controlled by the State of Alaska.
Mr. Applebee did not know and offered to provide that
information to Committee members.
Representative Weyhrauch asked why the legislation would
exempt the entire process of the Administrative Procedures
Act in terms of notice and the opportunity to comment. He
pointed out that the public will be paying these fees and
the increases associated with them.
Representative Weyhrauch asked why the 501-C-3's would be
exempt from paying rent and would the public be deprived of
equal use of the airport. He emphasized that one entity
would be paying and another would not and how could that be
equal. Mr. Applebee did not know.
Representative Weyhrauch pointed out that the Department's
Commissioner periodically adjusts the fees to pay the debt.
He asked what "periodically" means. Mr. Applebee responded
that would depend on the Commissioner; the bill provides
some latitude.
2:35:42 PM
MARK PFEFFER, CO-OWNER, VENTURE DEVELOPMENT GROUP,
ANCHORAGE, noted that his company has contracted
individually with the operations of 7 rental car companies
that operate at the Anchorage International Airport. The
project started in 2000 and was put on hold during the 9-11
events. He stated that the rental car companies have worked
closely with the airport in Anchorage to come up with a
solution to address the congestion and rental car problems
at that location.
The project provides for a facility outside the Anchorage
International Airport to be connected to a rail depot
tunnel. It would allow for passengers to come through the
tunnel and be out of the weather into a rental car lobby.
He spoke to the intended process, which could eliminate
traffic and trips to and from remote sites. The facility
would be paid for by a customer facility charge and there
would be no obligation on the part of the State. Funds
would be generated by revenue bonds.
Mr. Pfeffer stated that the intent is to begin construction
by this spring. Language needs to be clarified for the bond
issuance in April 2005, whereby allowing construction. He
offered to answer questions of the Committee.
2:39:04 PM
Representative Weyhrauch asked if the proposal was for a
garage for parked cars. Mr. Pfeffer replied that it was
initially called a garage but now it is called a terminal
and it would park 1,400 cars. Representative Weyrauch
clarified that it will be a rental car facility.
Representative Weyhrauch inquired if there would be a
lounge. Mr. Pfeffer understood that the lounge would remain
in the airport terminal. Representative Weyhrauch asked
where that language was located in the bill. Mr. Pfeffer
replied that was language in existing legislation and that
certain sections would be amended addressing customer
facility charges.
Representative Weyhrauch asked if the same language was in
existing statute, which exempts the notice for the comment
period for the public. Mr. Pfeffer did not know referencing
Page 3, Lines 21-22, that the Department "shall provide a
public notice". He stated that because of timing issues,
that will not happen.
Representative Weyhrauch clarified that since it is going to
be revenue bonds, essentially, the rental car companies will
have a surcharge on the cars that they rent, a facility
charge, and that the revenue for that would be used for the
bonding purposes. Mr. Pfeffer responded that the car rental
companies will collect a charge from the customer, which
would be remitted to a third party trustee that would pay
back the bondholders. That money will never become funds
for the State. The anticipated cost of the project is $42
million dollars and will be built all at one time, not in
phases. In response to Representative Weyhrauch, Mr.
Pfeffer explained that bonds sold would be in the amount of
$42 million dollars and that the facility would be
earthquake proof and have a bomb blast test.
2:42:25 PM
Representative Hawker asked if the finance community drove
the need for the legislative change. He believed that the
change was needed so that a bond trustee could directly
receive the funds. Mr. Pfeffer acknowledged that was
correct and that the State could impose the charge. In this
case, the industry said to the State that they did not like
the State's plan and wanted to submit their own proposal.
2:44:25 PM
Representative Weyhrauch asked if the title would prohibit
the Fairbanks and/or Juneau area.
2:45:49 PM
Representative Kelly asked where the clean up would be
occurring. Mr. Pfeffer responded that the bond insurers and
underwriters are working to clarify the language in order to
get the best bond rates; that work is not quite complete.
Language changes are run through the airport attorney, Mr.
John Steiner who works with the Department of Law. He has
provided some stylistic changes. Mr. Steiner offered to
draft language for the Senate Transportation Committee.
Those changes will be submitted at that time so that they
can be dealt within a transportation committee.
2:48:09 PM
Vice-Chair Stoltze believed that there would be a through
look into the legislation in the Senate.
2:48:49 PM
Representative Hawker MOVED to report CS HB 115 (TRS) out of
Committee with individual recommendations and with the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CS HB 115 (TRS) was reported out of Committee with a "do
pass" recommendation and with a zero note #1 by the
Department of Transportation & Public Facilities.
DISCUSSION REGARDING FUTURE LEGISLATION
2:49:26 PM
Co-Chair Meyer listed the bills scheduled for future
meetings in the House Finance Committee.
In response to Representative Weyrauch's concerns regarding
costs associated with the sentencing bill, Co-Chair Meyer
noted that the legislation would be moving to the House
Judiciary Committee. Representative Weyrauch noted that
there would be costs associated with that bill and that they
should be discussed in the full House Finance Committee.
Representative Hawker requested that some of the amendments
be submitted soon as they are going to require substantial
debate.
Representative Croft noted that he did not know if the
Minority had amendments to the bill, as it is such a huge
concept and that it would be difficult to determine the full
impact of the proposed changes.
ADJOURNMENT
The meeting was adjourned at 2:53 P.M.
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