Legislature(2007 - 2008)CAPITOL 106

05/01/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 234 EDUCATION LOAN REPAYMENT PROGRAM TELECONFERENCED
Heard & Held
+ SB 85 EXTEND STATE MEDICAL BOARD TELECONFERENCED
Moved Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                          May 1, 2007                                                                                           
                           3:05 p.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Mark Neuman                                                                                                      
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                              
SENATE BILL NO. 85                                                                                                              
"An Act extending the termination date for the State Medical                                                                    
Board; and providing for an effective date."                                                                                    
                                                                                                                                
     - MOVED SB 85 OUT OF COMMITTEE                                                                                             
                                                                                                                                
HOUSE BILL NO. 234                                                                                                              
"An Act relating to the education loan repayment program and                                                                    
establishing the education loan repayment fund."                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: SB  85                                                                                                                  
SHORT TITLE: EXTEND STATE MEDICAL BOARD                                                                                         
SPONSOR(s): SENATOR(s) DAVIS                                                                                                    
                                                                                                                                
02/19/07       (S)       READ THE FIRST TIME - REFERRALS                                                                        
02/19/07       (S)       HES, FIN                                                                                               
03/21/07       (S)       HES AT 1:30 PM BUTROVICH 205                                                                           
03/21/07       (S)       Moved SB  85 Out of Committee                                                                          
03/21/07       (S)       MINUTE(HES)                                                                                            
03/23/07       (S)       HES RPT  5DP                                                                                           
03/23/07       (S)       DP: DAVIS, ELTON, THOMAS, COWDERY,                                                                     
                         DYSON                                                                                                  
03/27/07       (S)       FIN AT 9:00 AM SENATE FINANCE 532                                                                      
03/27/07       (S)       Moved SB  85 Out of Committee                                                                          
03/27/07       (S)       MINUTE(FIN)                                                                                            
03/28/07       (S)       FIN RPT  6DP 1NR                                                                                       
03/28/07       (S)       DP: HOFFMAN, STEDMAN, ELTON, THOMAS,                                                                   
                         DYSON, HUGGINS                                                                                         
03/28/07       (S)       NR: OLSON                                                                                              
04/04/07       (S)       TRANSMITTED TO (H)                                                                                     
04/04/07       (S)       VERSION: SB  85                                                                                        
04/05/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/05/07       (H)       HES, FIN                                                                                               
05/01/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 234                                                                                                                  
SHORT TITLE: EDUCATION LOAN REPAYMENT PROGRAM                                                                                   
SPONSOR(s): REPRESENTATIVE(s) JOHNSON                                                                                           
                                                                                                                                
04/13/07       (H)       READ THE FIRST TIME - REFERRALS                                                                        
04/13/07       (H)       HES, FIN                                                                                               
05/01/07       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
RICHARD BENAVIDES, Staff                                                                                                        
to Senator Bettye Davis                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented SB 85 on behalf of Senator Bettye                                                              
Davis, sponsor.                                                                                                                 
                                                                                                                                
REPRESENTATIVE CRAIG JOHNSON                                                                                                    
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 234 as the prime sponsor.                                                                   
                                                                                                                                
TAMARA COOK, Director                                                                                                           
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency (LAA)                                                                                                
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB
234.                                                                                                                            
                                                                                                                                
SHERRI HARVEY                                                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Speaking as an individual, testified in                                                                  
support of HB 234.                                                                                                              
                                                                                                                                
DIANE BARRANS, Executive Director                                                                                               
Alaska Commission on Post Secondary Education (ACPE);                                                                           
Executive Officer, Student Loan Corporation                                                                                     
Alaska Department of Education and Early Development (DEED)                                                                     
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing on HB
234.                                                                                                                            
                                                                                                                                
ROD BETIT, President                                                                                                            
Alaska State Hospital and Nursing Home Association (ASHNHA);                                                                    
Member, Physician Supply Task Force                                                                                             
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 234.                                                                          
                                                                                                                                
PAT CARR, Director                                                                                                              
Health Planning and Systems Development                                                                                         
Department of Health and Social Services (DHSS)                                                                                 
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on HB 234.                                                                  
                                                                                                                                
KEVIN BROOKS, Deputy Commissioner                                                                                               
Office of the Commissioner                                                                                                      
Department of Administration (DOA)                                                                                              
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on HB 234.                                                                  
                                                                                                                                
MARK HICKEY, Lobbyist                                                                                                           
Alaska Nurses Association                                                                                                       
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified in support of HB 234.                                                                          
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:05:52  PM.                                                             
Representatives  Roses, Gardner,  Fairclough,  Neuman and  Wilson                                                               
were present  at the call  to order.  Representatives  Seaton and                                                               
Cissna arrived as the meeting was in progress.                                                                                  
                                                                                                                                
SB 85-EXTEND STATE MEDICAL BOARD                                                                                              
                                                                                                                                
3:06:03 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  first order of business would be                                                               
SENATE BILL  NO. 85, "An  Act extending the termination  date for                                                               
the State Medical Board; and providing for an effective date."                                                                  
                                                                                                                                
3:06:22 PM                                                                                                                    
                                                                                                                                
RICHARD BENAVIDES,  Staff to Senator  Bettye Davis,  Alaska State                                                               
Legislature,  presented  SB  85   on  behalf  of  Senator  Davis,                                                               
sponsor, paraphrasing  from the  sponsor statement which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     Senate Bill  85 extends  the sunset  date of  the State                                                                    
     Medical  Board until  June  30,  [2013], in  accordance                                                                    
     with  the recommendations  of the  Legislative Auditor.                                                                    
     The legislative  auditor has  concluded that  the State                                                                    
     Medical  Board  meets  the  statutory  requirements  of                                                                    
     public  need  and  should   continue  to  regulate  the                                                                    
     occupations under its purview.                                                                                             
                                                                                                                                
     The  board consists  of five  licensed physicians,  one                                                                    
     licensed physician  assistant, and two persons  with no                                                                    
     direct financial interests  in the healthcare industry.                                                                    
     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                                                                    
     physician  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,                                                                    
     therefore I  recommend that the State  Medical Board be                                                                    
     extended to June 30, 2013,  and ask for your support in                                                                    
     passage of this bill.                                                                                                      
                                                                                                                                
3:07:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES moved to report  SB 85 out of committee with                                                               
individual  recommendations and  the  accompanying fiscal  notes.                                                               
Hearing no objection,  SB 85 was reported from  the House Health,                                                               
Education and Social Services Standing Committee.                                                                               
                                                                                                                                
3:08:02 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH stated  that the  State Medical  Board                                                               
should meet Finding  and Recommendation No. 1  identified on page                                                               
7 of the audit report dated October 3, 2006.                                                                                    
                                                                                                                                
3:08:33 PM                                                                                                                    
                                                                                                                                
HB 234-EDUCATION LOAN REPAYMENT PROGRAM                                                                                       
                                                                                                                                
CHAIR WILSON announced that the  final order of business would be                                                               
HOUSE  BILL NO.  234,  "An  Act relating  to  the education  loan                                                               
repayment program  and establishing the education  loan repayment                                                               
fund."                                                                                                                          
                                                                                                                                
3:08:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   CRAIG   JOHNSON,   Alaska   State   Legislature,                                                               
presented  HB 234,  as prime  sponsor.   He paraphrased  from the                                                               
sponsor statement,  which read  as follows  [original punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     The  State  of Alaska  is  facing  severe shortages  in                                                                    
     certain professional  fields.   House Bill 234  aims to                                                                    
     tackle  those workforce  shortages by  creating a  loan                                                                    
     repayment program that  would draw qualified jobseekers                                                                    
     into  those   fields.     The  accompanying   piece  of                                                                    
     legislation,  HB   235,  establishes  a   $100  million                                                                    
     endowment to fund the program.                                                                                             
                                                                                                                                
     The number of qualified  individuals in the state isn't                                                                    
     keeping pace  with workforce demands in  a few critical                                                                    
     areas,  including   allied  health,   engineering,  and                                                                    
     teaching.   A steadily growing economy  and population,                                                                    
     coupled  with the  mega-projects the  state has  on the                                                                    
     horizon,  means  certain  professions already  in  high                                                                    
     demand are only  going to become more  critical. HB 234                                                                    
     takes a  pro-active approach to workforce  shortages in                                                                    
     order to ensure the state's continued prosperity.                                                                          
                                                                                                                                
     HB 234  creates an education loan  repayment program to                                                                    
     help attract and retain  Alaskan workers in professions                                                                    
     identified as having a severe  workforce shortage.  The                                                                    
     bill   establishes  the   program  within   the  Alaska                                                                    
     Commission  on  Postsecondary   Education  (ACPE),  who                                                                    
     would determine eligibility  criteria and disburse loan                                                                    
     repayment grants to qualifying individuals.                                                                                
                                                                                                                                
     The loan repayment  program would repay up  to $7500 in                                                                    
     outstanding   student   loan    debt   for   qualifying                                                                    
     individuals  per year,  not  to exceed  5  years or  50                                                                    
     percent  of  the  total outstanding  debt.  Eligibility                                                                    
     criteria established under HB 234 include:                                                                                 
                                                                                                                                
      The person must be a state resident on the date the                                                                       
     application is filed.                                                                                                      
                                                                                                                                
     The  person  must  have   been  employed  or  otherwise                                                                    
     engaged full time for at  least a year in an occupation                                                                    
     or profession  identified as having a  severe workforce                                                                    
     shortage before being awarded the first grant.                                                                             
                                                                                                                                
        The person must meet any additional eligibility                                                                         
     requirements imposed under regulations adopted by the                                                                      
     ACPE.                                                                                                                      
                                                                                                                                
3:13:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN asked for a  reason to approve this bill if                                                               
there are no funds available to appropriate.                                                                                    
                                                                                                                                
REPRESENTATIVE  JOHNSON responded  that  the bill  is  a work  in                                                               
progress;  the  hard  part  will  be  funding  the  $100  million                                                               
request.  He explained that  the legislature routinely sets money                                                               
aside  for education  funds or  the budget  reserve.   This is  a                                                               
similar request to set aside  funds, and appropriate the interest                                                               
from those funds to this program.   HB 234 is only the first step                                                               
in addressing the workforce shortage problem.                                                                                   
                                                                                                                                
REPRESENTATIVE NEUMAN  recalled that there are  existing programs                                                               
for the benefit of teachers  and asked for information about them                                                               
and whether this bill will affect them.                                                                                         
                                                                                                                                
REPRESENTATIVE  JOHNSON deferred  the  question  to the  National                                                               
Education Association  (NEA) representative  that will  be giving                                                               
testimony  later.   He clarified  that HB  234 is  a broad  brush                                                               
approach that will be directed  to a variety of needed industries                                                               
as   determined  by   the  Department   of   Labor  &   Workforce                                                               
Development(DLWD).                                                                                                              
                                                                                                                                
3:16:44 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked how this program  is different from                                                               
the  previous  loan forgiveness  repayment  programs.   She  also                                                               
asked whether the  goal of this program is to  bring back Alaskan                                                               
students who  have gone  outside for college,  or to  attract new                                                               
residents.                                                                                                                      
                                                                                                                                
REPRESENTATIVE JOHNSON answered that the  goal of this bill is to                                                               
recruit a quality  workforce to Alaska.  He  expressed his belief                                                               
that the five year minimum  residency commitment will ensure that                                                               
many applicants will stay permanently.   He said his wish is also                                                               
to bring  100 percent  of Alaskan college  graduates back  to the                                                               
state;  however,  the bill  is  not  targeted at  any  particular                                                               
group.                                                                                                                          
                                                                                                                                
REPRESENTATIVE GARDNER  then asked whether a  full scholarship to                                                               
local universities would accomplish  the same goal without having                                                               
the state reimburse tuition from outside schools.                                                                               
                                                                                                                                
REPRESENTATIVE  JOHNSON stated  that this  is not  a scholarship;                                                               
this  bill  will  encourage  someone   who  has  completed  their                                                               
education to come  to Alaska and work.  He  pointed out that this                                                               
bill  will begin  to fill  jobs within  one or  two years;  other                                                               
remedies will be more effective for the long term.                                                                              
                                                                                                                                
3:20:20 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH referred  to  the language  on page  2                                                               
line  23, that  states "full  time" employment,  and asked  for a                                                               
definition of this term.                                                                                                        
                                                                                                                                
REPRESENTATIVE  JOHNSON  answered  that full-time  employment  is                                                               
specific  to  the hiring  institution's  standard  practice.   He                                                               
indicated that  the Department of  Labor &  Workforce Development                                                               
(DLWD) would  be enlisted to  include the  appropriate definition                                                               
in this bill.                                                                                                                   
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH suggested using  "a minimum of 32 hours                                                               
and  above" and  explained the  rotational and  seasonal rational                                                               
that would support this minimum.                                                                                                
                                                                                                                                
REPRESENTATIVE JOHNSON  agreed and  said that the  DLWD standards                                                               
and the  industry standards  would determine  the limits  of full                                                               
time employment.                                                                                                                
                                                                                                                                
3:22:55 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  stated her  concern that the  DLWD may                                                               
use state standards  and not account for the  employees that work                                                               
a variety  of shifts  in the  private or  municipal sector.   She                                                               
then referred to  page 3, line 16, and  inquired about guidelines                                                               
on what  defines a "severe shortage."   Representative Fairclough                                                               
also asked whether  the interest earnings are the  sole source of                                                               
funding  for the  program,  or if  funds will  be  used from  the                                                               
initial $100 million that is set aside.                                                                                         
                                                                                                                                
REPRESENTATIVE  JOHNSON  responded  that, using  the  percent  of                                                               
market value of  $100 million at 5 percent  interest, the program                                                               
will earn $5 million in the first  year.  He opined that this sum                                                               
will sufficiently fund the program initially.                                                                                   
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  stated her  support of the  percent of                                                               
market value  and distribution  of endowment  funds.   She shared                                                               
that there is a similar endowment in Anchorage.                                                                                 
                                                                                                                                
REPRESENTATIVE  JOHNSON  noted  that   the  estimated  5  percent                                                               
[interest earnings]  is a  baseline, but it  is expected  that it                                                               
would be higher.  It is not  the sponsor's intent to dip into the                                                               
corpus, but to utilize the interest only.                                                                                       
                                                                                                                                
3:26:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   asked  whether   the  program   will  be                                                               
available to anyone who is filling  a job that is designated in a                                                               
category of  "severe shortage" and has  been in the state  for 30                                                               
days.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  JOHNSON expressed  his understanding  that, after                                                               
one year of employment, an  applicant could submit an application                                                               
with  his or  her student  loan  information and  request a  loan                                                               
repayment of up to $7,500.                                                                                                      
                                                                                                                                
3:27:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER observed that,  to attract workers who may                                                               
not have a  student loan, an increase in the  pay scale of $7,000                                                               
will accomplish the same goal.                                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON  informed  the   committee  that  a  side                                                               
benefit  to  this bill  is  that  it  addresses the  "tier  four"                                                               
problem with  state employees.   The $7,500 repayment  is roughly                                                               
equivalent  to a  three step  increase in  salary; the  potential                                                               
investment of this money could  offset the lesser benefit package                                                               
that state  agencies offer to tier  four new hires.   However, he                                                               
stated reservations about raising salaries by $7,500 per year.                                                                  
                                                                                                                                
3:29:06 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER gave  an example  of a  current employee,                                                               
who is  repaying a student loan,  and who has a  new coworker who                                                               
qualifies for this program.                                                                                                     
                                                                                                                                
REPRESENTATIVE  JOHNSON  acknowledged  that  this  example  is  a                                                               
possibility  and  there  may  be repercussions.    In  fact,  the                                                               
benefit from  this bill  is similar to  paid moving  expenses and                                                               
other recruitment tools.                                                                                                        
                                                                                                                                
3:30:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARDNER gave  another  example of  a teacher  who                                                               
moves  from one  Alaska school  district to  another in  order to                                                               
qualify for the program.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON  surmised that  the teacher  would qualify                                                               
for the program.                                                                                                                
                                                                                                                                
3:31:05 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA relayed  that traveling  nurses, who  make                                                               
very  high  salaries,  and  the  regular  staff  have  a  similar                                                               
conflict in  hospitals. She  turned to  the issue  of eligibility                                                               
and  stated that  the bill  should have  a liberal  definition of                                                               
full time pay  in order to assist the health  care industry which                                                               
has many vacancies that are very difficult to fill.                                                                             
                                                                                                                                
REPRESENTATIVE JOHNSON  said, "I would  love for this  program to                                                               
run  out of  money  because  we have  so  many  people to  hire."                                                               
However, the  intent of the program  is to assist people  who are                                                               
vested  in the  state  as permanent  residents,  not someone  who                                                               
comes in on a part time basis.                                                                                                  
                                                                                                                                
3:33:48 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  called the committee's attention  to page 2                                                               
of the  bill.   He surmised  that an  employee, who  is currently                                                               
employed in an  area of critical need and who  is still paying on                                                               
a student loan, may apply for repayment.                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON concurred.                                                                                               
                                                                                                                                
3:34:44 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  agreed that it is  an issue and it  is important to                                                               
address that aspect.                                                                                                            
                                                                                                                                
3:35:00 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSON  clarified that the bill's  effective date                                                               
may  preclude those  who are  employed.   Representative  Johnson                                                               
then retracted his previous statement.                                                                                          
                                                                                                                                
3:35:31 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  cautioned that  what often  seems to  be an                                                               
opportunity  to attract  employees can  become a  deterrent.   He                                                               
provided  an  example  of  a   situation  that  occurred  in  the                                                               
Anchorage  School  District,  and the  contract  labor  agreement                                                               
issues that arose as a result  of special benefits offered to new                                                               
hires.                                                                                                                          
                                                                                                                                
REPRESENTATIVE   JOHNSON   acknowledged  this   possibility   and                                                               
reiterated  that the  goal  is to  attract  good workers  without                                                               
creating openings for legal entanglements.                                                                                      
                                                                                                                                
3:38:21 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON  asked   whether  this  bill  is   just  for  state                                                               
employees.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  JOHNSON  said  no.  This   is  for  anyone  in  a                                                               
professional field that the DLWD has identified as "high need".                                                                 
                                                                                                                                
3:39:19 PM                                                                                                                    
                                                                                                                                
CHAIR  WILSON expressed  her views  that this  bill should  be an                                                               
enticement  for   new  workers  rather  than   to  encourage  the                                                               
retention of existing employees.                                                                                                
                                                                                                                                
3:39:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON referred to page  2, line 23, and asked for                                                               
clarity of the language and the intent of this section.                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSON  clarified that the intention  is that the                                                               
worker has been employed for 12 months.                                                                                         
                                                                                                                                
3:41:07 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  proposed an  amendment to  correct the                                                               
reference for the definition of  "severe shortage" on page 3 line                                                               
17 from AS 114.43.415(b) to AS 114.43.415(b2).                                                                                  
                                                                                                                                
REPRESENTATIVE  JOHNSON deferred  the  question  to the  drafter,                                                               
Tamara   Cook,   Director,   Legislative  Legal   and   Research,                                                               
Legislative Affairs Agency (LAA).                                                                                               
                                                                                                                                
3:42:09 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER stressed that  the bill should not exclude                                                               
an Alaskan student  who is attending an Alaskan  college in order                                                               
to attain an education in a field of high need.                                                                                 
                                                                                                                                
REPRESENTATIVE  JOHNSON confirmed  that the  intent is  inclusive                                                               
and is not designed to exclude anyone.                                                                                          
                                                                                                                                
3:43:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN  referred to the $7,500  loan repayment and                                                               
asked whether  this amount could be  thought of as a  credit that                                                               
would  result in  the recipient's  ineligibility to  apply for  a                                                               
loan.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JOHNSON opined  that the best way to  look at this                                                               
is not  as a debt  repayment but as a  grant.  He  indicated that                                                               
the  sponsors will  look into  the questions  of the  recipient's                                                               
ability to quality for loans.                                                                                                   
                                                                                                                                
REPRESENTATIVE  NEUMAN opined  that  the money  will be  unearned                                                               
income to the recipient.                                                                                                        
                                                                                                                                
REPRESENTATIVE JOHNSON agreed  that a student loan  is income for                                                               
income tax purposes; this is similar  to a hiring bonus, which is                                                               
also taxable.                                                                                                                   
                                                                                                                                
3:45:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked  for the definition of  "loan" in the                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE JOHNSON clarified that  the definition of loan was                                                               
left intentionally vague.  A  qualified recipient will be working                                                               
in the state for a year and repaying a regular student loan.                                                                    
                                                                                                                                
3:46:53 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON asked for the  stipulation in the bill that                                                               
identifies what type of loan can be repaid.                                                                                     
                                                                                                                                
REPRESENTATIVE JOHNSON deferred the question to the drafter.                                                                    
                                                                                                                                
3:47:27 PM                                                                                                                    
                                                                                                                                
TAMARA COOK,  Director, Legislative Legal and  Research Services,                                                               
Legislative Affairs Agency (LAA),  advised the committee that the                                                               
bill  as  it  is  currently  drafted does  not  define  the  term                                                               
"education  loan."      Unless  the bill  is  changed  to  add  a                                                               
definition,  the Commission  on  Postsecondary Education  (ACPE),                                                               
Department  of Education  and Early  Development (DEED),  has the                                                               
authority  to determine,  through regulation,  what an  education                                                               
loan is.   Regarding Representative Fairclough's  question on the                                                               
reference to  define "severe shortage,"  Ms. Cook  confirmed that                                                               
the  critical  definition is  found  in  AS 14.43.415(b2).    She                                                               
explained that, for drafting purposes,  the section is given as a                                                               
reference, but  not the paragraph.   The  purpose for this  is to                                                               
allow  new  definitions   to  be  added  as   the  bill  evolves.                                                               
Consequently,  all  of  the  definitions   will  be  included  in                                                               
alphabetical order and the paragraphs will change.                                                                              
                                                                                                                                
REPRESENTATIVE SEATON  asked whether  there is  a due  process or                                                               
equal  protection issue  if identical  employees are  being hired                                                               
and one has a student  loan, thereby qualifying for this program,                                                               
and one does not have a loan.                                                                                                   
                                                                                                                                
MS.  COOK answered  that  an equal  protection  problem does  not                                                               
appear  to  exist.   This  bill  applies  to people  who  qualify                                                               
because they have  an educational loan debt.   This category only                                                               
aids those  who are filling  a severe  shortage and who  carry an                                                               
education  loan debt.   She  added that  the legislature  has the                                                               
ability to elect to help a limited category of people.                                                                          
                                                                                                                                
3:52:14 PM                                                                                                                    
                                                                                                                                
SHERRI HARVEY informed the committee  that she was speaking as an                                                               
individual.   She stated her  support for  HB 234, and  urged the                                                               
committee to create  the loan forgiveness program.   She said she                                                               
is  a  resident  of  Alaska  for  36  years,  a  student  of  the                                                               
university system, and a voter.   Ms. Harvey suggested adding the                                                               
area of  social work to  the critical work categories  of health,                                                               
engineering, and  teaching.   She said  that she  understood that                                                               
the intent of  the bill is to attract and  retain workers trained                                                               
in critical fields; her experience is  that there is a great need                                                               
for  dedicated and  diligent workers  in the  human services  and                                                               
social  services field.   Ms.  Harvey stated  that the  bill will                                                               
energize  students and  revitalize  the Alaskan  workforce.   She                                                               
closed by  urging the committee  to pass the bill  from committee                                                               
with the  professions of human  and social services added  to the                                                               
critical need categories.                                                                                                       
                                                                                                                                
3:56:03 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked for clarification of  the "course of                                                               
study" found  on page 3,  line 14,  and of Sec.  14.43.438, which                                                               
are the pre-eligibility determinations.                                                                                       
                                                                                                                                
3:56:47 PM                                                                                                                    
                                                                                                                                
DIANE  BARRANS, Executive  Director,  Alaska  Commission on  Post                                                               
Secondary  Education  (ACPE);  Executive  Officer,  Student  Loan                                                               
Corporation,   Alaska   Department   of   Education   and   Early                                                               
Development (DEED), paraphrased from  a prepared statement, which                                                               
read as follows [original punctuation provided]:                                                                                
                                                                                                                                
     HB  234  establishes  an Alaska  workforce  development                                                                    
     program  using a  recruitment  and retention  financial                                                                    
     incentive model.   While  workforce development  is not                                                                    
     within ACPE's  core mission, as  the state  agency that                                                                    
     originates and  services both the state  education loan                                                                    
     program and  participates as  a federal  education loan                                                                    
     provider,  the   bill  tasks  us  with   a  substantial                                                                    
     responsibility  for  managing  this new  program.    In                                                                    
     discussion with the sponsor's office  I have relayed my                                                                    
     concern  that  one key  component  of  the new  program                                                                    
     should  not be  ACPE's responsibility  and that  is the                                                                    
     designation   of   the   qualifying   occupations   and                                                                    
     professions.   ACPE  has no  research staff  nor do  we                                                                    
     have the  tools and  knowledge to make  these critical,                                                                    
     high-stakes determinations.   Specific to the  bill, to                                                                    
     protect  the  interest  of   the  Alaska  Student  Loan                                                                    
     Corporation, I  would request program  statutes contain                                                                    
     an  explicit  statement  that   this  program  and  any                                                                    
     related  funding needs  is not  the  obligation of  the                                                                    
     corporation.  I would  also request throughout the bill                                                                    
     the  benefits paid  out on  an  individual's behalf  be                                                                    
     termed a "benefit" earned rather  than a grant.  Within                                                                    
     the  array of  programs  ACPE  administers, grants  are                                                                    
     need-based  financial  aid  awards and  to  call  these                                                                    
     grants   will   inevitably   lead  to   confusion   and                                                                    
     misunderstanding.     This  would   require  conforming                                                                    
     change   to   AS  14.43.920.Repayment   by   ineligible                                                                    
     recipient.    Some  technical  changes  are  needed  to                                                                    
     insure  benefits  are  paid   out  as  intended.    For                                                                    
     instance-my  understanding   is  that   the  cumulative                                                                    
     benefit will be the lesser  of either $37,500 or 50% of                                                                    
     the participant's outstanding loan  balance.  There are                                                                    
     unresolved   issues   regarding   whether  or   not   a                                                                    
     participant  could receive  the  50%  benefit in  fewer                                                                    
     than  five years  of employment.   Because  the current                                                                    
     version  requires  benefits  be paid  directly  to  the                                                                    
     lender,  what happens  if  a  participant pre-pays  and                                                                    
     loan and  expects to  have remaining  benefits remitted                                                                    
     directly  to  them?   Bill  language  requires that  an                                                                    
     individual  must  be  employed "or  otherwise  engaged"                                                                    
     full  time  (page  2, line  23.    "Otherwise  engaged"                                                                    
     should be  defined or  otherwise explained.   Reference                                                                    
     pre-eligibility (page  3, line  11)-this appears  to be                                                                    
     fairly problematic in  that advance communication about                                                                    
     or  perceived determination  of  eligibility opens  the                                                                    
     commission    (or    another    entity    making    the                                                                    
     determination)   up   to    subsequent   disputes   and                                                                    
     grievances.  It is possible  the certain regions of the                                                                    
     state  will  periodically   have  severe  shortages  of                                                                    
     certain  professionals when  others, at  the same  time                                                                    
     may have  an adequate or  even an oversupply.   It will                                                                    
     be   important,    in   order   to    effectively   and                                                                    
     strategically   deploy   state    funds,   that   early                                                                    
     "commitments" not be in any  way binding.  No effective                                                                    
     date  for qualifying  employment is  established-should                                                                    
     it be  "first time"  employment on  or after  a certain                                                                    
     date:  That will need to be specified.                                                                                     
                                                                                                                                
4:07:20 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  recalled that there  are already  loan forgiveness,                                                               
or home  loan assistance,  programs for  teachers and  nurses. In                                                               
addition, doctors  have the  Washington, Alaska,  Montana, Idaho,                                                               
Medical Education Program (WAMI) loan forgiveness program.                                                                      
                                                                                                                                
MS. BARRANS explained that the  teacher education loan program is                                                               
run on  a very limited basis  and is available only  to those who                                                               
graduated from an  Alaska high school and who are  nominated by a                                                               
rural school district.  She stated  that her experience is that a                                                               
loan repayment model is better than a loan forgiveness model.                                                                   
                                                                                                                                
4:09:01 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  asked whether the  [teacher] mentoring  program has                                                               
helped.                                                                                                                         
                                                                                                                                
4:09:18 PM                                                                                                                    
                                                                                                                                
MS. BARRANS  responded that  there is  no connection  between the                                                               
teacher mentor program and the teacher education loan program.                                                                  
                                                                                                                                
CHAIR WILSON re-stated her question.                                                                                            
                                                                                                                                
MS. BARRANS  relayed that there is  a high attrition rate  in the                                                               
program.                                                                                                                        
                                                                                                                                
4:10:14 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  asked whether  the education  loan program                                                               
has a  loan forgiveness component  for those who are  teaching in                                                               
the state.                                                                                                                      
                                                                                                                                
MS.  BARRANS  answered  that  education  loans  are  100  percent                                                               
forgivable  when  the  applicant  is   teaching  in  one  of  the                                                               
qualifying schools.                                                                                                             
                                                                                                                                
4:10:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  stated that his understanding  is that the                                                               
purpose of  the program  is to  attract workers.   He  asked what                                                               
residency  requirement in  the bill  is being  used to  determine                                                               
page 2, line 22, "resident of the state."                                                                                       
                                                                                                                                
MS.  BARRANS responded  that the  residency  requirement, in  the                                                               
present  version  of the  bill,  is  twelve months  domiciled  in                                                               
Alaska.   She offered that there  may be changes to  this part of                                                               
the bill.                                                                                                                       
                                                                                                                                
4:11:45 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  also asked whether Ms.  Barrans wanted the                                                               
definition of loan to be written in statute or regulation.                                                                      
                                                                                                                                
MS. BARRANS stated that this is  one area that would be best left                                                               
for regulation to determine.  She  advised that it would not suit                                                               
to  establish statute,  considering  the ever  changing world  of                                                               
finance.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON  confirmed  that educational  loans  could                                                               
include loans from family members.                                                                                              
                                                                                                                                
4:13:29 PM                                                                                                                    
                                                                                                                                
MS. BARRANS opined  that a policy determination  is not necessary                                                               
because parents do  not make standard education loans.   In fact,                                                               
loans to  parents who  borrowed on  their student's  behalf would                                                               
not qualify.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  clarified  that these  are  institutional                                                               
loans.                                                                                                                          
                                                                                                                                
MS. BARRANS said yes.                                                                                                           
                                                                                                                                
4:14:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE NEUMAN recalled that  there is an existing student                                                               
loan program that is earning interest income for the state.                                                                     
                                                                                                                                
MS.  BARRANS affirmed  that the  Alaska Student  Loan Corporation                                                               
statutes  provide  that  one-third  of  the  net  income  can  be                                                               
returned to  the state.  That  provision does not relate  to this                                                               
bill.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  NEUMAN asked  whether this  same system  would be                                                               
incorporated into this bill.                                                                                                    
                                                                                                                                
MS. BARRANS stated that it does not appear so at this time.                                                                     
                                                                                                                                
4:16:22 PM                                                                                                                    
                                                                                                                                
ROD  BETIT, President,  Alaska State  Hospital  and Nursing  Home                                                               
Association (ASHNHA);  and member,  Physician Supply  Task Force,                                                               
stated his  support of the  concept of HB  234 and said  that the                                                               
bill  is a  good start  to attracting  workers to  professions of                                                               
critical  shortage,  including  health   care.    He  shared  the                                                               
attrition rates for physicians in  Alaska and noted that progress                                                               
that has been  made on the medium-term  problem through expansion                                                               
of the WAMI legislation.  In fact,  what this bill does not do is                                                               
to fill the physician gap,  although it could be modified towards                                                               
that end.  Mr. Betit said this  bill is a major help with respect                                                               
to  nursing, radiological  technicians, pharmacy  technicians and                                                               
physical  therapist's aides.   He  expressed his  hope that  work                                                               
will be  done on the  bill so that it  can be refined  to address                                                               
specific needs more effectively.                                                                                                
                                                                                                                                
4:21:32 PM                                                                                                                    
                                                                                                                                
PAT  CARR, Director,  Health  Planning  and Systems  Development,                                                               
Department  of  Health and  Social  Services  (DHSS), stated  her                                                               
support for  the concept of  loan repayment and the  inclusion of                                                               
the field  of health  professionals.   She offered  the committee                                                               
information on a federal procedure,  through the U. S. Department                                                               
of Health and  Human Services (USDHHS), to  identify shortages of                                                               
high  need professions.   The  designation criteria  used studies                                                               
primary  care,  central health,  and  mental  health.   Ms.  Carr                                                               
referred  to  information supplied  to  the  committee about  the                                                               
history of  the federal procedure; it  has been used in  the long                                                               
term as a means to determine  the shortage area designations.  As                                                               
part  of  the  process,  the  procedure  considers:  provider  to                                                               
population  ratio,  travel  time  to  health  facilities,  infant                                                               
mortality rates, and  the percentage of the  population below the                                                               
poverty  level.     Ms.  Carr   continued  to  say   that  health                                                               
professional   shortage   area    designations   are   used   for                                                               
approximately 39  federal programs,  such as the  USDHHS National                                                               
Health Service Corps Scholarship Program.                                                                                       
                                                                                                                                
4:25:52 PM                                                                                                                    
                                                                                                                                
KEVIN BROOKS,  Deputy Commissioner,  Office of  the Commissioner,                                                               
Department of  Administration (DOA), informed the  committee that                                                               
he is representing  the state as an employer.   He explained that                                                               
his department has provided the  sponsor with demographic studies                                                               
on  job  classifications that  are  difficult  to fill,  and  the                                                               
coming shortages  as a result  of retiring employees,  public and                                                               
private.  A  high  priority  of  the DOA  is  to  study  Alaska's                                                               
workforce  during  the interim.    Mr.  Brooks pointed  out  that                                                               
professional positions  are in  demand in  the private  sector as                                                               
well as the state, and  that shortages are further anticipated by                                                               
region.   He stressed that  solutions will require  a coordinated                                                               
approach.                                                                                                                       
                                                                                                                                
4:28:38 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER  asked whether  there is  any way  to know                                                               
what  proportion of  this fund  would be  paid to  graduate level                                                               
students versus those who hold  vocational, two-year or four-year                                                               
undergraduate degrees.                                                                                                          
                                                                                                                                
DEPUTY   COMMISSIONER  BROOKS   clarified   that,  although   his                                                               
testimony stressed  the critical shortages of  professionals, the                                                               
shortages will  include the trades as  well.  He opined  that the                                                               
quantified analysis of  the levels of education  is available for                                                               
study and that this information is also desired by the DOA.                                                                     
                                                                                                                                
4:30:28 PM                                                                                                                    
                                                                                                                                
MARK HICKEY,  Lobbyist, Alaska  Nurses Association,  informed the                                                               
committee  that the  Alaska Nurses  Association supports  HB 234;                                                               
however,  the  definition  of  "full   time"  will  need  further                                                               
attention.  He  pointed out the shortage of  registered nurses in                                                               
Alaska, and  nationwide, and cited  the various reasons  for this                                                               
trend.                                                                                                                          
                                                                                                                                
4:32:06 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON offered to bring the bill back later in the week.                                                                  
                                                                                                                                
REPRESENTATIVE JOHNSON stated that the  goal of the sponsor is to                                                               
work on the bill during the interim.                                                                                            
                                                                                                                                
[HB 234 was held over for further testimony.]                                                                                   
                                                                                                                                
4:33:01 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Health, Education and Social  Services Standing Committee meeting                                                               
was adjourned at 4:33 p.m.                                                                                                      

Document Name Date/Time Subjects