01/24/2008 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic | 
|---|---|
| Start | |
| HB234 | |
| HB337 | |
| Adjourn | 
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 234 | TELECONFERENCED | |
| *+ | HB 337 | TELECONFERENCED | |
| + | TELECONFERENCED | 
                    ALASKA STATE LEGISLATURE                                                                                  
 HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES STANDING COMMITTEE                                                               
                        January 24, 2008                                                                                        
                           3:05 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Peggy Wilson, Chair                                                                                              
Representative Bob Roses, Vice Chair                                                                                            
Representative Anna Fairclough                                                                                                  
Representative Wes Keller                                                                                                       
Representative Paul Seaton                                                                                                      
Representative Sharon Cissna                                                                                                    
Representative Berta Gardner                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
All members present                                                                                                             
                                                                                                                                
OTHER LEGISLATORS PRESENT                                                                                                     
                                                                                                                              
Senator Bettye Davis                                                                                                            
                                                                                                                              
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 234                                                                                                              
"An  Act relating  to the  education loan  repayment program  and                                                               
establishing the education loan repayment fund."                                                                                
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
HOUSE BILL NO. 337                                                                                                              
"An Act  establishing the Alaska  Health Care Commission  and the                                                               
Alaska health  care information office;  relating to  health care                                                               
planning  and  information;  repealing the  certificate  of  need                                                               
program for  certain health care  facilities and relating  to the                                                               
repeal;    annulling    certain    regulations    required    for                                                               
implementation  of the  certificate of  need program  for certain                                                               
health care facilities; and providing for an effective date."                                                                   
                                                                                                                                
     - HEARD AND HELD                                                                                                           
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
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                                                                             
05/01/07       (H)       Heard & Held                                                                                           
05/01/07       (H)       MINUTE(HES)                                                                                            
01/24/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
BILL: HB 337                                                                                                                  
SHORT TITLE: HEALTH CARE: PLAN/COMMISSION/FACILITIES                                                                            
SPONSOR(s): RULES BY REQUEST OF THE GOVERNOR                                                                                    
                                                                                                                                
01/22/08       (H)       READ THE FIRST TIME - REFERRALS                                                                        
01/22/08       (H)       HES, FIN                                                                                               
01/24/08       (H)       HES AT 3:00 PM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JEANNE OSTNES, Staff                                                                                                            
to Representative Craig Johnson                                                                                                 
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented changes to HB 234, on behalf of                                                                
Representative Craig Johnson, sponsor.                                                                                          
                                                                                                                                
RICK CALCOTE, Mental Health Clinician                                                                                           
Division of Behavioral Health                                                                                                   
Department of Health & Social Services (DHSS)                                                                                   
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 234.                                                                          
                                                                                                                                
DIANE BARRANS, Executive Director                                                                                               
Postsecondary Education Commission                                                                                              
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Testified during the hearing on HB 234.                                                                  
                                                                                                                                
TAMARA COOK, Director                                                                                                           
Legislative Legal and Research Services                                                                                         
Legislative Affairs Agency                                                                                                      
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions during the hearing on HB
234.                                                                                                                            
                                                                                                                                
KARLEEN JACKSON, Commissioner                                                                                                   
Department of Health & Social Services                                                                                          
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Introduced HB 337.                                                                                       
                                                                                                                                
JAY BUTLER, M. D.; Chief Medical Officer                                                                                        
Office of the Commissioner                                                                                                      
Department of Health & Social Services                                                                                          
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Participated in the introduction of HB 337.                                                              
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
CHAIR PEGGY WILSON called the  House Health, Education and Social                                                             
Services  Standing  Committee meeting  to  order  at 3:05:01  PM.                                                             
Representatives  Roses, Fairclough,  Keller, Seaton,  Cissna, and                                                               
Wilson  were  present  at  the call  to  order.    Representative                                                               
Gardner arrived as the meeting was in progress.                                                                                 
                                                                                                                                
3:06:11 PM                                                                                                                    
                                                                                                                                
HB 234-EDUCATION LOAN REPAYMENT PROGRAM                                                                                       
                                                                                                                                
3:06:27 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that the  first 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."                                                                                                                          
                                                                                                                                
3:06:52 PM                                                                                                                    
                                                                                                                                
JEANNE  OSTNES, Staff  to  Representative  Craig Johnson,  Alaska                                                               
State  Legislature, informed  the committee  that concerns  about                                                               
the bill  have been reviewed  by Tam Cook,  Director, Legislative                                                               
Legal and  Research Services,  Legislative Affairs  Agency (LLA),                                                               
and that  she has allowed  an amendment  that pertains to  the 32                                                               
hour work week.                                                                                                                 
                                                                                                                                
CHAIR WILSON  requested that  Ms. Ostnes  present an  overview of                                                               
the bill.                                                                                                                       
                                                                                                                                
MS.  OSTNES  explained  that  the bill  addresses  two  areas  of                                                               
concern for  the state:  work force  needs and  the high  cost of                                                               
education.    She  noted that the  state is  experiencing serious                                                               
work  force shortages  and college  students are  graduating with                                                               
high  debt due  to  student loans.   House  Bill  234 provides  a                                                               
solution by  the creation of  a loan repayment program  that will                                                               
provide relief  to college  graduates and  will fulfill  the work                                                               
force  shortage  by  attracting   qualified  people  to  jobs  in                                                               
Alaska.  The bill offers  qualified individuals the repayment, up                                                               
to $7,500 per  year, of an outstanding student loan  debt, not to                                                               
exceed  five  years, or  50  percent  of  the total.    Qualified                                                               
individuals  are people  working  in professions  that have  been                                                               
identified  by the  Department of  Labor &  Workforce Development                                                               
(DLWD)  as careers  with  severe worker  shortages.   Ms.  Ostnes                                                               
further explained  that the bill  will entice students  into high                                                               
demand  programs  and  attract   already  qualified  people  into                                                               
professions with  a critical  workforce shortage  to Alaska.   In                                                               
addition,  there is  the added  benefit of  reversing the  "brain                                                               
drain."   The program is  open to  out-of state workers  and will                                                               
encourage them to relocate in Alaska.                                                                                           
                                                                                                                                
3:10:33 PM                                                                                                                    
                                                                                                                                
MS.  OSTNES stated  that the  Department of  Administration (DOA)                                                               
issued Administration Order No. 237,  that formed a work group to                                                               
address  recruitment and  retention  issues in  the  state.   She                                                               
recalled   that    Representative   Fairclough    requested   the                                                               
identification of  the meaning  of "full  time" and  presented an                                                               
amendment that read:                                                                                                            
                                                                                                                                
     Page 2, following line 31:                                                                                                 
                                                                                                                                
          Insert a new subsection to read:                                                                                      
               "(d) For purposes of (c) of this section,                                                                        
          "full time" means working on a regular basis for                                                                      
          a normal work period that averages at least 32                                                                        
          hours a week."                                                                                                        
                                                                                                                                
REPRESENTATIVE  SEATON  asked  who determines  which  occupations                                                               
suffer a severe shortage.                                                                                                       
                                                                                                                                
MS. OSTNES  explained that those occupations  are already defined                                                               
in AS Sec. 14.43.415(b) (2).                                                                                                    
                                                                                                                                
3:13:36 PM                                                                                                                    
                                                                                                                                
RICK  CALCOTE, Mental  Health Clinician,  Division of  Behavioral                                                               
Health,   Department  of   Health  &   Social  Services   (DHSS),                                                               
encouraged the committee  to support HB 234.  He  stated that the                                                               
Division  of Behavioral  Health,  Department of  Health &  Social                                                               
Services (DHSS),  believes the  bill will be  a great  benefit to                                                               
the behavioral health  workforce in Alaska.  He  pointed out that                                                               
there are  severe shortages in  the behavioral  health workforce,                                                               
in fact,  behavioral health vacancies  account for 29  percent of                                                               
all  vacancies  in  state  positions.     Further,  the  cost  of                                                               
education  and  subsequent low  salaries  make  the repayment  of                                                               
college  loans difficult,  especially for  those living  in rural                                                               
areas.                                                                                                                          
                                                                                                                                
3:15:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH moved Amendment 1.                                                                                    
                                                                                                                                
There being no objection, Amendment 1 passed.                                                                                   
                                                                                                                                
3:16:54 PM                                                                                                                    
                                                                                                                                
DIANE  BARRANS,   Executive  Director,   Postsecondary  Education                                                               
Commission, Department of Education  and Early Development (EED),                                                               
informed the committee that there  are technical issues regarding                                                               
the  administration  of the  program  created  by  HB 234.    She                                                               
explained   that    the   Postsecondary    Education   Commission                                                               
(commission)  is concerned  about  using the  term  "grant."   In                                                               
financial aid terminology, the term  grant usually means free aid                                                               
delivered as  a result of an  individual's demonstrated financial                                                               
need.   However, in  HB 234,  the term  is used  as an  award for                                                               
service in a  particular capacity.  Ms. Barrans  opined that this                                                               
issue should be  addressed to maintain conformity  in statute and                                                               
to prevent confusion by the public.                                                                                             
                                                                                                                                
CHAIR WILSON asked for a specific change.                                                                                       
                                                                                                                                
MS. BARRANS suggested  making a change from  "grant" to "benefit"                                                               
on page 2,  line 8, and additional  conforming changes throughout                                                               
the bill.                                                                                                                       
                                                                                                                                
3:19:43 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON stated  that Tam Cook recommended that  there not be                                                               
a change and asked Ms. Barrans  to discuss it with her before the                                                               
bill comes before the next committee.                                                                                           
                                                                                                                                
MS.  BARRANS   opined  that  there  is   understanding,  but  not                                                               
agreement,  with Tam  Cook.   She offered  that there  must be  a                                                               
clear communication  to the  public that  this is  different than                                                               
other grants.                                                                                                                   
                                                                                                                                
CHAIR WILSON observed  that, if [the recipient]  does not fulfill                                                               
their obligation they will have to...                                                                                           
                                                                                                                                
MS. BARRANS said, "They receive no benefits."                                                                                   
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  offered  the substitution  of  "grant                                                               
benefit"  for  "a grant"  or  "a  benefit" thereby  allowing  the                                                               
language in the document to remain consistent.                                                                                  
                                                                                                                                
3:21:35 PM                                                                                                                    
                                                                                                                                
MS. BARRANS then pointed out that on  page 2, line 23, there is a                                                               
concern about the term "otherwise engaged."                                                                                     
                                                                                                                                
CHAIR  WILSON explained  that, elsewhere  in statute,  "otherwise                                                               
engaged" stands for self-employed people.                                                                                       
                                                                                                                                
MS.  OSTNES said  that "otherwise  engaged"  also includes  those                                                               
working under a contract.                                                                                                       
                                                                                                                                
MS. BARRANS  stated that the last  issue is with respect  to Sec.                                                               
14.43.438,   on  page   3,  line   11.     She  explained   that,                                                               
administratively, the concept of  making a predetermination about                                                               
someone's future  qualification for  an award  is concerning.   A                                                               
predetermination  could  be  considered  binding,  and  make  the                                                               
commission,  or the  fund, liable  for  some future  action if  a                                                               
person does  not receive an award  due to changes in  the program                                                               
or the  applicant's circumstances.   In  response to  a question,                                                               
she   opined  that   attempts  to   avoid  similar   problems  in                                                               
regulation, or by contract, often  lead to disputes.  Ms. Barrans                                                               
offered  to work  with the  sponsors and  the DLWD;  however, she                                                               
maintained her  concern about the responsibility  to predetermine                                                               
an individual.                                                                                                                  
                                                                                                                                
3:25:08 PM                                                                                                                    
                                                                                                                                
MS. OSTNES  informed the committee  that Tam Cook  indicated that                                                               
this problem  could be  handled in  regulation.   Furthermore, by                                                               
the time the  program is available, the DLWD would  have the jobs                                                               
with shortages  for the next  12 months identified, and  thus the                                                               
program  administrator would  be in  a position  to obligate  the                                                               
funds for distribution in 12 months.                                                                                            
                                                                                                                                
3:25:08 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
CHAIR WILSON  observed that  the award is  not granted  until the                                                               
end of 12 months.                                                                                                               
                                                                                                                                
3:25:56 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON gave an example  of an applicant engaged in                                                               
a six year  course of study, who wants to  know whether they will                                                               
qualify and how to ensure eligibility.                                                                                          
                                                                                                                                
CHAIR WILSON pointed out that  the applicant needs to be employed                                                               
full-time  for one  year in  an occupation  or profession  with a                                                               
severe shortage.                                                                                                                
                                                                                                                                
REPRESENTATIVE SEATON stated his confusion with the pre-                                                                        
eligibility  determination section,  Sec.  14.43.438.   He  noted                                                               
that  the  section   commits  the  commission  to   make  a  pre-                                                               
eligibility  assurance  that  an  applicant will  qualify  for  a                                                               
grant, whether the funds have been appropriated or not.                                                                         
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH inquired as  to the sponsor's intent of                                                               
pre-qualifying a person.                                                                                                        
                                                                                                                                
3:29:02 PM                                                                                                                    
                                                                                                                                
MS.  OSTNES explained  that  the  intent is  that  the person  is                                                               
already a college graduate and  contacts the commission to see if                                                               
their  occupation is  applicable  to  the program.    If so,  the                                                               
applicant would need to work in  the state for one year, and then                                                               
submit the request for payment of the student loan.                                                                             
                                                                                                                                
3:30:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH moved Amendment 2, as follows:                                                                        
                                                                                                                                
     Page 3, line 1;                                                                                                            
          Delete "Continuing"                                                                                                   
     Page 3, line 13;                                                                                                           
          Delete "the individual engaged in"                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  explained   that  the  aforementioned                                                               
changes  would  address  qualifying   the  jobs  instead  of  the                                                               
individual.                                                                                                                     
                                                                                                                                
REPRESENTATIVE ROSES objected for discussion purposes.                                                                          
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH re-stated Amendment 2.                                                                                
                                                                                                                                
CHAIR WILSON suggested that "future  eligibility" on page 3, line                                                               
15, be deleted.                                                                                                                 
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH explained that  she did not delete that                                                               
because if  an applicant  enters a  five year  education program,                                                               
they want to know whether the loan program will continue.                                                                       
                                                                                                                                
REPRESENTATIVE  ROSES opined  that  this is  not  a solution  for                                                               
Representative  Seaton's concern.   He  suggested the  removal of                                                               
the pre-eligibility  section and to  focus on the  bill's purpose                                                               
to attract and retain qualified people to jobs in Alaska.                                                                       
                                                                                                                                
CHAIR WILSON offered an amendment to Amendment 2, as follows:                                                                   
                                                                                                                                
     Page 3, line 14;                                                                                                           
          Delete "will become"                                                                                                  
          Insert "is."                                                                                                          
                                                                                                                                
3:34:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH accepted the  amendment to Amendment 2.                                                               
She then  stated that her purpose  in keeping this section  is to                                                               
allow  applicants to  determine  whether their  jobs will  remain                                                               
eligible;  this   qualification  is   not  found  in   the  bill,                                                               
otherwise.                                                                                                                      
                                                                                                                                
3:35:54 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES  re-stated his  choice to  eliminate Section                                                               
14.43.438.   He then suggested  that the committee could  add the                                                               
requirement to post all qualified jobs on a web site.                                                                           
                                                                                                                                
REPRESENTATIVE  SEATON observed  that  one part  of  the bill  is                                                               
meant to offer re-payment of  a student loan to qualified workers                                                               
who come  to Alaska  and work for  one year.   The other  part is                                                               
encouraging people  to begin  a course  of study for  a job  in a                                                               
pre-qualified field with a promise  of re-payment.  He stated his                                                               
intention to vote against the  amendment and pointed out that the                                                               
bill  defines  that the  DLWD  will  make determinations  on  the                                                               
eligibility of jobs.                                                                                                            
                                                                                                                                
CHAIR WILSON agreed.                                                                                                            
                                                                                                                                
3:38:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER shared  her concerns over the  goal of the                                                               
bill.   She then  opined that  the real question  has to  do with                                                               
changing  behavior.   She expressed  hope that  the students  who                                                               
graduate from the [University of  Alaska] nursing program already                                                               
fully  intend  to   stay  in  the  state,  work   in  their  home                                                               
communities, and thus, qualify for  the program.  She asked, "So,                                                               
what have we done with this money?"                                                                                             
                                                                                                                                
3:39:33 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON commented  that, if workers go to  areas with severe                                                               
worker shortages, the program has changed their behavior.                                                                       
                                                                                                                                
REPRESENTATIVE GARDNER asked  whether state money should  go to a                                                               
student whose home  is in an area of severe  shortage, and who is                                                               
going to return there, anyway.                                                                                                  
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH withdrew Amendment 2.                                                                                 
                                                                                                                                
3:41:22 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced that HB 234 was held in committee.                                                                       
                                                                                                                                
3:41:42 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON  stressed that  the bill does  not identify                                                               
specific  areas in  the state  with shortages.   If  that is  the                                                               
intention, he encouraged further clarification by the DLWD.                                                                     
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  re-stated, for  the sponsor,  that the                                                               
committee, with  other departments,  is interested in  the "grant                                                               
benefit" versus "award" language on page 2, line 8.                                                                             
                                                                                                                                
3:43:02 PM                                                                                                                    
                                                                                                                                
TAMARA COOK,  Director, Legislative Legal and  Research Services,                                                               
Legislative Affairs  Agency, informed the committee  that "grant"                                                               
is a  word already used in  the statutes that are  being amended,                                                               
and in similar programs that  are administered by the commission.                                                               
However, she  stated that  the committee  can choose  a different                                                               
word.                                                                                                                           
                                                                                                                                
3:44:47 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  asked  Ms.  Barrans  to  explain  her                                                               
preference that "grant" not be used.                                                                                            
                                                                                                                                
MS. BARRANS  clarified that  her concern is  that the  program is                                                               
being  nested into  traditional  student  financial aid  statute,                                                               
however,  it   is  a  workforce  recruitment   program  that  the                                                               
commission  is  being asked  to  administer.    To use  the  term                                                               
"grant",  that  is  traditionally  thought of  as  a  needs-based                                                               
grant,  is  confusing to  someone  who  does not  understand  the                                                               
distinction.                                                                                                                    
                                                                                                                                
3:46:04 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON re-stated Ms. Barran's objection.                                                                                  
                                                                                                                                
MS. COOK  stated that  the distinction has  no significance  as a                                                               
matter of law and either word may be used.                                                                                      
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  expressed the intent to  establish for                                                               
the   legislative  record   that  "grant"   and  "benefits"   are                                                               
interchangeable in  this case.   She also asked  for confirmation                                                               
that the definition of "otherwise  engaged" is "self-employed" or                                                               
"on contract."                                                                                                                  
                                                                                                                                
MS.  COOK  said that  she  had  no request  on  that  issue.   In                                                               
response  to  a  question,  she said  that  she  used  "otherwise                                                               
engaged"  as preliminary  tracking  to  whatever structure  might                                                               
exist.                                                                                                                          
                                                                                                                                
3:48:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH further asked  Ms. Cook for her opinion                                                               
on liability for the state created  by Sec. 14.43.438, on page 3,                                                               
line 11.                                                                                                                        
                                                                                                                                
MS. COOK  opined that  pre-determination could  trigger liability                                                               
depending  on what  the commission  chooses  to tell  applicants.                                                               
The bill  is drafted so  that the  commission is not  required to                                                               
establish this procedure.  One  public policy question is that if                                                               
a  pre-eligibility  determination  is  made,  one  may  have  led                                                               
applicants  along a  path  of a  moral promise  that  can not  be                                                               
fulfilled.   Further, if the  committee has concerns  about these                                                               
issues,  she  recommended  deletion  of  this  provision  as  the                                                               
proposed amendments failed to serve a purpose.                                                                                  
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH asked  whether the  maker will  concur                                                               
with the deletion of the paragraph.                                                                                             
                                                                                                                                
MS. OSTNES concurred, representing Representative Johnson.                                                                      
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH moved  [Conceptual Amendment  3] which                                                               
would delete Section 14.43.438 on page 3.                                                                                       
                                                                                                                                
3:51:16 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  announced that Conceptual  Amendment 3  passed with                                                               
no objection.                                                                                                                   
                                                                                                                                
3:52:37 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE ROSES observed that the  last issue is down to the                                                               
choice of  the word grant  or benefit,  which the sponsor  can do                                                               
prior to the hearing before the House Finance Committee.                                                                        
                                                                                                                                
REPRESENTATIVE  ROSES  then  moved  to   report  HB  234  out  of                                                               
committee  with individual  recommendations and  the accompanying                                                               
fiscal notes.                                                                                                                   
                                                                                                                                
CHAIR  WILSON  objected and  pointed  out  that the  question  of                                                               
whether  areas  of  labor  shortages   should  be  defined  still                                                               
remains.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  KELLER  noted  that   the  definition  of  severe                                                               
shortage must also  be addressed; a 15 percent  shortage could be                                                               
claimed using regional criteria.                                                                                                
                                                                                                                                
REPRESENTATIVE ROSES  expressed his  concern about making  this a                                                               
regional  issue.    If regional  shortages  are  established  and                                                               
applicants  qualify for  a job  in  Fairbanks, and  then move  to                                                               
Anchorage, they may jeopardize their  qualification.  He stressed                                                               
that  the  objective  of  the  bill was  to  attract  and  retain                                                               
employees in the state; adding  regional definitions will make it                                                               
difficult to implement, monitor, and qualify for the program.                                                                   
                                                                                                                                
CHAIR  WILSON  asked whether  the  level  of workforce  shortage,                                                               
established by DLWD, is 15 percent.                                                                                             
                                                                                                                                
MS.  OSTNES responded  that the  level written  in statute  is 15                                                               
percent statewide.   She gave  the example of recruitment  for an                                                               
engineer that demonstrated a failure of 15 percent.                                                                             
                                                                                                                                
3:56:13 PM                                                                                                                    
                                                                                                                                
MS. BARRANS stated that what  has been incorporated in the needs-                                                               
based grant statute illustrates  the difference between trying to                                                               
encourage people into  a field of study, and  trying to encourage                                                               
them  into the  workforce.   She explained  that the  needs-based                                                               
grant program selected 15 percent  as a minimum vacancy rate, but                                                               
the  commission  has  the  discretion to  update  and  publish  a                                                               
partial list  of occupations.   Ms. Barrans continued  to explain                                                               
that the  definition is unique  to the needs-based  grant program                                                               
and she  questioned whether it  was appropriate to apply  to this                                                               
program.                                                                                                                        
                                                                                                                                
REPRESENTATIVE  CISSNA  opined  that  a  financial  incentive  is                                                               
important to  filling jobs.   With a  limited amount  of funding,                                                               
the  commission needs  to  have the  flexibility  and freedom  to                                                               
decide how to fill the most crucial jobs.                                                                                       
                                                                                                                                
CHAIR WILSON  asked Ms.  Ostnes and  Ms. Barrans  to work  on two                                                               
areas before the bill is before  the next committee:  the wording                                                               
on page  1, line 8, regarding  the severe shortage of  labor; and                                                               
the wording on  page 2, line 8, regarding  "grant", "benefit", or                                                               
"award."                                                                                                                        
                                                                                                                                
MS.  BARRANS  stated  that,  as  the  bill  currently  reads,  an                                                               
applicant  that  is  employed  in   a  job  of  severe  workforce                                                               
shortage, for  at least one  year, can submit an  application and                                                               
qualify for benefits.   This is a simply a  reward for people who                                                               
are already in those jobs.                                                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER said that that  is her point exactly.  The                                                               
legislation  gives   applicants  money  without   changing  their                                                               
behavior.   She  asked whether  the Department  of Education  and                                                               
Early Development has taken a position on the bill.                                                                             
                                                                                                                                
4:02:07 PM                                                                                                                    
                                                                                                                                
MS. BARRANS said no.                                                                                                            
                                                                                                                                
REPRESENTATIVE ROSES  withdrew his motion  to report HB  234 from                                                               
committee.                                                                                                                      
                                                                                                                                
4:02:49 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON   gave  an   example  of   teachers  being                                                               
recruited, due to  the teacher shortage in the  Bush, but instead                                                               
the teachers  go to  work in  Anchorage and  get $7,500  to repay                                                               
their  loans.    He  questioned   whether  this  situation  would                                                               
accomplish  the   purpose  of  the   bill  and  asked   for  this                                                               
possibility to be addressed by the sponsor.                                                                                     
                                                                                                                                
4:04:08 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  CISSNA  asked   whether  an  applicant  qualifies                                                               
"after  the fact"  and for  information on  job turn-over  rates.                                                               
She referred to an anticipated report on job turn-over rates.                                                                   
                                                                                                                                
MS. OSTNES  said that the  Department of Administration  (DOA) is                                                               
producing a  report on the  Alaska workforce  that is due  out in                                                               
February.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  CISSNA observed  that the  key thing  is data  so                                                               
that the committee can makes its determination based on fact.                                                                   
                                                                                                                                
REPRESENTATIVE  GARDNER   opined  that  merit   scholarships  can                                                               
address  shortages across  the state  as they  encourage kids  to                                                               
obtain their  schooling in  Alaska, and then  stay here  to work.                                                               
Regarding  state   employment,  she  said  that   she  felt  that                                                               
increasing pay  scales for state  workers is more  effective than                                                               
paying people from out of state to come here to work.                                                                           
                                                                                                                                
CHAIR WILSON pointed  out that some of the  [workforce] areas can                                                               
not be trained in Alaska.                                                                                                       
                                                                                                                                
REPRESENTATIVE  ROSES  recalled  that there  has  been  emergency                                                               
certification legislation  in the past  that dealt with  areas of                                                               
critical need  in the field  of education.  The  determination of                                                               
critical  need  in   the  field  of  education   is  reported  by                                                               
individual  school boards  to the  EED.   Therefore,  if the  DOL                                                               
obtains  its  information  from  the   EED,  the  source  of  the                                                               
information on shortages is actually the local school boards.                                                                   
                                                                                                                                
4:07:37 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON closed testimony on HB 234.                                                                                        
                                                                                                                                
[HB 234 was held over.]                                                                                                         
                                                                                                                                
HB 337-HEALTH CARE: PLAN/COMMISSION/FACILITIES                                                                                
                                                                                                                                
4:09:09 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON announced  that the next order of  business would be                                                               
HOUSE BILL NO.  337, "An  Act establishing the Alaska Health Care                                                               
Commission  and  the  Alaska   health  care  information  office;                                                               
relating to  health care planning and  information; repealing the                                                               
certificate of  need program for  certain health  care facilities                                                               
and  relating  to  the   repeal;  annulling  certain  regulations                                                               
required for  implementation of the  certificate of  need program                                                               
for  certain  health  care  facilities;   and  providing  for  an                                                               
effective date."                                                                                                                
                                                                                                                                
KARLEEN  JACKSON, Commissioner,  Department  of  Health &  Social                                                               
Services, informed  the committee  that the  first section  of HB
337  states  the requirement  that  the  Department of  Health  &                                                               
Social  Services (DHSS)  will implement  a statewide  health plan                                                               
and  create  the  Alaska  Health  Care  Commission.    Section  2                                                               
establishes a ten-member health  care commission with the purpose                                                               
to   develop   a  statewide   plan   to   address  the   quality,                                                               
accessibility, and availability of health  care in the state.  In                                                               
addition,  the commission  will  review and  approve health  care                                                               
facility  information  for  placement on  an  Internet  database.                                                               
Section 2  also specifies that  the plan will  contain strategies                                                               
for  encouraging personal  responsibility,  reducing health  care                                                               
costs,  access   to  safe  water  and   wastewater  systems,  the                                                               
development  of a  sustainable health  care workforce,  access to                                                               
quality health care,  and an increase in the  number of residents                                                               
who are covered by insurance.                                                                                                   
                                                                                                                                
REPRESENTATIVE  ROSES  asked  the  commissioner  to  discuss  the                                                               
composition of  the health care  commission board.  He  noted the                                                               
lack of care providers.                                                                                                         
                                                                                                                                
4:12:10 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  JACKSON explained  that commission  members include                                                               
representatives  from different  departments  of  the state,  for                                                               
example, the Department of Administration  (DOA), that need to be                                                               
involved in health  care.  There will also be  a member appointed                                                               
by the House and one by  the Senate, and three citizen members to                                                               
provide  consumer   representation.     She  observed   that  the                                                               
committee can make changes to the membership of the commission.                                                                 
                                                                                                                                
4:13:29 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES   stated  his   concern  that   boards  and                                                               
commissions  that  are  capable  of  making  policy  need  to  be                                                               
represented  by  stakeholders.    He  gave  the  example  of  the                                                               
Professional Teacher Practices  Commission.  Representative Roses                                                               
opined  that  medical  and care  giver  representatives  will  be                                                               
needed to provide essential data.                                                                                               
                                                                                                                                
4:15:04 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON  agreed.  However, she  noted the difficulty                                                               
of deciding who will be excluded from the provider seats.                                                                       
                                                                                                                                
REPRESENTATIVE ROSES  opined that excluding everybody  is not the                                                               
best way.                                                                                                                       
                                                                                                                                
REPRESENTATIVE    GARDNER    expressed   her    agreement    with                                                               
Representative  Roses.   She then  asked Commissioner  Jackson to                                                               
explain the need to include a small business owner.                                                                             
                                                                                                                                
COMMISSIONER  JACKSON stated  that small  business owners  do not                                                               
often have a voice in health care negotiations.                                                                                 
                                                                                                                                
CHAIR WILSON  stated her agreement; the  possibility of mandatory                                                               
employee insurance  coverage for  all businesses is  an important                                                               
issue for small business owners.                                                                                                
                                                                                                                                
4:17:18 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE GARDNER added that  many health care providers are                                                               
also small business owners.                                                                                                     
                                                                                                                                
REPRESENTATIVE   KELLER    expressed   his   belief    that   the                                                               
representation  of many  different  interest  groups will  create                                                               
gridlock.   He  encouraged the  formation of  a small  commission                                                               
that will not get caught up in disputes.                                                                                        
                                                                                                                                
CHAIR WILSON asked how many members were on the health council.                                                                 
                                                                                                                                
COMMISSIONER  JACKSON  answered  that there  were  twelve  voting                                                               
members and two ex-officio members.                                                                                             
                                                                                                                                
REPRESENTATIVE CISSNA acknowledged that  the difficult problem of                                                               
health  care is  a topic  that has  not been  very accessible  to                                                               
legislators.  She  stated her concern that, with  the high number                                                               
of state  representatives on  the commission,  there will  not be                                                               
enough voices  from across the state,  especially when developing                                                               
policy  for the  state.   In addition,  legislators are  only now                                                               
beginning to  get analysis  of the most  recent health  care data                                                               
available.   Representative Cissna  encouraged the study  of that                                                               
data  in  order  to  develop  the  proper  kind  of  health  care                                                               
commission.                                                                                                                     
                                                                                                                                
4:21:59 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  JACKSON  advised  that  there is  a  component  for                                                               
travel  for the  commission  to allow  for  visitations all  over                                                               
state in  order to hear  from community stakeholders.   She asked                                                               
for clarification of Representative Cissna's other concern.                                                                     
                                                                                                                                
REPRESENTATIVE   CISSNA   explained   that   the   analysis   the                                                               
legislators have  received is  incomplete.   In fact,  Alaska has                                                               
behavioral health  treatment studies that have  not been reported                                                               
to the legislature.  She noted  that $2 billion is being spent on                                                               
health care and  asked for details on what amount  is being spent                                                               
on aspects of behavioral and physical health care.                                                                              
                                                                                                                                
4:24:19 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  JACKSON informed  the committee  that there  are 70                                                               
reports posted on the health care council website.                                                                              
                                                                                                                                
REPRESENTATIVE CISSNA clarified that she  was referring to all of                                                               
the divisions  within health care.   She expressed  her intention                                                               
to  develop a  list of  issues to  address at  the next  hearing,                                                               
including, what the commission needs to  look at and from whom it                                                               
should hear  testimony.  The  previous health care  plan, written                                                               
in the  70s and 80s,  should be reviewed  in order to  learn from                                                               
the history of the state.                                                                                                       
                                                                                                                                
4:26:24 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON said that the  second component in Section 2                                                               
establishes an  Alaska health care  information office  that will                                                               
provide, at a website, consistently  updated health care facility                                                               
information  to consumers.   She  continued to  explain that,  to                                                               
provide  health   care  transparency,  the  state   must  provide                                                               
consumers   with  information   on  the   health  care   industry                                                               
including:  where  to find services;  what is  the cost; what the                                                               
other  options   are;  and  the   possibility  of   outcomes  for                                                               
procedures.   Florida has  a website  currently available  to its                                                               
residents.                                                                                                                      
                                                                                                                                
4:29:34 PM                                                                                                                    
                                                                                                                                
JAY  BUTLER,  M.  D.;  Chief   Medical  Officer,  Office  of  the                                                               
Commissioner, Department  of Health & Social  Services, described                                                               
his  search  for  a  prescription on  the  Florida  website  that                                                               
provided information on the price  of the prescription at various                                                               
pharmacies  in the  area.   The prices  ranged from  $11 to  $41.                                                               
Websites  in other  states allow  searches for  insurance carrier                                                               
coverage  and  descriptions  of   services  available  at  health                                                               
centers.   Dr.  Butler provided  descriptions of  the variety  of                                                               
information, including prevention, that can be posted.                                                                          
                                                                                                                                
4:32:28 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ROSES  asked   whether  the  prescription  quotes                                                               
compared brand names with generic equivalents.                                                                                  
                                                                                                                                
DR.  BUTLER responded  that he  was not  sure; however,  specific                                                               
information like this can be designed into the website.                                                                         
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  asked   whether  there  are  multiple                                                               
definitions  of medical  codes.   She also  asked how  a consumer                                                               
could compare the costs for different types of fractures.                                                                       
                                                                                                                                
DR. BUTLER explained that the  goal of the information website is                                                               
to  focus on  the greatest  majority of  health care  costs.   It                                                               
would  be  impossible  to  try   to  capture  the  costs  of  all                                                               
procedures.                                                                                                                     
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH asked how expensive  it will be for the                                                               
state to  develop a criteria  process, to define the  most common                                                               
drugs  and treatments,  so that  consumers can  make an  informed                                                               
choice.    To  protect  the  physician,  accuracy  must  also  be                                                               
maintained when  quoting rates,  and she  asked how  other states                                                               
provide a continuous update of information.                                                                                     
                                                                                                                                
DR. BUTLER stated that the  most common procedures are determined                                                               
by a review of claims data.                                                                                                     
                                                                                                                                
COMMISSIONER JACKSON reminded the  committee that the fiscal note                                                               
provides  for  employees  to  create   the  web  based  technical                                                               
components  of the  website,  and two  health  planners who  will                                                               
begin  developing the  website using  best practices  procedures.                                                               
Alaska is  at the beginning  of the  process and the  health care                                                               
commission will be providing many of the details.                                                                               
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  asked  how   much  Florida  spent  to                                                               
establish its website.   She noted that the  "software world" can                                                               
be very expensive.                                                                                                              
                                                                                                                                
REPRESENTATIVE  GARDNER suggested  that the  state could  buy the                                                               
software from an existing site.                                                                                                 
                                                                                                                                
COMMISSIONER JACKSON said that the  DHSS would provide answers to                                                               
both  of these  questions  at a  later date.    She continued  to                                                               
explain  that a  committee  substitute (CS)  would be  introduced                                                               
next week with more detailed information on this section.                                                                       
                                                                                                                                
REPRESENTATIVE   ROSES  expressed   his   support  of   reporting                                                               
information  on the  Internet.   However, he  stated his  concern                                                               
about  the  potential  harm of  inaccurate  reporting,  absent  a                                                               
strict  protocol for  the  provision  of services.    He gave  an                                                               
example  of  costs that  only  seemed  comparable, and  cautioned                                                               
about  creating  an  opportunity   for  improper,  unethical,  or                                                               
illegal behavior.                                                                                                               
                                                                                                                                
4:40:08 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON  agreed and  assured the committee  that the                                                               
site would be under the authority of the chief medical officer.                                                                 
                                                                                                                                
DR. BUTLER  added that an  aspect of the disclosure  of reporting                                                               
is  that  quality data,  like  cost  data,  can be  difficult  to                                                               
determine.   There are  certain benchmarks;  for example,  one of                                                               
the states  reports in-hospital complication rates  and mortality                                                               
rates, along with costs.                                                                                                        
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  recalled that the  committee discussed                                                               
self  medication,  over-dosing,  and  drug seeking.    She  asked                                                               
whether the state can prevent abuse of the system.                                                                              
                                                                                                                                
4:42:51 PM                                                                                                                    
                                                                                                                                
DR. BUTLER  said that he  was not  sure how reporting  price data                                                               
would alter drug seeking behavior.                                                                                              
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH  pointed  out that  medical  providers                                                               
have   testified  that   advertising  a   pharmaceutical  product                                                               
encourages patients to advocate for its use.                                                                                    
                                                                                                                                
CHAIR WILSON expressed her understanding  that this bill will put                                                               
on-line the  cost of health care  for an individual who  wants to                                                               
know how  much a procedure will  cost, and thus will  help people                                                               
help themselves.                                                                                                                
                                                                                                                                
4:45:06 PM                                                                                                                    
                                                                                                                                
DR. BUTLER demonstrated how to  use the Florida website, using an                                                               
illustrative patient and medication.                                                                                            
                                                                                                                                
REPRESENTATIVE FAIRCLOUGH  asked whether there is  recourse for a                                                               
consumer if the information is not accurate.                                                                                    
                                                                                                                                
DR. BUTLER said that he did  not know and advised that a consumer                                                               
should call  the provider  and confirm  prices.   He acknowledged                                                               
that the accuracy of the information is critical.                                                                               
                                                                                                                                
REPRESENTATIVE ROSES  related a  personal anecdote  and re-stated                                                               
his  caution about  the state's  website providing  "advertising"                                                               
for products.                                                                                                                   
                                                                                                                                
4:50:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KELLER   stressed    the   importance   of   the                                                               
individual's   responsibility  in   his  or   her  health   care,                                                               
particularly in the  price that is paid for drugs.   He commended                                                               
the DHSS for its work.                                                                                                          
                                                                                                                                
CHAIR  WILSON  asked  whether  the   information  website  was  a                                                               
recommendation of the health care council.                                                                                      
                                                                                                                                
REPRESENTATIVE GARDNER said yes.                                                                                                
                                                                                                                                
COMMISSIONER JACKSON  agreed and  noted that the  Florida website                                                               
was endorsed by the Florida attorney general.                                                                                   
                                                                                                                                
4:51:39 PM                                                                                                                    
                                                                                                                                
DR.  BUTLER  continued  to demonstrate  the  comparison  of  drug                                                               
prices on the Florida website.                                                                                                  
                                                                                                                                
4:52:48 PM                                                                                                                    
                                                                                                                                
COMMISSIONER  JACKSON said  that the  proposed bill  will require                                                               
health  care   facilities,  home   and  community   based  waiver                                                               
services, and personal care attendants,  to provide the DHSS with                                                               
information  related   to  their   costs,  types   of  insurance,                                                               
location, and facilities.                                                                                                       
                                                                                                                                
DR.  BUTLER added  that  web  site data  that  is customized  and                                                               
interactive can make  a difference in the  prevention of disease.                                                               
He  related  the success  of  a  Kentucky wellness  website  that                                                               
improved the health of state employees.                                                                                         
                                                                                                                                
4:54:36 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON  informed the committee  that part 3  of the                                                               
bill,  with   the  exception  of   Section  5   that  establishes                                                               
administrative support for the  health care commission, addresses                                                               
the  repeal of  the Certificate  of Need  program.   She recalled                                                               
that the CON program was put  in place to increase access to care                                                               
and  to keep  the cost  of  facility care  down; however,  better                                                               
tools to  serve these purposes  are now available.   Commissioner                                                               
Jackson noted that there are  nine active lawsuits that the state                                                               
must defend concerning denied CON  applications.  She referred to                                                               
the CS that proposes to repeal the CON by a two year process.                                                                   
                                                                                                                                
REPRESENTATIVE ROSES  reminded the committee that  past testimony                                                               
regarding the  CON was  heard last session  and the  parties were                                                               
encouraged  to   work  on  a   compromise.    He   expressed  his                                                               
understanding   that  the   offered  compromise   has  not   been                                                               
incorporated into the bill.                                                                                                     
                                                                                                                                
COMMISSIONER JACKSON expressed her  appreciation of the work that                                                               
was done  by the negotiated  rule-making task force.   There were                                                               
recommendations  made,  although  the  recommendations  were  not                                                               
unanimous.   Some of the  recommendations suggested  the addition                                                               
of staff  for enforcement  and data  collection.   She encouraged                                                               
the committee  to read  the report  that was  issued by  the task                                                               
force.                                                                                                                          
                                                                                                                                
5:00:11 PM                                                                                                                    
                                                                                                                                
CHAIR WILSON  pointed out  that the report  is very  detailed and                                                               
will be reviewed at a later hearing.                                                                                            
                                                                                                                                
REPRESENTATIVE GARDNER  asked how the health  care commission and                                                               
health information website  is related to the repeal  of the CON.                                                               
If  they are  related, she  suggested that  the repeal  should be                                                               
delayed until after the commission and website are underway.                                                                    
                                                                                                                                
5:02:09 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON  explained that  part of  the issue  is that                                                               
the work  done so far,  by the CON  task force, would  not remove                                                               
current  or future  lawsuits.   She opined  that the  health care                                                               
commission and  the website will  begin to serve the  purposes of                                                               
the  CON; furthermore,  the current  lawsuits  would become  moot                                                               
under the proposed bill.                                                                                                        
                                                                                                                                
REPRESENTATIVE  GARDNER expressed  her  doubt as  to how  listing                                                               
costs and consumer information will  affect the cost to hospitals                                                               
of providing necessary services.                                                                                                
                                                                                                                                
REPRESENTATIVE  FAIRCLOUGH asked  for  the  purpose of  proposing                                                               
three  bills in  one, as  opposed to  three separate  components.                                                               
She suggested  that the committee could  delete the controversial                                                               
issue  in order  to  move  forward with  other  components.   She                                                               
further  asked  about  the  liability   of  an  open  market  and                                                               
deregulation.                                                                                                                   
                                                                                                                                
REPRESENTATIVE   CISSNA   asked   whether  there   has   been   a                                                               
comprehensive market  study done on  the communities that  may be                                                               
affected by the legislation.                                                                                                    
                                                                                                                                
5:05:25 PM                                                                                                                    
                                                                                                                                
COMMISSIONER JACKSON said that she was not aware of one.                                                                        
                                                                                                                                
[HB 337 was held over.]                                                                                                         
                                                                                                                                
5:06:10 PM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no further business before the committee, the House                                                                 
Health, Education and Social Services Standing Committee meeting                                                                
was adjourned at 5:06:10 PM.                                                                                                  
                                                                                                                                
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